The Role of Perceived Control in Customer Value Cocreation and Service Recovery Evaluation

Lin Guo, Sherry L. Lotz, Chuanyi Tang, Thomas W. Gruen

Research output: Contribution to journalArticle

33 Scopus citations

Abstract

Treating customers as passive recipients of service recovery does not account for their naturally elevated desire for control following a service failure. Focusing on value cocreation by customers in service recovery, this study conceptualizes three types of customer perceived control in service recovery: process control, decision control, and information control. Using both a field study and a controlled experiment to test the conceptual model, this study reveals various ways service firms can engage customers in service recovery to enhance their service experience. The results show that customers are motivated to exert influence on and regain control over service recovery because they care not only about the economic gains rendered by control but also about their social self-esteem in their relationship with a service firm. An investigation of the interaction effects among the three types of control reveals either complementary or substitution effects between different pairings of the three types of control on customers’ justice evaluations of service recovery and repurchase intentions. The findings provide managers with new guidance on developing and implementing successful service recovery programs.

Original languageEnglish (US)
Pages (from-to)39-56
Number of pages18
JournalJournal of Service Research
Volume19
Issue number1
DOIs
StatePublished - Feb 1 2016

Keywords

  • cocreation
  • outcome favorability
  • perceived control
  • perceived justice
  • relationship-based self-esteem
  • service recovery

ASJC Scopus subject areas

  • Information Systems
  • Sociology and Political Science
  • Organizational Behavior and Human Resource Management

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