Impact of Interactive and Supportive Service Innovation in Customer Retention through the Interplay of Value Creation and Participation

Abstract

This study aimed to understand the customer retention process through customer value creation in the service industry bringing service innovation. The moderating role of customer participation was analyzed. The hypothesized relationships were tested on 548 responses collected through an online survey at one point in time through the structural equation modeling technique. Smart PLS3 was used for analysis and the result of the study indicated that customer retention is significantly influenced by service innovation through the customer value creation process and customer participation moderates the relationship. The results of this study were time-bound and only one service was considered. Other services e.g. banking, hospitality, and traveling can also be applied to generalize the model.