Forgive and Forget: Can Brand Transgression Lead to Behavioral Intention?

Document Type : Research Paper

Authors

1 Faculty of Business and Management, Universiti Teknologi MARA, Puncak Alam, Selangor, Malaysia

2 Faculty of Business and Management Universiti Teknologi MARA Puncak Alam, Selangor, Malaysia

Abstract

The aim of this research is to expand the corpus of knowledge relating to the antecedents and outcomes of brand forgiveness among Islamic banking customers in Malaysia. Despite a plethora of research that has examined the linkage between brand transgression and brand forgiveness, the current study further strengthen research in this domain by integrating the role of transgression severity, religiosity, and behavioral intention as one research model. Data was collected from 211 customers who encountered unfavorable experience with Islamic banking services by using purposive and retrospective experience sampling technique. PLS-SEM approach was utilized by using SmartPLS software for data analysis. The findings demonstrate the significant role of two brand transgression dimensions (image incongruence and corporate wrongdoing), transgression severity, and religiosity on brand forgiveness. Brand forgiveness was also found to significantly related to behavioral intention. However, one dimension of brand transgression (negative past experience) did not significantly influence brand forgiveness. The findings offer novel insights for extant literature on negative brand relationship, as well as theoretical and practical implications regarding the antecedents and outcomes of brand forgiveness. Limitations and suggestions that can be considered by future studies are also highlighted in this paper.

