Abstract
This study examined the efforts of companies to recover from financial accidents, or financial service failures, that could adversely affect the trust of financial companies. In addition, this study demonstrated the integrated relationship between service recovery efforts and recovery satisfaction, forgiveness, and Word of Mouth(WoM). Structural equation modeling was employed for analysis by using the data of 277 people. Result of the study indicates that service recovery efforts, such as justice, authenticity, visibility, and traceability have a positive effect on the recovery satisfaction and forgiveness. Also these service recovery efforts have a positive effect on forgiveness through recovery satisfaction. In the causal relationship between recovery satisfaction, forgiveness, and WoM, all relationship except recovery satisfaction and positive WoM were found to be statistically significant. This study suggests that financial company needs to develop service recovery strategies to ensure transparency besides justice and authenticity.
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