Examining the Role of Psychological Ownership and Feedback in Customer Empowerment Strategies. (November 2016)

• Record Type: Journal Article
• Authors: Hair, Joe F.; Barth, Kati; Neubert, Doreen; Sarstedt, Marko
• Is Part Of: Journal of creating value. Volume 2:Number 2(2016)
• Page Start: 194
• Page End: 210
• Publication Date: 2016-11
• Subjects: Value co-creation -- customer empowerment -- psychological ownership -- peer feedback; Customer services -- Periodicals; Customer relations -- Management -- Periodicals; Consumer satisfaction -- Periodicals; 658.812
• DOI: 10.1177/2394964316661811
• Languages: English
• ISSNs: 2394-9643

Abstract

Abstract: Customers increasingly seek to engage with companies by actively taking part in the value creation process. Companies have reacted to this trend by integrating customers into product development processes in an effort to better fulfil their needs and simultaneously decrease costs. While research has explored various antecedents and consequences of such co-creation activities, only little is known about the psychological ownership's role and its interaction with peer feedback. This research shows that psychological ownership emerges when customers engage with companies in creating the product portfolio. Furthermore, implementing feedback loops accelerates customer engagement's positive effects in terms of product evaluations and customers' willingness to pay. Negative feedback reverses these effects suggesting that companies should pay closer attention to feedback options when integrating customers into value creation processes.