Keywords

Main Subjects

References

Aaker, J., Fournier, S., & Brasel, S. A. (2004). When good brands do bad. Journal of Consumer Research, 31(1), 1-16.
Ahmed, Z., Anang, R., Othman, N., & Sambasivan, M. (2013). To Purchase or Not to Purchase US Products: Role of Religiosity, Animosity, and Ethno-Centrism Among Malaysian Consumers. Journal of Services Marketing, 27(7), 551-563.
Arli, D. (2017). Does ethics need religion? Evaluating the importance of religiosity in consumer ethics. Marketing Intelligence & Planning, 35(2), 205-221. https://doi.org/10.1108/MIP-06-2016-0096
Arli, D., & Tjiptono, F. (2014). The end of religion? Examining the role of religiousness, materialism, and long-term orientation on consumer ethics in Indonesia. Journal of Business Ethics, 123(3), 385-400.
Asmawati, S. (2005). Pemantapan Komponen Akhlak Dalam Pendidikan Islam Bagi Menangani Era Globalisasi (Strengthening the Moral Component in Islamic Education to Address the Era of Globalization). Jurnal Kemanusiaan (Humanities Journal), 6, 95-103.
Bryman, A., & Bell, E. (2015). Business Research Methods (4th ed.). Oxford University Press.
Cantor, V. J. M., & Li, R. C. (2019). Matching service failures and recovery options toward satisfaction. The Service Industries Journal, 39(13), 901-924.
Choi, Y., Paulraj, A., & Shin, J. (2013). Religion or Religiosity: Which is the Culprit for Consumer Switching Behavior? Journal of International Consumer Marketing, 25(4), 262-280.
Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences. Hillsdale, New Jersey: Academic Press.
Collins, M. (2017). Sampling decisions in educational research. BERA/SAGE.
Dutta, S., & Pullig, C. (2011). Effectiveness of corporate responses to brand crises: The role of crisis type and response strategies. Journal of Business Research, 64(12), 1281-1287.
Eid, R., & El-Gohary, H. (2015). The Role of Islamic Religiosity on the Relationship between Perceived Value and Tourist Satisfaction. Tourism Management, 46, 477-488.
Escher, D. (2013). How Does Religion Promote Forgiveness? Linking Beliefs, Orientations, and Practices. Journal for the Scientific Study of Religion, 52(1), 100-119.
Fetscherin, M., & Sampedro, A. (2019). Brand forgiveness. Journal of Product & Brand Management, 28(5), 633-652. https://doi.org/https://doi.org/10.1108/JPBM-04-2018-1845
Fincham, F. D., Jackson, H., & Beach, S. R. (2005). Transgression severity and forgiveness: Different moderators for objective and subjective severity. Journal of Social and Clinical Psychology, 24(6), 860-875.
Finkel, E. J., Rusbult, C. E., Kumashiro, M., & Hannon, P. A. (2002). Dealing with betrayal in close relationships: Does commitment promote forgiveness? Journal of Personality and Social Psychology, 82(6), 956.
Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18, 39-50.
Gefen, D., Straub, D., & Boudreau, M.C. (2000). Structural Equation Modeling and Regression: Guidelines for Research Practice. Communications of the association for information systems, 4(1), 7.
Gold, A. H., Malhotra, A., & Segars, A. H. (2001). Knowledge management: An organizational capabilities perspective. Journal of management information systems, 18(1), 185-214.
Hafasnuddin & M. Shabri Abd. Majid (2022). What drives Islamic banking
customers’ satisfaction and loyalty: financial or spiritual benefits?, Journal of Sustainable Finance & Investment, https://doi.org/10.1080/20430795.2022.2105789
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). 3rd Edition. Thousand Oaks: Sage.
Hair, J., Black, W., Babin, B., & Anderson, R. (2013). Multivariate data analysis. illustrated, revised. In: Pearson Education Limited Upper Saddle River.
Harrison-Walker, L. J. (2019). The critical role of customer forgiveness in successful service recovery. Journal of Business Research, 95, 376-391.
Hassey, R. V. (2019). How brand personality and failure-type shape consumer forgiveness. Journal of Product & Brand Management, 28(2), 300-315. https://doi.org/https://doi.org/10.1108/JPBM-09-2017-1563
Henseler, J., C. M. Ringle, and M. Sarstedt. 2015. A new criterion for assessing discriminant validity in Variancebased Structural Equation Modeling. Journal of the Academy of Marketing Science, 43 (1): 115–35. doi: 10.1007/s11747-014-0403-8.
Ho, M. Y., & Worthington, E. L. (2020). Is the concept of forgiveness universal? A cross-cultural perspective comparing western and eastern cultures. Current Psychology, 39(5), 1749-1756.
Hulin, C., Netemeyer, R., & Cudeck, R. (2001). Can a reliability coefficient be too high? Journal of Consumer Psychology, 10(1/2), 55-58.
Islamic Financial Services Boards (2020). Islamic Financial Services Industry Stability Report 2020. Kuala Lumpur: Islamic Financial Services Board. https://www.ifsb.org/download.php?id =5724&lang = English&pg = /sec03.php
Ismail, M. N., Mohideen, M. T. O. K., & Togok, S. H. (2009). Forgiveness and Revenge: Empirical Study of Malaysian Business Employees. Contemporary Management Research, 5(3).
Jaroenwanit, P., & Chueabunko, A. (2015). The power of forgiveness toward repurchase intention. BU Academic Review, 14(2), 118-134.
Karani, K. S. (2021). Forgiving a loved brand in the face of a transgression: An exploratory study. Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, 34, 119-131.
Karaosmanoglu, E., Isiksal, D. G., & Altinigne, N. (2018). Corporate brand transgression and punishing the transgressor: Moderation of religious orientation. Journal of Product & Brand Management, 27(2), 221-234. https://doi.org/10.1108/JPBM-01-2017-1388
Khamitov, M., Grégoire, Y., & Suri, A. (2019). A systematic review of brand transgression, service failure recovery and product-harm crisis: integration and guiding insights. Journal of the Academy of Marketing Science, 1-24.
Kline, R. B. (2011). Convergence of structural equation modeling and multilevel modeling. In M. Williams (Ed.), Handbook of methodological innovation. Thousand Oaks, CA: Sage.
Kuo, Y.-F., & Wu, C.-M. (2012). Satisfaction and Post-Purchase Intentions with Service Recovery of Online Shopping Websites: Perspectives on Perceived Justice and Emotions. International Journal of Information Management, 32(2), 127-138.
Lowry, P. B., & Gaskin, J. (2014). Partial Least Squares (PLS) Structural Equation Modeling (SEM) for Building and Testing Behavioral Causal Theory: When to Choose It and How to Use It. IEEE Transactions on Professional Communication, 57(2), 123-146.
Lu, C.-S., Shang, K.-C., & Lin, C.-C. (2016). Identifying crucial sustainability assessment criteria for container seaports. Maritime Business Review, 1(2), 90-106. https://doi.org/0.1108/MABR-05-2016-0009
MacKenzie, S. B., & Podsakoff, P. M. (2012). Common Method Bias in Marketing: Causes, Mechanisms, and Procedural Remedies. Journal of Retailing, 88(4), 542-555.
Mantovani, D., Korelo, J. C., & Ibarra, J. (2018). Effects of brand transgressions on third-party consumers. Marketing Intelligence & Planning, 36(3), 306-317.
Maskey, R., Fei, J., & Nguyen, H.-O. (2018). Use of exploratory factor analysis in maritime research. The Asian journal of shipping and logistics, 34(2), 91-111.
Mohammed Sani, I., Mohd Izham, M. H., & Jainabee, M. K. (2007, 18-19 August 2007). Tahap Pengurusan Konflik Dalam Kalangan Guru Besar-Guru Besar dan Guru-Guru di Sekolah Rendah (Levels of Conflict Management Among Headmasters and Teachers in Primary Schools) The 5th ASEAN Symposium on Educational Management and Leadership (ASEMAL 5), Kuala Lumpur, Malaysia.
Muhammad Hafiz, A. R., Fauziah, S. A., & Rahayu, H. (2015). Service Recovery and Satisfaction: The Moderating Role of Religiosity In Theory and Practice in Hospitality and Tourism Research (pp. 535-539). Taylor & Francis.
Muhammad Hafiz, A. R., Muhammad Iskandar, H., Aida Azlina, M., & Syukrina Alini, M. A. (2021). Coping with service failure and recovery in restaurant: Does being religious matter? Journal of Foodservice Business Research, 1-18.
Nikbin, D., Marimuthu, M., Hyun, S. S., & Ismail, I. (2014). Relationships of perceived justice to service recovery, service failure attributions, recovery satisfaction, and loyalty in the context of airline travelers. Asia Pacific Journal of Tourism Research, 20(3), 1-24. https://doi.org/10.1080/10941665.2014.889028
Nobi, B., Kim, K.-M., & Lee, S. (2021). The aftermath of a brand transgression: The role of brand forgiveness and brand evangelism. Journal of Asia Business Studies. https://doi.org/10.1108/JABS-05-2021-0204
Nunally, J. C. (1978). Psychometric Theory. New York: McGraw-Hill.
Nurul Fazleen, M. Z., Norshima, H. & Muhammad Hafiz, A. R. (2022). Mobile commerce applications service quality in enhancing customer loyalty intention: mediating role of customer satisfaction. Journal of Financial Services Marketing. https://doi.org/10.1057/s41264-022-00190-9
Omar, N. A., Abdullah, N. L., Zainol, Z., & Nazri, M. A. (2021). Consumers’ responsiveness towards contaminated canned sardine in Malaysia: Does perceived severity matter? Food Control, 123, 107780.
Owen, A. D. (2008). A cross-cultural study of the concept and process of forgiveness University of Wisconsin--Madison].
