Service Failures as Value Co-destruction Moments

Although Service-Dominant (S-D) Logic is an emerging school of thought in marketing literature, recovery strategies after service failures continue to be conceptualized under the good-dominant logic paradigm. This paper proposes a different conceptualization for service failures and recoveries strategies in the S-D Logic framework. Thus, we re-conceptualize service failures as co-destruction moments due to the fact that when a service failure occurs some forms of consumption value (functional, social, emotional, epistemic, and conditional) are co-destroyed (co-destruction-moment) in similar way that they co-created during the value co-creation. Moreover, we introduce a Mechanism of Value Restoration (MVR) in order to identify and restore the loss value as a more effective service recovery strategy by applying Prahalad and Ramaswamy’s DART (dialogue, access, risk assessment and transparency) model.