Exploring Customers’ Motives to Engage in Value Co-creation: An Abstract
Value co-creation referred to as joint creation of value by the company and the customer to co-construct personalized experience (Prahalad and Ramaswamy 2004) has been the recent trend in the services marketing literature (Vargo and Lusch 2016). Value co-creation is capable of leveraging positive results for both customers and service providers, and yet, many service providers are struggling to motivate customers to engage in co-creation activities (Sugathan et al. 2017). Value co-creation maximizes the lifetime value of customer segments (Payne and Frow 2005) and reinforces the relationships between customers and brands (Hajli et al. 2017). Merz et al. (2018) claimed that while co-creating value, brand equity also gets co-created. The value co-creation practice also encourages the customers who are acting as co-creators to spread positive word-of-mouth (Merz et al. 2018). However, there is limited empirical research examining the motivation to engage in co-creation behavior and determining the relationship between value co-creation, customer-based brand equity (hereafter, CBBE) and word-of-mouth (hereafter, WOM). Considering the conceptual ambiguity and limited application in practice, the objectives of this study is twofold: (1) to identify customers’ motivations to engage in value co-creation process; (2) to examine the relationship between value co-creation and CBBE and WOM behavior. The results from this study contribute to the body of knowledge in multiple ways. Our first contribution lies in examining the impact of intrinsic and extrinsic motivations on value co-creation in a smart tourism context. Our second contribution emanates from extending the work of Neghina et al. (2017) in the smart tourism services context. The nature of motivation leveraged towards value co-creation in the existing literature has been mostly qualitative, exploratory studies (Engstrom and Elg 2015; Roberts et al. 2014), however, this study applied the self-determination theory and conducted a quantitative analysis that contributes to value co-creation. Our third contribution is related to testing the impact of communicating, relating, and knowing mechanisms on value co-creation. Our final contribution is in validating the impact of value co-creation on CBBE and WOM behavior.
- Research Article
8
- 10.1007/s10660-022-09633-w
- Dec 21, 2022
- Electronic Commerce Research
The paper identifies and analyses customers’ motives to co-create when interacting with smart services by integrating the self-determination theory with coordination mechanisms. The study also examines the how and to what extent value co-creation impacts on word-of-mouth and customer-based brand equity. An online questionnaire was employed for empirically validating the research model. The relationships were examined using partial least square path modelling. The findings show that intrinsic and extrinsic motives are significant antecedents of value co-creation. The coordination mechanisms namely, relating and knowing also significantly influence customers’ involvement in the value co-creation process. Results also show that value co-creation mediates the relationship between customers motives (intrinsic and extrinsic) to co-create and consequences. Findings of this study adds to the human–computer interaction literature by strengthening the nomological network of value co-creation when interacting with smart services by proposing a novel model integrating both the antecedents and outcomes of value co-creation. By recognizing how this practice could be motivated, service providers can bolster customer-firm interactions and enable favourable firm level consequences.
- Research Article
7
- 10.1002/cb.2167
- May 8, 2023
- Journal of Consumer Behaviour
This study aims to investigate the association between service provider value cocreation (PVCC) and customer perceived quality of life (QOL) in a healthcare service context. This study also examines the mediating role of customer value cocreation (CVCC) and the moderating role of customer emotions using a conditional process framework. To examine the conceptual model, data were collected through an online survey of 441 healthcare customers. The hypotheses were tested using covariance‐based structural equation modeling (CB‐SEM) and PROCESS macro. The results show that PVCC positively influences both CVCC and QOL. The effect of CVCC on QOL is positive and significant. CVCC plays a mediating role in the link between PVCC and QOL. In addition, the absence of negative emotion serves as a moderator in improving perceived QOL. Evaluating value cocreation efforts allows service providers to understand their readiness for supportive value cocreation practices. Service providers must also focus on customers' roles in the value cocreation process. In addition, handling customers' emotions should be of particular interest to frontline service providers, because it augments a positive value cocreation practice beneficial to CVCC and QOL enhancement. This study contributes to the value cocreation literature by proposing a framework that combines the value cocreation of service providers and customers in enhancing QOL. This study also explicates and validates the complex role of value cocreation and emotion in the healthcare service context. The theoretical and managerial implications are also presented.
