A customer-dominant logic on service recovery and customer satisfaction

Abstract

Purpose Service recovery is a challenge to organizations because customers will respond to recovery processes and outcomes differently. Yet, there are few studies that examine the antecedents of customer co-recovery. Hence, the purpose of this paper is to adopt a customer-dominant logic to explore the antecedents of customer co-creation of service recovery (CCSR) and its effects on perceived justice and satisfaction. Design/methodology/approach The authors reviewed the service management literature and proposed a theoretical model that links customer involvement with service failure (CISF), customer CCSR, perceived justice, to customer satisfaction with service recovery (CSSR). The sample included 594 customers who had recent experience of service failure and service recovery in Hong Kong. The research model was tested using structural equations modeling. Findings The results of structural equation modeling showed that CISF had an effect on customer CCSR in the form of information sharing and co-production, and this effect influenced customers’ justice perceptions, which in turn affected CSSR. Practical implications The findings supported the notion that service management should be viewed from customer-dominant logic and effective facilitation shall be deployed to engage and support customers in service recovery processes. Originality/value The study contributes to service management by identifying the salient role and form of customer co-creation in making customers feel satisfied with service recovery.