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PurposeThis study aims to examine the role played by brand equity orientation and failure type in service recovery. Specifically, through the lens of forgiveness, the way brand equity orientation and failure type influence consumer response to recovery is revealed.Design/methodology/approachThis research tests a novel model using data collected from 1,589 consumers in two scenario-based experimental studies. The statistical product and service solutions (SPSS) program with the PROCESS tool was used to test the mediation and moderated mediation effects.FindingsThe research findings suggest that forgiveness plays a mediation role in the relationship between recovery and satisfaction. Brand equity orientation moderates the mediation effect of forgiveness on the relationship between recovery and recovery satisfaction. In addition, failure type also plays an important role and there is a significant three-way interaction effect (service recovery × brand equity orientation × failure type) on recovery satisfaction under certain circumstances.Research limitations/implicationsBuilding on the extant literature which focuses on the cognitive process when investigating recovery and consumer reaction, this research advocates the significant role played by the psychological process, namely, the feeling of forgiveness, in explaining the effect of distinct recovery strategies on consumer satisfaction. This research also unveils the effects of brand equity orientation and failure type on recovery outcomes.Practical implicationsWhen addressing performance failure, brand equity orientation and failure type need to be identified. Businesses could develop recovery strategies to arouse consumer forgiveness, which would lead to increased recovery satisfaction. When designing recovery strategies, managers need to be mindful of the effects of brand equity orientation and failure type.Originality/valueThis research is one of the few which reveals the mediating role played by forgiveness on the effect of recovery. Taking brand equity orientation and failure type into consideration, the findings of this research provide new insights into the recovery literature.

AbstractThis study aims to explain a commonly overlooked risk phenomenon where a community living around a hazardous facility adapts itself to the dangers posed by the facility. A survey of 434 residents was administered in the community around the Botian chemical plant in Tianjin, China. Hierarchical regression analyses indicate that place attachment negatively predicts intention to move away and positively predicts intention to protest. Moreover, it negatively moderates the relationship between risk perception and intention to move away. Employment relationship negatively affects intention to move and protest, and it negatively (positively) moderates the relationship between risk perception and intention to move (intention to protest). The total effects of place attachment and employment relationship weaken the positive effect of risk perception on protective responses.