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Article

Priyanka Sharma

Many changes that call for concerted social action were observed in society and business performance during the coronavirus 2019 (COVID-19) outbreak. The impact of…

Abstract

Purpose

Many changes that call for concerted social action were observed in society and business performance during the coronavirus 2019 (COVID-19) outbreak. The impact of digitization and customer participation was evident in providing medical guidelines, updates on government initiatives, education or the supply of essential services during lockdown in many countries. However, there were aberrations. The purpose of this study is to explore some consumers and firms' being better equipped for service co-creation than others, specifically during a pandemic; the different degrees of service co-creation and the possible outcomes of customer participation in the service context.

Design/methodology/approach

Qualitative study with 35 in-depth interviews of supply- and demand-side actors, with coding and analysis of interview transcripts was conducted.

Findings

The authors identify two levels of service co-creation: (1) service co-development and (2) service co-evaluation that are affected by customer capabilities and firm/institutional barriers. The outcome of service co-creation lies in the social, economic and experiential values thus created. A pandemic strengthens the effect of antecedents (customer capabilities and firm capabilities) on the co-creation process.

Practical implications

Managers can refer to the findings to manage customer engagements and co-creations effectively, especially during a pandemic.

Originality/value

The impact of the pandemic on the service co-creation process in an emerging market, and the antecedents (firm- and customer-side) and consequences (mutual value outcomes) of service co-creation and actor participation are explored.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

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Article

Kristin Brandl

Despite increasing interest in offshoring of knowledge-intensive services, it is still undetermined as to whether the sourcing of services truly creates the anticipated…

Abstract

Purpose

Despite increasing interest in offshoring of knowledge-intensive services, it is still undetermined as to whether the sourcing of services truly creates the anticipated value for clients. Moreover, even less is known about whether value is created for service providers in the process beyond the general service trade. This lack of knowledge is due to the challenges of capturing value creation, the unique production process of the services, and the impact of offshoring on both value creation and the production process. The purpose of this paper is to study offshored service production processes of knowledge-intensive services in order to identify direct and indirect value creation for clients as well as service providers in the process.

Design/methodology/approach

The paper applies a multiple case study method and studies one conglomerate with three offshored service production processes. The chosen method allows for the investigation of the service production process and indirect/direct value creation within the process.

Findings

The study finds that there is direct value creation for the client and the service provider towards the end of the production processes as expected. However, more importantly, it finds additional indirect value creation in various production stages. The indirect value is reflected in enhanced understanding of problems and own operations for the client and increased knowledge about clients and problem-solving approaches for the service provider.

Research limitations/implications

This study contributes to offshoring literature by providing a comprehensive understanding of value creation in service offshoring for clients as well as service providers. It also contributes to the service management literature as a study of direct and indirect value creation in services, particularly within the production process of the services.

Practical implications

The study allows practitioners to gain insights on the value creation logic of offshored services and the value created beyond that logic. More specifically, it allows client firms to gain details of various values and benefits of service offshoring and service provider firms to gain a focused perspective on value creation in their own service production that can lead to competitive advantages.

Originality/value

The paper is novel and original through its approach to study offshoring from a value creation logic perspective, including not only the client but also the service provider perspective. It also applies a service production process perspective that is novel in offshoring literature.

Details

International Journal of Physical Distribution & Logistics Management, vol. 47 no. 2/3
Type: Research Article
ISSN: 0960-0035

Keywords

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Article

Natalia Rubio, Nieves Villaseñor and Maria Jesús Yagüe

Although value co-creation has been widely analyzed in digital contexts and various types of services (tourism, healthcare, etc.), it has received less study in the area…

Abstract

Purpose

Although value co-creation has been widely analyzed in digital contexts and various types of services (tourism, healthcare, etc.), it has received less study in the area of retail distribution. This study proposes that trust in the retailer and perceived support can encourage co-creation behavior on various levels: a basic level related to communication of service errors and a moderate-high level related to participation in service innovation. This study also proposes modeling for two different segments according to the participation in a loyalty program and according to the relationship duration.

Design/methodology/approach

A survey (N = 644) was used to test the model in the context of the consumer goods retail industry. Confirmatory factor analysis and multigroup structural equation modeling techniques were used to assess the proposed model.

