Co-creating service recovery after service failure: The role of brand equity

Hazée, Simon;Van Vaerenbergh, Yves;Armirotto, Vincent
(2017) Journal of Business Research — Vol. 74, n° 4, p. 101-109 (2017)

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Authors
  • Hazée, Simonorcid-logoUCLouvain
    Author
  • Van Vaerenbergh, YvesKU Leuven
    Author
  • Armirotto, VincentKU Leuven
    Author
Abstract
Co-creating service recovery with customers has recently appeared as a new perspective in service research. Prior research demonstrates the effectiveness of co-created recovery strategies in driving customer outcomes, and outlines when co-creating a service recovery is recommended. This paper complements prior research not only by demonstrating the mediating role of outcome favorability in the relationship between co-created service recovery and customer outcomes, but also by showing whether organizations with different levels of brand equity benefit equally from co-creating service recovery with their customers. The results of two experiments show that co-creating a service recovery makes customers believe they received the most favorable solution for the service failure, which in turn influences satisfaction with service recovery and repurchase intentions. In addition, co-creating a service recovery is recommended for organizations with low levels of brand equity, but not for organizations with high levels of brand equity.
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Citations

Hazée, S., Van Vaerenbergh, Y., & Armirotto, V. (2017). Co-creating service recovery after service failure: The role of brand equity. Journal of Business Research, 74(4), 101-109. https://doi.org/10.1016/j.jbusres.2017.01.014 (Original work published 2017)