Customer value co-creation over the relationship life cycle

Abstract

Purpose Drawing from the theory of relationship dynamics, the purpose of this paper is to investigate how the relationship life cycle moderates the link between relationship quality and customer value co-creation. As customer-firm relationships pass through different stages (exploration, buildup, maturity, and decline) characterized by distinct customer behaviors, this study proposes a dynamic conceptual framework. Design/methodology/approach A questionnaire was administered in financial services firms. The final valid sample comprised 2,000 individuals. Subjective customer information from the questionnaire was combined with objective data that the financial entity provided. Findings The results demonstrate that the relationship life cycle plays a key moderating role, revealing that, in the buildup and maturity stages, the influence of relationship quality on customer value co-creation is stronger than in the decline stage. However, for customers in the exploration stage, relationship quality does not lead to customer value co-creation behaviors. Practical implications As customer relationship stages are constantly evolving, this study provides companies with additional interesting tools to personalize business strategies and to adapt marketing investments to the specific situation of customers. Originality/value To the authors’ knowledge, this is the first study to consider how the relationship life cycle influences the strength with which relationship quality promotes customer value co-creation.

Customer-based brand equity and customer engagement in experiential services: insights from an emerging economy

“…Today's consumers play a much more active role in information/recommendation-seeking and decision-making processes (Cambra-Fierro et al 2018a). Many are even willing to co-create throughout design and service delivery processes (Lee 2019;Cambra-Fierro et al 2018b). These actions are grouped under the umbrella term, customer engagement, defined by van Doorn et al ( 2010) as a set of non-transactional behaviors springing from consumer motivational aspects, which have a deferred impact on the commercial outcome of the relationship.…”

Dynamics of Online Relationship Marketing: Relationship Quality and Customer Loyalty in Iranian banks

“…Also, the findings of Verhoef, Franses, and Hoekstra (2002) suggest that the age of the relationship increases the positive effect of satisfaction and commitment on the number of services purchased. Cambra-Fierro et al (2018) showed that in the buildup and maturity stages, the impact of relationship quality on customer value co-creation was stronger than in the decline stage.…”

“…Morgan and Hunt (1994) view commitment as being at the heart of successful long-term relationships. Given that commitment is a basic variable in measuring the future of seller-purchaser relationships, most studies on relationship marketing have treated it as an important dimension of relationship quality (Brun et al, 2014;Cambra-Fierro, Melero-Polo, & Javier 2018;De Wulf et al, 2001;De Wulf et al, 2003;Hennig-Thurau et al, 2002;Palmatier, 2006;Roberts, Varki, & Brodie 2003;See Dorsch, 1998;Wang et al, 2006). Berry and Parasurman (1991) define commitment as a vital part of a successful relationship that can foster loyalty.…”

Initial Identification for Development Value Co-Creation Triadic Business Model Innovation: The Case of Malang Coffee Industry

“…For example, Vakulenko, Hellström, and Oghazi (2018), suggest identifying new sources of competitive advantage and new ways to improve customer service strategies and experience management. Cambra-Fierro et al (2018), suggest that as the customer relationship stage continues to develop, companies must also develop attractive additional tools to personalize business strategies and tailor marketing investments to specific customer situations. Fu et al (2017), stated that effective marketing strategies to increase customer value if they understand the nature and impact of quantitative data and qualitative information regarding influencing factors.…”