Effects of customer forgiveness on brand betrayal and brand hate in restaurant service failures: does apology letter matter?

This study aims to evaluate the effect of customer forgiveness on perceived brand betrayal and the outcomes of brand hate in the restaurant industry. The mediating role of perceived brand betrayal in restaurant service failures is examined. In addition, this study compares the effects of customer forgiveness on brand betrayal and brand hate between two groups of customers with and without apology letter after service failure. A total of 815 questionnaires were collected from two groups of customers of restaurants in Tehran, Iran. The findings show customer forgiveness negatively influences brand betrayal and three outcomes of brand hate for both groups. In addition, the findings reveal significant differences between the two groups in the effects of customer forgiveness and brand betrayal on brand hate outcomes. This study has a significant theoretical contribution by examining the effects of customer forgiveness as a healing power on customer negative emotions and behavior.