Findings

The results show differences in the formation of co-creation behaviors depending on the customers analyzed. To encourage communication of service errors, customers affiliated to the program and customers with the longest customer-firm relationships must trust the distributor. Perceived support is crucial in encouraging feedback on service errors among non-affiliated and new customers. For promoting service innovation, the most significant antecedent is perceived support, followed by trust, independently of whether or not the customer belongs to the loyalty program. Customers with the longest relationship participate in co-innovation motivated equally by trust and perceived support. Customers with shorter relationship duration only participate in co-innovation if they perceived support.

Originality/value

This study contributes to deepening knowledge of co-creation behavior in the field of retail distribution. To date, research in this context has not considered the existence of various levels of co-creation: the basic level related to feedback on service errors and the moderate/high level related to participation in service co-innovation. Nor have studies tested the influence of trust and perceived support on these co-creation behaviors. Further, this study is the first study to integrate two significant variables that moderate retailers' strategy in the same model: membership in a loyalty program and duration of customer-firm relationship.

Details

International Journal of Retail & Distribution Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0959-0552

Keywords

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Article

Babak Taheri, Shahab Pourfakhimi, Girish Prayag, Martin J. Gannon and Jörg Finsterwalder

This study aims to investigate whether the antecedents of co-creation influence braggart word-of-mouth (WoM) in a participative leisure context, theorising the concept of…

Abstract

Purpose

This study aims to investigate whether the antecedents of co-creation influence braggart word-of-mouth (WoM) in a participative leisure context, theorising the concept of co-created food well-being and highlighting implications for interactive experience co-design.

Design/methodology/approach

A sequential mixed-method approach was used to test a theoretical model; 25 in-depth interviews with cooking class participants were conducted, followed by a post-experience survey (n = 575).

Findings

Qualitative results suggest braggart WoM is rooted in active consumer participation in co-designing leisure experiences. The structural model confirms that participation in value co-creating activities (i.e. co-design, customer-to-customer (C2C) interaction), alongside perceived support from service providers, increases consumer perceptions of co-creation and stimulates braggart WoM. Degree of co-creation and support from peers mediate some relationships.

Research limitations/implications

Limited by cross-sectional data from one experiential consumption format, the results nevertheless demonstrate the role of active participation in co-design and C2C interactions during value co-creation. This implies that co-created and co-designed leisure experiences can intensify post-consumption behaviours and potentially enhance food well-being.

Practical implications

The results highlight that integrating customer participation into service design, while also developing opportunities for peer support on-site, can stimulate braggart WoM.

Originality/value

Extends burgeoning literature on co-creation and co-design in leisure services. By encouraging active customer participation while providing support and facilitating C2C interactions, service providers can enhance value co-creation, influencing customer experiences and food well-being. Accordingly, the concept of co-created food well-being is introduced.

Details

European Journal of Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0309-0566

Keywords

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Article

Khalid Hussain, Fengjie Jing, Muhammad Junaid, Qamar Uz Zaman and Huayu Shi

This study aims to investigate the outcomes of customers’ co-creation experience in a realistic and routinely performed co-creation setting, a restaurant. To fulfill this…

Abstract

Purpose

This study aims to investigate the outcomes of customers’ co-creation experience in a realistic and routinely performed co-creation setting, a restaurant. To fulfill this purpose, the current study links the branding literature to hospitality research and offers a novel framework by incorporating customers’ co-creation experience, customer brand engagement, emotional brand attachment and customer satisfaction in an integrated research model.

Design/methodology/approach

Data were collected from 421 diners at Chinese hotpot restaurants via a self-administered questionnaire. The reliability and convergent and discriminant validities were established through confirmatory factor analysis, and then hypotheses were tested through structural equation modeling.

Findings

This study demonstrates that customers’ co-creation experience with a restaurant brand positively impacts customer brand engagement, emotional brand attachment and customer satisfaction. In addition, current study examines these relational paths at the dimensional level by taking the co-creation experience and customer brand engagement as multidimensional constructs. The resulting in-depth investigation reveals that the hedonic, social and economic experience dimensions of co-creation experience positively influence customer satisfaction, emotional brand attachment and customer brand engagement’s buying, referring, influencing and feedback dimensions.

