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Article
Publication date: 4 September 2023

Yves Van Vaerenbergh, Annelies Costers and Anja Van den Broeck

The optimal level of customer participation is an important factor in service design. However, researchers know little about the impact of customer participation for their…

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Abstract

Purpose

The optimal level of customer participation is an important factor in service design. However, researchers know little about the impact of customer participation for their willingness to pay and hence organizations’ financial outcomes. This paper examines the impact of customer participation in a pay-what-you-want (PWYW) pricing system, allowing customers to pay any price they want for a product or service.

Design/methodology/approach

This paper reports the results of three experiments, in which the authors manipulated the level of customer participation (Study 1: Low versus high, Study 2: Medium versus high, Study 3: Low versus medium versus high) and measured customers' PWYW payments (Studies 1–3), customer satisfaction (Studies 1–3), perceived equity (Study 3) and perceived enjoyment (Study 3). Studies 1 and 3 were scenario-based experiments, while study 2 was a field experiment. Study 3 was preregistered.

Findings

The results support a direct effect of customer participation in service production on customer PWYW payments, yet only when comparing low to high levels of customer participation. High levels of customer participation lead to a decrease in perceived equity and an increase in perceived enjoyment, which in turn spilled over to customer PWYW payments through customer satisfaction.

Originality/value

This research provides causal evidence at the individual level of analysis for the relationship between customer participation in service production and financial results. The paper also provides insights into its underlying mechanisms.

Details

Journal of Service Theory and Practice, vol. 33 no. 6
Type: Research Article
ISSN: 2055-6225

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Article
Publication date: 9 December 2020

Liliane Abboud, Nabila As'ad, Nicola Bilstein, Annelies Costers, Bieke Henkens and Katrien Verleye

Dyadic interactions between customers and service providers rarely occur in isolation. Still, there is a lack of systematic knowledge about the roles that different types of…

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Abstract

Purpose

Dyadic interactions between customers and service providers rarely occur in isolation. Still, there is a lack of systematic knowledge about the roles that different types of nontechnological third parties – that is, other customers, pets, other employees and other firms – can adopt in relation to customers and service providers during encounters. The present study aims to unravel these roles and highlight their implications for customers, service providers and/or third parties.

Design/methodology/approach

This research relies on a systematic review of literature in the Web of Science using a search string pertaining to the research study’s objectives. In total, 2,726 articles were screened by title and abstract using clear inclusion and exclusion criteria, thereby extracting 189 articles for full-text eligibility. The final sample consisted of 139 articles for coding and analysis.

Findings

The analyses reveal that other customers, pets, other employees and other firms can adopt five roles: bystander, connector, endorser, balancer and partner. Each role has different implications for customers, service providers and/or third parties. Additionally, the five roles are associated with distinct constellations of the customer, the service provider and the third party. These roles and constellations are dynamic and not mutually exclusive.

Originality/value

This research contributes to the service encounter literature by providing a thorough understanding of the various third-party roles and their implications for customers, service providers and/or third parties during encounters. As such, this research sheds light on the conditions under which third parties become “significant others” in service encounters and identifies avenues for future research.

Details

Journal of Service Management, vol. 32 no. 4
Type: Research Article
ISSN: 1757-5818

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