Financial well-being of customer-to-customer co-creation experience: a comparative qualitative focus group study of savings/credit groups. Issue 3 (29th April 2021)

• Record Type: Journal Article
• Authors: Sithole, Nkosinathi; Sullivan Mort, Gillian; D'Souza, Clare
• Is Part Of: International journal of bank marketing. Volume 39:Issue 3(2021)
• Page Start: 381
• Page End: 401
• Publication Date: 2021-04-29
• Subjects: Co-creation experience -- Customer-to-customer -- Financial capability -- Financial well-being -- Ubuntu philosophy; Bank marketing -- Periodicals; Financial services industry -- Marketing -- Periodicals; 332.106888
• DOI: 10.1108/IJBM-07-2020-0413
• Languages: English
• ISSNs: 0265-2323

Abstract

Abstract : Purpose: This paper aims to explore the effects of the customer-to-customer co-creation experiences of savings/credit groups in the African context and how savings/credit groups influence financial capability and enhance financial well-being. Design/methodology/approach: Using purposive sampling, a study of a total of 18 focus groups was conducted in sub-Saharan Africa. Nine urban-based savings/credit groups were drawn from across South Africa and additional nine, rural-based savings/credit groups were studied in the Monduli district of Tanzania. Findings: Findings demonstrate that the African philosophy of Ubuntu, which promotes customer-to-customer interaction, is the cornerstone of the customer-to-customer co-creation experience. Ubuntu philosophical principles were found to influence the dialogue, access, risk and transparency model of co-creation and customer-dominant logic. The results show further that customer-to-customer co-creation experience positively influences the cognitive, financial, personal and social experiences of members. Specifically, it was found that cognitive and financial experiences positively influence financial satisfaction, financial self-esteem, financial self-efficacy and financial capability, all of which enhance financial well-being. In addition, personal and social experiences positively influence equality, self-confidence, entrepreneurial skills and motivation that in turn enhance social well-being. Research limitations/implications: This study has implications for many different stakeholders concerned with the financial inclusion of low-income consumers, particularly in the southern part of Africa. Originality/value: To the authors' knowledge, this is the first study to explore the effects of customer-to-customer co-creation experiences in traditional financial services settings in order to understand how these indigenous financial services influence the financial capability and financial well-being of co-creation members.