Consequences of consumer engagement on the performance of e-commerce firms in Ghana: Moderating effects of consumer-owned resources

Abstract

We examined the financial consequences of consumer engagement on firms’ performance and how consumer-owned resources moderate the relationship. We collected data on consumer engagement attitudes, consumer-owned resources, and firms’ performance from customers and management of the top online shopping firms in Ghana (male = 52.6% and female = 47.4%). Applying structural equation modelling, we examined the sales and market growth consequences of consumer engagement on firms’ performance and at what levels of consumer-owned resources are the consequences moderated. The findings indicate that behavioural engagement mediates the relationship between psychological engagement and firms’ performance. Satisfied consumers self-reported with positive, fulfilling, and firm-related states of mind that would affect the firms’ financial performance through consumers’ online behavioural activities. Consumer-owned resources moderated the financial effect of consumer engagement on firms’ performance. We conclude from these data that consumer engagement on social networks influences a firm’s performance based on the magnitude of consumer-owned resources.