Money or funny: Effective connectivity during service recovery with a DCM-PEB approach

While monetary compensation is considered the most effective service recovery strategy, relief theory claims that humor may also be useful in service recovery situations. This study investigated the effects of humor in service recovery using dynamic causal modeling and parametric empirical Bayes analysis to identify effective connectivity (EC) patterns in the dopaminergic reward system across four conditions representing different service recovery strategies: monetary compensation and humor (MH), monetary compensation and an apology (MA), non-monetary compensation using humor (H), and non-monetary compensation using an apology (CON, the control condition). The findings support the importance of the nucleus accumbens (NAc) in the monetary compensation (MH and MA) conditions and the amygdala in the non-monetary compensation (H and CON) conditions. Monetary compensation (MH and MA) resulted in right substantia nigra (rSN) to NAc EC, suggesting the processing of recovery satisfaction associated with perceived outcome fairness. Conversely, non-monetary compensation strategies (H and CON) resulted in left substantia nigra (lSN) to amygdala EC, suggesting the processing of satisfaction related to perceived interactional fairness. The use of humor for service recovery resulted in VTA-to-lSN-to-amygdala EC during humor appreciation, while the use of apologies (CON and MA) resulted in lSN-to-amygdala and lSN-to-VTA connectivity. Surprisingly, processing satisfaction in the MH condition did not activate the amygdala during humor appreciation. Coping humor could be norm-violating for service recovery, and its effectiveness depends on multiple factors. The results suggest that monetary compensation, humorous responses, and apologies play key roles in neurological responses to service recovery strategies.