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Article

Tram-Anh Ngoc Pham, Jillian Carol Sweeney and Geoffrey Norma Soutar

This study aims to examine the impacts various types of resources had on customer effort in mandatory and voluntary value cocreation activities and the contribution of…

Abstract

Purpose

This study aims to examine the impacts various types of resources had on customer effort in mandatory and voluntary value cocreation activities and the contribution of efforts in these different activity types to quality of life.

Design/methodology/approach

Data from customers across five chronic health conditions were collected through an online survey. Rasch analysis helped identify hierarchies of activities representing varying levels of effort across four activity types (mandatory (customer), mandatory (customer or organization), voluntary in-role and voluntary extra-role activities). The conceptual model that was developed to examine the relationships of interest was analyzed using partial least squares structural equation modeling.

Findings

While clinical resources helped mandatory activities and personal network resources facilitated voluntary activities, psychological resources had greater impacts on customer effort across the whole range of activities. Effort in each activity type contributed to the quality of life differently, with voluntary activities having the greatest impacts on quality of life.

Practical implications

This study lends support to a holistic approach to health service that requires the mobilization of networks of resources to encourage customers’ engagement in a broad range of activities. Understanding the resources facilitating effort in distinct activity types provides insights to develop strategies to drive value cocreation efforts that subsequently contribute to improvements in quality of life.

Originality/value

Drawing on an extensive and nuanced categorization of activities, this study broadened the understanding of the networks of resources that are integrated in customer value cocreation processes and the link between value cocreation efforts and quality of life.

Details

Journal of Services Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0887-6045

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Article

Meng Xiao, Qinhai Ma and Man Li

Co-creating value with customers is important for companies in order to gain a competitive advantage. Based on resource theory and social interaction theory, the purpose…

Abstract

Purpose

Co-creating value with customers is important for companies in order to gain a competitive advantage. Based on resource theory and social interaction theory, the purpose of this paper is to explore the customer participation mechanism in co-creating value and test the effects of different types of customer resources and multi-level customer–firm interaction on customer value.

Design/methodology/approach

Data were collected from tourism industry. Hypotheses were tested using structural equation modeling.

Findings

The results indicate that both the customer’s human resource and relationship resource have a significantly positive effect on customers’ utilitarian value and hedonic value through reactive and proactive interactions. Reactive interaction has a full mediating effect on the relationship between relationship resource and proactive interaction, whereas proactive interaction has a full mediating effect on the relationship between reactive interaction and hedonic value.

Originality/value

This study explores the mediating effects of customer–firm interaction between customer resources and customer value. This paper contributes to the understanding of customers’ motivations for, and the processes of, participating in value co-creation.

Details

Journal of Contemporary Marketing Science, vol. 3 no. 1
Type: Research Article
ISSN: 2516-7480

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Article

Gaurangi Laud and Ingo Oswald Karpen

The purpose of this paper is to identify antecedents and consequences of customers’ value co-creation behaviour (VCB). VCB as a means to facilitate value realisation…

Abstract

Purpose

The purpose of this paper is to identify antecedents and consequences of customers’ value co-creation behaviour (VCB). VCB as a means to facilitate value realisation processes is gaining importance in service research and practice. Encouraging such enactments can be challenging, but can also offer competitive advantages.

Design/methodology/approach

We empirically investigate a conceptual model by converging three contemporary concepts of co-creation research – embeddedness, VCB and value-in-context – and examining the interdependencies between them. Data were collected in an online forum of a leading international weight-management firm.

Findings

Results suggest that customers’ embeddedness is a key antecedent of customers’ VCB in a service system. The three embeddedness dimensions – structural, relational and cultural – have a differential impact on customers’ VCB. Furthermore, findings illustrate that customers’ VCB has a significant impact on their object-oriented, self-oriented and brand-oriented social value-in-context outcomes.

Research limitations/implications

This study contributes by empirically investigating and validating antecedents and consequences of VCB in a service system. In doing so, the study highlights the significance of the nature of customer’s social constellations to develop contexts where value outcomes are actualised. Understanding the factors that shape VCB offers insights for firms to recognise how and where value propositions can be deployed that drives on-going co-creation processes.

Originality/value

This study is the first empirical research to offer insights into important pre-conditions and subsequent outcomes concurrently to illustrate how customers’ VCB can be managed and nurtured for sustainable value co-creation processes within service systems. This research further advances mid-range theorizing and microfoundational perspectives in marketing.

Details

Journal of Service Theory and Practice, vol. 27 no. 4
Type: Research Article
ISSN: 2055-6225

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Article

Toni Hilton, Tim Hughes, Ed Little and Ebi Marandi

Employees have traditionally played a major role in the customer ' s service experience. Yet self-service technology (SST) replaces the customer-service employee…

Abstract

Purpose

Employees have traditionally played a major role in the customer ' s service experience. Yet self-service technology (SST) replaces the customer-service employee experience with a customer-technology experience. This paper seeks to use a service-dominant logic lens to gain fresh insight into the consumer experience of SST. In particular, it aims to consider the resources that are integrated when consumers use SSTs, their co-production role and what might constitute value.

