A Bit(coin) of happiness after a failure: an empirical examination of the effectiveness of cryptocurrencies as an innovative recovery tool

Amin Nazifi; Samantha Murdy; Ben Marder; Jana  Gäthke; Bardia Shabani

doi:10.1016/j.jbusres.2020.11.012

A Bit(coin) of happiness after a failure: an empirical examination of the effectiveness of cryptocurrencies as an innovative recovery tool

Amin Nazifi, Samantha Murdy, Ben Marder, Jana Gäthke, Bardia Shabani

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Abstract

This research provides the first examination of the effectiveness of cryptocurrencies as an innovative recovery tool. Through four experiments, we assess the effects of crypto-compensation against traditional compensation
types (voucher/cash) on customer recovery satisfaction. Study 1 findings indicate that crypto-compensation is more effective than voucher and cash in improving customer recovery satisfaction. Further, it shows that consumer
innovativeness moderates the effectiveness of crypto-compensation. After establishing the effectiveness of crypto-compensation, Study 2 finds a moderating effect of consumer choice in influencing crypto-compensation
effectiveness. Study 3 reveals the differential effect of communicating different crypto-compensation benefits on customer recovery satisfaction. Finally, Study 4 concludes that familiar cryptocurrencies (e.g., Bitcoin vs. EOS) best restore satisfaction after a failure and that compensation message framing (i.e., cryptocurrency monetary value vs. real nominal value) moderates this relationship. Theoretical and practical implications are discussed.

Original language	English
Pages (from-to)	494-505
Number of pages	12
Journal	Journal of Business Research
Volume	124
Early online date	16 Nov 2020
DOIs	https://doi.org/10.1016/j.jbusres.2020.11.012
Publication status	Published - 5 Jan 2021

Keywords

service recovery
compensation 2.0
cryptocurrency
customer satisfaction
prospect theory

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10.1016/j.jbusres.2020.11.012

Nazifi-etal-JBR-2020-A-bit-coin-of-happinessAccepted author manuscript, 934 KBLicence: CC BY-NC-ND 4.0

Cite this

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title = "A Bit(coin) of happiness after a failure: an empirical examination of the effectiveness of cryptocurrencies as an innovative recovery tool",

abstract = "This research provides the first examination of the effectiveness of cryptocurrencies as an innovative recovery tool. Through four experiments, we assess the effects of crypto-compensation against traditional compensationtypes (voucher/cash) on customer recovery satisfaction. Study 1 findings indicate that crypto-compensation is more effective than voucher and cash in improving customer recovery satisfaction. Further, it shows that consumerinnovativeness moderates the effectiveness of crypto-compensation. After establishing the effectiveness of crypto-compensation, Study 2 finds a moderating effect of consumer choice in influencing crypto-compensationeffectiveness. Study 3 reveals the differential effect of communicating different crypto-compensation benefits on customer recovery satisfaction. Finally, Study 4 concludes that familiar cryptocurrencies (e.g., Bitcoin vs. EOS) best restore satisfaction after a failure and that compensation message framing (i.e., cryptocurrency monetary value vs. real nominal value) moderates this relationship. Theoretical and practical implications are discussed.",

keywords = "service recovery, compensation 2.0, cryptocurrency, customer satisfaction, prospect theory",

author = "Amin Nazifi and Samantha Murdy and Ben Marder and Jana G{\"a}thke and Bardia Shabani",

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language = "English",

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pages = "494--505",

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T2 - an empirical examination of the effectiveness of cryptocurrencies as an innovative recovery tool

AU - Nazifi, Amin

AU - Murdy, Samantha

AU - Marder, Ben

AU - Gäthke, Jana

AU - Shabani, Bardia

PY - 2021/1/5

Y1 - 2021/1/5

N2 - This research provides the first examination of the effectiveness of cryptocurrencies as an innovative recovery tool. Through four experiments, we assess the effects of crypto-compensation against traditional compensationtypes (voucher/cash) on customer recovery satisfaction. Study 1 findings indicate that crypto-compensation is more effective than voucher and cash in improving customer recovery satisfaction. Further, it shows that consumerinnovativeness moderates the effectiveness of crypto-compensation. After establishing the effectiveness of crypto-compensation, Study 2 finds a moderating effect of consumer choice in influencing crypto-compensationeffectiveness. Study 3 reveals the differential effect of communicating different crypto-compensation benefits on customer recovery satisfaction. Finally, Study 4 concludes that familiar cryptocurrencies (e.g., Bitcoin vs. EOS) best restore satisfaction after a failure and that compensation message framing (i.e., cryptocurrency monetary value vs. real nominal value) moderates this relationship. Theoretical and practical implications are discussed.

AB - This research provides the first examination of the effectiveness of cryptocurrencies as an innovative recovery tool. Through four experiments, we assess the effects of crypto-compensation against traditional compensationtypes (voucher/cash) on customer recovery satisfaction. Study 1 findings indicate that crypto-compensation is more effective than voucher and cash in improving customer recovery satisfaction. Further, it shows that consumerinnovativeness moderates the effectiveness of crypto-compensation. After establishing the effectiveness of crypto-compensation, Study 2 finds a moderating effect of consumer choice in influencing crypto-compensationeffectiveness. Study 3 reveals the differential effect of communicating different crypto-compensation benefits on customer recovery satisfaction. Finally, Study 4 concludes that familiar cryptocurrencies (e.g., Bitcoin vs. EOS) best restore satisfaction after a failure and that compensation message framing (i.e., cryptocurrency monetary value vs. real nominal value) moderates this relationship. Theoretical and practical implications are discussed.

KW - service recovery

KW - compensation 2.0

KW - cryptocurrency

KW - customer satisfaction

KW - prospect theory

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JO - Journal of Business Research

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ER -

A Bit(coin) of happiness after a failure: an empirical examination of the effectiveness of cryptocurrencies as an innovative recovery tool

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Emerging Technologies in Service Research

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A Bit(coin) of happiness after a failure: an empirical examination of the effectiveness of cryptocurrencies as an innovative recovery tool

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Emerging Technologies in Service Research

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