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Impact of Value co-creation on Logistics Customers’ Loyalty

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Value co-creation refers to the business strategy that is used for engaging customers within the organisational processes for creating on demand or made to order products that create more value. This article focuses on examining the impact that a value co-creation left after involving the internal as well as external stakeholders within logistic related services over customer. By setting up effective coordination among stakeholders an organisation will be able to achieve superior quality in term of services offered which in turn provide better customer satisfaction (Jaakkola and Alexander, 2014). Coordination between customer and businesses support in fulfilment of service demand innovatively by using customer feedback for improving the current processes. As by involving internal as well as external stakeholders company will be able to determine market demand and resources that it have which support in fulfilling those demands. It has been found from the current article that customization and service capabilities of a business is also being affected by value co-creation. As after involving customers in value co-creation exercise, it provides a source of competence in market by using suggestions of stakeholder in designing, developing and providing innovative delivery.

This article aim over identifying the impact of organisational teaming up with suppliers, customers, channel members and other external stakeholders in achieving desired goal. Next it focuses on determining the impact of functional groups and employees working in exploratory learning environment for increasing loyal customers. Then it aim over identifying whether it leads to superior service solution or leads to increase in number of loyal customers. For validating findings “The business value co-creation model” has been used which consists of four different factors such as value co-creation by organisation(VCC), value creation by service staff(VCS), superior service solution(SSS) and Business customer loyalty(BCL). This is a framework that aims to develop a collaborative service system which focuses on enhancing the service productivity through automated service process. It also state that IT investment in infrastructure leads to increase in demand of services provided by an organisation.

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The customer loyalty is also get influence by VCCE, VCCI and SSS which support in enhancing the market share of customers. This also support organisations in identifying the target customers through segmentation and segregate innovative customers by analysing the customer data which they have provided during value co-creation process (Chen and Wang, 2016). This help organisation in transforming their processes by interacting with this customers and incorporating them within current innovation processes which leads to improved product or services. Value creation with the help of internal as well as external stakeholders of organisation results in SSS, which help in making customer more loyal to the organisation. So the mediating function of SSS among VCCI and VCCE as well as BCL loyalty is very important factor for business customers and service providers. This information has been collected through survey which has been done using a questionnaire. This survey is done over 40 respondents which was conducted in a UAE on a random sample of employees which are representing 500 organisation.


Books & Journals

  • Jaakkola, E. and Alexander, M., 2014. The role of customer engagement behavior in value co-creation: a service system perspective. Journal of service research. 17(3). pp.247-261.
  • Chen, C. F. and Wang, J. P., 2016. Customer participation, value co-creation and customer loyalty–A case of airline online check-in system. Computers in Human Behavior. 62. pp.346-352.
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