Design/methodology/approach

The paper presents findings from 24 semi-structured interviews that focus on the everyday experiences of consumers in using SST. Both genders and all socio-economic categories within all adult age groups from 18 to 65+ were included.

Findings

There is a danger that organizations embrace SST as an economic and efficient mechanism to “co-create” value with consumers when they are merely shifting responsibility for service production. The paper identifies risks when customers become partial employees and concludes that customers should perceive the value they gain from using SST to be at least commensurate with their co-production role.

Research limitations/implications

The qualitative study was confined to the consumer perspective. Future research within organizations and among employees who support consumers using SST would extend understanding, as would research within the business-to-business (B2B) context. Quantitative studies could measure the frequency and extent of the phenomena the authors report and assist with market segmentation strategies.

Practical implications

The application of service-dominant logic highlights potential risks and managerial challenges as self-service, and consequent value co-creation, relies on the operant resources of customers, who lack the tacit knowledge of employees and are less easy to manage. There is also the need to manage a new employee role: “self-service education, support and recovery”.

Originality/value

The paper draws attention to managerial challenges for organizations to ensure that SST adoption enhances and does not destroy value. Additionally, it highlights the importance of distinguishing between co-production and co-creation.

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Article

Loïc Plé

Noting that resource integration is a pivotal dimension of value co-creation in Service-Dominant logic, this paper aims to explore how service employees engaged in…

Abstract

Purpose

Noting that resource integration is a pivotal dimension of value co-creation in Service-Dominant logic, this paper aims to explore how service employees engaged in co-creation processes with customers integrate the latter’s resources.

Design/methodology/approach

To address the limitations of previous research on customer resources and their integration by service employees, this study turns to the concept of customer participation to identify the nature of customersresources. A conceptual framework of their integration by service employees underpins nine key propositions. This foundation leads to the development of theoretical contributions, managerial implications and avenues for research.

Findings

Customers can use 12 types of resources in value co-creation. Contrasting with earlier findings, the conceptual framework reveals that service employees may not only integrate these customersresources but also either misintegrate or not integrate them. Non-integration and misintegration may be intentional or accidental. Accordingly, value co-creation or co-destruction may result from interactions.

Research limitations/implications

This conceptual and exploratory text requires complementary theoretical and empirical investigations. It also does not adopt an ecosystems view of co-creation.

Practical implications

Knowing the different steps of resource integration and what influences them should increase the chances of value co-creation and limit the risks of value co-destruction.

Originality/value

Scant research has examined the nature of customer resources and how service employees integrate them. This paper also is the first to distinguish among resource integration, misintegration and non-integration.

Details

Journal of Services Marketing, vol. 30 no. 2
Type: Research Article
ISSN: 0887-6045

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Article

Sara Leroi-Werelds, Sandra Streukens, Yves Van Vaerenbergh and Christian Grönroos

The purpose of this paper is to examine whether explicitly communicating the customer’s resource integrating role in value propositions improves or diminishes value…

Abstract

Purpose

The purpose of this paper is to examine whether explicitly communicating the customer’s resource integrating role in value propositions improves or diminishes value proposition effectiveness.

Design/methodology/approach

Based on existing research on value propositions, three effectiveness criteria are used: role clarity, expected customer value, and purchase intention. Two experiments manipulating the presence of the customer’s resource integrating role in value propositions test the conceptual model in both an indirect interaction (Study 1, toothpaste, n=207) and a direct interaction context (Study 2, fitness program, n=228). Additionally, Study 2 includes the moderating role of resource availability.

Findings

Explicitly communicating the customer’s resource integrating role in value propositions increases customers’ role clarity, which in turn influences customer’s attitude toward the service and purchase intention through a service-related (i.e. expected benefits and expected efforts) and an ad-related (i.e. ad credibility and attitude toward the ad) route. However, these results only hold for customers high in resource availability.

Originality/value

This research provides initial empirical support for the often-stated claim that value propositions should include the (potential) value of the offering as well as the (resource integrating) role of the customer. Taking a broader perspective, this research provides initial empirical support for recent calls to develop marketing communication practices that facilitate value-in-use. This paper’s findings show that adopting service logic in marketing communications seems to improve value propositions’ effectiveness.

Details

Journal of Service Management, vol. 28 no. 4
Type: Research Article
ISSN: 1757-5818

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Article

Yen-Hao Hsieh and Wei-Ting Chen

The purpose of this study is to create a value variation measurement model to define the relationship among various roles in resource management within a service system;…

Abstract

Purpose

The purpose of this study is to create a value variation measurement model to define the relationship among various roles in resource management within a service system; and divide value creation into two states (i.e. cocreation and codestruction) and use them as crucial indicators for value variation by adopting the service-dominant logic and using the Markov switching model.

