Impact Of Customer Participation Research Articles

Work more, pay more? The impact of customer participation on customer pay-what-you-want payments

PurposeThe optimal level of customer participation is an important factor in service design. However, researchers know little about the impact of customer participation for their willingness to pay and hence organizations’ financial outcomes. This paper examines the impact of customer participation in a pay-what-you-want (PWYW) pricing system, allowing customers to pay any price they want for a product or service.Design/methodology/approachThis paper reports the results of three experiments, in which the authors manipulated the level of customer participation (Study 1: Low versus high, Study 2: Medium versus high, Study 3: Low versus medium versus high) and measured customers' PWYW payments (Studies 1–3), customer satisfaction (Studies 1–3), perceived equity (Study 3) and perceived enjoyment (Study 3). Studies 1 and 3 were scenario-based experiments, while study 2 was a field experiment. Study 3 was preregistered.FindingsThe results support a direct effect of customer participation in service production on customer PWYW payments, yet only when comparing low to high levels of customer participation. High levels of customer participation lead to a decrease in perceived equity and an increase in perceived enjoyment, which in turn spilled over to customer PWYW payments through customer satisfaction.Originality/valueThis research provides causal evidence at the individual level of analysis for the relationship between customer participation in service production and financial results. The paper also provides insights into its underlying mechanisms.

Demystifying the impact of customer participation on citizenship behaviors through interpersonal attraction and its contingencies

This paper addresses the lack of clarity on the linkage between customer participation (CP) and customer citizenship behavior (CCB) by using reinforcement theory to investigate the mediating role of interpersonal attraction (IPA) and the moderating effect of three types of reinforcers (people, task, and environment) in the impact of CP on CCB. Dyadic data from a field survey of both customers and designers from an interior design institute confirms the mediating role of IPA, particularly under high level of shared similarity between customers and employees, and when the task outcomes are better than expected. Moreover, the effect of IPA on CCB is stronger when customers perceive the organizational climate as highly customer-oriented. Besides extending the CP and CCB literature by exploring the impact of IPA on CCB with CP as a mediator and several reinforcers as moderator, this paper also suggests how service firms may influence their customers’ citizenship behaviors.

When does customer participation influence new product performance? The role of ambiguity and strategic collaboration

Although some literature suggests that customer participation (CP) directly influences new product performance, this study builds on extant literature to demonstrate that strategic collaboration serves as an important mechanism connecting CP to new product performance. Furthermore, the impact of CP on strategic collaboration varies when accounting for different types of CP (i.e., CP breadth and CP depth) and different forms of ambiguities (i.e., need-based ambiguity and knowledge-based ambiguity). Using data collected from an information technology firm and its 175 business customers, the authors find that the influences of CP breadth and CP depth on strategic collaboration are positive yet dissimilar. They further find that those relationships alter in the presence of need-based ambiguity and knowledge-based ambiguity, suggesting that the impact of CP on strategic collaboration and new product performance is far from direct. More results and their implications are discussed toward the end.

Research on the Impact of Customer Participation in Virtual Community on Service Innovation Performance- The Role of Knowledge Transfer.

Internet technology has given birth to continuous changes in business model and format innovation. With increasingly critical consumers, blowout development model and format innovation, enterprises are increasingly aware of the importance of customer participation in service innovation. At the same time, the development of information technology provides convenient conditions for communication between enterprises and customers, and online virtual community also provides a platform for customers to participate in the process of enterprise service innovation in an instant. Based on the theory of customer participation, knowledge transfer and service innovation performance, this paper explores the influence mechanism of customer participation in virtual community on service innovation performance, and analyzes the mediating role of knowledge transfer. Through the analysis of the results of the questionnaire, the relevant hypotheses are verified. The results show that customer participation in virtual community has a positive impact on service innovation performance. Customer participation helps enterprises obtain relevant knowledge such as customer needs and reduce barriers to knowledge sharing. In addition, enterprises will acquire customer knowledge about new products, which provides the possibility for the development of new products and services, thereby enhancing the enterprises’ service innovation performance. Knowledge transfer plays a part of mediating role between customer participation and service innovation performance. In the process of enterprises’ service innovation, customers mainly participate in the enterprise by means of knowledge transfer and help the enterprise improve service innovation performance.

Research on the Impact of Customer Participation in the Innovation on Enterprise Innovation Performance Under the Background of MindCloud

The age of MindCloud gives more possibilities for companies to acquire the information of customer behaviour. This page analyzes the analyse the influence mechanism of customer participation on innovation performance, which can give the theoretical and managerial implication for companies. The results show that intelligent collection of customer behaviour and intelligent analysis of consumer behavior have significant impact on promoting company innovation performance. Meanwhile, the information from ordinary customer and special customer are all valuable for promoting company innovation performance.

