Co-creation and service recovery process communication: effects on satisfaction, repurchase intentions, and word of mouth

Rodolfo Vázquez-Casielles, Víctor Iglesias and Concepción Varela-Neira ()
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Rodolfo Vázquez-Casielles: University of Oviedo
Víctor Iglesias: University of Oviedo
Concepción Varela-Neira: University of Santiago de Compostela

Service Business, 2017, vol. 11, issue 2, No 5, 343 pages

Abstract: Abstract After service failure situations, firms often carry out transactional activities to achieve customer recovery (CR), using corrective actions to restore the exchange (e.g., economic and social compensations). Furthermore, during the service recovery process, firms can encourage activities of co-creation (CC) to prevent similar future failures. This paper discusses the importance of CC and service recovery process communication (RPC), in which customers are informed of the adoption of solutions to address the cause of the failure, so as to avoid the same problem happening again. Experimental studies investigate the impact, individually and together, of CR, CC, and RPC on satisfaction, repurchase intentions, and word of mouth. The results indicate that CC and RPC improve customer’s satisfaction, repurchase intentions, and word of mouth. Firms that want to maximize the return on their efforts to prevent service failures, should encourage CC, develop solutions to prevent future failure recurrence, and implement strategies of RPC. Firms must decide how to promote CC and which media to use for RPC.

Keywords: Service recovery process; Repurchase intentions; Word of mouth; Co-creation; Service recovery process communication (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (12)

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DOI: 10.1007/s11628-016-0311-8

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