Effects of online commercial friendships on customer revenge following a service failure

• Two online commercial friendship types are identified based on their relationship formation processes. • The online commercial friendship type and strength have an interaction effect on customer revenge. • Perceived fairness and/or betrayal mediate the above interaction effects. • The mediation effects are completely different in relational versus transactional service industries. Online commercial friendship (OCF) is a type of social platform-mediated relational exchange that combines business relationships with friendships. We identify-two OCF types based on their unique relationship formation processes and examine the interaction effects of OCF type and strength on customer perceptions and behavioral intentions following a service failure in industries that provide relational or transactional services. Findings from three studies show that OCF type and strength affect customers’ tendency for revenge. Perceptions of fairness or betrayal mediate the interaction effects of OCF type and strength on customers’ subsequent behavioral intentions. However, the influence mechanisms are completely different in the relational and transactional service industries. In relational services, perceived betrayal mediates the effect between OCFs and behavioral intentions; whereas in transactional services, perceived fairness plays an intermediary role.