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.
AdamsJohn S. (1965), “Inequity in Social Exchange,” in Advances in Experimental Social Psychology, BerkowitzLeonard, ed. New York: Academic Press, 267–299.
2.
AikenLeona S.WestStephen G. (1991), Multiple Regression: Testing and Interpreting Interactions. Newbury Park, CA: Sage.
3.
AndersonJames C.GerbingDavid W. (1988), “Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach,” Psychological Bulletin, 103 (3), 411–423.
4.
ArielyDan (2000), “Controlling the Information Flow: Effects on Consumers’ Decision Making and Preferences,” Journal of Consumer Research, 27 (2), 233–248.
5.
AverillJames R. (1973), “Personal Control Over Aversive Stimuli and Its Relationship to Stress,” Psychological Bulletin, 80 (October), 286–303.
6.
BatesonJohn E. G. (1985), “Perceived Control and the Service Encounter,” in The Service Encounter: Managing Employee/Customer Interaction in Service Business, CzepielJohn A.SolomonMichael R.SurprenantCarol F., eds. Lexington, MA: Lexington Books, 67–82.
7.
BatesonJohn E. G.HuiMichael K.M. (1990), “The Effects of Perceived Control and Customer Crowding on the Service Experience,” Research Report, Marketing Science Institute, 90–105.
8.
BendapudiNeeliLeoneRobert P. (2003), “Psychological Implications of Customer Participation in Co-Production,” Journal of Marketing, 67 (1), 14–28.
9.
BitnerMary J.BoomsBernard H.MohrLois A. (1994), “Critical Service Encounters: The Employee’s Viewpoint,” Journal of Marketing, 58 (October), 95–106.
10.
BitnerMary J.BoomsBernard H.TetreaultMary S. (1990), “The Service Encounter: Diagnosing Favorable and Unfavorable Incidents,” Journal of Marketing, 54 (January), 71–84.
11.
BlodgettJeffrey G.GranboisD. H.WaltersR. G. (1993), “The Effects of Perceived Justice on Complainants’ Negative Word-of-Mouth Behavior and Repatronage Intentions,” Journal of Retailing, 69 (Winter), 399–428.
12.
BlodgettJeffrey G.HillDonna J.TaxStephen S. (1997), “The Effects of Distributive, Procedural, and Interactional Justice on Postcomplaint Behavior,” Journal of Retailing, 73 (2), 185–210.
13.
BrocknerJoelWiesenfeldBatia M. (1996), “An Integrative Framework for Explaining Reactions to Decisions: Interactive Effects of Outcomes and Procedures,” Psychological Bulletin, 120 (2), 189–208.
14.
ChangChia-Chi (2006), “When Service Fails: The Role of the Salesperson and the Customer,” Psychology & Marketing, 23 (3), 203–224.
15.
ColquittJason A. (2001), “On the Dimensionality of Organizational Justice: A Construct Validation of a Measure,” Journal of Applied Psychology, 86 (3), 386–400.
16.
CromwellRue L.ButterfieldEarl C.BrayfteldFrances M.CurryJohn J. (1977), Acute Myocardial Infarction: Reaction and Recovery. St. Louis, MI: Mosby.
17.
DongBeibeiEvansKenneth R.ZouShaoming (2008), “The Effects of Customer Participation in Co-Created Service Recovery,” Journal of the Academy of Marketing Science, 36 (1), 123–137.
18.
FolgerRobert (1987), “Distributive and Procedural Justice in the Work Place,” Social Justice Research, 1 (2), 143–159.
19.
FornellClaesLarckerDavid F. (1981), “Evaluating Structural Equation Models with Unobservable Variables and Measurement Error,” Journal of Marketing Research, 28 (February), 39–50.
20.
GrewalDhruvRoggeveenAnne L.TsirosMichael (2008), “The Effect of Compensation on Repurchase Intentions in Service Recovery,” Journal of Retailing, 84 (4), 424–434.
21.
HayesAndrew F. (2013), Introduction to Mediation, Moderation, and Conditional Process Analysis: A Regression-Based Approach. New York: Guilford Press.
22.
HoyleRich H.PanterAbigail T. (1995), “Writing about Structural Equation Models,” in Structural Equation Modeling: Concepts, Issues, and Applications, HoyleRich H., ed. Thousand Oaks, CA: Sage, 158–176.
23.
KarandeKiranMagniniVincent P.TamLeona (2007), “Recovery Voice and Satisfaction after Service Failure: An Experimental Investigation of Mediating and Moderating Factors,” Journal of Service Research, 10 (2), 187–203.
24.
LangerEllen J. (1983), The Psychology of Control. Beverly Hills, CA: Sage.
25.
LiaoHui (2007), “Do It Right This Time: The Role of Employee Service Recovery Performance in Customer-Perceived Justice and Customer Loyalty after Service Failures,” Journal of Applied Psychology, 92 (March), 475–489.
26.
LindEdgar A.TylerTom R. (1988), The Social Psychology of Procedural Justice. New York: Plenum Press.
27.
