Effects of Customer Value Co-Creation on Customer Loyalty in the Nigerian Service Industry

Ogechukwu Blessing Maduka

doi:10.5539/ijbm.v11n12p77

Abstract

The purpose of this study is to ascertain the effects of customer value co-creation on customer loyalty in the service industry and IBTC pension was used to represent the service industry in Nigeria. Time has passed when firms act autonomously in designing products, developing products, creating marketing messages and so on with little or no interface from or interaction with customers. Now customers seek to exercise their influence in every part of the business system. This has led to the impending question, “can involving customers in the creation of service make them loyal”? The components of the <em>DART Model</em> (Dialogue, Access, Risk Assessment and Transparency) were applied to the Nigerian setting to determine customer loyalty in the pensions industry. The study adopted survey design method conducted among individual customers and staff of IBTC pension. Structured questionnaire was used to generate data for the study. Multiple Regression was used to test the hypotheses generated for the study.

Highlights

In today's economy, it has become imperative for businesses to continuously re-invent themselves in order to adapt to the increasingly complex and dynamic market realities brought about by globalization, deregulation, technology, outsourcing and the convergence of industries
The model summary shows that the multiple correlation coefficient (R) using all the predictors simultaneously is 0.39 and adjusted R2 is 0.14 meaning that 14% of the variance in the dependent variable can be predicted from all the independent variables combined
As indicated in table 2 below, the predictors variables had significant positive regression weights, indicating that the more PFAs attempt to co-create services with their customers the more loyal they become while the predictor risk assessment has a positive but a non-significant relationship with customer loyalty

Summary

Introduction

In today's economy, it has become imperative for businesses to continuously re-invent themselves in order to adapt to the increasingly complex and dynamic market realities brought about by globalization, deregulation, technology, outsourcing and the convergence of industries. Globalization which is at its peak has continued to drive the rapid growth of international trade, global corporation and advances in internet and ecommerce and the emergence of the internet has changed how businesses and customers do things (Ifeanyichukwu, 2016). While consumers are demanding a greater level of personalisation in their consumption experience and placing businesses under increasing pressure to co-create value with them, companies are searching for new and better ways to create value and differentiate their market offerings in order to profitably attract and retain customers (Bendapudi & Leone, 2003). There are several factors that have contributed to the progress of e-commerce in recent times asides the internet and these factors include the increasing number of experienced users, individual’s exposure, ease of navigating through websites, convenience, time savings amongst others (Ifeanyichukwu, 2016)

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Conclusion