Co-creation of value from a service constellation

Thumbnail Image
Issue Date
Journal Title
Journal ISSN
Volume Title
In the 21st century, the process of value creation is rapidly shifting from a firm-centric to a customer-centric view. Understanding the locus of personalized customer experiences is becoming extremely important for creating customer value and organizational success (Prahalad & Ramaswamy, 2004). This paper uses the service-dominant logic (Vargo & Lusch, 2004) to explain the meaning of value and the process of value creation from a service constellation perspective. This research stresses the need for businesses to focus on the unique value propositions of service constellations, and the ability it provides businesses to co-create value with their customers, by creating engaged customers. This study finds that the unique value propositions of service constellations stimulate customers to get engaged with the firm by not only enhancing customer value, but also by shaping the dynamic field for customer-brand relationship building. Results showed that the degree to which a customer perceived a service as part of a larger constellation had a significant positive effect on the customer’s engagement behavior towards a firm. Moreover, customer brand love was found to have a positive moderating effect on this relationship. The emotional connection a customer had with a brand had a positive influence on the relationship between the customer’s perceived degree of service constellation and resulting engagement behavior.
Faculteit der Managementwetenschappen