Skip to main content
  • Research Article
  • Published:

The effect of win-back investment on lost consumers’ intention of reinitiating relationship

Abstract

This research studies the effect of win-back strategy on reinitiating brand-consumer relationship (BCR) by examining three commonly adopted strategies, namely apology, tangible reward, and privilege. Empirical findings demonstrate that these strategies have different effects on consumers’ intention of reinitiating relationship (CIRR). More specifically, whereas consumers will show positive CIRR if a transgression brand employs the strategies of apology, tangible reward and privilege, consumers’ perception of apology has the most significant effect. In addition, this study also tests the moderating role of brand relationship quality on CIRR. Results show that if the brand-relationship quality prior to brand transgression is high, win-back strategies will have more positive effects on CIRR, and vice versa.

References

  • Aaker J, Fournier S, Brasel S (2001). Charting the Development of Consumer-Brand Relationships. Research Paper Series, Graduate School of Business, Stanford University

  • Anderson E, Barton A W (1992). The use of pledges to build and sustain commitment in distribution channels. Journal of Marketing Research, 29: 18–34

    Article  Google Scholar 

  • Anderson J C, Narus J A (1990). A model of distributor firm and manufacturer firm working partnerships. Journal of Marketing, 54: 42–58

    Article  Google Scholar 

  • Bagozzi R P (1995). Reflections on relationship marketing in consumer markets. Journal of the Academy of Marketing Science, 23(4): 272–277

    Article  Google Scholar 

  • Bagozzi R P, Mahesh G, Prashanth U N (1999). The role of emotions in marketing. Journal of the Academy of Marketing Science, 27(2): 184–206

    Article  Google Scholar 

  • Bagozzi R P, Yi Y (1989). On the use of structural equation models in experimental designs. Journal of Marketing Research, 26: 271–284

    Article  Google Scholar 

  • Baron R M, Kenny D A (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6): 1173–1182

    Article  Google Scholar 

  • Berry L L (1995). Relationship marketing of services-growing interest, emerging perspectives. Journal of the Academy of Marketing Science, 23(4): 236–245

    Article  Google Scholar 

  • Bottom W P, Gibson K, Daniels S E, Murnighan J K (2002). When’ talk is not cheap: Substantive penance and expressions of intent in rebuilding cooperation. Organization Science, 13(5): 497–513

    Article  Google Scholar 

  • Breivik E, Thorbjornsen H (2008). Consumer brand relationships: An investigation of two alternative models. Journal of the Academy of Marketing Science, 36: 443–472

    Article  Google Scholar 

  • Dodds W B, Monroe K B, Grewal D (1991). Effects of price, brand and store information on buyers’ product evaluations. Journal of Marketing Research, 28: 307–319

    Article  Google Scholar 

  • Fajer M T, Schouten J W (1995). Breakdown and dissolution of person-brand relationships. Advances in Consumer Research, 22(1): 663–667

    Google Scholar 

  • Fishbein M, Ajzen I (1975). Belief, Attitude, Intentions and Behavior: An Introduction to Theory and Research. Boston, MA: Addison-Wesley

    Google Scholar 

  • Fournier S (1998). Consumer and their brands: Developing relationship theory in consumer research. Journal of Consumer Research, 24(3): 343–373

    Article  Google Scholar 

  • Gadde L E, Mattsson L G (1987). Stability and change in network relationships. International Journal of Research in Marketing, 4(1): 29–41

    Article  Google Scholar 

  • Garbarino E, Mark S J (1999). The different role of satisfaction, trust, and commitment in customer relationships. Journal of Marketing, 63: 70–87

    Article  Google Scholar 

  • Gassenheimer J B, Houston F S, Davis J C (1998). The role of economic value, social value and perceptions of fairness in interorganizational relationship retention decisions. Journal of the Academy of Marketing Science, 26(4): 322–337

    Article  Google Scholar 

  • Grewal D, Monroe K B, Krishnan R (1998). The effects of price-comparison advertising on buyers’ perceptions of acquisition value, transaction value, and behavioral intentions. Journal of Marketing, 62: 46–59

    Article  Google Scholar 

  • Griffin J, Lowenstein M W (2001). Winning back a lost customer. Direct Marketing, 64(3):49–65

    Google Scholar 

  • Gundlach G T, Achrol R S, Mentzer J T (1995). The structure of commitment in exchange. Journal of Marketing, 59: 78–92

    Article  Google Scholar 

  • Hart C W L, Heskett J L, Sasser W E J (1990). The profitable art of service recovery. Harvard Business Review, 68(4): 148–156

    Google Scholar 

  • Havila V, Wilkinson I F (2002). The principle of the conservation of business relationship energy or many kinds of new beginnings. Industrial Marketing Management, 31(3):191–200

    Article  Google Scholar 

  • Helfert M, Clemens H, Gregor Z (2003). Customer regains management in E-business: Processes and measures. Proceedings of the Collector (Europe) Conference, 97–110

