Can a CEO's YouTube apology following a service failure win customers' hearts?

• Service failure apologies restore and increase customer satisfaction.
• Social media can help disseminate apologies effectively.
• CEOs featured in an apology can be effective spokespersons.
• Communication plans for service failure scenarios should be designed in advance.

This study examines how CEO YouTube apologies affect satisfaction with the company after an apology. A self-administered online Internet survey was developed and pre-tested in order to examine a proposed theoretical model, which identifies consumer and message related factors that might affect satisfaction with the company after an apology. A total of 278 USA consumer panel members completed the survey, and a structural equation modelling approach was used to analyse associations among constructs. Results suggest that incident familiarity before exposure to the YouTube apology, involvement with the apology, perceived persuasiveness of the apology, and attitude towards the CEO after the apology are all significantly associated with satisfaction with the company after the apology. This study provides timely and essential insights regarding the effects of a CEO YouTube service failure apology on customer satisfaction, and highlights many interesting future research directions.