The Role of Employee's Innovative Behavior in Strengthening the Impact of Customer Participation on Customer Engagement

Given the intensive rivalry in the service industry, customer engagement has become a vital concern for the banking sector. This study investigates to what extent do customer participation (CP) impacts customer engagement through the mediating role of employee's innovative behavior. The authors put forward and test a theoretical framework of direct and indirect effects of CP on customer engagement via employee innovative behavior (EIB). Hypothetically, CP coupled with EIB is likely to influence customer engagement (CE). Empirical results based on a sample of 336 customers in Egyptian banks proved that customer engagement composed of three main dimensions: affective, cognitive, and behavioral. In addition, the findings support the hypotheses. Results also indicate that CP provides a basis for EIB and CE. Thus, the authors conjecture that CP and EIB improve customer engagement. Accordingly, they encourage Egyptian banks to cultivate their CP for harnessing their EIB in order to boost CE in the long run.

Chinese cruise customers loyalty: the impact of customer participation and service personal values

La lealtad de los clientes chinos de cruceros: el impacto de la participación de los clientes y los valores personales del servicioObjetivoEl propósito de este estudio es explorar, en profundidad, los efectos de la participación del cliente (CP) y los valores personales del servicio (SPV) en la satisfacción del cliente de cruceros (CS) y la lealtad del cliente (CL) aplicando el enfoque de la investigación empírica.Diseño/metodología/enfoqueLa obtención de datos se realizó a través de un cuestionario autoadministrado. El modelo y las hipótesis propuestas fueron contrastados a través del análisis factorial exploratorio (EFA) y el análisis de ecuaciones estructurales (SEM).ResultadosLos resultados empíricos indican que la CP influye positivamente en los SPV, CS y CL. Los SPVs también tienen un impacto significativo y positivo en la CS. Además, el estudio también encuentra que el colectivismo tiene un fuerte efecto positivo en el CP. La sensibilidad al precio modera negativamente la relación entre CP, CPV, CS y CL.Limitaciones/implicaciones de la investigaciónLa posibilidad de generalizar las conclusiones del presente estudio debe considerarse teniendo en cuenta que se utilizaron muestras limitadas y datos transversales. Esta limitación hace que los hallazgos avancen en la senda para una mejor comprensión del comportamiento del cliente y no sean una conclusión definitiva.Implicaciones prácticasLos resultados del estudio muestran que el CP tiene un efecto directo positivo en las SPVs, CS y CL. Aunque muchos investigadores han verificado la importancia y la función de la CP, falta literatura que evalúe la influencia de la CP en el contexto del sector de los cruceros. Al centrarse en esta carencia, esta investigación permite analizar empíricamente los diferentes efectos de la CP en relación con las SPVs, CS y CL en las preferencias de los cruceristas chinos.Implicaciones socialesLos resultados del estudio sugieren que la CP es un nuevo predictor de la CS y la CL en el sector de los cruceros. Por tanto, crear una experiencia positiva a través de la participación es crucial. Dado que los clientes son coproductores, es beneficioso para las compañías de cruceros aumentar la productividad laboral y reducir los costes guiándolos y estimulándolos a participar en el proceso de producción del servicio.Originalidad/interésBasado en la perspectiva de la lógica dominante del servicio, el propósito de este estudio es arrojar luz sobre el proceso de formación de la lealtad de los turistas chinos de cruceros. Los resultados empíricos indican que la participación del cliente (CP) influye positivamente en los valores personales del servicio (SPV), la satisfacción del cliente (CS) y la lealtad del cliente (CL). Los SPVs también tienen un impacto significativo y positivo en la CS. Además, el estudio también encuentra que el colectivismo tiene un fuerte efecto positivo en el CP. La sensibilidad al precio modera negativamente la relación entre CP, CPV, CS y CL.Palabras claveparticipación del cliente, valores personales del servicio, lealtad del cliente, sensibilidad al precio, turistas chinos de cruceros.Tipo de investigaciónTrabajo de investigación

When Does Customer Participation Matter? An Empirical Investigation of the Role of Customer Empowerment in the Customer Participation–Performance Link

Research on customer participation (CP) has focused on its benefits for customers. However, recent research suggests that CP is beneficial to both customers and firms. The literature is also sparse on the economic (e.g., profitability) and customer (e.g., customer retention) impact of CP. This research introduces the concept of customer empowerment and develops and tests a model of customer empowerment as a parallel mediator, along with customer satisfaction, to explain the linkage between CP and bank branch performance. Furthermore, the authors draw on a broader set of moderators beyond customer characteristics to examine when CP affects empowerment and satisfaction. Using triadic matched data from a multiwave design and a three-level model in which customers are nested within employees, who are, in turn, nested within bank branches, the authors show that customer empowerment and satisfaction fully mediate the effect of CP on branch performance. The findings also show that CP results in greater customer empowerment and satisfaction when there is fit between participation and the context in which it is used. The authors discuss implications for advancing CP research and suggest actionable steps for reaping the economic and customer benefits of CP.

