Decoding consumers' CSR scepticism: service recovery experience perspective

Abstract

PurposeThis study examines the impact of the brand's corporate social responsibility (CSR) on consumers' brand experience and, in turn, consumers' intention of word-of-mouth (WoM). The study also investigates customer satisfaction with service recovery (CSATR) as a boundary condition for the proposed relationship.Design/methodology/approachThe study used a survey-based research design to test the conceptual model. A structured questionnaire was distributed to the participants through a survey link. A total of 276 valid responses were used and analysed using Smart PLS3, a structural equation modelling technique.FindingsResults of this study demonstrate that perceived CSR have a positive impact on brand experience which eventually affects the WoM intention. Also CSATR moderates the relationship between brand experience and WoM such that satisfaction (dissatisfaction) with service recovery enhances (reduces) the effect of brand experience on WoM.Practical implicationsManagers can use CSR as a communication tool to enhance consumers' brand experience and focus on service recovery as a successful service recovery can enhance WoM over and above CSR.Originality/valueTo the best of the authors' knowledge, this is the first study to demonstrate brand experience as a mediator of CSR and WoM from the lens of signalling theory. The study also tries to address the scepticism of the consumers related to WoM for a brand's CSR by incorporating the service aspect into the CSR.