- Conference Article
5
- 10.1109/icriis.2011.6125716
- Nov 1, 2011
The rapid growth of internet usage enable the government agencies to put a wide range of services online for the use of citizens but the value of these e-service applications are still under research. Despite the increasing research on Service Dominant (S-D) logic and co-creation of value in marketing, few researchers applied the process to government e-service applications. Customers are no longer ordinary user of service but fully ready to collaborate with service provider to co-create value. The foundational premise (FP6) of service dominant logic lay much emphasis that customer is always a co-creator of value therefore, there is a growing need to integrate customer and understand how both parties interact together to co-create value. In order to provide another perspective, this study explores the co-creation of value in the context of government e-service delivery. In this paper, the authors firstly reviewed the concept of value co-creation from service dominant logic perspective in order to gain understanding and managing value co-creation process. We then proposed a conceptual framework to explore value between service provider and the customer when they engage in service use. Based on this conceptual framework, both service provider and customer were placed at the same level of importance as co-creator of mutual value.
- Book Chapter
8
- 10.1108/s1745-354220180000014007
- Nov 13, 2018
With the development of tourism industry, online travel agencies (OTA) have gradually become an important channel for tourism product supplies and sales. Some OTAs provide consumers with a platform for tourism guidance and online travel sharing. They not only satisfy some tourists’ desire to share their experiences but also provide reference for more consumers to choose travel products. This process is the process of value co-creation by customers and online travel companies. This study is conducted under DART theory, a theoretical framework of value co-creation composed of four dimensions, namely dialog, access, risk-assessment, and transparency. Brand equity is divided into four aspects: brand loyalty, brand awareness, customer perceived value, and brand image. This study uses the structural equation model to investigate the impact of customer value co-creation behavior on brand equity of online travel enterprises and interprets the process and mechanism of customer value co-creation behaviors for online travel business brand equity, which provides more efficient strategies and methods for platform interaction and value co-creation.
- Research Article
48
- 10.1108/jsm-06-2021-0234
- Apr 12, 2022
- Journal of Services Marketing
PurposeThe service industry has been facing many challenges connected to sustainable practices and how they affect final consumers. This paper aims to explore the impact of value co-creation (VCC) on customer-based brand equity and satisfaction, the latter being considered in terms of overall and green customer satisfaction. Moreover, considering the influence that a consumer’s age has on their behaviour, this paper analyses the moderating role of generational cohorts (Centennials vs. Millennials) on the direct interactions between the examined variables.Design/methodology/approachThe empirical study was conducted in hotel companies, which place a strong emphasis on customer service and as such provide valuable implications for the industry. The data were collected from 263 hotel guests in Ukraine in 2018 using a structured closed-response face-to-face survey. Partial least squares structural equation modelling was used to test the hypothesised relationships. Multi-group analysis was conducted to examine the moderating role of the generational cohort.FindingsThe results show that customer perception of VCC positively influences brand equity. The findings also indicate that brand equity mediates the relationship between VCC, overall customer satisfaction and green customer satisfaction. In addition, it is demonstrated that generational cohorts moderate the relationships between VCC and overall customer satisfaction.Practical implicationsThis study suggests that service companies should create more opportunities for VCC activities, not only to increase their customers’ participation in green practices but also to enhance brand equity and satisfaction to gain more competitive advantages.Originality/valueThe contribution of this study lies in considering value co-creation as a novel driver of brand equity, overall customer satisfaction and green customer satisfaction through the lens of sustainability in service-based companies. Examining the moderating role of the generational cohort provides significant insights into the impact of value co-creation through different groups of customers.
