The effect of customer participation in service industry on encounter satisfaction by the development of relationship

Abstract

ABSTRACT This study empirically identifies the varying effects of customer participation (CP) in service industry on a relationship’s developmental stages. Because CP simultaneously affects and is affected by a relationship in service settings, its influence on the relationship’s developmental stage requires examination. This study aims to fill the gap between phenomenon and theory that existed in previous CP studies by comparing and analysing the effects of four CP sub-factors (information seeking, information sharing, personal interaction and responsible behaviour) on encounter satisfaction during the developmental stage of a relationship between customer and service provider. Additionally, this study provides service companies with strategic implications for utilizing CP. This study considers the relationship dynamics to which prior CP studies paid little attention. Thoroughly verifying these CP sub-factors provides a foothold for a new perspective on the inconsistent results of CP studies. According to research result, the influence of information-seeking behaviour on encounter satisfaction decreases as a relationship grows. In contrast, information sharing and personal interaction increase. Lastly, responsible behaviour made no significant difference. This study enables service marketing managers to understand CP during the developmental stage of a customer relationship and establish needed and appropriate management guidelines for customer-related interactions.