Co-creation of service recovery: Utilitarian and hedonic value and post-recovery responses

Based on the literature on customer value and service dominant (S-D) logic, this study suggests that hedonic and utilitarian value derived from co-creation of a service recovery contribute to perceived equity and affect toward the service recovery, which, in turn, enhance customers' repurchase intentions. A scenario-based survey approach was used to collect data from U.S. consumers (N=330). Results show that utilitarian value enhances both equity and affect toward the service recovery while hedonic value contributes only to equity. In addition, the findings reveal that both equity and affect toward the recovery are positively associated with repurchase intentions.