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

Nazifi, Amin and Murdy, Samantha and Marder, Ben and Gäthke, Jana and Shabani, Bardia (2021) A Bit(coin) of happiness after a failure : an empirical examination of the effectiveness of cryptocurrencies as an innovative recovery tool. Journal of Business Research, 124. pp. 494-505. ISSN 0148-2963 (https://doi.org/10.1016/j.jbusres.2020.11.012)

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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.

ORCID iDs

Nazifi, Amin ORCID logoORCID: https://orcid.org/0000-0002-1898-7654, Murdy, Samantha ORCID logoORCID: https://orcid.org/0000-0003-3753-8114, Marder, Ben, Gäthke, Jana and Shabani, Bardia;
CORE (COnnecting REpositories)