Management Decision

The value co-creation process as a determinant of customer satisfaction

Manuela Vega-Vazquez María Ángeles Revilla-Camacho Francisco J. Cossío-Silva
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The value
The value co-creation process as a co-creation
determinant of customer process
satisfaction
1945
Manuela Vega-Vazquez, Marı́a Ángeles Revilla-Camacho and
Francisco J. Cossı́o-Silva
Dpto. de Administración de Empresas y Marketing, Universidad de Sevilla,
Sevilla, Spain
Abstract
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Purpose – The greater part of the academic literature coincides in highlighting the positive influence
that consumer participation has on the value created in service delivery. In this sense, research stands
out which studies the consumer’s role as a value co-creator in the service. However, there are few
studies which analyze the consequences of co-creation behavior from the customer perspective. This
research aims to fill this gap. To do so, it sets out from the measuring of co-creation from the
perspective of the customers themselves and proposes that there is a direct relationship between value
co-creation behavior and customer satisfaction with the service experience.
Design/methodology/approach – To verify the hypothesis proposed, adults over 18 were
personally interviewed. They had to be regular users of firms in the beauty parlor and personal care
sector. The data collection finished with 547 duly-completed questionnaires. The SPSS 20 and AMOS
20 statistical programs were used for the data analysis.
Findings – Regarding the causal model proposed, the data confirm the relationship set out in the
hypothesis. It can therefore be stated that there is a positive relation between value co-creation and
customer satisfaction. It allows a greater comprehension of the value creation process, analyzing the
consequences for customer satisfaction. In this sense, the findings of the study suggest that service firms
dedicated to personal care should foster the customers’ active participation in the value creation process.
Originality/value – The analysis highlights the positive influence which taking part in the value
co-creation has on satisfaction. This is the first study that clearly shows this relationship from the
empirical point-of-view.
Keywords Service-dominant logic, Value, Customer satisfaction, Customer behavior
Paper type Research paper

1. Introduction
The study of value has been constant in the marketing literature since the end of the
twentieth century (Guenzi and Troilo, 2007). This emphasis on value has been
approached from numerous perspectives, without a clear definition of the term
appearing (López et al., 2010). The one which analyzes the desired value has prevailed
in the marketing area. This refers to what clients want to happen in their interaction
with the organization and/or in the use of the product or service. Less interest has been
sparked off by the study of the received value. This comes from the customer’s global
assessment about the balance of benefits received versus sacrifices made in a specific
purchase or service situation.
What does seem clear for researchers is the role which higher value creation for the Management Decision
Vol. 51 No. 10, 2013
customer has in the firm’s competitiveness (Payne et al., 2008). These days the pp. 1945-1953
q Emerald Group Publishing Limited
customer is more informed and educated, more selective and demanding and has a 0025-1747
greater capacity of choice. This new consumer demands a greater value generation DOI 10.1108/MD-04-2013-0227
 MD from firms. Therefore, customer value creation has become more necessary than ever
for the organization’s survival. Likewise, recent studies show that the generated value
51,10 can favor, among other things, customer satisfaction and business results (Guenzi and
Troilo, 2007; Cedric Hsi-Jui, 2011; Dabholkar and Sheng, 2012).
In seeking new ways to create customer value, current marketing developments,
such as the service-dominant logic (S-D logic), may turn out to be especially useful. The
1946 paradigm of S-D logic is based on the premise that firms do not deliver value, but
rather work out value proposals. It is the customers themselves who, individually,
create value via the use or the consuming of the products or services. This new
approach emphasizes that the customer’s participation in the experience of the service
is considered indispensable for the value creation. The need for collaboration and
adaptation between the firm and the consumer is of course not new, and Johnston
(1989) pointed out that the consumers, as well as the employees, are active participants
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in the creation, the supply and the control of services. This is because they perform
tasks related to the supply of services for themselves, for other consumers (creating an
atmosphere of the service and thus taking part in its formation) and for the
organization itself (providing information for its control).
Nevertheless, what is recent is the interest in the search for a new reference
framework for value creation, centered on the co-creation process. In this line, the S-D
logic’s perspective of the value of use recognizes that the customers are co-creators of
their own value: as beneficiaries, they determine what they value. Starting from this,
“the strategic role of any business must consist of supporting the customers’ value
creation processes through service activities” (Andreu et al., 2011, p. 23).
However, and in spite of the importance this subject has for academics and those in
charge of firms, knowledge about the way in which customers participate in value
co-creation is still very limited (Payne et al., 2008). The greatest endeavors have, until
now, centered on measuring the very firm’s perception of the attitude of the customer
in this process. Few studies have analyzed co-creation behavior from the customer’s
perspective, and if they have done so, they have concentrated on partial aspects (Groth,
2005; Fang et al., 2008).
Likewise, and despite the growing importance of the value co-creation process, there
is a gap in understanding the relationship between value co-creation and satisfaction
(Hunt et al., 2012). This work aims to precisely tackle to what extent the co-creation
process affects customer satisfaction. It at all times adopts the perspective of the
customers themselves.

