Service Provider to the Rescue: How Firm Recovery of Do-It-Yourself Service Failure Turns Consumers from Competitors to Satisfied Customers

Abstract

While consumers frequently attempt to resolve their own consumption problems (i.e., do-it-yourself (DIY)), they are often unsuccessful and subsequently turn to a professional. In the present research, we consider DIY failure as a form of service failure (SF) and demonstrate that experiencing DIY service failure (DIY SF) influences consumer evaluations of subsequent firm recovery. This occurs because consumers who experience DIY SF gain greater understanding of the task (i.e., learning) through their failed attempt. This learning promotes increased appreciation of the recovering service provider’s ability, ultimately resulting in greater satisfaction with the recovery offering. We further identify mindset as a moderator of this effect, wherein those with a growth mindset are more likely to learn from failure and appreciate the abilities of the recovering service provider. By highlighting DIY SF as a novel form of SF, we demonstrate the importance of understanding customers’ prior experiences with the focal consumption problem and its solution, and of training front-line employees to better manage these customers. We test our theory across four studies using lab and field data, and close by discussing theoretical and managerial implications.