- Research Article
7
- 10.1080/0960085x.2019.1669494
- Oct 1, 2019
- European Journal of Information Systems
ABSTRACTOrganisations operate in increasingly dynamic environments, internetworked in cooperative arrangements that cocreate value. They pursue the cocreation of value through collaborative networks, rather than in isolation. However, there is insufficient understanding of how networked organisations cocreate value in the network through the innovative use of information systems (IS): existing multi-firm studies are largely concerned with dyadic relationships. In terms of capturing value from the cocreation process, many studies have reported either enhanced organisational efficiencies (exploitative capability) or resulting innovations (explorative capability), but rarely both aspects simultaneously. This study attempts to draw a comprehensive picture of IS-based value leverage by reporting both the value cocreation process (network level) and value capture (organisational level) through a case study of innovative IS use in a large business network. This network links a public hub organisation with a large number of firms in the South Korean broadcast advertising industry. Drawing on Grover and Kohli’s framework for value cocreation, the case study investigates the detailed process by which network-level value cocreation occurs in the four layers of relational arrangements. It also highlights, from an organisational ambidexterity perspective, how the cocreated value is appropriated through ambidextrous activities by the networked organisations.
- Research Article
12
- 10.1108/bij-08-2020-0398
- Mar 9, 2021
- Benchmarking: An International Journal
PurposeCustomer value cocreation (VCC) behavior is gaining increased scholarly attention in the services marketing discipline and has become a top research priority in recent times. Despite the growing interest in studying VCC, less scholarly attention has been paid to study the crucial role of frontline service employees in activating customer participation in the VCC process. Hence, to bridge this research gap, the present research expanded VCC research streams by investigating the mediating effect of frontline service employees' innovative behavior in psychological capital and customer VCC behavior relationship.Design/methodology/approachData collected from 255 hotel employee–customer dyads were analyzed through Smart PLS to measure the proposed relationships.FindingsThe results suggest the mediating effect of frontline service employees' innovative behavior in psychological capital and customer VCC behavior relationship.Originality/valueThe current research made a significant contribution to the VCC field by identifying driving forces that encourage customers to exhibit VCC behaviors.
- Research Article
30
- 10.1080/1051712x.2021.2012079
- Oct 2, 2021
- Journal of Business-to-Business Marketing
Purpose This paper aims to examine salesperson skills, including listening, communication, and adaptive selling, that can enable value co-creation with customers and increase sales performance, while taking into consideration the contingent role of salesperson relationship-enhancing activities. Methodology Survey and objective sales performance data were collected from 201 B2B salespeople in the industrial goods industry. The hypotheses were tested using PLS-SEM. Findings The results show adaptive selling, listening, and communication of salespeople positively impact the behaviors of salespeople to co-create value with customers. The results show that when salespeople co-create value with customers, they will have a positive effect on sales performance. Results show how value co-creation mediates the effects of listening and adaptive selling on sales performance. Research Implications Salespeople need to effectively listen to their customers to provide needed solutions by jointly working with them to co-create value. Similarly, a salesperson’s communication and adaptive selling skills have collective impacts that positively contribute to the value co-creation process. Results supplement previous findings in the literature by showing value co-creation holds a positive effect on sales performance at the micro salesperson level. The results offer additional support to the ongoing dialog on the role of a salesperson as a value co-creator. Practical Implications This study has identified several variables that engender successful co-creation by salespeople in B2B sales contexts. Findings demonstrate that salespeople who can adapt their selling approach, are good listeners, and can effectively communicate with customers can engender the value co-creation process with customers. The findings serve as a base to create professional guidelines about the skills and capabilities salespeople need to successfully execute a value co-creation process. Originality/Value The study adds to the literature on value co-creation by highlighting three factors that can enhance the value co-creation process at the level of salespeople leading to better sales outcomes. This research adds the existing literature on the role of value co-creation in sales by empirically examining the relationship between value co-creation and sales performance at the salesperson level.
