When Does Customer Participation Matter? An Empirical Investigation of the Role of Customer Empowerment in the Customer Participation–Performance Link

Abstract

Research on customer participation (CP) has focused on its benefits for customers. However, recent research suggests that CP is beneficial to both customers and firms. The literature is also sparse on the economic (e.g., profitability) and customer (e.g., customer retention) impact of CP. This research introduces the concept of customer empowerment and develops and tests a model of customer empowerment as a parallel mediator, along with customer satisfaction, to explain the linkage between CP and bank branch performance. Furthermore, the authors draw on a broader set of moderators beyond customer characteristics to examine when CP affects empowerment and satisfaction. Using triadic matched data from a multiwave design and a three-level model in which customers are nested within employees, who are, in turn, nested within bank branches, the authors show that customer empowerment and satisfaction fully mediate the effect of CP on branch performance. The findings also show that CP results in greater customer empowerment and satisfaction when there is fit between participation and the context in which it is used. The authors discuss implications for advancing CP research and suggest actionable steps for reaping the economic and customer benefits of CP.

Sustainable process improvements: Evidence from intervention‐based research

“…Developments around this perspective in the marketing literature have advocated incorporating the role of the customer in designing processes that combine standardization and adaptation (Auh, Menguc, Katsikeas, & Jung, 2019; Bendapudi & Leone, 2003). Applying this perspective to organizational learning theory, we sought input from patients to build in adaptation in use by frontline caregivers for standardized practices.…”

“…The duality of standardization and adaptation can be addressed by designing a process with ostensive aspects that focus on the principle of the routine that must be adhered to but also including performative aspects of routines that provide the user some degree of flexibility in the use of the routine (Anand et al, 2012). Developments around this perspective in the marketing literature have advocated incorporating the role of the customer in designing processes that combine standardization and adaptation (Auh, Menguc, Katsikeas, & Jung, 2019;Bendapudi & Leone, 2003). Applying this perspective to organizational learning theory, we sought input from patients to build in adaptation in use by frontline caregivers for standardized practices.…”

How a Smart Technology Imposed by an Organization Can Arouse Ambivalent Psychological Empowerment: An Approach Leveraging the Theory of Social Representations

“…Finally, the last dimension of psychological empowerment, impact, refers to the degree to which an individual believes he or she can influence or provoke changes in the outcomes of the organization (Seligman, 1975). The concept of psychological empowerment has also recently been used in the marketing literature to study consumer behavior and relationships with brands, specifically in the contexts of cocreation of innovation (Auh et al, 2019;Fuchs, Prandelli & Schreier, 2010;Füller et al, 2009), health (Prigge, 2015), participation in social media activities (Buzeta, De Pelsmacker & Dens, 2020;Saridakis et al, 2016), and, lately, self-service technologies (Schweitzer & Simon, 2021).…”

How to Better Motivate Customers to Participate in the Self-Design Process: A Conceptual Model in Underlying Self-Congruence Mechanism

“…Relational/social values derived from the emotional or relational bonds between the customer and the organization may also be a positive consequence for the firm. Co-created products are often shown to improve customer satisfaction ( Marzocchi and Zammit, 2006 ; Chang et al, 2009 ; Prebensen and Xie, 2017 ; Auh et al, 2019 ) and enhance customer loyalty and trust ( Auh et al, 2007 ). A friendly service climate of co-created products/services can increase positive product evaluations ( Troye and Supphellen, 2012 ), positive word of mouth ( Woisetschläger et al, 2008 ), and enriched two-way communication ( Claycomb et al, 2001 ).…”