CO-VALUE CREATION AND REVISIT INTENTIONS IN A DESTINATION (STUDY OF ANAMBRA LOCAL DISHES)

CO-VALUE CREATION AND REVISIT INTENTIONS IN A DESTINATION (STUDY OF ANAMBRA LOCAL DISHES)

This study aims to ascertain the relationship that exists between Co-Value Creation and Revisit Intentions in a Destination

CHAPTER ONE

INTRODUCTION

• Background of The Study

Revisit intention is a cognitive state that reflects a tourist’s plan to return to a destination during a projected time (Weaver & Lawton, 2011). Being satisfied with the destination visited and wishing to see the destination again has generated the concept of the intention to revisit. To ensure repeat visitors for the destination is an important criterion in the competitiveness of these destinations (Alegra & Cladera, 2006). Stating the importance of repeat visitors for the first time, Gitelson and Crompton (2011) have expressed that destinations needed repeat visitors.

To retain repeat purchases, organizations have started applying the co-creation strategies into their business model. Co-creation or value co-creation simply refers to a production process where decisions that bother on inputs and service designs are jointly taken by the producers and their customers (Wang, Hsich, & Yen, 2011). Co-creation of value co-creation is connected with the idea that the time and effort customers put while producing a product or service are valued differently from other goods and services (Prebensen, Vitterso, and Dahl, 2013).

Co-creation is a prevalent topic and trend in today’s hospitality industry. As competitors continue to compete for business, fundamental importance on customer interaction is becoming noticed as a key aspect of maintaining an advantage in the market (Vargo and Lusch (2004). In studying co-creation, researchers are interested in finding what factors affect value creation and co-creation. There is also much emphasis on how and why customers participate in the co-creation process, and what are the customers’ thoughts and feelings about interacting in the value-adding services (Prahalad and Ramaswamy (2004).

Zhuang (2010) conducted an empirical study on the value co-creation system by integrating customers. This study was carried out with 120 respondents. The result suggests that firms with more emphasis on co-creation interactions may gain greater customization competence. The empirical evidence also supports the logic of the co-creation system and points out a new way for firms to create unique competence. Yi & Gong (2012) conducted a study on customer value co-creation. The investigation reports a series of four studies leading to the development and vacillation of a customer value co-creation behavior scale. The study was carried out among 385 participants. The study shows that customer participation behavior and customer citizenship behavior exhibit different patterns of antecedents and consequences.

Furthermore, a study also carried out by Xhang and Chen (2008) examined the mechanism of the value co-creation with customers. This work was conducted in China. The study developed and assessed the constructs in a value co-creation system and it identified and empirically examined the two primary principles of value co-creation system with customers. The finding shows that service capability has a positive impact on a firm’s customisation capability. Vargo and Lusch (2004) investigated customer value co-creation on goods’ dominant logic. The study found out that firms can offer resources to the customers but the value is only created once the customer uses the resources. Also, individuals receiving the benefits of the transaction will determine the value derived from it based on their current experience, previous experience, and unique needs.

Therefore, co-creation helps organizations to survive in a dynamic business environment by serving as product quality improvement mechanism which will lead to an increase in customer satisfaction, decrease in costs and risk, and increase the overall competitive advantage of the destination (Di Gangi & Wasko, 2009). All these benefits are obtainable because while participating in co-creation, the customer is allowed to bring in various types of personal resources such as time, effort, money, and knowledge which will make them more likely to re-purchase from the same company again and to recommend the company to others.

Despite previous works done by scholars on co-value creation, it is succinct to say that the Nigerian destinations and businesses are yet to implement these latest trends in the hospitality and tourism industries. The gap identified reflected that all the major empirical works done on the subject matter were done in developed countries with little empirical studies on the subject matter in developing countries, especially in Nigeria. To bridge this gap, this study examines the effect of co-value creation and revisit intentions in a destination.

• Statement Of The Problem

In this century, lifestyle and the structure of consumption have changed, especially among younger generations. Service providers need to reach a competitive edge to retain their customers. Previous studies have shown that keeping a consumer can be up to ten times cheaper than attracting a new one. Therefore, organizations especially service-oriented firms have to make efforts to retain customers, thereby attempting to minimize their migration to rival organizations that offer substitute services or products.

