Towards a co-creation framework in the retail banking services industry: a cross-cultural analysis

An underlying theme in modern marketing is the notion that value is not solely created within the boundaries of the firm, it is created co-jointly with outside parties. This paper aims to study the outcomes of co-creation from a customer perspective. Specifically, it examines the effects of co-creation on customer satisfaction, loyalty and word-of-mouth (WOM) within the banking services industry. Furthermore, we consider potential differences between consumers from Spain and the UK, thus incorporating cross-cultural aspects in our research. The research demonstrates that firms should not only respond to the differences that exist within different cultural contexts and incorporate these in co-creation initiatives; more importantly, firms should undertake co-creation activities themselves as these can result in customers who are more satisfied, loyal to the company and more likely to carry out positive WOM, which can ultimately lead to new customers

Towards a co-creation framework: Understanding the effects on customer satisfaction, loyalty and word-of-mouth

Programa de Doctorado en Administración y Dirección de EmpresasLínea de Investigación: Gestión del Conocimiento, Innovación y EmprendimientoClave Programa: DAECódigo Línea: 3The topic of value co-creation has sparked an intense interest in the field of marketing over the past decade. As companies strive to generate more value, both academics and practitioners have understood that organizations must shift their focus and look to their customers, and other parties in their networks, to achieve greater value. Competitive pressures, service-dominated economies, globalization, more connected and empowered customers, and technological advances have forced firms to compete and create value in systems and networks rather than solely on their own. Therefore, academics have revisited the concept of value creation and tried to understand it in this new context. These changes have been underlined by the theoretical framework of Service-dominant logic. The purpose of this project is to examine the direct effects of co-creation on key marketing variables: satisfaction, loyalty, and word-of-mouth, from a customer perspective. Additionally, the aim is to measure these variables within a cross-cultural setting. Given that the constructs of satisfaction, loyalty, and word-of-mouth are recognized as important determinants of customer behavior, practical implications are provided to help companies gain competitive advantage. Furthermore, potential differences in cross-cultural settings are noted with recommendations for local adaptations. As such, the thesis is organized in five chapters: The first chapter provides an initial discussion of the topic of interest and highlights the justification and specific objectives of the study. Chapter 2 reviews extant literature and examines how possible negative outcomes of co-creation practices can be avoided. Chapter 3 assesses, from a customer perspective, the outcomes of co-creation on transactional and non-transactional customer behavior, as measured through satisfaction, loyalty and WOM. Chapter 4 follows by adding a cross- cultural component to examine whether the outcomes of co-creation are affected by culture. To conclude, Chapter 5 presents the main conclusions and insights and recommendations for future research. Keywords: Co-creation, Service-dominant logic, customer satisfaction, loyalty, WOM, cross-cultural Resumen Durante la última década el paradigma de la co-creación de valor ha suscitado gran interés en el campo de marketing. Tanto los académicos como los profesionales de marketing han comprendido que las empresas tienen que cambiar su punto de vista e incorporar a sus clientes y otros grupos de interés en el proceso de creación de valor. Debido a la gran competencia existente, al crecimiento de las economías basadas en los servicios, a los efectos de la globalización, al efecto de clientes cada vez más exigentes e informados y a los avances tecnológicos, entre otros factores, las empresas ya no pueden competir y generar valor de manera aislada sino que deben dar voz y participación a sus clientes. Este fenómeno ha supuesto que los académicos hayan revisado el concepto de la creación de valor, sostenido por el marco teórico de ¿Service-dominant logic¿. El propósito de este trabajo es examinar los efectos directos de la co-creación sobre variables importantes en el campo de marketing: satisfacción, lealtad, y boca-a-oído desde la perspectiva de los clientes. Adicionalmente, se pretende analizar estas variables en un entorno intercultural. Dada la importancia de los constructos de satisfacción, lealtad, y boca-a-oído como factores determinantes del comportamiento del cliente, se discuten resultados e implicaciones para que las empresas puedan desarrollar ventajas competitivas. Además, se destacan las diferencias en un entorno intercultural y recomendaciones para adaptarse a estas diferencias. La tesis se estructura en cinco capítulos: el primer capítulo presenta el interés de la investigación y sus objetivos específicos. El capítulo 2 examina la literatura actual e identifica los factores clave en los procesos de co-creación. El capítulo 3 analiza, desde la perspectiva del cliente, los efectos de la co-creación sobre el comportamiento transaccional y no transaccional del cliente, medidos a través de la satisfacción, lealtad y boca-a-oído. El capítulo 4 añade un componente intercultural para analizar si la cultura afecta las consecuencias de la co-creación. Para concluir, el Capítulo 5 presenta las principales conclusiones, implicaciones y propuestas de investigación para el futuro.Universidad Pablo de Olavide de Sevilla. Departamento de Organización de Empresas y MarketingPostprin

How cross culture affects the outcomes of co-creation

Purpose: The aim of this study is two-fold. Firstly, to examine the outcomes of co-creation from a customer perspective using well-recognised customer management variables (customer satisfaction, loyalty and word-of-mouth (WOM). Secondly, to assess potential cross-cultural differences that may exist within the context of co-creation. Design/methodology/approach: A questionnaire was completed in the banking services industry, and the final valid sample comprised individuals from the UK and Spain. Multi-sample analysis was carried out using PLS software. Findings: Co-creation has a direct influence on customer satisfaction, customer loyalty and WOM; co-creation activities lead to cumulative customer satisfaction, which also affects customer loyalty and positive WOM. Furthermore, the results show that the direct relationships between co-creation and loyalty and WOM are more powerful for British consumers than Spanish consumers, who need to feel satisfied prior to demonstrating loyalty and engaging in positive WOM. Practical implications: Firms can use co-creation as a strategic tool if they provide trustworthy collaboration spaces. Furthermore, firms need to adapt the way they interact, listen and respond to customers in different cultural contexts. Trustworthy collaboration spaces and adapting to cultural differences can result in customers who are more satisfied, loyal to the company and more likely to carry out positive WOM, which can ultimately lead to future business. Originality/value: This study provides insights into co-creation from a customer perspective. Although much service research has examined the drivers of customer co-creation, literature that analyses the consequences of customer co-creation is still scarce. Moreover, this is the first study to provide empirical evidence of cross-cultural differences within the context of co-creation