The impact of customer engagement on service coordination costs in content service:

Abstract

In order to secure the continuous competitiveness of OTT content services such as YouTube and Netflix, content service SCM promoting the production and distribution of digital information materials is becoming increasingly important. However, previous studies on this are scarce. This study examines the causal relationship between customer engagement, customer response profitability, and service coordination costs from the perspective of a YouTuber, a content creation service provider. In particular, it examines the impact of customer response profitability, a quantitative indicator of customer response, on the use of social media that customers feel and on the relationship between customer engagement and service coordination costs. In this study, we surveyed a YouTuber in Korea, a service provider. SPSS 18, AMOS 20, and PROCESS Macro were used for statistical analysis and hypothesis testing. The analysis shows that the degree of customer engagement on the YouTube channel has a positive effect on customer response profitability and service coordination costs, and that customer response profitability negatively affects service coordination costs (the reduction of costs). The relationship between the customer response profitability and the degree of customer engagement could not be confirmed, but the relationship between customer engagement and the service coordination costs was confirmed. With this study, we contribute to the establishment of policies on the value co-creation framework from the service provider's perspective in content service SCM and on whether to invest in social media in content sourcing.