Value Co-creation between Customer and Hotel Business to Enhance Customer’s Engagement
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Published:
Jun 30, 2019
Keywords:
Competitive Advantage Customer Needs Value co Creation
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Abstract
With intense competitive situations in business world as well as increasing influence of social network that could bring customers together, business operators had to adapt their business strategies to satisfy changing consumer needs to assure their improved competitive advantages and survival. The vital point to be considered in marketing formulation were customer needs, and currently, the concept of value co-creation was employed in marketing management to satisfy customers and encourage their engagement with products and services. When customers trusted in certain products and services, they would become advocacies for the business.
This article would focus on value co-creation process between customer and business that would lead to customer engagement by presenting changes of value creation concept in marketing viewpoints for the online era, and as such, customers would jointly create and think about the products and services. This paper employed literature review technique in researching from textbooks, academic articles, and research articles from various sources. Benefits expected from value co-creation were that products and services would really satisfy customer needs, and the study would benefit entrepreneurs, who would apply this concept in their business operations to strengthen their competitive advantages.
Article Details
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Research Article
References
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Bowden, J. (2009). Customer Engagement: A Framework for Assessing Customer-Brand Relationships: The Case of the Restaurant Industry. Journal of Hospitality Marketing & Management, 18, 574–596.
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Chathoth, P.K., Ungson, G.R., Harrington, R.J. & Chan, E.S.W. (2016). Co-creation and higher order customer engagement in hospitality and tourism services: A critical review. International Journal of Contemporary Hospitality Management, 28(2), 222 - 245.
Chien S.-H., & Chen J.-J. (2010). Supplier involvement and customer involvement effect on new product development success in the financial service industry. The Service Industries Journal, 30(2), 185–201.
Crotts, J. (1999). Consumer Decision Making and Prepurchase Information Search. Consumer Behavior in Travel and Tourism. Y. Mansfield and A. Pizam. Binghamton, New York: Haworth Press.
Dey, B., Pandit, A., Saren, M., Bhowmick, S., Woodruffe-Burton, H. (2016). Co-Creation of value at the bottom of the pyramid: Analysing Bangladeshi farmers’ use of mobile telephony. Journal or Retailing and Consumer Services, 29, 40-48.
Droge, C., Stanko, M. A., & Pollitte, W. A. (2010). Lead users and early adopters on the web: the role of new technology product blogs. Journal of Product Innovation Management, 27(1), 66–82.
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Gamble, J., Gilmore, A. (2013). A new era of consumer marketing?. European Journal of Marketing, 47, 1859 – 1888.
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Grönroos, C., Voima P. (2013). Critical service logic: making sense of value creation and co-creation. Journal of the Academy of Marketing Science, 41(2), 133–150.
Jaworski, B., & Kohli, A. K. (1993). Market orientation: antecedents and consequences. Journal of Marketing, 57(3), 53-70.
Kao, T.-Y., Yang, M.-H., Wu, J.-T.B. & Cheng, Y.-Y. (2016). Co-creating value with consumers through social media. Journal of Services Marketing, 30(2), 141-151.
Kotler, P. (1967). Marketing Management: Analysis, Planning, and Control. Englewood Cliffs, NJ: Prentice Hall.
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Kristensson, P., Matthing, J. & Johansson, N. (2008). Key strategies for the successful involvement of customers in the co-creation of new technology-based services. Journal of Service Management, 19(4), 475–491.
Litvin, S. W., Goldsmith, R. E., & Pan, B. (2008). Electronic word-of-mouth in hospitality and tourism management. Tourism Management, 29(3), 458-468.
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Sparks, B. A., & Browning, V. (2011). The impact of online reviews on hotel booking intentions and perception of trust. Tourism Management, 32(6), 1310-1323.
Van Doorn, J., K. N. Lemon, V. Mittal, S. Nass, P. Doreén, P. Pirner, & P. C. Verhoef. (2010). Customer Engagement Behaviour: Theoretical Foundations and Reserach Directions. Journal of Service Research, 13(3), 253-66.
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Vargo, Stephen L. & Lusch, R. F. (2006). Service-Dominant Logic: What it is, What it is not, What it might be. in The Service-Dominant Logic of Marketing: Dialog, Debate, and Directions.
Vargo, S. L., & Lusch, R. F. (2008). From goods to service (s): Divergences and convergences of logics. Industrial Marketing Management, 37(3), 254-259.
Verhoef, P. C., W. Reinartz, & M. Krafft. (2010). Customer Engagement as a New Perspective in Customer Management. Journal of Service Research, 13(3), 247-52.
Wikström, Solveig. (1996). The Customer as Co-producer. European Journal of Marketing, 30(4), 6-20.
Ye, Q., Law R., & Gu, B. (2009). The impact of online user reviews on hotel room sales. International Journal of Hospitality Management, 28(1), 180-2.
Yi Y., Gong T. (2013). Customer value co-creation behavior: scale development and validation. Journal of Business Research, 66(9), 1279-1284.
Bowden, J. (2009). Customer Engagement: A Framework for Assessing Customer-Brand Relationships: The Case of the Restaurant Industry. Journal of Hospitality Marketing & Management, 18, 574–596.
Brodie, R. J., Hollebeek, L. D., Jurić, B. and Ilić, A. (2011). Customer Engagement: Conceptual Domain, Fundamental Propositions and Implications for Research. Journal of Service Research, 14(3), 252-271.
