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A high level of active customer participation in the service process increases their well-being.
Customers who feel they have been treated fairly are much more likely to spread positive word of mouth.
Financial advantages or discounts cannot compensate for unfair conditions.
The opportunity for guests to co-create their experience increases the feeling of fairness and well-being.
Abstract of this study:
Objective - While previous research shows that interactions between customers and organizations significantly influence value creation, the impact of interaction on well-being through fair treatment of guests has been under-researched. This research identifies two customer-centric, proactive market orientation strategies that could accelerate the positive effects of fairness perceptions in service encounters.
Design/methodology/approach - Two experimental studies were conducted to investigate whether customer involvement and cost savings can enhance the positive effects of fairness or offset the negative impact of unfair treatment. This involves analyzing how this affects the well-being of guests via word of mouth.
Results- The results show that a high degree of customer involvement can increase the well-being of guests. In contrast , compensation in the form of price savings cannot compensate for an unfair guest experience. Service providers such as tourism businesses benefit directly from increased word of mouth when customers perceive a high level of fairness; customers in turn benefit indirectly through increased wellbeing.
Originality/value - This research contributes to academic debates on the extent to which transformative services contribute to consumer wellbeing. By linking perceptions of fairness in services with the opportunity for co-creation and well-being, it also promotes research on the distribution of power in service companies. The study thus identifies customer participation as a way to increase well-being.
Key findings of this study:
Participation increases well-being: A high level of active customer participation in the service process directly improves their emotional well-being. This effect is primarily due to the fact that co-creation is enjoyable and promotes a feeling of self-fulfilment.
Money is no substitute for fairness: Price savings or financial compensation cannot compensate for unfair treatment during the service. A low price does not make customers forget disrespectful or incompetent treatment or feel better afterwards.
Word of mouth as a happiness factor: Positive word of mouth acts as a crucial link that translates fair service experiences into increased well-being. When customers talk about their fair and active experiences, this increases their own sense of happiness.
Fairness as a necessary basis: The positive effects of customer participation on well-being can only be seen if the service is perceived as fair. If there is little participation or unfair treatment, the mood-enhancing effect of the service does not materialize.