Customer Value Co-Creation Behavior and Customer Loyalty: a Case Study in The Mobile Application Industry

Abstract

This research analyzes the relationship between value co-creation behavior, perceived service quality, customer satisfaction and customer loyalty, using a Service Dominant logic (SD logic) theoretical framework. Using structural equation modeling, the study examines a sample of 350 online product communities in Indonesia. The empirical analysis provides conclusive evidence that the value co-creation behavior has an influence on the perceived service quality and customer satisfaction. It also confirms that perceived service quality and customer satisfaction have an influence on customer loyalty. To ensure an effective value co-creation process, firms need to motivate their customers to participate.