2. Literature review and development of hypotheses

2.1 Value co-creation
Co-creation implies the joint value creation between the supplier and the customer
(Prahalad and Ramaswamy, 2004a) and requires the building of experiences and the
resolving of problems with a combined effort between the parts that make up a
commercial relationship. This concept is based on the idea that the main business
abilities are not already in the value chain, but in the point of interaction between
the customer and the firm. The former is a value co-creator in any case (Yi and
Gong, 2012). In this sense, Vargo and Lusch (2008) consider that all the parties
involved in an exchange relationship perform a common function: to co-create value
via the integrating of resources and the provision of services. Consequently, and
following this premise, the organization must began by recognizing that it is not
 possible to add value to the offer without gathering or combining resources which The value
go beyond the entity itself (Prahalad and Ramaswamy, 2004b). Value co-creation is co-creation
considered, therefore, to be a way of increasing value for both the customers and
the service suppliers (Vargo and Lusch, 2004). The customer’s role in this process is process
centered upon carrying out a series of activities to achieve a particular aim (Payne
et al., 2008).
In an aim to unite all the efforts made until now, Yi and Gong (2012) define the behavior 1947
of customer co-creation as a construct made up of two differentiated types of consumer
behavior: participation behavior and citizenship behavior. The first of these dimensions
refers to the behavior that the customer adopts during the service encounter. This is
considered necessary to attain an appropriate performance in the value co-creation. The
second refers to a type of behavior which can create a higher value for the organization but
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which is not necessary for value co-creation (Bove et al., 2008; Groth, 2005; Yi and Gong,
2012). Each of these dimensions is made up of four factors in the original scale: information
seeking, information sharing, responsible behavior and personal interaction in the
framework of participation behavior and feedback, advocacy, helping and tolerance of
citizenship behavior. These eight dimensions are (Yi and Gong, 2012):
(1) Information seeking. The customers need to have access to the information
related to the service’s basic characteristics which they are going to receive.
This knowledge is going to facilitate their integration in the value co-creation
process.
(2) Information sharing. It is necessary for the customers to actively participate,
supplying information to the employees about the need that they wish to
satisfy, as well as the specifications of the service that they expect to receive.
(3) Responsible behavior. In the value co-creation process, customers must
cooperate with the employees, following their guidelines and orientations.
(4) Personal interaction. Interpersonal relations between customers and employees
based on courtesy, friendliness and respect are fundamental for the success of
the value co-creation process.
(5) Feedback. The information that customers supply to the employees
(suggestions and orientations) and which facilitate the long-term
improvement of the service provision.
(6) Advocacy. The recommendation of the firm or its employees to family and friends.
(7) Helping. The willingness to advise or give information to the rest of the users
contributes to improving the service without the employees needing to
intervene.
(8) Tolerance. This refers to the customers being patient when the service provision
does not meet their expectations.

Although the study of the consequences of co-creation is in its initial stages, it has been
possible to verify that as the customer’s participation increases, their motivation and
commitment with co-creation also increases. These circumstances allow them to
perceive a greater quality of service. This is an aspect that is directly related to
satisfaction (Dong et al., 2008).
 MD 2.2 Customer satisfaction
Customer satisfaction is one of the most important concepts of the marketing literature,
51,10 as it allows the linking of buying and consumption processes with post-purchase
phenomena, such as change of attitude, repeat buying or brand loyalty. From the
academic point-of-view, the interest lies in the evidence that satisfaction leads to
loyalty and financial results.
1948 Customer satisfaction is a complex construct that has been widely debated in the
literature. Numerous definitions have been proposed without there being any
consensus about them. A very common way of defining it is by following the paradigm
of disconformation. From this perspective, satisfaction is an assessment of the extent to
which the supplier could satisfy or surpass the customers’ expectations (Levy and
Weitz, 2007; Kursunluoglu, 2011). The customer compares the level of performance
after using the product or service with the level of expectation before using it.
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Although satisfaction has been basically understood as an individual judgment of

performance versus expectation (Hunt et al., 2012), a growing number of works suggest
that satisfaction judgments are social (Fournier and Mick, 1999). This proposal
represents a change of approach from tangible resources to intangible resources, such
as value co-creation and relationships (Vargo and Lusch, 2004). In fact, the customer’s
involvement in the value co-creation processes probably has consequences from the
point-of-view of assessing their satisfaction with the service. Thus, if we consider the
customers as active participants in the value co-creation process (Vargo and Lusch,
2008), their greater satisfaction must be a consequence of this (Grönroos, 2008). Via the
customer’s involvement it is possible to obtain a final product that is fully adapted to
the customers’ needs.
On these theoretical grounds, we propose the following hypothesis:
H1. There is a positive relationship between the customers’ behavior of value
co-creation and their level of satisfaction with the service.

3. Empirical study
3.1 Methodology
To verify the hypothesis proposed, adults over 18 were personally interviewed. They
had to be regular users of some center for personal care, such as hairdressers’, beauty
parlors, hair removal centers, gyms, etc. The interviews were carried out between
September and November 2012 by interviewers trained in the matter. The data
collection finished with 547 duly-completed questionnaires. The SPSS 20 and AMOS 20
statistical programs were used for the data analysis.

3.2 Measurement scales

Value co-creation – to measure value co-creation the scale proposed by Yi and Gong
(2012) was used. This scale is the first which aims to know all the aspects associated
with value co-creation behavior from the customers’ perspective. The authors uphold
that co-creation is a third order construct made up of two second order dimensions:
participative behavior and citizen behavior. The 29 items of the construct are measured
with a seven-point Likert-type scale.
Taking into account the scale’s multidimensionality, the analysis of its reliability
and validity has been carried out dimension by dimension. The data of this analysis
are presented in Tables I to III. It must be pointed out that some of the indicators do not
 The value
Initial Final Extracted Composite
Construct scale a scale variance reliability co-creation
Information seeking (ISE) C01 0.53 C01 – –
process
C02
C03
Information sharing (IS) C04 0.79 C04 0.80 0.58 1949
C05 C05
C06 C06
C07
Responsible behavior (RB) C08 0.83 C08 0.81 0.59
C09 C09
C010 C011
C011
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Personal interaction (PI) C012 0.90 C010 0.91 0.67

C013 C012
C014 C013
C015 C014
C015
Feedback (F) C017 0.59 – – –
C018
Advocacy (A) C020 0.89 C020 0.89 0.74
C021 C021
C022 C022
Helping (H) C023 0.85 C023 0.86 0.68
C024 C024
C025 C025
C026
Tolerance (T) C027 0.66 – – –
C028
C029
Customer participation behavior (CPB) ISE – ISE 0.74 0.5
IS IS
RB RB
PI PI
Customer citizenship behavior (CCB) F – A 0.61 0.51
A H
H
T
Co-creation CPB – CPB 0.72 0.55 Table I.
CCB CCB Co-creation reliability

attain acceptation levels. However, given that they are very close to doing so and that
the fit of the model is not improved by removing them, they have been maintained.
Customer satisfaction – the customers’ satisfaction with the personal care center
chosen has been measured using the scale proposed by Suárez et al. (2007). This scale
aims to assess global satisfaction with the firm and includes an express reference to
past satisfaction. It is thus considered to be an accumulative variable that encompasses
the consumer’s satisfaction with a variety of service encounters.
When the scale was submitted to the analysis of reliability and validity – and once
three items which did not attain the recommended values had been removed – all the
 MD
Indicators E-standardized loadings T-value Individual reliability
51,10 a
C01 0.994 0.989
a
C04 0.663 0.439
C05 0.930 13.633 0.864
C06 0.661 13.580 0.437
C08 0.707 16.418 0.500
1950 C09 0.740 17.168 0.547
a
C011 0.845 0.714
a
C014 0.794 0.631
C013 0.912 24.621 0.832
C012 0.864 22.991 0.747
C010 0.738 18.701 0.545
C015 0.759 19.387 0.577
a
C022 0.815 0.665
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C021 0.929 24.251 0.863

C020 0.827 22.140 0.684
C025 0.703 17.948 0.495
C024 0.923 21.825 0.851
Table II. C023 0.837 a
0.700
Co-creation convergent
validity Note: aThe initial loading was fixed equal to the unit

RB PI A H IS CPB CCB
a
RB 0.587
PI 0.693 0.666a
A 0.289 0.369 0.737a
H 0.121 0.184 0.338 0.682a
IS 0.362 0.256 0.111 20.047 0.580a
CPB 0.493
Table III. CCB 0.411 0.512
Co-creation discriminant
a
validity Notes: Correlations between constructs; Extracted variance on the diagonal

indices surpassed their acceptation values (Cronbach: 0.89; Composite reliability: 0.88;
Variance extracted: 0.66). We can therefore guarantee this measurement instrument’s
reliability and validity.

