Exploring value co-creation within buyer-seller relationship in mobile applications services : a model development

Mobile phones have become an indispensable part of consumers’ life where they access core and supporting services via mobile applications services (m-applications). The focus of the present study is to explore dyadic buyer-seller roles in m-applications services’ value creation taking mobile banking applications services (MB-applications) as a case study. While prior research on value co-creation in service dominant logic (S-d logic) serves as a foundation for this study, it does not provide adequate guidance on how buyer and seller co-create value in m-applications services.To address this shortcoming, semi-structured interviews were carried out with 12 banks’ officials in banks’ headquarters of Saudi Arabia. Also, six focus groups were conducted; three with MB-application services users and three with non-users which were held in Riyadh College of Technology (RCT). In addition, a content analysis of MB-applications services was conducted to support suppliers’ perspectives regarding value propositions (service offering). A conceptual framework is developed for managing co-creation to illustrate practical application of the framework.The findings pointed to six factors that shape shape service suppliers’ ability to offer and deliver value via MB-applications, namely; brand image building, bank’s business vision, customer culture-orientation, bank’s internal environment, information technology system and positioning strategy. These factors combine to establish a value proposition for banks’ customers in the MB-applications services domain.Customer’s value creation as value in-use during usage emerged in different usage situations. A value framework incorporating value consumptions (Sheth et al., 1991a) is proposed. It identifies the main value-adding elements in m-applications and the primary drivers for adopting m-applications. Findings revealed that bank managers attempted to support customers’ value creation, which was reflected in MB-application content. However, support was constrained by some insufficient assumptions about customers and the m-commerce architecture. Factors that impede MB-applications use include consumers’ banking habits, perceived risk (security and privacy); usability hindrance, marketing and promotion, technical problems, and socio-cultural barriers. Implications are drawn for service delivery value perception and mobile marketing theory, and recommendations are made to service suppliers and commercial banks to achieve sustained returns of investment from MB-applications services