Abstract
The current trend of people's lifestyles is to start consuming foods that are safe and environmentally friendly. The development of information on the usefulness of organic products more broadly becomes necessary. This study aims to determine the impact of value co-creation activities on loyalty to community, mediated by perceived benefit value. The analysis tool used in this study is Structural Equation Model (SEM) analysis. The sampling method used is a convenience sampling approach with 385 respondents. The results show that consumer perceived benefits value have a strong effect on loyalty to the community. In addition, value co-creation activities in the community is shown to be measurable by customer participation behavior and customer citizenship behavior to obtain the desired perceived benefits. The role of the community with the support of the loyalty of its members can be an effective means of disseminating knowledge about organic food products more broadly to the public. Having these results, the recommended policy direction is to increase the perceived benefits of customer community participation and citizenship. Further studies are needed to refine and build a more comprehensive model that integrates other theoretically related constructs. Keywords: customer participation behavior, customer citizenship behavior, loyalty to community, organic food products, perceived benefit
Highlights
A healthy and environmentally friendly lifestyle is a new trend and has been institutionalized internationally, which requires guarantees that agricultural products must be safe for consumption, high in nutritional content, and environmentally friendly
Organic food products are not widely known by the public (Muzayanah et al 2015), because they are more expensive than conventional food products, which may not affect the awareness of some members of the public in implementing a healthy lifestyle and quality diet by consuming organic food products without chemical additives (Chrysanthini et al 2017; Khorniawati, 2014)
Customer participation behavior and customer citizenship behavior apply the concept of value co-creation, which is based on the service-dominant logic (SDL) approach, to understand consumer relationships in the community (Yi and Gong, 2013; Laud and Karpen, 2017)
Summary
A healthy and environmentally friendly lifestyle is a new trend and has been institutionalized internationally, which requires guarantees that agricultural products must be safe for consumption (food safety attribute), high in nutritional content (nutritional attribute), and environmentally friendly (eco-labelling attribute). Most overseas consumers prefer food ingredients that are safe for consumption and encourage increased demand for organic products (Mayrowani, 2012). There are various problems from the consumption side, such as market constraints, consumer interest, and the relatively high-cost certification of organic products which causes the market price of organic food products to be expensive (Mayrowani, 2012; Hubeis et al 2015). Indonesia’s organic market is still experiencing obstacles, including being limited to the upper-middleclass economy in urban areas (Nurhidayati et al 2008), limited to age, education level, and certain income brackets (Slamet et al 2016), lack of promotional activities and slow increase in promotion and lacking in qualified human resources (Hubeis et al 2015; Sulaeman in Astuti et al 2016). Organic food products are not widely known by the public (Muzayanah et al 2015), because they are more expensive than conventional food products, which may not affect the awareness of some members of the public in implementing a healthy lifestyle and quality diet by consuming organic food products without chemical additives (Chrysanthini et al 2017; Khorniawati, 2014)
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