Using service convenience to reduce perceived cost

Abstract

PurposeIn this study, service convenience and service quality are used as proxy constructs of customer's and supplier contributions co‐create customer value. The purpose of this paper is to test the relationship between service convenience and customer satisfaction based on the direct and indirect paths via perceived service quality. It also explores the relative importance of various dimensions of service convenience.Design/methodology/approachA structural equation model was developed and tested using data surveyed from domestic airlines customers in Vietnam. The operationalization of service convenience was based on five consumption stages.FindingsThis study reinforces the view that customers use the judgment of their own contribution (via convenience) to evaluate the contribution of the supplier (via service quality), and the resources contributed by both sides will co‐create value for the customers.Research limitations/implicationsFurther research may test the role of service convenience in various types of services. The conceptualization and operationalization of service convenience may be enriched by other views.Practical implicationsService providers should pay attention to customers' convenience in the service process. They should design the service to provide most convenience for customers in each of the service consumption stages.Originality/valueThe paper is among few empirical studies on service convenience, an increasingly important but less researched construct. It also demonstrates how customers and supplier contribute resources and processes to co‐create value.