Practical implications

This study helps relationship and brand managers better understand customer experience in co-creation settings and paves the way for managers to devise engagement strategies.

Originality/value

The current study marks an initial attempt to delineate the outcomes of customers’ co-creation experience in a realistic co-creation setting. Furthermore, the study is first of its kind that investigates the relationship of co-creation experience and customer brand engagement at the dimensional level.

Details

Journal of Product & Brand Management, vol. 30 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

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Article

Millissa Fung Yi Cheung and Wai Ming To

This study aims to use the framework of customer dominant logic to explore the mediating role of service co-creation on the relationships between customer involvement and…

Abstract

Purpose

This study aims to use the framework of customer dominant logic to explore the mediating role of service co-creation on the relationships between customer involvement and perceived service performance and between customer involvement and word-of-mouth (WOM). It also investigates the moderating role of customer relational-motivational orientation on the relationship between customer involvement and service co-creation.

Design/methodology/approach

A questionnaire survey was conducted to collect responses from 289 Hong Kong's customers in different service settings. Structural equation modeling was used to test the proposed research model.

Findings

The results of structural equation modeling showed that the freedom of co-creation and the degree of collaboration fully mediated the effect of customer involvement on perceived service performance and WOM. Additionally, relational-motivational orientation moderated the relationships between customer involvement and the freedom of co-creation and between customer involvement and the degree of collaboration.

Practical implications

This research provides implications to managers on how to facilitate an environment that stimulates customer co-creation. Customer-contact employees must be trained with the necessary interpersonal skills to serve customers with different levels of relational-motivational orientation.

Originality/value

The study is one of the first to identify customer involvement as a key antecedent of service co-creation attributes and the moderating role of relational-motivational orientation on the relationships between customer involvement and service co-creation attributes.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 33 no. 4
Type: Research Article
ISSN: 1355-5855

Keywords

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Article

Tingting Zhang, Can Lu, Edwin Torres and Cihan Cobanoglu

This study aims to identify different approaches to conceptualize value co-creation and analysing firms’ co-creation strategies aided by various advancing technologies…

Abstract

Purpose

This study aims to identify different approaches to conceptualize value co-creation and analysing firms’ co-creation strategies aided by various advancing technologies. This study further discusses the strengths and weaknesses of these strategies and suggests solutions to overcome the limitations.

Design/methodology/approach

Following a critical literature review, the authors propose a conceptual framework to denote the relations between evolving technologies and co-creation activities.

Findings

On one hand, technology influences the co-creation processes by empowering consumers, offering greater ability to connect, providing greater access to information and furnishing a platform that facilitates co-creation; on the other hand, technological advancements may add complexity, variability and lead to loss of control for service organizations. A role of customers and value definitions are identified and elaborated in the value co-creation process.

Originality/value

Advanced information and communication technologies transcend the traditionally defined service encounters by enabling co-creating actors to exchange resources through virtual interfaces, thus redefining the strategies of value co-creation. Though many studies have discussed value co-creation in diversified standpoints, a perspective from its relationship with technological progression over time remains nascent. The study contributes to a more comprehensive understanding of technology-enabled value co-creation in service ecosystems.

Details

European Business Review, vol. 32 no. 4
Type: Research Article
ISSN: 0955-534X

Keywords

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Article

Sneha Pandey and Divesh Kumar

This study aims to identify and classify the types of value stemming from cooperative creation of experience among customers present in various social and interaction-rich…

Abstract

Purpose

This study aims to identify and classify the types of value stemming from cooperative creation of experience among customers present in various social and interaction-rich service settings, thus leading to customer–customer value co-creation.

Design/methodology/approach

This exploratory qualitative study uses phenomenological approach and involves ten semi-structured in-depth interviews conducted in different interaction-rich service settings. The interviews were analysed using soft laddering interview technique to uncover various customer-to-customer (C2C) co-created values.

Findings

Based upon the literature available and the interviews conducted, the types of value classified in this study are hedonic value (further classified as relational/social/interactional value, emotional value, epistemic/novelty/learning/information-seeking, personal value and symbolic/expressive value), atmospheric value and economic/utilitarian value (efficiency and quality).

