The Effect Of Financial Compensation Strategy On Trust Repair Under Different Psychological Distance: Mediating Role Of Trustworthiness And Regret

In daily life,financial compensation is an effective and widely used trust repair strategy.In the academic circle,researchers have also carried out multi-directional research on it,among which the research on the influence of the amoxunt of economic compensation on trust restoration is still controversial.Some researchers believe that the higher the financial compensation,the better the trust restoration effect.Other researchers have also shown that there is not a simple positive correlation between the amount of financial eompensation and the effect of trust restoration.In addition,the proeess of trust restoration is affected by many factors.Therefore,this study intends to explore the relationship between the amount of economic compensation and trust restoration,and explore the influencing mechanism from the perspective of multi-factor research.The research adopts the investment game as the basic experimental paradigm and is divided into two studies.The first study adopts single-factor between-subjects design,and discusses the influence law of exact compensation,mild overcompensation,moderate overcompensation and excessive overcompensation on trust repair.In addition,the values of these four compensation amounts were scientifically set through a questionnaire survey before the formal experiment.The results show that the influence of four kinds of economic compensation amount on trust repair is an inverted u-shaped curve:the trust willingness of the relying party is the lowest after exact compensation and the highest after moderate overcompensation.The second study aims to investigate the mediating effects of the trustworthiness(cognition)of the trust-violating party and the regret(emotion)of the relying party on the economic compensation and trust repair,as well as the mediating effects of psychological distance on the first half of the mediating path.According to the results of study 1,the two independent variables,exact compensation and moderate overcompensation,were selected for the amount of economic compensation.Study 2 adopted the experimental design of 2(psychological distance:near/far)*2(economic compensation amount:exact compensation/moderate overcompensation).This research selects three dimensions of psychological distance:temporal distance,social distance and spatial distance,so it is divided into three experiments.The results of study 2 show that:(1)the trustworthiness assessment of the trust-violating Party plays a mediating role in the influence of economic compensation on trust repair.With the increase of the economic compensation amount,the higher the trustworthiness is,the better the trust repair effect will be.(2)the relying party.s regret plays a mediating role in the influence of economic compensation on trust repair.As the amount of economic compensation increases,the regret decreases and the trust repair effect is better.(3)psychological distance plays a moderating role between economic compensation and regret,the farther the psychological distance,the stronger the negative predictive effect of economic compensation on regret...