Assessing co-creation based competitive advantage through consumers' need for differentiation. (May 2022)

• Record Type: Journal Article
• Authors: Sahi, Gurjeet Kaur; Devi, Rita; Gupta, Mahesh C.; Cheng, T.C.E.
• Is Part Of: Journal of retailing and consumer services. Volume 66(2022)
• Publication Date: 2022-05
• Subjects: CCV Co-creation of value -- WOM Word of mouth -- CNFD Consumers' need for differentiation -- NFD Need for differentiation; Value co-creation -- Consumers' need for differentiation -- Word-of-mouth -- Micro businesses; Retail trade -- Periodicals; Service industries -- Periodicals; Customer services -- Periodicals; Commerce de détail -- Périodiques; Service à la clientèle -- Périodiques; Customer services; Retail trade; Periodicals; 658.87
• DOI: 10.1016/j.jretconser.2022.102911
• Languages: English
• ISSNs: 0969-6989

Abstract

Abstract: The extant literature analysing the impact of value co-creation on consumers' need for differentiated products is sparse, so the present study examines the role of consumers' need for differentiation in relating value co-creation with consumers' word-of-mouth to foster competitive advantage. Specifically, we investigate the effects of innovation differentiation and market differentiation on micro businesses' abilities to co-create value and generate positive word-of-mouth, which ultimately helps them sustain their revenues. We collect data from a sample of 196 female consumers who participated in the co-creation process used in the micro businesses to design trendy apparel. We use structural equation modelling to test the hypotheses. Having a strong desire for differentiation in their dresses, these consumers invest their resources and capabilities in designing their own apparel. The results show that value co-creation not only leads to consumers' need for differentiated products (enabling the differentiation strategy), but also results in negative word-of-mouth. More particularly, value co-creation leads to differentiated offerings but consumers desirous of possessing unique products do not spread positive words about the professional designer. As a result, sustaining economic development in emerging economies dominated by micro and small businesses is still a big challenge.