Academic journal article Global Business and Management Research: An International Journal

A Conceptual Model for Developing Customer Value Co-Creation Behaviour in Retailing

Academic journal article Global Business and Management Research: An International Journal

A Conceptual Model for Developing Customer Value Co-Creation Behaviour in Retailing

Article excerpt

1. Introduction

Value co-creation concept has recently received broad research interest because of its strategic applicability both in theory and practice (Ehrenthal, Stolzle, & Rudolph, 2012). It refers to the joint creation of value during the interaction process between the firm and the customers (Gronroos, 2000; Vargo & Lusch, 2004). It is a co-creational activity performed by the actors and the recipients in mutual integrated networks by the means of operant resources for mutual benefits (Ehrenthal et al., 2012; Gronroos, 2011; Vargo & Lusch, 2004). Contrary to traditional marketing practices, value co-creation primarily considers customer as an active player and part of the firm during the interaction process to equally co-produce and co-create value (Gronroos, 2000; Prahalad & Ramaswamy, 2000). The concept remains an attractive area of interest among marketing scholars following the evolution of ServiceDominant Logic which primarily focused on the value co-creation and the role of customers in co-creating value (Vargo & Lusch, 2004). S-D Logic proponents customer as always co-creator of value (Vargo & Lusch, 2008b). Thence, many scholars have explored value co-creation and the role of customers through various theoretical frameworks. Among others, a process-based conceptual framework of managing value co-creation was proposed by presenting two-way process of value co-creation with relationship experiences in customer processes on one side, and co-creation and relationship experience design practiced by the supplier on the other side (Payne, Storbacka, & Frow, 2008). The framework highlighted that customers are the co-creators of value, marketing is a source of building relationships, knowledge is an important stream of gaining competitive advantage and the emphasis on operant resources is a key unit of exchange in the business process. Xie, Bagozzi, and Troye (2008) discussed the process of customers' participation in value creation by using 'prosumption' as a trying process in value creation. Similarly, Zhang and Chen (2008) developed a theoretical model for examining the mechanism of value co-creation with the customers and found that customers' key co-creation activities results in customerization and enhance service capabilities. Another framework developed by Nambisan and Baron (2009) debated on value co-creation in virtual customer environment by investigating customer interaction characteristics and perceived customers benefits in value co-creation. They argued that customer participation in product support activities are enhanced by customers' beliefs of getting benefits in engaging value co-creation activities. Numerous other theoretical and conceptual models have discussed value co-creation from different perspectives in different industries. Nonetheless, it has been observed that most of these models are generic in nature discussing broader perspective on value cocreation, primarily debating on central issues of value co-creation between customer and service provider, looking at the processes and the outcomes of value co-creation. Interestingly, no such model is found discussing the factors that can develop customer behaviour towards value co-creation. As Xie et al. (2008) and Yi and Gong (2013) stated that customers are active player in value co-creation, therefore, it is imperative for the firms to focus on customers' behaviour in this regard. Hence further studies are required to identify the important factors behind the development of customers' behaviour towards value co-creation. To overcome this knowledge gap, this study proposed a conceptual model by highlighting experiential value and social influence as important factors in developing customer value co-creation behaviour.

2. Literature Review Emergence in Marketing

The principles and theories of the marketing science were largely rooted from economics, philosophy, psychology and sociology. …

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