Determining Value Co-Creation Behaviour toward Customer Loyalty and Customer Retention on the SRC’s Business Platformorm
Abstract
Customer retention is the maintenance of long-term customer-company relationships through customer satisfaction thereby creating loyalty. Value co-creation is proven to have a significant role in creating customer loyalty, so that customer loyalty becomes actual retention for the company. The role of shared value creation should be considered in customer relationship mechanisms. This study aims to produce an analysis of the role of value co-creation behavior on customer retention. This focus is novelty in research, because no confirmation was found in previous studies that produced a relationship between the two. Customer loyalty is the variable that mediates the relationship between value creation behavior and customer retention. This research produces findings regarding the positive influence of customer involvement through value co-creation behavior on retention as a long-term customer relationship mechanism with the company.
Keywords: value coreation behaviour; customer loyalty; customer retention
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References
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Ranaweera, C., & Prabhu, J. (2003). The influence of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting. International Journal of Service Industry Management, 14(3–4), 374–395. https://doi.org/10.1108/09564230310489231
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Sashi, C. M. (2012). Customer engagement, buyer-seller relationships, and social media. Management Decision, 50(2), 253–272. https://doi.org/10.1108/00251741211203551
Sholihin, M., & Ratmono, D. (2013). Analisis SEM-PLS dengan WarpPLS 7.0: untuk Hubungan Nonlinier dalam Penelitian Sosial dan Bisnis. Penerbit Andi.
Solakis, K., Peña-Vinces, J., & Lopez-Bonilla, J. M. (2022). Value co-creation and perceived value: A customer perspective in the hospitality context. European Research on Management and Business Economics, 28(1). https://doi.org/10.1016/j.iedeen.2021.100175
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Verhoef, P. C. (2003). Understanding the Effect of Customer Relationship Management Efforts on Customer Retention and Customer Share Development. Journal of Marketing, 67(October), 30–45. https://doi.org/10.1016/j.intmar.2011.02.002
Verhoef, P. C., Doorn, J. van, & Dorotic, M. (2007). Customer Value Management: An Overview and Research Agenda. Marketing ZFP, 29(JRM 2), 105–122. https://doi.org/10.15358/0344-1369-2007-jrm-2-105
Verhoef, P. C., Venkatesan, R., McAlister, L., Malthouse, E. C., Krafft, M., & Ganesan, S. (2010). CRM in data-rich multichannel retailing environments: A review and future research directions. Journal of Interactive Marketing, 24(2), 121–137. https://doi.org/10.1016/j.intmar.2010.02.009
Vivek, S. D., Beatty, S. E., & Morgan, R. M. (2012). Customer engagement: Exploring customer relationships beyond purchase. Journal of Marketing Theory and Practice, 20(2), 122–146. https://doi.org/10.2753/MTP1069-6679200201
Woratschek, H., Horbel, C., & Popp, B. (2020). Determining customer satisfaction and loyalty from a value co-creation perspective. Service Industries Journal, 40(11–12), 777–799. https://doi.org/10.1080/02642069.2019.1606213
Yi, Y., & Gong, T. (2013). Customer value co-creation behavior: Scale development and validation. Journal of Business Research, 66(9), 1279–1284.
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31–46.
Zou, J., & Shao, Y. (2022). A Study on Factors Affecting the Value Co-Creation Behavior of Customers in Sharing Economy: Take Airbnb Malaysia as an Example. Sustainability (Switzerland), 14(19). https://doi.org/10.3390/su141912678
Baehaqi, M. (2017). Customer Insight: Paradigma dan Konsep Strategi. Fokus Bisnis: Media Pengkajian Manajemen Dan Akuntansi, 16, 48–58.
Baehaqi, M. (2018). Muslim Hub: Spiritualitas Bisnis Muslim Di Era Industri 4.0. Fokus Bisnis: Media Pengkajian Manajemen Dan Akuntansi, 17(1), 72–82.
Banyte, J., & Dovaliene, A. (2014). Relations between Customer Engagement into Value Creation and Customer Loyalty. Procedia - Social and Behavioral Sciences, 156(April), 484–489. https://doi.org/10.1016/j.sbspro.2014.11.226
Bloemer, Josee, Odekerken, G. (2020). Store Satisfaction And Store Loyalty Explained By Customer-And Store-Related Factors.
