The impact of crisis-induced changes in refund policy on consumers’ brand trust and repurchase intention

Yiu Chung Leung, Xin Yi SEAH

Research output: Journal article publicationJournal articleAcademic researchpeer-review

Abstract

This research conducted two studies to unravel how the interplay of polarity of change in refund policy (positive vs. negative), the magnitude of change in refund policy (high vs. low), and refund format (cash vs. credit) on consumers’ perceived trust of the company and repurchase intention. Study 1 shows consumers’ trust of the company and repurchase intention were higher (lower) when the company changed refund policy positively (negatively) during crises. A high magnitude of change amplified the positive (detrimental) impact based on the positive (negative) change in refund policy on consumers’ responses. Study 2 demonstrates the interplay of the polarity of change in refund policy and refund format. The positive (detrimental) impact produced by a positive (negative) change in refund policy was amplified when a cash refund was offered. The same effect was attenuated by a credit refund.
Original languageEnglish
Article number103272
JournalInternational Journal of Hospitality Management
Volume105
DOIs
Publication statusPublished - Aug 2022

Keywords

  • Brand trust
  • Magnitude of change
  • Polarity of change
  • Refund format
  • Refund policy
  • Repurchase intention

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management
  • Strategy and Management

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