The Role of Service-Dominant Logic Strategic Orientations in Driving Customer Engagement in Online Retailing

Abstract

Motivating customers’ engagement can be a crucial differentiating factor for the dynamically changing landscape of online retailing. This study draws on service-dominant (S-D) logic and behavioral literature to propose a conceptual model that depicts how a firm's S-D orientation and strategic capabilities stimulate customer engagement, leading to enhanced performance. The model captures the underlying mechanism of value cocreation in an online retailing context. The authors test the model using an experimental research design: 872 participants navigated a quest toward a hypothetical purchase in nine versions of a mock e-commerce website specializing in cycling equipment, and which contained various cues representing different S-D orientations. Findings suggest that S-D orientation has a positive impact on customers’ brand attitudes, affecting their engagement dispositions, purchase intentions, and ultimately (dis)engagement behaviors. In addition, relational, individuated, and developmental strategic capabilities appear to have a stronger impact on customer engagement in online retailing.