The role of customer participation for enhancing repurchase intention

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.

Patients as strategic partners in hospital settings: Trust, participation, relational value, and loyalty

“…[24] The relationship marketing literature provides ample evidence of the positive effect customer relational value has on satisfaction, especially in service situations like health care where building relationship and credence are essential. [6,25] Patient satisfaction is a core outcome measure for measuring and evaluating healthcare service provision. [26] The quality of the therapeutic alliance that exists between patient and provider affects general satisfaction.…”

“…There are different views on the extent to which customer participation affects affective commitment, as there exist both positive significant and insignificant relationships. [6,12,28] A positive relationship indicates that customers who experience relational value with employees tend to be more involved with the company (i.e. affective commitment).…”

“…[4,5] In the service industry, studies suggest the need to increase opportunities for co-production between service providers and their customers as customer participation is a source of competitive advantage and various positive outcomes for both customers and service providers. [4,6] Customers participate actively in the service transaction by supplying "activities" and "input" (information and efforts), and not as mere spectators. [7] Service providers are, therefore, required to collaborate with customers in value co-creation-to create values that meet mutual needs.…”

“…[8] Value co-creation is of utmost importance for health service professionals whose services require high contact and credence. [6] Patients are essential resources for co-creating value in sustainable healthcare. [9] There are indications of progress in patient participation in recent years; from subjects who passively receive instruction and treatment from professionals to service supporters who search for information and manage their health.…”

“…Chen and Chen modelled the path from customer participation to relational value, satisfaction, and repurchase intentions, and suggested the need to understand the role of trust in future models. [6] The study fills this gap and aptly assesses trust as an antecedent of patient participation behaviour as well as the outcomes; patient perceived relational value, satisfaction, affective commitment and loyalty.…”