Influences of Cocreation on Brand Experience

Abstract

The purpose of this article is to study the influence of customer cocreation participation on customers’ brand experience, brand satisfaction and brand loyalty. We apply a service logic approach in which cocreation participation refers to cocreation of customer value together with the brand, cocreation of new value with the brand and cocreation of value together with other customers within the context of the brand. The reasoning applied is that customers’ cocreation with a brand – stimulating their engagement with the brand – influences brand experience, and through that, brand satisfaction and loyalty. A study among bank customers shows that cocreation participation positively influences sensory, affective, cognitive, behavioural and relational dimensions of a brand experience. However, influences of brand experience dimensions on satisfaction and loyalty are revealed to be complex as some of the dimensions influence satisfaction positively, while others have a negative influence. Furthermore, we show that the satisfaction and loyalty effects of cocreation participation are partially mediated by brand experience. Thus, there are both indirect and direct effects on satisfaction and loyalty from customers’ cocreation participation. Implications point to the importance of carefully managing cocreation participation in order to gain competitive advantages. Companies should be careful about how brand experience is stimulated through cocreation because of the potential risk of negative effects on satisfaction and loyalty.