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Is customer participation always good in service recovery? The moderating role of customers' positive psychological capital

Meteb Naif Alotaibi (Department of Marketing, College of Business Administration, King Saud University, Riyadh, Saudi Arabia)
Walid Chaouali (Faculty of Law, Economics and Management of Jendouba, University of Jendouba, Jendouba, Tunisia) (IDRAC Business School, Lyon, France) (Carthage Business School, University of Tunis Carthage, Tunis, Tunisia)
Samiha Mjahed Hammami (Department of Marketing, College of Business Administration, King Saud University, Riyadh, Saudi Arabia)
Klaus Schoefer (Newcastle University Business School, University of Newcastle upon Tyne, Newcastle upon Tyne, UK)
Narjess Aloui (Carthage Business School, University of Tunis Carthage, Tunis, Tunisia)
Mahmoud Abdulhamid Saleh (Department of Marketing, College of Business Administration, King Saud University, Riyadh, Saudi Arabia)

International Journal of Bank Marketing

ISSN: 0265-2323

Article publication date: 27 January 2023

Issue publication date: 10 April 2023

471

Abstract

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) proves effective in creating and enhancing favourable 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 SmartPLS.

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 customers' recovery satisfaction which, in turn, 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.

Originality/value

This study unveils the negative facet of co-created service recovery, which has rarely been addressed in the service recovery literature, especially in the context of the banking industry. This study demonstrates that the effectiveness of customers' participation in creating favourable post-recovery outcomes is contingent on CPPC. Moreover, this study confirms that not all customers may value customers' participation in the service recovery process.

Keywords

Acknowledgements

The authors extend their appreciation to the Deputyship for Research & Innovation, Ministry of Education in Saudi Arabia for funding this research work through the project no IFKSURG-2-892.

Citation

Alotaibi, M.N., Chaouali, W., Mjahed Hammami, S., Schoefer, K., Aloui, N. and Abdulhamid Saleh, M. (2023), "Is customer participation always good in service recovery? The moderating role of customers' positive psychological capital", International Journal of Bank Marketing, Vol. 41 No. 3, pp. 457-484. https://doi.org/10.1108/IJBM-03-2022-0101

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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