Customer participation, innovative aspects of services and outcomes

Abstract

PurposeThis study aims to investigate how customers' perception of service innovation aspects (innovativeness, service newness and relative advantage) and their participation impact value perception, satisfaction and loyalty.Design/methodology/approachThe conceptual model was tested using a nationwide survey from 430 Australian customers of Uber, using structural equation modeling.FindingsResults show that customer participation (CP) and innovativeness positively influence perceived value. Satisfaction is positively influenced by perceived value, innovativeness and relative advantage. Both perceived value and satisfaction drive loyalty. Yet, CP did not influence satisfaction. The study’s findings generally support the mediating roles of perceived value and satisfaction.Research limitations/implicationsCross-sectional data were used. Thus, the results only provide a snapshot of the relationships among constructs.Practical implicationsTo promote loyalty, service organizations emphasize how innovative aspects of services (innovativeness and relative advantage) can create value and satisfaction. Also, CP is critical in promoting customer perceived value and loyalty.Originality/valueBuilding on service-dominant logic (SDL), this study proposes a conceptual model investigating how perceived innovative aspects of service and CP influence perceived value, satisfaction and loyalty of service organizations.