Co-creation of Service Recovery and Post-Recovery Responses: The Impact of Cultural Values Orientations and Outcome Favo
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Co-creation of Service Recovery and Post-Recovery Responses: The Impact of Cultural Values Orientations and Outcome Favorability
Naghmeh Nik Bakhsh
Received: 31 May 2019 / Accepted: 17 October 2019 / Published: 31 December 2019 © The Society of Service Science and Springer 2019
ABSTRACT It is now well established from a variety of studies, that service recovery is essential for service providers to retrieve the customer’s satisfaction after the service failure. Recent evidence suggests that the co-creation of service recovery has a positive outcome for both service providers and customers. However, very little is currently known about the impact of customers’ cultural orientations in implementing co-creation of service recovery. In the present research, using an experimental design, first we examined the impact of co-creation on the perception of outcome favorability for the customers with high/low cultural values orientations and second, we measure the influence of perception of outcome favorability on the customer’s post-recovery responses. The result revealed that the co-creation of recovery attributes is indeed associated with a higher perception of outcome favorability for customers with higher cultural values. The result also indicated that the customer’s perception of outcome favorability is positively associated with satisfaction and repurchase intention.
KEYWORDS Co-creation, Cultural Values, Outcome Favorability, Service Recovery Naghmeh Nik Bakhsh ( ) School of Business and Governance, Tallinn University of Technology e-mail: [email protected]
134 Naghmeh Nik Bakhsh
1. INTRODUCTION In recent years, there has been an increasing interest in the concept of co-creation in marketing researches (Park and Ha 2016; Prahalad and Ramaswamy 2004; Yi and Gong 2013). Co-creation is a novel worldview in the marketing and management fields that enables organizations and customers to create value through joint work and a series of communications (Galvagno and Dalli 2014). Co-creation stems from service-dominant (S-D) logic theoretical framework, emphasizes on integrating customers’ resources such as tools, skills, knowledge with the organization’s resources to maximize value creation (Park and Ha 2016; Rashid et al. 2014). Some researchers argued that co-creation is inherent in the service businesses as market offerings are created in the service encounter (Solomon et al. 1985; Bitner et al. 2000). Recently, organization are becoming interested in seeking opportunities to collaborate with customers and involve them in the various activities and develop a competitive advantage (Lusch et al. 2007; Vargo and Lusch 2004). Many types of researches conducted on developing of co-creation models and its relevant concepts (Prahalad and Ramaswamy 2004; Vargo and Lusch 2004). Recently, researchers started to focus on co-creation as a service recovery strategy to retrieve customer satisfaction after service failure (Dong et al. 2008; Roggeveen et al. 2012) and measure the effect of co-creation on customer postrecovery response.
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