Impact of failed co-created services on future motivation to co-create

Abstract

We examine how customer motivation to continue co-creating with the service and to co-create in recovery gets affected when co-created services fail. A theoretical frame is adopted from the literature on salesforce motivation following failure, and arguments are framed using Attribution and Expectancy theory. Using an experimental design using a fictional cycle design service, we found that customer co-creation in services shifts the failure attributions to customers thereby motivating the customer to co-create more in future services. The findings complement current studies in failed co-creation that suggest better satisfaction and equity evaluation in co-created services. Thus, a strong reason for firms to go in co-creation route to manage failure is proposed.