The role of customer participation for enhancing repurchase intention

Abstract

Purpose

The purpose of this paper is to examine the impact of customer participation in the service delivery process by designing and testing an empirical model with the customers’ point of view in mind.

Design/methodology/approach

Data are collected from 176 customers in the context of professional financial insurance services. The proposed model is analyzed with partial least squares (PLS) path modeling in SmartPLS 2.0 software.

Findings

The results of the study show that customer participation produces positive effects on customer satisfaction and affective commitment through the customer relational value. Affective commitment is a strong predictor of repurchase intention, but no relationship between customer satisfaction and repurchase intention was found.

Practical implications

This study suggests that customer participation can be a win-win situation for customers and the service firm. Customers who create relational value with their service providers effectively enjoy their services more and are more likely to build and maintain long-term relationships with their service firm.

Originality/value

The findings highlight the roles of the customer and indicate the heuristic value of viewing customer satisfaction and affective commitment as consequences of customer participation. By identifying the effects of customer participation in the service interaction, organizations can determine optimum roles for customers in the service delivery process that will yield a more efficient use of organization resources and improve operational performance.

Citation

Chen, C.-C.V. and Chen, C.-J. (2017), "The role of customer participation for enhancing repurchase intention", Management Decision, Vol. 55 No. 3, pp. 547-562. https://doi.org/10.1108/MD-06-2016-0380