  • Hennig-Thurau T, Hansen U (2000). Relationship Marketing: Gaining Competitive Advantage through Customer Satisfaction and Customer Retention. Berlin: Springer-Verlag

    Google Scholar 

  • Hennig-Thurau T, Gwinner K P, Gremlar D D (2002). Understanding relationship marketing outcomes. Journal of Service Research, 4(3): 230–247

    Article  Google Scholar 

  • Huang J, Xiong W (2007). Consumer-brand relationship’s rupture and resumption: A theory review and outlook. Foreign Economics and Management, 7: 19–21

    Google Scholar 

  • Hunt S D (2002). Foundations of Marketing Theory: Toward a General Theory of Marketing. Armonk, NY: M.E. Sharpe

    Google Scholar 

  • Huppertz J W, Sidney J A, Richard H E (1978). An application of equity theory to buyer-seller exchanges situations. Journal of Marketing, 15(2): 250–260

    Article  Google Scholar 

  • Larson A (1992). Network dyads in entrepreneurial settings: A study of the governance of exchange relationships. Administrative Science Quarterly, 37: 76–104

    Article  Google Scholar 

  • Lewicki R J, Bunker B B (1996). Developing and maintaining trust in working relationships, in: Kramer R M, Tyler T R (eds.), Trust in Organizations: Frontiers of Theory and Research. Thousand Oaks, CA: Sage Publications, 114–139

    Google Scholar 

  • Morgan R M, Hunt S D (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3): 20–38

    Article  Google Scholar 

  • Ohbuchi K, Kameda M, Agarie N (1989). Apology as aggression control: Its role in mediating appraisal of and response to harm. Journal of Personality and Social Psychology, 56:219–227

    Article  Google Scholar 

  • Peterson R A (1995). Relationship marketing and the consumer. Journal of the Academy of Marketing Science, 23(4): 278–281

    Article  Google Scholar 

  • Reichheld F, Sasser Jr. F, Earl W (1990). Zero defections: Quality comes to services. Harvard Business Review, 68(5): 105–111

    Google Scholar 

  • Reinartz W J, Kuma V (2000). On the profitability of long-life customers in a noncontractual setting: An Empirical investigation and implications for marketing. Journal of Marketing, 64:17–35

    Article  Google Scholar 

  • Schwartz G S, Kane T R, Joseph J M, Tedeschi J T (1978). The effects of post-transgression remorse on perceived aggression, attributions of intent and level of punishment. British Journal of Social and Clinical Psychology, 17: 292–297

    Google Scholar 

  • Sheth J N, Parvatiyar A (1995). Relationship marketing in consumer markets: Antecedents and consequences. Journal of the Academy of Marketing Science, 23(4): 255–271

    Article  Google Scholar 

  • Sheth J N, Parvatiyar A (2001). Customer relationship management: Emerging practice, process, and discipline. Journal of Economic and Social Research, 3(2): 1–34

    Google Scholar 

  • Singh J, Sirdeshmukh D (2000). Agency and trust mechanisms in consumer satisfaction and loyalty judgments. Journal of the Academy of Marketing Science, 28(1): 150–167

    Article  Google Scholar 

  • Smith A K, Bolton R N, Wagner J (1999). A model of customer satisfaction with service encounters involving failure and recovery. Journal of Marketing Research, 36(3): 356–389

    Article  Google Scholar 

  • Smith J B (1998). Buyer-seller relationships: Bonds, relationship management, and sex type. Canadian Journal of Administrative Sciences, 15(1): 76–92

    Google Scholar 

  • Smith J B, Barclay W B (1997). The effect of organizational differences and trust of effectiveness of selling partner relationship. Journal of Marketing, 61: 3–21

    Article  Google Scholar 

  • Stauss B, Christian F (1999). Regaining service customers. Journal of Service Research, 1(4):347–361

    Article  Google Scholar 

  • Thomas J S, Robert C B, Edward J F (2004). Recapturing lost customers. Journal of Marketing Research, 41(1): 31–45

    Article  Google Scholar 

  • Tokman M, Davis L M, Lemon K N (2007). The WOW factor: Creating value through win-back offers to reacquire lost customers. Journal of Retailing, 83(1): 47–64

    Article  Google Scholar 

  • Wulf K D, Odekerken-Schroder G, Laccobuci D (2001). Investment in consumer relationships: A cross-country and cross-industry exploration. Journal of Marketing, 65: 33–50

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Jing Huang.

Additional information

__________

Translated from Zhongguo Ruankexue 中国软科学 (China Soft Science), 2009, (6): 119–127

Rights and permissions

Reprints and permissions

About this article

Cite this article

Huang, J., Xiong, W. The effect of win-back investment on lost consumers’ intention of reinitiating relationship. Front. Bus. Res. China 4, 485–497 (2010). https://doi.org/10.1007/s11782-010-0107-y

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11782-010-0107-y

Keywords