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The dark side of customer co-creation: exploring the consequences of failed co-created services

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Abstract

Whereas current literature emphasizes the positive consequences of co-creation, this article sheds light on potential risks of co-created services. Specifically, we examine the implications of customer co-creation in service failure episodes. The results of four experimental studies show that in a failure case, services high on co-creation generate a greater negative disconfirmation with the expected service outcome than services low on co-creation. Moreover, we examine the effectiveness of different service recovery strategies to restore customer satisfaction after failed co-created services. According to our results, companies should follow a matching strategy by mirroring the level of customer participation in service recovery based on the level of co-creation during service delivery. In particular, flawed co-creation promotes internal failure attribution which in turn enhances perceived guilt. Our results suggest that in such case customer satisfaction is best restored by offering co-created service recovery.

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Author information

Authors and Affiliations

  1. Department of Innovation and Entrepreneurship, EBS Business School, Rheingaustraße 1, 65375, Oestrich-Winkel, Germany

    Sven Heidenreich & Matthias Handrich

  2. Department of Marketing, EBS Business School, Rheingaustraße 1, 65375, Oestrich-Winkel, Germany

    Kristina Wittkowski & Tomas Falk

  3. Aalto University School of Business, Helsinki, Finland

    Tomas Falk

Authors
  1. Sven Heidenreich
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  2. Kristina Wittkowski
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  3. Matthias Handrich
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  4. Tomas Falk
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Corresponding author

Correspondence to Sven Heidenreich.

Appendices

Appendix 1

Table 3 Descriptive analyses of samples
Full size table
Table 4 Study 1 and Study 2 pretest results of experimental manipulations
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Table 5 Measurement model results
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Table 6 Means for customer satisfaction and PLS estimates for Studies 2 and 4
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Appendix 2

Introduction of scenario descriptions

In the newspaper, you read that a new service is being offered at your favorite sports outfitter: “DYS—Design-Your-Shoes”. This service allows you to design a sports shoe according to your individual preferences and needs directly in the store using special computer software. After placing the order, the shoes are customized specifically for you and can be collected on site after a maximum period of 14 days. In order to facilitate the ordering process as much as possible, an employee assists you with the handling of the computer program as well as with the choice of shoes and the final order.

Please picture the following situation

You visit the sports outfitter in order to give the new offer “DYS—Design-Your-Shoes” a try and to order a pair of sports shoes. After arriving at the store, you ask an employee about the new service “DYS—Design-Your-Shoes”. The employee leads you to a computer and offers to assist you with navigating through the menu. Together you start the program.

Level of co-creation manipulation

Low co-creation

The employee explains that you have to create a profile in order to use “DYS—Design Your Shoes”. This requires your name, shoe size, and the type of sports you wish to wear the shoes for. You give this information to the employee, who enters it into the provided template. After providing this information, three types of shoe models that are most suitable for the specified sport automatically appear on the screen. You choose one of the models and, in the next step, can define the color of the shoes. You confirm the color and the employee finalizes the order.

High co-creation

The employee explains that you have to create a profile in order to use “DYS—Design Your Shoes”. This requires your contact details, including your name, address, email, and telephone number, as well as your body height, weight, and shoe size. Additionally, you are asked for which sport you will wear the shoes as well as how often (hours per week) and at which level (Beginner/Intermediate/Expert) you practice the sport. Together with the employee you enter the information into the provided template. In a next step, the employee measures your feet and analyses your running style on a treadmill. This data is also entered into the program to complete the profile.

On the basis of the supplied data, three different models are listed that are tailored to your particular needs and provided information. You choose one of the models. In the next step, you have the opportunity to define the shoe’s color, the color and texture of the sole, the material to be used, the color of the shoelaces as well as the color of the lining. In addition, you can have an individual phrase printed on the shoe, for example, your name at the top of the shoe tongue. You make your decisions and together with the employee confirm your choice and finalize your order.

Service failure manipulation

No service failure

After seven working days you visit the sports outfitter in order to collect your shoes. After opening the shoe carton you notice that the sports shoes exactly meet your expectations. You pay and leave the store.

Service failure

After seven working days you visit the sports outfitter in order to collect your shoes. After opening the shoe carton you notice that the sports shoes do not match the model you asked for. You approach the employee that assisted you with your order. He cannot say if the mistake lies in the production process or if you accidentally entered false information during the process of ordering.

Service recovery manipulation

NSR

The employee apologizes several times, but informs you that the shoes are not returnable. You pay and leave the store with the wrong shoe model.

NCSR

To spare you from buying the wrong shoe model the employee offers you an exchange. You accept this offer. The employee calls up your “DYS—Design Your Shoe” profile and searches for alternative sports shoes in the warehouse on the basis of the information your profile provides. After a few minutes he presents three different sports shoe models for you to choose from. They are all in the design you wished for and tailored to your particular needs. You choose one of the pairs. The employee gives you a 10% discount on the original price as a compensation for the inconvenience you experienced. You pay and leave the store with your new shoes.

CSR

To spare you from buying the wrong shoe model the employee offers you an exchange. You accept this offer and suggest that you could jointly search for an alternative shoe with your preferred design using the provided profile data. Together you go to the computer, upload your “DYS—Design Your Shoe” profile, and match it against all available shoes in the warehouse. You then jointly discuss the respective accuracy of fit of the available models. Together you find three sports shoe models that are all in the design you wished for and tailored to your particular needs. You choose one of these pairs. The employee gives you a 10% discount on the original price as a compensation for the inconvenience you experienced. You pay and leave the store with your new shoes.

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Heidenreich, S., Wittkowski, K., Handrich, M. et al. The dark side of customer co-creation: exploring the consequences of failed co-created services. J. of the Acad. Mark. Sci. 43, 279–296 (2015). https://doi.org/10.1007/s11747-014-0387-4

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