Research limitations/implications

One of the major limitations would be the small number of interviews conducted in a few service setups, which makes it difficult to generalise the results. Also, customer–customer interactions, leading to value co-creation online, were not considered.

Practical implications

By facilitating C2C value co-creation, service firms would be able to obtain increased contributory support among customers and also facilitate its customers in providing superior customer experience indirectly to others present, which is considered to be the ultimate goal of a firm.

Originality/value

This would be among the first studies to classify the types of value taking place when customers interact among themselves and to provide concrete suggestions for the managers fostering C2C value co-creation during a service.

Details

Qualitative Market Research: An International Journal, vol. 23 no. 1
Type: Research Article
ISSN: 1352-2752

Keywords

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Article

James A. Busser and Lenna V. Shulga

The purpose of this paper is to introduce and test customer perceptions of four types of value co-creation (VCC), explore VCC a priori condition of relatedness…

Abstract

Purpose

The purpose of this paper is to introduce and test customer perceptions of four types of value co-creation (VCC), explore VCC a priori condition of relatedness, operationalized as commercial friendship, examine customer voluntary participation in VCC through initiation (customer vs company), and the influence of these factors on relational outcomes of VCC: satisfaction, loyalty and trust.

Design/methodology/approach

A scenario-based 2×2×4 experimental design was set in a destination resort context: weak vs strong commercial friendship, customer vs company co-creation initiation and four types of VCC. The 248 resort guests were equally and randomly assigned to experimental conditions. Multivariate analysis of variance and repeated measures analysis of variance was utilized.

Findings

Results demonstrated that customers perceived VCC processes differently. Co-creation of experience and co-recovery outcomes had significantly higher relational outcomes when compared to co-creation of marketing and co-innovation. Experiencing stronger commercial friendship, as customer–company relatedness and being invited to co-create resulted in stronger customer relational outcomes.

Originality/value

The core theoretical contribution of this study is the comparative analysis of customer perceptions of four distinctly different types of VCC: co-innovation, co-creation of experience, co-creation of marketing and co-recovery. A priori conditions of relatedness and co-creation initiation were established as antecedents of VCC processes among customers and service providers. When a service provider initiates VCC, it can positively affect customers’ relational outcomes of satisfaction, loyalty and trust.

Details

Journal of Service Theory and Practice, vol. 29 no. 4
Type: Research Article
ISSN: 2055-6225

Keywords

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Article

Shuqin Wei, Tyson Ang and Nwamaka A. Anaza

Drawing on the fairness theory, this paper aims to propose a conceptual framework that investigates how co-creation in the failed service delivery (coproduction intensity…

Abstract

Purpose

Drawing on the fairness theory, this paper aims to propose a conceptual framework that investigates how co-creation in the failed service delivery (coproduction intensity) and co-creation in the service recovery affect customers’ evaluation of the firm’s competence, justice and ethicalness, and ultimately their willingness to co-create in the future.

Design/methodology/approach

Tax services were chosen as the research context. A consumer panel consisting of individuals who live in the USA and have used tax preparation services within the past year was recruited. The first study explores what happens to customers’ ethical perceptions during a failed co-created service encounter. A secondary study investigates what happens to customers’ ethical perceptions in the event that the failed co-created service is recovered.

Findings

The findings show that customers’ perceptions of the firm’s abilities and ethics are impeded by coproduction intensity but favorably influenced by co-creation of recovery.

Practical implications

A sense of ethicalness and fairness is violated when co-created service failure occurs, but fortunately, practitioners can count on engaging customers in the service recovery process as co-creators of the solution to positively alter perceived ethicalness and fairness.

Originality/value

Failed co-created services represent an under-researched area in the marketing literature. Current investigations of co-created service failures have largely approached the notion of fairness from a perceived justice perspective without referencing ethical judgments. However, fairness is grounded in basic ethical assumptions of normative treatment. This research is among the first to highlight the importance of perceived ethicalness in the context of co-created service failure and recovery.

Details

Journal of Services Marketing, vol. 33 no. 7
Type: Research Article
ISSN: 0887-6045

Keywords

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