Co-creation of Service Recovery and Post-Recovery Responses: The Impact of Cultural Values Orientations and Outcome Favorability

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.