- Research Article
42
- 10.17705/1jais.00667
- Jan 1, 2021
- Journal of the Association for Information Systems
In the realm of smart services, smart personal assistants (SPAs) have become a popular medium for value co-creation between service providers and users. The market success of SPAs is largely based on their innovative material properties, such as natural language user interfaces, machine learning-powered request handling and service provision, and anthropomorphism. In different combinations, these properties offer users entirely new ways to intuitively and interactively achieve their goals and thus co-create value with service providers. But how does the nature of the SPA shape value co-creation processes? In this paper, we look through a functional affordances lens to theorize about the effects of different types of SPAs (i.e., with different combinations of material properties) on users’ value co-creation processes. Specifically, we collected SPAs from research and practice by reviewing scientific literature and web resources, developed a taxonomy of SPAs’ material properties, and performed a cluster analysis to group SPAs of a similar nature. We then derived 2 general and 11 cluster-specific propositions on how different material properties of SPAs can yield different affordances for value co-creation. With our work, we point out that smart services require researchers and practitioners to fundamentally rethink value co-creation as well as revise affordances theory to address the dynamic nature of smart technology as a service counterpart.
- Research Article
19
- 10.2139/ssrn.3923706
- Jan 1, 2020
- SSRN Electronic Journal
In the realm of smart services, smart personal assistants (SPAs) have become a popular medium for value co-creation between service providers and users. The market success of SPAs is largely based on their innovative material properties, such as natural language user interfaces, machine-learning-powered request handling and service provision, and anthropomorphism. In different combinations, these properties offer users entirely new ways to intuitively and interactively achieve their goals and, thus, co-create value with service providers. But how does the nature of the SPA shape value co-creation processes? In this paper, we look through a functional affordances lens to theorize about the effects of different types of SPAs (i.e., with different combinations of material properties) on users' value co-creation processes. Specifically, we collected SPAs from research and practice by reviewing scientific literature and web resources, developed a taxonomy of SPAs' material properties, and performed a cluster analysis to group SPAs of a similar nature. We then derived 2 general and 11 cluster-specific propositions on how different material properties of SPAs can yield different affordances for value co-creation. With our work, we point out that smart services require researchers and practitioners to fundamentally rethink value co-creation as well as revise affordances theory to address the dynamic nature of smart technology as a service counterpart.
- Research Article
- 10.32508/stdjelm.v3isi.609
- Apr 11, 2020
- Science & Technology Development Journal - Economics - Law and Management
Marketing theories recently emphasize the role of customers in a value co-creation process to create value for themselves. From service-dominant logic, value co-creation refers to interaction and resource integration between customers and other actors in the service ecosystem. To perform any behavior, from self-determination theory, intrinsic motivation is the key driver. The question is, why is there a difference between a customer’s intrinsic motivation when they participate in the value co-creation process? This study aims at proposing the model about the effects of three types of personal values, including self-direction: thought, achievement, and tradition on customer’s intrinsic motivation. The analysis is based on the context of higher education in Vietnam. The results indicate that all three types of personal values have a positive impact on customer’s intrinsic motivation. In addition, self-direction: thought is found to have the strongest positive significant impact on customer’s intrinsic motivation. Moreover, the results also prove the important role of intrinsic customer motivation in performing their value co-creation behaviors. Besides that, this current study provides some research gaps for further study on creating customer motivation through a value co-creation process.
- Research Article
- 10.1504/ijsom.2018.10015174
- Jan 1, 2018
- International Journal of Services and Operations Management
The involvement of customers as co-creators in new service innovation is increasingly being suggested as a successful strategy to improve the success rate of new services. Value-in-use is a central theme for the service-dominant logic because the customer is always a co-creator of value. Co-creation involves customer engagement in the creation of offerings through ideation, design and development. The objective of this paper is to develop the framework for successful development and implementation of customer value co-creation process in service innovation. Based on literature review, three phases of value co-creation have been developed. First, motivation for customer value co-creation is one of the important aspects to consider by a service firm. Extrinsic and intrinsic motivations play a key role for customer motivation to participate. Second, customers' role in value creation process have greater been developed. Customer experience during interaction becomes central to the value creation process. Customer participation in value creation process is divided into two parts: participation behaviour and citizenship behaviour. Third, criteria for superior value co-creation process have been developed. This research brings the framework that motivation for value co-creation creates positive impact on value co-creation process, which in turn leads to generate positive value co-creation experience.
