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Value cocreation at its peak: the asymmetric relationship between coproduction and loyalty

Nicola E. Stokburger-Sauer (Department of Strategic Management, Marketing and Tourism, School of Management, University of Innsbruck, Innsbruck, Austria)
Ursula Scholl-Grissemann (Department of Strategic Management, Marketing and Tourism, School of Management, University of Innsbruck, Innsbruck, Austria)
Karin Teichmann (Department of Strategic Management, Marketing and Tourism, School of Management, University of Innsbruck, Innsbruck, Austria)
Martin Wetzels (Department of Marketing and Supply Chain Management, Maastricht University, Maastricht, Netherlands)

Journal of Service Management

ISSN: 1757-5818

Article publication date: 15 August 2016

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Abstract

Purpose

Coproduction, as one component of cocreation of value, offers many benefits to customers and management, but also requires customers to invest a considerable amount of effort and time. The purpose of this paper is to investigate the coproduction paradox of benefits and costs.

Design/methodology/approach

One experimental study and two cross-sectional field studies across three service industries test the nonlinear relationship between level of coproduction and customer loyalty.

Findings

Results show not only the optimum level but also the negative effects of increasing levels of coproduction on customer loyalty and, in turn, monetary expenditures. The negative effect can be partially offset by perceived process enjoyment (PE), such that consumers who enjoy the process exhibit increased loyalty after the optimum coproduction point. Customer self-efficacy (SE), however, further strengthens the inverted u-shaped relationship.

Research limitations/implications

Further research should try to replicate the findings in more complex and less hedonic service settings (e.g. financial investments) because both PE and SE might be even more powerful here.

Practical implications

Service managers need to determine the optimal degree to which customers want to engage in the creation of services and avoid overburdening them. Management should further explore opportunities to elicit feelings of fun and enjoyment through coproduction.

Originality/value

Research usually highlights the potential benefits of coproduction for customers and companies and suggests a positive linear relationship between coproduction and success outcomes. This article instead shows that after an optimum level, the marginal benefits of coproduction for customer loyalty turn negative.

Keywords

Acknowledgements

The authors thank Dominic Mahr for his insightful comments on an earlier draft of this paper.

Citation

Stokburger-Sauer, N.E., Scholl-Grissemann, U., Teichmann, K. and Wetzels, M. (2016), "Value cocreation at its peak: the asymmetric relationship between coproduction and loyalty", Journal of Service Management, Vol. 27 No. 4, pp. 563-590. https://doi.org/10.1108/JOSM-10-2015-0305

Publisher

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Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited