Impact of Customer Perception of Value Co-Creation for Personalization in Online Shopping

Abstract

Electronic commerce firms adopt advanced technologies to provide personalization of marketing-mix with data for personalization co-created by consumers. This study explores customer's perception of value co-creation and how it impacts intention to co-create value. Customer perception of value co-creation for personalization in an e-commerce context was operationalized as second order construct comprising of fulfilment, service recovery, price perception, algorithmic fairness, personalization benefits, security, and privacy. Survey results of 638 respondents analyzed using AMOS showed that process quality and relationship quality mediate the relationship between customer's perception of value co-creation and intention to co-create value with relationship quality showing stronger effect. Thus, this study contributes to marketing value co-creation literature and provides implications for practicing managers.