Financial well-being of customer-to-customer co-creation experience: a comparative qualitative focus group study of savings/credit groups

Abstract

PurposeThis paper aims to explore the effects of the customer-to-customer co-creation experiences of savings/credit groups in the African context and how savings/credit groups influence financial capability and enhance financial well-being.Design/methodology/approachUsing purposive sampling, a study of a total of 18 focus groups was conducted in sub-Saharan Africa. Nine urban-based savings/credit groups were drawn from across South Africa and additional nine, rural-based savings/credit groups were studied in the Monduli district of Tanzania.FindingsFindings demonstrate that the African philosophy of Ubuntu, which promotes customer-to-customer interaction, is the cornerstone of the customer-to-customer co-creation experience. Ubuntu philosophical principles were found to influence the dialogue, access, risk and transparency model of co-creation and customer-dominant logic. The results show further that customer-to-customer co-creation experience positively influences the cognitive, financial, personal and social experiences of members. Specifically, it was found that cognitive and financial experiences positively influence financial satisfaction, financial self-esteem, financial self-efficacy and financial capability, all of which enhance financial well-being. In addition, personal and social experiences positively influence equality, self-confidence, entrepreneurial skills and motivation that in turn enhance social well-being.Research limitations/implicationsThis study has implications for many different stakeholders concerned with the financial inclusion of low-income consumers, particularly in the southern part of Africa.Originality/valueTo the authors’ knowledge, this is the first study to explore the effects of customer-to-customer co-creation experiences in traditional financial services settings in order to understand how these indigenous financial services influence the financial capability and financial well-being of co-creation members.

Financial capability: a systematic conceptual review, extension and synthesis

“…, 2017). Cognitive and financial experiences positively influence financial satisfaction (Sithole et al. , 2021).…”

“…Family composition and income are associated with the total amount of household savings (West et al, 2017). Cognitive and financial experiences positively influence financial satisfaction (Sithole et al, 2021). Resident registration status and employment type are associated with the range of financial assets, an indicator of financial well-being in China (Cui et al, 2019).…”

Foundations, mapping and trends of the DART Model for value co-creation: A scientometric analysis

“…However, based on market performance in new services, Taghizadeh, Rahman & Marimuthu (2021) successfully examined the influence of the DART Model on value co-creation processes in a B2B context, and found that managers can improve the participation of customers in interactive processes to better understand their expectations for new services proposed. Sithole, Mort & D'Souza (2021) focused their research efforts on demonstrating that interaction becomes the cornerstone for the co-creation of valuable experiences in the financial sector, showing that organizational philosophical principles influence the DART Model variables and finding that these experiences intervene positively in improving financial well-being. It can also be observed, through the work carried out by Schiavone, Metallo & Agrifoglio (2014), that the DART Model has even reached social media, where the model is recognized as a quite valuable theoretical argument in the co-creation of new products and services, especially in the use made of the Internet (web and social networks), where the participation of different users is strategic.…”

Role of broker’s information transparency in determining individual investor’s financial wellbeing: A transformative service research (TSR) perspective

“…Perceived competency refers to as an individual assessment of his or her ability to deal with particular challenges perceived competency more specifically in the consumer finance sector reflects once capacity to deal with the financial-service (Sorgente & Lanz, 2017). Financial selfefficacy is referred to as individuals perceived ability to handle their finances hence, so this study considered the financial efficacy as the belief of investor and capability to comprehend the level of transparency regarding broker information (Sithole, Mort, & D'Souza, 2021). According to previous literature the perceived efficacy is contingent to individual beliefs capacity of his or her to prefer a specific Risk tolerance attitude is an effective response toward broker transparency which in turn triggers financial self-efficacy judgment of investor.…”