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The Change in Trust toward Social Commerce Companies after Failure of Social Commerce Services: Focusing on Severity and Main Source of Service Failure, and Brand Equity of Social Commerce Companies

Abstract

The purpose of this research is to examine the effects of the severity of service failure, the main source of service failure, and the equity of social commerce companies on consumers’ trust change toward social commerce companies. In addition, this study is to examine the moderating effect of service failure seriousness and equity level of social commerce companies on change in consumers’ trust depending on the source of service failure. The results showed that seriousness of service failure and the equity level of social commerce companies significantly affect the change in consumer trust. When the service failure is caused by social commerce companies and service failure is severe, it was found that consumer trust change was bigger toward social commerce companies with high equity compared to those with lower equity. However, when service failure severity is low, there was no significant change in comsumer trust. On the other hand, when the source of service failure is service provider and service failure severity is high, the change in consumers trust was not signifiant. However, when service failure severity is low, the change in trust level was significantly higher for social commerce companies with high brand equity.

keywords
Social commerce, severity of service failure, source of failure, attribution theory, brand equity, brand trust

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