The role of customers in co-creating m-services in the O2O model

Abstract

PurposeThe purpose of this paper is to investigate customer loyalty in the online-to-offline (O2O) model by conceptualizing and measuring emotion and cognition.Design/methodology/approachAn online survey was used to collect 514 questionnaire responses. The data were analyzed using structural equation modeling.FindingsThree emotional factors influence two cognitive factors, which in turn affect customer loyalty. The type of message source acts as a moderator. In addition to pleasure and arousal, dominance is a key factor of emotion. The effects of social enhancement and store environment on customer loyalty reflect the O2O model’s integration of online and offline environments.Practical implicationsThe moderating role of the type of message source implies that marketers of brick-and-mortar stores can promote positive offline experiences to attract online customers and then encourage these customers to disseminate personal messages in their social circles. By attracting online customers through appealing m-services and retaining these customers through favorable store environments, marketers can maximize the utility of the O2O model.Originality/valueThree emotional factors and two cognitive factors are conceptualized to predict customer loyalty in the O2O model. This study shows that the relationships between cognitive factors and customer loyalty are moderated by the type of message source. When check-in activity messages are sent by friends, the perception of social enhancement can lead to greater customer loyalty. In contrast, when check-in activity messages are sent by unfamiliar sources, customer loyalty is driven more by cognition of the store environment than by online interaction. The findings enrich existing knowledge of the O2O model and m-services, and have implications for researchers and marketers.