Designing service recovery with purpose: shifting consumer preferences toward prosocial recovery
Sarah (Sa’arah) Alhouti, Kristina K. Lindsey HallPurpose
This research aims to explore the effects of choosing prosocial service recovery on recovery outcomes and consumer choices. It argues that consumers who choose prosocial over tangible recovery will exhibit stronger repurchase intentions when corporate social responsibility (CSR) initiatives are perceived as authentic. Given these benefits, the research examines factors that influence customers’ decisions to select prosocial recovery instead of tangible compensation.
Design/methodology/approach
Three experimental studies simulate service failures and present prosocial and tangible recovery choices. Analyses using ANOVA and logistic regression models evaluate the influence of consumer value orientation, CSR authenticity, and the framing of prosocial options.
Findings
Allowing consumers to choose the charitable cause significantly increases prosocial recovery preferences. Ideal-oriented individuals are more likely to choose prosocial recovery than ought-oriented individuals. CSR authenticity moderates these effects: authentic CSR enhances the impact of prosocial recovery, while inauthentic CSR undermines its effectiveness.
Originality/value
This research bridges service failure and recovery with CSR, offering a novel perspective on how cocreated prosocial recovery strategies impact consumer behavior. It identifies consumers’ value orientations, specifically ideal- and ought-orientations, as key predictors of prosocial recovery preference. It also introduces prosocial recovery framing strategies to boost interest in these options. The findings provide empirical support for the effectiveness of choice-based prosocial recovery and emphasize CSR authenticity as a critical success factor. Overall, this study advances the understanding of consumer co-creation in recovery and highlights the strategic value of prosocial compensation.