Customer co-creation in hotel service innovation

Abstract

PurposeWith increased competition in service sector due to dynamic nature of customers’ taste and preferences, service providers have realized the importance of co-creating with customers across various stages of new service development. Co-creating with customers require a focused attention on the psychological variables that influence customers to participate in developing a new service. However, availability of scant literature creates difficulty in comprehending co-creative hotel service innovation practices, especially in developing country like India. The purpose of this paper is to explore the inter-relationships among the customer participation in hotel service innovation variables with the help of interpretive structural modeling (ISM) approach.Design/methodology/approachISM approach is used to determine the direction of customer participation and categorization of psychological variables with their driving and dependence power. Identification of related variables was done through a review of literature initially and arrived at a common consensus through brainstorming sessions with academicians and hotel industry experts.FindingsThe results indicate that a few variables possess higher driving power that include: consumer innovativeness, customer participative behavior, customer socialization, willingness to co-create, role clarity, customer ability and their interlinking. Thus, the research contributes in the development of relationship among various identified variables of customer participation in service innovation (CPSI) using ISM.Research limitations/implicationsThis study suggests that hoteliers should co-create with customers to develop new services by understanding their psychological variables that play a crucial role determining their active participation in new hotel service offerings.Practical implicationsThis study suggests that hoteliers should co-create with customers to develop new services by understanding the enablers of customer participation in co-creative hotel service innovation. Hoteliers can have hierarchical map of their customers for co-creating at different stages of service innovation or can segregate the variables as per their driving and dependence power for enhanced applicability of the variables. Further, the observed inter-relationships among the CPSI variables can guide the managers in planning and implementing identified relationships for successful implementation of co-creative service innovation.Originality/valueTo the best of the authors’ knowledge this study is the first to provide an integrated model using ISM and Matrix Impact Cross-Reference Multiplication Applied to a Classification (MICMAC) analysis with a goal to identify and classify various key enablers of customer participation in co-creative hotel service innovation in India. The authors believe that this study will enhance the understanding of the psychological factors influencing customer-firm co-creative service innovation activities and help the academicians and industry practitioners to select right enablers for customer participation in co-creative hotel service innovation. Thus, this study will be the foundation for studying co-creative service innovation using the ISM and MICMAC approaches.