- Research Article
1
- 10.1504/ijsom.2018.094185
- Jan 1, 2018
- International Journal of Services and Operations Management
The involvement of customers as co-creators in new service innovation is increasingly being suggested as a successful strategy to improve the success rate of new services. Value-in-use is a central theme for the service-dominant logic because the customer is always a co-creator of value. Co-creation involves customer engagement in the creation of offerings through ideation, design and development. The objective of this paper is to develop the framework for successful development and implementation of customer value co-creation process in service innovation. Based on literature review, three phases of value co-creation have been developed. First, motivation for customer value co-creation is one of the important aspects to consider by a service firm. Extrinsic and intrinsic motivations play a key role for customer motivation to participate. Second, customers' role in value creation process have greater been developed. Customer experience during interaction becomes central to the value creation process. Customer participation in value creation process is divided into two parts: participation behaviour and citizenship behaviour. Third, criteria for superior value co-creation process have been developed. This research brings the framework that motivation for value co-creation creates positive impact on value co-creation process, which in turn leads to generate positive value co-creation experience.
- Research Article
- 10.25236/ajhss.2019.020702
- Dec 17, 2019
A large number of studies believe that customer participation experience is the cause, customer participation in value co creation is the result, and customer participation in value co creation has been considered as the main way of value creation in the future. At present, the use of new technologies makes entertainment more interactive and expressive. All entertainment projects have become traffic portals. Consumers pay more attention to the pleasant emotional experience brought by commodity addition when purchasing commodities, which is no longer limited to commodities themselves. Entertainment is the most effective way to stimulate emotion, and entertainment experience marketing has its own advantages in experience marketing with the help of entertainment elements. Therefore, this paper explores the mechanism of value co creation in entertainment experience. Based on the research of the previous literature, this paper puts forward the hypothesis of entertainment experience on the co creation of customer participation value, and verifies it. The results show that the shopping environment, commodity design, entertainment experience marketing and entertainment corporate culture all have a positive impact on the value co creation behavior initiated by the customer participating enterprises, and the spontaneous value co creation plays an intermediary role in the value co creation behavior initiated by the customer participating enterprises.
- Research Article
177
- 10.1108/md-04-2013-0227
- Nov 11, 2013
- Management Decision
Purpose – The greater part of the academic literature coincides in highlighting the positive influence that consumer participation has on the value created in service delivery. In this sense, research stands out which studies the consumer's role as a value co-creator in the service. However, there are few studies which analyze the consequences of co-creation behavior from the customer perspective. This research aims to fill this gap. To do so, it sets out from the measuring of co-creation from the perspective of the customers themselves and proposes that there is a direct relationship between value co-creation behavior and customer satisfaction with the service experience. Design/methodology/approach – To verify the hypothesis proposed, adults over 18 were personally interviewed. They had to be regular users of firms in the beauty parlor and personal care sector. The data collection finished with 547 duly-completed questionnaires. The SPSS 20 and AMOS 20 statistical programs were used for the data analysis. Findings – Regarding the causal model proposed, the data confirm the relationship set out in the hypothesis. It can therefore be stated that there is a positive relation between value co-creation and customer satisfaction. It allows a greater comprehension of the value creation process, analyzing the consequences for customer satisfaction. In this sense, the findings of the study suggest that service firms dedicated to personal care should foster the customers' active participation in the value creation process. Originality/value – The analysis highlights the positive influence which taking part in the value co-creation has on satisfaction. This is the first study that clearly shows this relationship from the empirical point-of-view.
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