How customer participation influences service failure attribution

PurposePrevious studies offer two contradictory propositions for the influence of customer participation on service failure attribution. The purpose of this paper is to solve this theoretical inconsistency by incorporating the concept of self-efficacy into its theoretical framework.Design/methodology/approachTwo 2 (customer participation: high vs low) by 2 (self-efficacy: high vs low) experimental designs were employed under scenarios relating to education and haircut services.FindingsThe results show that customers with high self-efficacy attribute more responsibility to the firms for a service failure as their participation in service increases. In contrast, customers with low self-efficacy are less likely to blame firms for service failures in the high-participation condition than in the low-participation condition.Practical implicationsThis study suggests that understanding customers’ self-efficacy could help firms improve recovery performance according to customers’ individual differences if service failure occurs.Originality/valueThe findings help resolve conflicting results reported in the literature and show that the impact of customer participation on service failure attribution differs according to customers’ self-efficacy. Therefore, this study provides a theoretical contribution by enhancing the knowledge of how customer participation influences causal attribution and satisfaction after a service failure.

The impact of customer participation on NPD performance: the mediating role of inter‐organisation relationship

PurposeCustomer participation has been recognised as a critical factor in successful new product development (NPD). However, there is scant empirical evidence on how customer participation affects NPD performance. This research attempts to provide a framework to interpret how inter‐organisational relationships mediate the impact of customer participation on NPD performance based on marketing, innovation management and social networks literature.Design/methodology/approachAn empirical study of 179 high‐tech firms in Taiwan is analysed by structural equation modelling.FindingsThe results indicate that the impacts of customer participation as an information resource and customer participation as a co‐developer on NPD performance are mediated by inter‐organisational relationships.Practical implicationsThe results offer a guideline for high‐tech firms that decide to involve customers in NPD activities. In order to improve efficiency and effectiveness, this research suggests that firms build inter‐organisational relationships with customers to foster knowledge sharing, cooperation, and problem solving. However, firms should be aware that product innovativeness may be hindered by such close collaborative relationships.Originality/valueThe research demonstrates that the contributions of customer participation may not be regarded as inevitable. The authors confirm that research for investigating the linkage between customer participation and NPD performance should consider the mediating roles of inter‐organisational relationships, which may help resolve the conflicting results obtained by researchers on the contributions of customer participation. In addition, the results show that the establishment of close customer‐supplier relationships during NPD cooperation is a key success factor for both efficiency and effectiveness, but has the opposite effect on product innovativeness.

A re-examination of the antecedents and impact of customer participation in service

Customer participation has been argued to be a critical influence on customer satisfaction with the service received, but empirical studies are relatively lacking. This study proposes a theoretical model of the antecedents and impact of customer participation in service and re-examines the relationships among organizational support, socialization, customer participation, and customer satisfaction. Findings of a questionnaire completed by tourists of a Taiwanese theme park indicated that: (1) customer perceptions of support and socialization significantly and positively influence customer participation; (2) perceived support and socialization have a significant and positive influence on customer satisfaction; (3) the directly positive relationship between customer participation and satisfaction is not supported in this study.

E-service quality and Web 2.0: expanding quality models to include customer participation and inter-customer support

Web 2.0 empowers online customers and social networks to engage in e-service processes such as service design, production and marketing. Although the impact of customer participation and inter-customer support on service quality is recognised, e-service quality conceptualisations and measurement models have failed to incorporate the impact of Web 2.0 on e-service delivery. After examining the role of Web 2.0 on customer participation and the gaps of previously developed e-service quality models, an extended e-service quality model is proposed that considers customer participation and inter-customer support in e-service settings. The theoretical and practical implications of the proposed model for website design and management are discussed.

Influence of customer participation on creating and sharing of new product value

This research applies an institutional arrangement perspective to develop an end-to-end model for the interaction between customers and upstream suppliers to develop a new product to understand how new product value is created and shared. The model is empirically tested by collecting primary data from 188 manufacturers across different industries. The research demonstrates that customer participation affects new product value creation by improving the effectiveness of the new product development process by enhancing information sharing and customer–supplier coordination and by increasing the level of customer and supplier specific investments in the product development effort. In addition, increasing the formalization of the customer participation process enhances both customer and supplier relationship-specific investments in the new product development process. The impact of customer participation on the customer's share of the new product value pie is more complex then is first apparent. Based on the dependence and equity perspectives the results suggest that exchange partners' power (relative dependence) positively influences a partner's ability to capture new product value, but this power is offset by a desire of exchange partners to ensure the distribution of value is “fair” and reflects each party's contribution to the value creation.

The impact of customer participation and service expectation on Locus attributions following service failure

This study explores the impact of two factors that are prominent in the service literature: customer participation and service expectation. Owing to the interactive nature of services, customers often participate in the co‐production of the service. In addition, customers normally enter into the service with certain expectations regarding the level of service they are likely to receive. The survey argues that the participative roles adopted by customers in service specification and delivery and their pre‐encounter service expectations influence how customers attribute the causes of service failure. Finally, the implications from the findings are discussed and directions for future research are provided. The effect of emotional response caused by a service failure on locus attributions remains to be further investigated.