When Apologies Sound Closer: The Role of Brand Nicknames in Apologies Following Service Failure

ABSTRACT How do subtle self‐referential linguistic choices shape consumers’ responses to service recovery? When apologizing for service failures, firms may refer to themselves using either their formal brand names or brand nicknames. This research examines whether such self‐labeling influences recovery satisfaction. We propose a relational pathway through which firm‐initiated brand nickname usage increases consumers’ psychological closeness to the brand, enhances perceived brand sincerity, and ultimately improves recovery satisfaction. Across seven experiments involving real and fictitious brands and multiple service‐failure contexts, apologies using brand nicknames generally elicited greater recovery satisfaction than those using formal brand names. The indirect‐effect pattern was consistent with a sequential pathway through psychological closeness and perceived brand sincerity. The findings further identify theoretically meaningful boundary conditions: the nickname advantage was attenuated when sincerity was already salient through brand positioning, when apologies were delayed rather than timely, and among consumers with higher power distance beliefs. This research advances understanding of how firm‐initiated brand nickname usage interacts with characteristics of the message source, recipient, and communication context to shape consumer–brand interactions and service‐recovery effectiveness. The findings also offer practical guidance for the strategic design of apology communications.