LittleTodd D.BovairdJames A.WidamanKeith F. (2006), “On the Merits of Orthogonalizing Powered and Product Terms: Implications for Modeling Interactions among Latent Variables,” Structural Equation Modeling, 13 (4), 497–519.
28.
LuschRobertVargoStephenO’BrienMatthew (2007), “Competing through Service: Insights from Service-Dominant Logic,” Journal of Retailing, 83 (1), 5–18.
29.
MattilaAnna S.CranageDavid (2005), “The Impact of Choice on Fairness in the Context of Service Recovery,” Journal of Services Marketing, 19 (5), 271–279.
30.
McColloughMichael A. (2000), “The Effect of Perceived Justice and Attribution Regarding Service Failure and Recovery on Post-Recovery Customer Satisfaction and Service Quality Attributes,” Journal of Hospitality & Tourism Research, 24 (4), 423–447.
31.
NunnallyJum C. (1978), Psychometric Theory. New York: McGraw-Hill.
32.
OuschanRobynSweeneyJillianJohnsonLester (2006), “Customer Empowerment and Relationship Outcomes in Healthcare Consultations,” European Journal of Marketing, 40 (9-10), 1068–1086.
33.
PierceJon L.GardnerDonald G.CummingsLarry L.DunhamRandall B. (1989), “Organization-Based Self-Esteem: Construct Definition Measurement and Validation,” Academy of Management Journal, 32 (September), 622–648.
34.
RoggeveenAnneTsirosMichaelGrewalDhruv (2012), “Understanding the Co-Creation Effect: When Does Collaborating with Customers Provide a Lift to Service Recovery?” Journal of the Academy of Marketing Science, 40 (6), 771–790.
35.
SkinnerEllen A. (1996), “A Guide to Constructs of Control,” Journal of Personality and Social Psychology, 71 (September), 549–570.
36.
SkitkaLinda J.WinquistJenniferHutchinsonSusan (2003), “Are Outcome Fairness and Outcome Favorability Distinguishable Psychological Constructs? A Meta-Analytic Review,” Social Justice Research, 16 (4), 309–341.
37.
SmithAmy K.BoltonRuth N.WagnerJanet (1998), “A Model of Consumer Satisfaction with Service Encounters Involving Failure and Recovery,” Marketing Science Institute Working Paper Series, 98–100.
38.
SmithAmy K.BoltonRuth N.WagnerJanet (1999), “A Model of Customer Satisfaction with Service Encounters Involving Failure and Recovery,” Journal of Marketing Research, 36 (3), 356–372.
39.
SparksBeverley A.McColl-KennedyJanet R. (1998), “The Application of Procedural Justice Principles to Service Recovery Attempts: Outcomes for Customer Satisfaction,” in Advances in Consumer Research, Vol. 25, AlbaJoseph W.Wesley HutchinsonJ., eds. Provo, UT: Association for Consumer Research, 156–161.
40.
SparksBeverley A.McColl-KennedyJanet R. (2001), “Justice Strategy Options for Increased Customer Satisfaction in a Services Recovery Setting,” Journal of Business Research, 54 (3), 209–218.
41.
TaxStephen S.BrownStephen W.ChandrashekaranMurali (1998), “Customer Evaluations of Service Complaint Experiences: Implications for Relationship Marketing,” Journal of Marketing, 62 (April), 60–76.
42.
ThibautJohnWalkerLaurens (1975), Procedural Justice: A Psychological Analysis. Hillsdale, NJ: Lawrence Erlbaum.
43.
ThompsonSuzanne C. (1981), “Will It Hurt Less if I Can Control It? A Complex Answer to a Simple Question,” Psychological Bulletin, 90 (1), 89–101.
44.
TylerTom R. (1989), “The Psychology of Procedural Justice: A Test of the Group Value Model,” Journal of Personality and Social Psychology, 57 (5), 830–838.
45.
TylerTom R. (1997), “The Psychology of Legitimacy: A Relational Perspective on Voluntary Deference to Authorities,” Personality and Social Psychology Review, 1 (4), 323–345.
46.
TylerTom R.RasinskiKennethSpodickNancy (1985), “The Influence of Voice on Satisfaction with Leaders: Exploring the Meaning of Process Control,” Journal of Personality and Social Psychology, 48 (1), 72–81.
47.
VanRaaijFredW.Th. PruynAd (1998), “Customer Control and Evaluation of Service Validity and Reliability,” Psychology & Marketing, 15 (December), 811–832.
48.
WathieuLucBrennerLyleCarmonZivChattopadhyayAmitavaWertenbrochKlausDroletAimeeGourvilleJohnMuthukrishnanA. V.NovemskyNathanRatnerRebecca K.WuGeorge. (2002), “Consumer Control and Empowerment: A Primer,” Marketing Letters, 13 (3), 297–305.
49.
WilliamsLarry J.CoteJoseph A.Ronald BuckleyM. (1989), “Lack of Method Variance in Self-Reported Affect and Perceptions at Work: Reality or Artifact?” Journal of Applied Psychology, 74 (3), 462–468.
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
