Chih-Cheng Volvic Chen and Chih-Jou Chen
The purpose of this paper is to examine the impact of customer participation in the service delivery process by designing and testing an empirical model with the customers’ point…
Abstract
Purpose
The purpose of this paper is to examine the impact of customer participation in the service delivery process by designing and testing an empirical model with the customers’ point of view in mind.
Design/methodology/approach
Data are collected from 176 customers in the context of professional financial insurance services. The proposed model is analyzed with partial least squares (PLS) path modeling in SmartPLS 2.0 software.
Findings
The results of the study show that customer participation produces positive effects on customer satisfaction and affective commitment through the customer relational value. Affective commitment is a strong predictor of repurchase intention, but no relationship between customer satisfaction and repurchase intention was found.
Practical implications
This study suggests that customer participation can be a win-win situation for customers and the service firm. Customers who create relational value with their service providers effectively enjoy their services more and are more likely to build and maintain long-term relationships with their service firm.
Originality/value
The findings highlight the roles of the customer and indicate the heuristic value of viewing customer satisfaction and affective commitment as consequences of customer participation. By identifying the effects of customer participation in the service interaction, organizations can determine optimum roles for customers in the service delivery process that will yield a more efficient use of organization resources and improve operational performance.
Details
Keywords
Moh. Wahyudin, Chih-Cheng Chen, Henry Yuliando, Najihatul Mujahidah and Kune-Muh Tsai
The food industry is continuously developing its online services called food delivery applications (FDAs). This study aims to evaluate FDA's importance–performance and identify…
Abstract
Purpose
The food industry is continuously developing its online services called food delivery applications (FDAs). This study aims to evaluate FDA's importance–performance and identify strategies to maximize its potential gains from a business partner's perspective.
Design/methodology/approach
Data are collected from 208 FDA partners in Indonesia. Importance–performance analysis (IPA) is applied to evaluate the FDA feature and extended the theory of potential gain in customer value (PGCV) to achieve potential gains from FDA business partners.
Findings
This study provides a clear and measurable direction for future research to develop FDA performance. Owning customer data, revenue sharing and competitive advantage are the most potential gains from joining the FDA from the business partner perspective.
Research limitations/implications
The respondents are restaurants from the micro, small, and medium enterprises levels. Further research should involve middle to upper level restaurants to discover all business partners' perceptions. This will be very helpful for FDA providers interested in improving the best performance for all their partners.
Practical implications
FDA providers must focus on improving and maintaining the features of owning customer data, revenue sharing, competitive advantage, stable terms and conditions, customer interface, building customer loyalty, online presence, user credit rating, promotion and offers, delivery service and sales enhancement to increase consumer satisfaction and meet the expectations desired by business partners.
Originality/value
This research provides a meaningful theoretical foundation for future work. It extends the theory of PGCV using the value of a partner perspective as a substitute for customer value; hence, the authors call it a potential gain in partner value.
Details
Keywords
Chih-Cheng Volvic Chen, Chih-Jou Chen and Ming-Ji James Lin
The purpose of this paper is to examine the impact of customer participation in a service delivery process by designing and testing an empirical model with the employees’ point of…
Abstract
Purpose
The purpose of this paper is to examine the impact of customer participation in a service delivery process by designing and testing an empirical model with the employees’ point of view in mind.
Design/methodology/approach
Using data collected from 166 pairs of customers and service employees in the context of professional financial insurance services, this study uses partial least square path modeling in SmartPLS to analyze the proposed model.
Findings
The results of the study show that customer participation produces positive effects on employees’ job satisfaction only if such participation minimizes job stress and meets employees’ relational needs. Job stress and satisfaction were strong predictors for organizational commitment, but the proposed relationship between relational value and organizational commitment was not found.
Practical implications
This study suggests that customer participation can be a win-win situation for employees and the service firm. Employees who create relational value with their customers effectively enjoy their jobs more and are more likely to build and maintain long-term relationships with their service firm.
Originality/value
The findings highlighted the roles of the customer and the employee and indicated the heuristic value of viewing job satisfaction and organizational commitment as consequences of customer participation. This can enhance the understanding of how encounters should be designed to support employees and improve the co-creation of value.