Is customer participation always good in service recovery? The moderating role of customers’ positive psychological capital
International Journal of Bank Marketing: Emerald
Purpose – So far, whether customers’ involvement strengthens or weakens the process of service recovery has remained unclear. Filling this gap, this study aims to investigate the effect of customers’ participation on
customers’ post-recovery outcomes in the context of the banking industry. More specifically, this study delineates how and when customer participation (CP) effectively creates and enhances favorable post-recovery outcomes.
Design/methodology/approach – With the help of an online survey, this study collects responses from 314 bank customers and analyses them using Smart PLS.
Findings – The results show that customers’ participation in service recovery positively affects customers’ perceived utilitarian and hedonic values. Customers’ perceived utilitarian and hedonic values positively influence their recovery satisfaction, which positively relates to their continuance intention and positive word-of-mouth (PWOM). Furthermore, customers’ positive psychological capital (CPPC) positively moderates the relationship of CP in service recovery with perceived utilitarian value and hedonic value.
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