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The purpose of this study is to examine the roles of after-sales service quality, relationship quality, customer empathy and forgiveness in the process of product failure recovery. Specifically, the two qualities are expected to increase the level of customer empathy and forgiveness, which may enhance repurchase intention. Self-administered survey questionnaires were distributed among the Chinese young customers. 375 responses were collected and 357 effective responses were used for further analysis. The structural equation modeling was used to examine the relationships among variables. This study reveals that, in the process of service failure, the quality of the after-sales service and the quality of the relationship affect customer empathy and customer forgiveness, which influence repurchase intention. The specific results are as follows. In the state of service failure, the after-sales service quality increased only customer empathy. Customer satisfaction increased customer forgiveness, while customer commitment increased both empathy and forgiveness. The customer empathy had a positive impact on customer forgiveness, which enhanced repurchase intention. Customer empathy and forgiveness had mediation effects on the relationships among after-sales service quality, relationship quality and repurchase intention.