Cheng, S.-I. (2011). Comparisons of Competing Models between Attitudinal Loyalty and Behavioral Loyalty Assistant Professor Department of Business Administration ,. International Journal of Business and Social Sciences, 2(10), 149–166.
Cossío-Silva, F. J., Revilla-Camacho, M. Á., Vega-Vázquez, M., & Palacios-Florencio, B. (2016). Value co-creation and customer loyalty. Journal of Business Research, 69(5), 1621–1625. https://doi.org/10.1016/j.jbusres.2015.10.028
Grönroos, C. (2012). Conceptualising value co-creation: A journey to the 1970s and back to the future. Journal of Marketing Management, 28(13–14), 1520–1534. https://doi.org/10.1080/0267257X.2012.737357
Grönroos, C., & Ravald, A. (2011). Service as business logic: Implications for value creation and marketing. Journal of Service Management, 22(1), 5–22. https://doi.org/10.1108/09564231111106893
Gustafsson, A., Johnson, M. D., & Roos, I. (2005). The effects of customer satisfaction, relationship commitment dimensions, and triggers on customer retention. Journal of Marketing, 69(4), 210–218. https://doi.org/10.1509/jmkg.2005.69.4.210
Higgins, E. T., & Scholer, A. A. (2009). Engaging the consumer: The science and art of the value creation process. Journal of Consumer Psychology, 19(2), 100–114. https://doi.org/10.1016/j.jcps.2009.02.002
Hilton, T., Hughes, T., & Chalcraft, D. (2012). Service co-creation and value realisation. Journal of Marketing Management, 28(13–14), 1504–1519. https://doi.org/10.1080/0267257X.2012.736874
Hong, L. M., Azim, M., Hassan, A., Jin, C. J., & Hunn, C. J. (2021). Examining Key Drivers For Online Impulse Buying In Malaysian’s Public Universities Students. 23(2), 104–110. https://doi.org/10.9744/jmk.23.2.104
Imam, G. (2011). Aplikasi analisis multivariate dengan program IBM SPSS 19. Semarang: Badan Penerbit Universitas Diponegoro.
Kotler, P., Kartajaya, H., & Huan, D. H. (2017). Marketing for competitiveness. Bentang Pustaka.
Kumar, V., Shah, D., & Venkatesan, R. (2006). Managing retailer profitability-one customer at a time! Journal of Retailing, 82(4), 277–294. https://doi.org/10.1016/j.jretai.2006.08.002
Lam, S. Y., Shankar, V., Erramilli, M. K., & Murthy, B. (2004). Customer value, satisfaction, loyalty, and switching costs: An illustration from a business-to-business service context. Journal of the Academy of Marketing Science, 32(3), 293–311. https://doi.org/10.1177/0092070304263330
Lee, Y. L., Pan, L. Y., Hsu, C. H., & Lee, D. C. (2018). Exploring the sustainability correlation of value co-creation and customer loyalty-A case study of fitness clubs. Sustainability (Switzerland), 11(1). https://doi.org/10.3390/su11010097
Ndubisi, N. O., Ahmad, R., Buttle, F., Ang, L., Buttle, F., Bijmolt, T. H. A., Leeflang, P. S. H., Block, F., Eisenbeiss, M., Hardie, B. G. S., Lemmens, A., Saffert, P., Ahmad, R., Buttle, F., Nataraj, S., Flint, D. J., Blocker, C. P., Boutin, P. J., Gustafsson, A., … Krafft, M. (2010). Customer retention management: a reflection of theory and practice. Journal of Service Research, 13(3), 149–161. https://doi.org/10.1108/02634500210428003
Prahalad, C. K., & Ramaswamy, V. (2004a). Co-creating unique value with customers. Strategy & Leadership, 32(3), 4–9. https://doi.org/10.1108/10878570410699249
Prahalad, C. K., & Ramaswamy, V. (2004b). Co-creation experiences: The next practice in value creation. Journal of Interactive Marketing, 18(3), 5–14. https://doi.org/10.1002/dir.20015
Ranaweera, C., & Prabhu, J. (2003). The influence of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting. International Journal of Service Industry Management, 14(3–4), 374–395. https://doi.org/10.1108/09564230310489231
Ruiz-Molina, M.-E., & Gil-Saura, I. (2008). Perceived value, customer attitude and loyalty in retailing. Journal of Retail & Leisure Property, 7(4), 305–314. https://doi.org/10.1057/rlp.2008.21
Saarijärvi, H., Kannan, P. K., & Kuusela, H. (2013). Value co-creation: theoretical approaches and practical implications. In European Business Review (Vol. 25, Issue 1, pp. 6–19). https://doi.org/10.1108/09555341311287718
Sashi, C. M. (2012). Customer engagement, buyer-seller relationships, and social media. Management Decision, 50(2), 253–272. https://doi.org/10.1108/00251741211203551
Sholihin, M., & Ratmono, D. (2013). Analisis SEM-PLS dengan WarpPLS 7.0: untuk Hubungan Nonlinier dalam Penelitian Sosial dan Bisnis. Penerbit Andi.
