Role of downward versus upward social comparison in service recovery: Testing a mediated moderation model with two empirical studies

Abstract

This paper extends prior research into the role of social comparison in service recovery by investigating the role of both downward and upward social comparison. Social comparison theory and attribution theory are applied to explore the differences in how upward and downward inter-customer comparison affects post-recovery satisfaction and word-of-mouth intentions. The mediating role of distributive justice perceptions and the moderating effects of the attribution of inter-customer differences in service recovery and customers’ justice sensitivity are also examined. Two online scenario-based experimental studies show that downward social comparison leads to greater satisfaction and lower negative word-of-mouth intentions. In addition, distributive justice mediates the relationship. Finally, attribution of difference in inter-customer influence and individual-level justice sensitivity moderate these effects. Besides its conceptual contributions, the findings from this paper may help managers design more effective service recovery strategies.