Design/methodology/approach

This study proposed that variations in value are similar to changes in economy because both are abstract, indefinable and not easy to identify. Therefore, this study used the Markov switching model to define the state of value through value cocreation and codestruction; analyze value variations in a service system; and provide a numerical evaluation method by using the concept of probability to depict state transitions. In addition, open data from the Kaohsiung City Government’s 1999 call center were collected to address the aforementioned research objectives. The 1999 call center (service provider) offers citizens (customers) efficient consultant services to help them solve problems regarding the city government’s affairs or policies. Thus, this call center can be considered a complex service system.

Findings

This study revealed that the call center can utilize the analysis results of the Markov switching model on answer rates to predict service quality patterns. In addition, most first call resolution rates occurred under State 1 (value cocreation). To address problems caused by accidental or rare events, the call center should formulate policies to increase people and technical resources and improve service system effectiveness.

Originality/value

Enterprises currently focus on catering to customers’ needs and offering services through comprehensive service procedures to sustainably generate multiple values for customers, helping them to create values. Previous studies have mostly focused on analyzing the values of a service system and have failed to extensively explore actual value variations. Thus, the value variation measurement model proposed in the present study was able to analyze value variations of a set of call center data and illustrate value variations by using state transitions.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 8
Type: Research Article
ISSN: 0885-8624

Keywords

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Article

Sabine Moeller

Four characteristics have been regularly applied to services: intangibility, heterogeneity, inseparability, perishability (IHIP). More and more exceptions occur which have…

Abstract

Purpose

Four characteristics have been regularly applied to services: intangibility, heterogeneity, inseparability, perishability (IHIP). More and more exceptions occur which have resulted in substantial criticism. This paper aims to show that each characteristic is valid and useful when related to an individual aspect of services instead of being assigned to services as a single entity.

Design/methodology/approach

Based on customer integration, a framework (FTU framework) and a resource typology are developed. These approaches are the theoretical foundation of the analysis.

Findings

The FTU framework and a resource typology reveal different aspects of services and allow the assignment of the IHIP characteristics to them. Intangibility is assigned to the service offering, heterogeneity and inseparability to customer resources, and perishability to the facilities of the provider.

Research limitations/implications

The paper is based on a theoretical analysis. Researchers may want to empirically test the approach.

Practical implications

Assigning the IHIP characteristics more clearly to certain aspects of services reveals their origin and makes them more tractable. For example knowing that heterogeneity of services is due to customers resources makes it more predictable and manageable.

Originality/value

Although the IHIP characteristics are both widely cited and criticized, existing research has only tried to find and establish new characteristic(s). The approach of this paper is original because it takes a more trenchant look at them in order to develop a framework identifying aspects of services for which they apply.

Details

Journal of Services Marketing, vol. 24 no. 5
Type: Research Article
ISSN: 0887-6045

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Book part

Jaclyn Koopmann, Mo Wang, Yihao Liu and Yifan Song

In this chapter, we summarize and build on the current state of the customer mistreatment literature in an effort to further future research on this topic. First, we…

Abstract

In this chapter, we summarize and build on the current state of the customer mistreatment literature in an effort to further future research on this topic. First, we detail the four primary conceptualizations of customer mistreatment. Second, we present a multilevel model of customer mistreatment, which distinguishes between the unfolding processes at the individual employee level and the service encounter level. In particular, we consider the antecedents and outcomes unique to each level of analysis as well as mediators and moderators. Finally, we discuss important methodological concerns and recommendations for future research.

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Book part

Gábor Nagy, Carol M. Megehee and Arch G. Woodside

The study here responds to the view that the crucial problem in strategic management (research) is firm heterogeneity – why firms adopt different strategies and…

Abstract

The study here responds to the view that the crucial problem in strategic management (research) is firm heterogeneity – why firms adopt different strategies and structures, why heterogeneity persists, and why competitors perform differently. The present study applies complexity theory tenets and a “neo-configurational perspective” of Misangyi et al. (2016) in proposing complex antecedent conditions affecting complex outcome conditions. Rather than examining variable directional relationships using null hypotheses statistical tests, the study examines case-based conditions using somewhat precise outcome tests (SPOT). The complex outcome conditions include firms with high financial performances in declining markets and firms with low financial performances in growing markets – the study focuses on seemingly paradoxical outcomes. The study here examines firm strategies and outcomes for separate samples of cross-sectional data of manufacturing firms with headquarters in one of two nations: Finland (n = 820) and Hungary (n = 300). The study includes examining the predictive validities of the models. The study contributes conceptual advances of complex firm orientation configurations and complex firm performance capabilities configurations as mediating conditions between firmographics, firm resources, and the two final complex outcome conditions (high performance in declining markets and low performance in growing markets). The study contributes by showing how fuzzy-logic computing with words (Zadeh, 1966) advances strategic management research toward achieving requisite variety to overcome the theory-analytic mismatch pervasive currently in the discipline (Fiss, 2007, 2011) – thus, this study is a useful step toward solving the crucial problem of how to explain firm heterogeneity.

Details

Improving the Marriage of Modeling and Theory for Accurate Forecasts of Outcomes
Type: Book
ISBN: 978-1-78635-122-7

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