Solakis, K., Peña-Vinces, J., & Lopez-Bonilla, J. M. (2022). Value co-creation and perceived value: A customer perspective in the hospitality context. European Research on Management and Business Economics, 28(1). https://doi.org/10.1016/j.iedeen.2021.100175
Spena, T. R., Caridà, A., Colurcio, M., & Melia, M. (2012). Store experience and co-creation: The case of temporary shop. International Journal of Retail and Distribution Management, 40(1), 21–40. https://doi.org/10.1108/09590551211193586
Vargo, S. L., & Lusch, R. F. (2004). Evolving to a New Dominant Logic for Marketing. Journal of Marketing, 68(1), 1–17. https://doi.org/10.1509/jmkg.68.1.1.24036
Vargo, S. L., Maglio, P. P., & Akaka, M. A. (2008). On value and value co-creation: A service systems and service logic perspective. European Management Journal, 26(3), 145–152. https://doi.org/10.1016/j.emj.2008.04.003
Verhoef, P. C. (2003). Understanding the Effect of Customer Relationship Management Efforts on Customer Retention and Customer Share Development. Journal of Marketing, 67(October), 30–45. https://doi.org/10.1016/j.intmar.2011.02.002
Verhoef, P. C., Doorn, J. van, & Dorotic, M. (2007). Customer Value Management: An Overview and Research Agenda. Marketing ZFP, 29(JRM 2), 105–122. https://doi.org/10.15358/0344-1369-2007-jrm-2-105
Verhoef, P. C., Venkatesan, R., McAlister, L., Malthouse, E. C., Krafft, M., & Ganesan, S. (2010). CRM in data-rich multichannel retailing environments: A review and future research directions. Journal of Interactive Marketing, 24(2), 121–137. https://doi.org/10.1016/j.intmar.2010.02.009
Vivek, S. D., Beatty, S. E., & Morgan, R. M. (2012). Customer engagement: Exploring customer relationships beyond purchase. Journal of Marketing Theory and Practice, 20(2), 122–146. https://doi.org/10.2753/MTP1069-6679200201
Woratschek, H., Horbel, C., & Popp, B. (2020). Determining customer satisfaction and loyalty from a value co-creation perspective. Service Industries Journal, 40(11–12), 777–799. https://doi.org/10.1080/02642069.2019.1606213
Yi, Y., & Gong, T. (2013). Customer value co-creation behavior: Scale development and validation. Journal of Business Research, 66(9), 1279–1284.
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31–46.
Zou, J., & Shao, Y. (2022). A Study on Factors Affecting the Value Co-Creation Behavior of Customers in Sharing Economy: Take Airbnb Malaysia as an Example. Sustainability (Switzerland), 14(19). https://doi.org/10.3390/su141912678
Published
2023-03-20
How to Cite
BAEHAQI, Muhammad; CAHYONO, Ragil Setya; RIPTIONO, Sulis.
Determining Value Co-Creation Behaviour toward Customer Loyalty and Customer Retention on the SRC’s Business Platformorm.
Matrik : Jurnal Manajemen, Strategi Bisnis dan Kewirausahaan, [S.l.], p. 48 - 60, mar. 2023.
ISSN 2302-8890.
Available at: <https://ojs.unud.ac.id/index.php/jmbk/article/view/96499>. Date accessed: 28 apr. 2024.
doi: https://doi.org/10.24843/MATRIK:JMBK.2023.v17.i01.p04.
Section
Articles
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