Pallant, J. (2013). SPSS Survival Manual (5th, Ed.). McGraw-Hill.
Panagiotopoulou, E. (2019). Ethical Orientation and brand forgiveness in the context of perceived brand transgressions International Hellenic University]. Greece.
Park, J. K., & John, D. R. (2018). Developing brand relationships after a brand transgression: The role of implicit theories of relationships. Journal of the Association for Consumer Research, 3(2), 175-187.
Paul, J. (2019). Marketing in emerging markets: A review, theoretical synthesis and extension. International Journal of Emerging Markets. https://doi.org/10.1108/IJOEM-04-2017-0130
Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies. Journal of applied psychology, 88(5), 879.
Prasongsukarn, K., & Patterson, P. G. (2012). An Extended Service Recovery Model: The Moderating Impact of Temporal Sequence of Events. Journal of Services Marketing, 26(7), 510-520.
Rama, A. (2017). An exploration of customers' switching behaviour in Islamic banking industry. Journal of Islamic Monetary Economics and Finance, 2(2), 251-286.
Ramayah, T., Cheah, J., Chuah, F., Ting, H., & Memon, M. A. (2018). Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 3.0: An Updated and Practical Guide to Statistical Analysis. Kuala Lumpur: Malaysia: Pearson.
Ran, Y., Wei, H., & Li, Q. (2016). Forgiveness from emotion fit: Emotional frame, consumer emotion, and feeling-right in consumer decision to forgive. Frontiers in psychology, 7, 1775. https://doi.org/10.3389/fpsyg.2016.01775
Ringle, Christian M., Wende, Sven, & Becker, Jan-Michael. (2022). SmartPLS 4. Oststeinbek: SmartPLS. Retrieved from https://www.smartpls.com
Rod, M., Ashill, N. J., & Gibbs, T. (2016). Customer perceptions of frontline employee service delivery: A study of Russian bank customer satisfaction and behavioural intentions. Journal of Retailing and Consumer Services, 30, 212-221.
Rye, M. S., & McCabe, C. F. (2014). Religion and forgiveness of others. In Religion and Spirituality Across Cultures (pp. 303-318). Springer.
Salagrama, R., Prashar, S., & Tata, S. V. (2021). Examining the influence of forgiveness and its antecedents on consumer behavior: the moderating role of service failure severity. International Journal of Emerging Markets. https://doi.org/10.1108/IJOEM-11-2020-1378
Sekaran, U., & Bougie, R. (2010). Research methods for business: A skill building approach. In (5th ed.). United Kingdom: John Wiley & Sons.
Shimul, A. S., Barber, M., & Abedin, M. I. (2021). Celebrity transgression and consumers’ forgiveness: does religiosity matter? Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-06-2020-0184
Tsarenko, Y., Strizhakova, Y., & Otnes, C. C. (2019). Reclaiming the future: Understanding customer forgiveness of service transgressions. Journal of Service Research, 22(2), 139-155.
Tsarenko, Y., & Tojib, D. (2012). The Role of Personality Characteristics and Service Failure Severity in Consumer Forgiveness and Service Outcomes. Journal of Marketing Management, 28(9-10), 1217-1239.
Tsarenko, Y., & Tojib, D. (2015). Consumers’ forgiveness after brand transgression: The effect of the firm’s corporate social responsibility and response. Journal of Marketing Management, 31(17-18), 1851-1877.
Wang, Y. S., Wu, S. C., Lin, H. H., & Wang, Y. Y. (2011). The relationship of service failure severity, service recovery justice and perceived switching costs with customer loyalty in the context of e-tailing. International Journal of Information Management, 31(4), 350-359.
Wong, K. K. K. (2013). Partial Least Squares Structural Equation Modeling (PLS-SEM) Techniques Using SmartPLS. Marketing Bulletin, 24(1), 1-32.
Wood, E. H. (2010). This is how I feel - This is how I felt: Experience sampling at marketing events Academy of Marketing Conference, Coventry University, UK.
Wood, E. H., & Moss, J. (2015). Capturing emotions: experience sampling at live music events. Arts and the Market, 5(1), 45-72. https://doi.org/10.1108/AM-02-2013-0002
Worthington, E. L., Wade, N. G., Hight, T. L., Ripley, J. S., McCullough, M. E., Berry, J. W., Schmitt, M. M., Berry, J. T., Bursley, K. H., & O'Connor, L. (2003). The Religious Commitment Inventory 10: Development, Refinement and Validation of a Brief Scale for Research and Counseling. Journal of Counseling Psychology, 50(1), 84.
Zikmund, W., Babin, B., Carr, J., & Griffin, M. (2012). Business Research Methods. Cengage Learning.
 
 
Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies)
Volume 16, Issue 4
October 2023
Pages 973-988

Files

Share

How to cite

Statistics