Summary: The Effects Of Customer Participation In Co-Created Service Recovery

Read the summary and the most important questions on The effects of customer participation in co-created service recovery

• 1 Introduction

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• Why is effective recovery from a service failure vital in order to secure customer satisfaction, deflect negative word-of-mouth, and improve bottom-line performance?

  Because it is impossible to ensure 100% error-free service.

• 2 Theoretical framework and hypotheses

• 2.1 Customer participation

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• What are the 3 types of service production based on the level of customer participation?

  • firm production 
  • joint production
  • customer production

• In which 3 streams is past research represented?

  1. Studies of why customers should engage in service provision process, largely form the firm's perspective.
  2. Managing customers as "partial employees" and applying traditional employee management models.
  3. Customer motivation to co-create a service.

• 2.2 Service recovery

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• What does service recovery include?

  It includes all the activities and efforts employed to rectify, amend, and restore the loss(es) incurred after the failure.

• What happens when co-created services fail?

  1. Will customers be frustrated/discouraged about future value co- creation
     
  2. Considering the nature of co-created services, what will be the consequences (e.g., future co-creation behavior) if customers continue their participation in service recovery?
     
  3. If the quality of co-created services depends largely on customers’ input, can firms take advantage of recovery as a learning mechanism to enhance customers’ future co-creation expertise and efficacy?
     
  4. Can service recovery emerge as a separate means for firms to transfer specialized knowledge and skills? 
     

• Is customer participation in service production a given?

  No. It may be influenced by type of service, situational factors, and consumer individual differences. However, the focus of our study is on the phenomenon of this participation and its consequences (future co-creation behaviors). The idea is that if we could first establish the significant implications of customer participation in service recovery on customers’ future co-creation behavior (i.e., increased customer ability and intention for future co-creation), it would be more meaningful to try to examine the potential antecedents to such participation in future research.

• 2.3 Customer participation in service recovery

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• How is customer participation in service recovery defined?

  As the degree to which the customer is involved in taking actions to respond to service failure.

• When is firm recovery?

  When the recovery efforts are delivered entirely or mostly by the organization and its employees; customers may only have physical presence or merely offer basic and necessary information.

• What is joint recovery?

  A situation in which both customers and employees participate in the process of service recovery. When customers aid in recovery, they serve as “partial employees,” contributing effort, time, or other resources to undertake some of the recovery functions.

• What is customer recovery?

  When the recovery actions are taken entirely by customers, with no contribution from the firm or its employees.