3.3 Data analysis

Before evaluating the structural model, we analyze the measurement model. Following
the theoretical guidelines (Hair et al., 1999) we carry out a factorial analysis using
structural equations and taking into account four criteria: the significance and value of
the factorial loadings, the individual reliability of each item and the model’s fit indices.
All the indicators surpass the minimum thresholds and the goodness of fit indices
show that the measurement model is appropriate (RMR ¼ 0.204; RMSEA ¼ 0.055;
GFI ¼ 0.898; Normed x2 ¼ 2.64).
 3.4 Results The value
Regarding the causal model proposed, the data confirm the relationship set out in the co-creation
hypothesis H1 (l ¼ 0.962, p , 0.01). It can therefore be stated that there is a positive
relation between value co-creation and customer satisfaction. process
The goodness of fit indices present appropriate values in general (RMR ¼ 0.206;
RMSEA ¼ 0.055; GFI ¼ 0.897; Normed x2 ¼ 2.63).
1951
4. Discussion
4.1 Theoretical contributions
This work’s aim has been the study of the relation between value co-creation and
customer satisfaction from the point-of-view of the service user. The work adopts the
S-D logic conceptual framework. In this way it responds to the call of previous works
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(Vargo et al., 2008) for the need to probe more deeply into research on this subject.
This article conceptually contributes to the literature from different points-of-view.
Firstly, by analyzing the consequences for customer satisfaction it allows a greater
comprehension of the value creation process. This is a fundamental aspect considering
firm results, as it directly influences the retaining of customers and profitability.
Secondly, it is, as far as the authors know, the first attempt to measure value
co-creation via the use of the scale of Yi and Gong (2012). This adopts the point-of-view
of the customers themselves.

4.2 Implications for management

The findings of the study suggest that service firms dedicated to personal care should
foster the customers’ active participation in the value creation process, as this has been
shown to have a positive influence on customer satisfaction with the firm’s service.
Therefore, and according to the results attained, firms should make an effort to favor
this interaction. They can do so by creating appropriate communication channels and
fostering the involvement of the customer in the process of the production of the
service. As Diz-Comesaña and Rodrı́guez-López (2011) state, the behavior of the contact
staff in their relationship with the consumers directly influences their participation.
This is why managing this aspect is considered to be a key tool in the implementation
of co-creation.
Moreover, it could be expected that the consumer will acquire certain skills in the
value creation process, hence contributing to differentiate the supplier’s service (Dong
et al., 2008). We understand service in the terms of Vargo et al. (2008): the application of
abilities (knowledge and skills) by one party in benefit of the other, with the interaction
between both being what generates value.
On the other hand, the involvement of the customer in the co-creation process could
lead to customers blaming themselves for a possible problem in the service provision.
In these circumstances, the dissatisfaction experienced will be less in comparison to the
situation in which the customer holds the service supplier totally responsible (Bitner
et al., 1997).

4.3 Limitations and future research lines

The current research poses a series of limitations which later works should aim to
overcome. These are the main lines of future research.
 MD Firstly, it would be interesting to explore the potential influence that third variables
51,10 could have on the value co-creation – customer satisfaction relationship. In this line, it
is possible that customer loyalty could influence the relationship proposed. That is to
say, the following questions need to be answered: are there differences in the
customers’ value co-creation process based on the length of their relationship with the
service supplier? Is the impact of the value co-creation on customer satisfaction
1952 moderated by the duration of this relationship? Second, it would be beneficial to
broaden the study to other possible consequences of the co-creation process, in order to
construct a wide theoretical framework about the consequences of co-creation as well
as its antecedents. We would then know which factors foster value creation and which
act as barriers.
Thirdly, we could compare results and generalize conclusions by replicating this
study in other sectors and geographical areas.
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On the other hand, this work has approached the research from a transversal
perspective. In the light of the results obtained, in the short term there is a positive
impact of customer participation in the value co-creation process on satisfaction.
Nevertheless, we would need to broaden the time horizon to know if, over time, the
customer’s participation in this process is maintained, increases or is reduced and what
consequences this has on satisfaction.
Finally, the study adopts the customer as the analysis unit. It would be interesting
to compare the firm’s perspective in order to investigate to what extent this contributes
to the value generation and what the customer’s active participation in the process is.

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Corresponding author
Manuela Vega-Vazquez can be contacted at: mvega@us.es

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