Chathoth, P.K., Ungson, G.R., Harrington, R.J. & Chan, E.S.W. (2016). Co-creation and higher order customer engagement in hospitality and tourism services: A critical review. International Journal of Contemporary Hospitality Management, 28(2), 222 - 245.
Chien S.-H., & Chen J.-J. (2010). Supplier involvement and customer involvement effect on new product development success in the financial service industry. The Service Industries Journal, 30(2), 185–201.
Crotts, J. (1999). Consumer Decision Making and Prepurchase Information Search. Consumer Behavior in Travel and Tourism. Y. Mansfield and A. Pizam. Binghamton, New York: Haworth Press.
Dey, B., Pandit, A., Saren, M., Bhowmick, S., Woodruffe-Burton, H. (2016). Co-Creation of value at the bottom of the pyramid: Analysing Bangladeshi farmers’ use of mobile telephony. Journal or Retailing and Consumer Services, 29, 40-48.
Droge, C., Stanko, M. A., & Pollitte, W. A. (2010). Lead users and early adopters on the web: the role of new technology product blogs. Journal of Product Innovation Management, 27(1), 66–82.
Fernando L. Mompó. Ikea prefers to call “Co-creation” their product development. retrieved August 6, 2014, from http://www.co-society.com/ikea-prefers-call-co-creation-product-development/.
Gamble, J., Gilmore, A. (2013). A new era of consumer marketing?. European Journal of Marketing, 47, 1859 – 1888.
Greer, C. R., Lusch, R. F., & Vargo, S. L. (2015). A service perspective. Key managerial insights from service-dominant (S-D) logic. Organizational Dynamics.
Grönroos, C. (2008). Service logic revisited: who creates value? And who co-creates?. European Business Review, 20(4), 298-314.
Grönroos, C. (2011a). A Service Perspective on Business Relationships: The Value reation, Interaction and Marketing Interface. Industrial Marketing Management, 40(2), 240–247.
Grönroos, C., Voima P. (2013). Critical service logic: making sense of value creation and co-creation. Journal of the Academy of Marketing Science, 41(2), 133–150.
Jaworski, B., & Kohli, A. K. (1993). Market orientation: antecedents and consequences. Journal of Marketing, 57(3), 53-70.
Kao, T.-Y., Yang, M.-H., Wu, J.-T.B. & Cheng, Y.-Y. (2016). Co-creating value with consumers through social media. Journal of Services Marketing, 30(2), 141-151.
Kotler, P. (1967). Marketing Management: Analysis, Planning, and Control. Englewood Cliffs, NJ: Prentice Hall.
Kotler, P., & Armstrong, G. (2002). Principle of Marketing. USA: Prentice-Hall.
Kristensson, P., Matthing, J. & Johansson, N. (2008). Key strategies for the successful involvement of customers in the co-creation of new technology-based services. Journal of Service Management, 19(4), 475–491.
Litvin, S. W., Goldsmith, R. E., & Pan, B. (2008). Electronic word-of-mouth in hospitality and tourism management. Tourism Management, 29(3), 458-468.
Marketing Science Institute. (2010). Research Priorities. Marketing Science Institute. Boston, MA.
McEwen, W.J. (2005). Married to the brand: Why consumers bond with some brands for life. New York: Gallup Press.
Normann, R., Ramirez, R. (1994). Designing Interactive Strategy: From Value Chain to Value Constellation. John Wiley & Sons, Chichester.
Patterson, P., Yu, T., & De Ruyter, K. (2006). Understanding customer engagement in services. In Advancing theory, maintaining relevance, proceedings of ANZMAC 2006 conference (pp. 4–6). Brisbane.
Pine , B.J., Gilmore, J.H. (1998). Welcome to the experience economy. Harvard BusinessReview, 76(4), 97-105.
Porter. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press.
Prahalad, C.K., Ramaswamy., V. (2004). Co-creation experiences: The next practice in value creation. Journal of Interactive Marketing, 18(3), 5-14.
Sparks, B. A., & Browning, V. (2011). The impact of online reviews on hotel booking intentions and perception of trust. Tourism Management, 32(6), 1310-1323.
Van Doorn, J., K. N. Lemon, V. Mittal, S. Nass, P. Doreén, P. Pirner, & P. C. Verhoef. (2010). Customer Engagement Behaviour: Theoretical Foundations and Reserach Directions. Journal of Service Research, 13(3), 253-66.
Vargo, S. L. & Lusch, R. F. (2004). Evolving to a New Dominant Logic for Marketing. Journal of Marketing, 68(1), 1-17.
Vargo, Stephen L. & Lusch, R. F. (2006). Service-Dominant Logic: What it is, What it is not, What it might be. in The Service-Dominant Logic of Marketing: Dialog, Debate, and Directions.
Vargo, S. L., & Lusch, R. F. (2008). From goods to service (s): Divergences and convergences of logics. Industrial Marketing Management, 37(3), 254-259.
Verhoef, P. C., W. Reinartz, & M. Krafft. (2010). Customer Engagement as a New Perspective in Customer Management. Journal of Service Research, 13(3), 247-52.
Wikström, Solveig. (1996). The Customer as Co-producer. European Journal of Marketing, 30(4), 6-20.
Ye, Q., Law R., & Gu, B. (2009). The impact of online user reviews on hotel room sales. International Journal of Hospitality Management, 28(1), 180-2.
Yi Y., Gong T. (2013). Customer value co-creation behavior: scale development and validation. Journal of Business Research, 66(9), 1279-1284.