Consequences of Customer Value Co-creation in Restaurants

Abstract

Many hospitality enterprises nowadays seek to engage their customers in the process of value creation. This study investigated the concept of co-creation of the dining experience and its outcomes. It aimed to: (1) examine the direct effects of co-creation of dining experience on perceived personalization, brand love, customer satiation, and switching behavior, (2) test the direct effects of both perceived personalization and brand love on customer satiation and switching behavior, and (3) assess the mediation effects of both perceived personalization and brand love on the linkage between co-creation and customer satiation as well as between co-creation and switching behavior. A quantitative approach was adopted in this study using a questionnaire survey for primary data collection. The sample included a total of 615 domestic customers of restaurants in Egypt. Structural equation modeling using Smart-PLS 3.2 was performed to test the hypothesized conceptual model. The results revealed that the impact of dining experience co-creation on perceived personalization and brand love was positive, while it was negative on customer satiation and nonsignificant on switching behavior. The findings also confirmed the mediation effects of both perceived personalization and brand love. This study addresses a gap in the hospitality literature and provides some valuable managerial implications.