The impact of value co-creation on hotel brand equity and customer satisfaction

Abstract

Value co-creation with customers has emerged as a relevant topic at both academic and managerial level. Considering the positive outcomes derived from value co-creation, firms should learn how to properly manage this process which requires active customer involvement and this paper demonstrates that the level of customer participation (CP) depends to a large extent on their perception of how the hotel favours the process of value co-creation (CcV). Our model also proves the customer perception of the hotel's process of value co-creation has a positive impact on the hotel's brand equity (BE) whereas customer participation positively affects the customer's perceived value (PV). Additionally, both brand equity and perceived value are positively linked with customer satisfaction (CS). The findings indicate the moderating effect of customers' prior experience with the hotel chain in reference to some of the relationships considered (CcV→BE→CS and PV→CS).