Value co-creation through branded apps: enhancing perceived quality and brand loyalty

Abstract

PurposeBranded applications (apps) are increasingly important in marketers' omnichannel strategies. They have not only changed the way customers purchase but also changed the way how companies interact with customers. Building on value co-creation literature, this research investigates consumer brand engagement's role in enhancing perceived quality and brand loyalty via value co-creation.Design/methodology/approachUsing online survey data from 355 brand app users, a conceptual model is tested employing the partial least squares structural equation modeling.FindingsThe results suggest that not only does branded app personalization drives brand co-creation (fully mediated by consumer brand engagement) but that this process also increases perceived quality and brand loyalty among users of branded apps.Research limitations/implicationsData for the study are self-reported and thus may not accurately reflect actual attitudes and behaviors. In addition, respondents were students within the United States who, although representative of branded app users, may limit the generalizability of the study.Practical implicationsKnowing that branded apps can influence customers' perception of the quality and value of their apps, products and services, or even their associated brands, marketers and app designers should work together to provide a value co-creation platform through the apps to increase customers' personalized, engaging experience.Originality/valueAlthough various relationships between personalization, engagement and co-creation have been studied, along with their impact on loyalty and perceived value, the interaction between these factors is not widely understood. The study examines these interactions in the context of branded apps, through the service-dominant logic perspective.