The "Co-Creation Effect": The Impact of Using Co-Creation as a Service Recovery Strategy


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Co-creation enables customers to help shape or personalize the content of their experience. The authors advocate that allowing customers to co-create a resolution to a service failure not only moves customers from passive participants to active collaborators but also may enhance recovery satisfaction and loyalty toward the firm. This enhancement of evaluations as a result of co-creation reflects the "co-creation effect." This research investigates whether the effect exists and in what conditions. Three studies address the moderating effects of failure severity, perceived valence of collaboration, and clarity of the collaboration on satisfaction with the service recovery. Finally, the authors discuss the implications, limitations, and future research directions.



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