When co-creation pays: stimulating engagement to increase revenues

YaoJen Tu (Faculty of Management, Bournemouth University, Poole, UK)
Barbara Neuhofer (Department of Innovation and Management in Tourism, Universitat Salzburg, Salzburg, Austria)
Giampaolo Viglia (Department of Marketing and Sales, University of Portsmouth, Portsmouth, UK)

International Journal of Contemporary Hospitality Management

ISSN: 0959-6119

Publication date: 9 April 2018



Customer willingness to pay (WTP) was initially set out to estimate the perceived value from a purchasing experience. However, purchasing decisions have changed as value co-creation has been increasingly applied in the hospitality industry. In adopting a service-dominant (S-D) logic lens, this paper aims to empirically test how co-creation affects WTP through customer engagement (CE).


The context for the empirical analysis is the Chinese market, one of the largest online purchasing markets that has been significantly transformed since the proliferation of co-creation. The study is a within-design online experiment with 488 Chinese participants. The analysis makes use of mediation models to evaluate the proposed mechanisms behind co-creation, CE and the moderated role of frequency of stay, and their impacts on WTP.


The data confirm the hypothesised positive impact of value co-creation on customer WTP. This impact is fully mediated by CE, i.e. CE is the mechanism behind a higher WTP propensity for co-created hotel rooms. Notably, the frequency of stay at a hotel, thus positively influencing WTP, does not have a moderated mediation effect on this relationship.


Limited research to date has investigated the price effectiveness of value co-creation in the hospitality context. This study contributes to the S-D logic and value co-creation discourses by testing the effectiveness of these concepts in relation to customer pricing decisions. This study empirically confirms the hypothesised model and provides recommendations for hospitality research and practice.



Tu, Y., Neuhofer, B. and Viglia, G. (2018), "When co-creation pays: stimulating engagement to increase revenues", International Journal of Contemporary Hospitality Management, Vol. 30 No. 4, pp. 2093-2111. https://doi.org/10.1108/IJCHM-09-2016-0494

Download as .RIS



Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

Please note you might not have access to this content

You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
If you would like to contact us about accessing this content, click the button and fill out the form.
To rent this content from Deepdyve, please click the button.