In this regard, organizations are continuously imbibing the co-value creation strategy into their operation. This is because when customers have the opportunity to co-create a service or product, they are more likely to re-purchase such product/service from the same company again and to recommend the company to others (Grissemann & Stokurger-Sauer, 2012). This further indicates that companies can develop loyal customers if they present their customers with the opportunity to participate and become involved in the creation process with them.

Furthermore, Prebensen (2013) opined that through the interactions and assistance in the value creation process, the customer becomes a part producer as opposed to a mere user. As a result of this opportunity, customers will appreciate the chance to provide their ideas and feedback. If implemented successfully, customers will keep returning to the same company as they know their desired levels of satisfaction will be met with the opportunity to co-create with the company. The goal is that the final product or service be valued more greatly after customers have had the opportunity to add personal resources and have had input in the product or experience generating process.

However, irrespective of the numerous advantages associated with co-creation, there is still little empirical evidence in developing countries such as Nigeria hence the inability of many businesses especially service-oriented firms to implement co-creation as a strategy. It is therefore against this backdrop that this research aims to examine co-creation and revisit intentions in a destination, by taking a critical analysis of the operations of service-oriented firms thereby suggesting systematic value creation procedures which when implemented will increase their sales, market share, sales volumes, and customer repeat purchase.

• Conceptual Framework

CO-VALUE CREATION AND REVISIT INTENTIONS

Source: Dimensions of Co-value Creation (Amjad, 2015); Measures of Revisit Intentions (Ahmad & Mohammad, 2011).

• Purpose of the Study

This study aims to ascertain the relationship that exists between Co-Value Creation and Revisit Intentions in a Destination. The specific objectives are;

1. To ascertain the relationship between customer participation behavior and perceived value.
2. To find out the extent to which customer participation influences destination loyalty.
3. To ascertain the relationship between customer citizenship behavior and perceived value.
4. To find out the extent to which customer citizenship behavior influences destination loyalty.

• Research questions

The following questions will be answered by this investigation:

1. To what extent does customer participation behavior influences perceived value?
2. To what extent does customer participation behavior influence destination loyalty?
3. To what extent does customer citizenship behavior influence perceived value?
4. To what extent does customer citizenship behavior influences destination loyalty?

• Hypotheses

The following null hypotheses were formulated in line with the objective of the study:

HO₁: There is no significant relationship between customer participation behavior and perceived value.

HO₂: There is no significant relationship between customer participation behavior and destination loyalty.

HO₃: There is no significant relationship between customer citizenship behavior and perceived value.

HO₄: There is no significant relationship between customer citizenship behavior and destination loyalty.

• Significance of the study

First, the study will be useful to organizational management especially those in the food sector, to broaden their knowledge on the essence of innovation and how the co-value creation process will help lead to organizational growth.

Furthermore, this study is also expected to serve as a guide for the effective implementation of the co-value creation model in organizations. As well as serve as a guide for how the dimensions of the independent variable can affect the measures of the dependent variable.

The findings of this research will also add to the existing knowledge already piled up in this area of study. Students, researchers, and authors who may wish to carry out further studies in this topic or related areas will find this study useful as it will serve as a good reference material.

• Scope of the study

This study is set to ascertain the relationship that exists between Co-Value Creation and Revisit Intentions in a Destination.

Geographical scope

This study covered Local food vendors in Anambra State, from where the data for the analysis were obtained.

The content scope

This study was restricted to pieces of literature on Co-Value Creation and Revisit Intentions; as it ascertains the relationship between the dimensions and measures of the independent and dependent variables.

Unit of analysis

The study unit scope of this study is the organization. Thus, the unit of analysis is at the organizational level otherwise referred to as the macro-level of analysis. It, therefore, means that the respondents for this research will be made up of local food vendors in Anambra State.

• Limitations of the study

A limitation would be anything beyond the ability of the researcher to control, the following limitations was face by the researcher in the process of carrying out this research:

The level of bias is one of the major limitations of a research study. This entails that no matter how scientific and objective a study looks; there may be an iota of bias in the process. That is to say, bias may not be completely eradicated.

Another constraint is the “research area in question”. The emphasis here is on the geographical scope of the study. This was limited to Anambra State, therefore, any generalization made from the findings in Anambra State, if applied to other geographical areas may not yield concrete results.

• Definition of terms

Co-Value Creation

Co-value creation is a management initiative, or form of economic strategy, that brings different parties together (for instance, a company and a group of customers), to jointly produce a mutually valued outcome

Customer citizenship Behaviour

This simply refers to the non coerced voluntary actions or behaviors exhibited by customers which are helpful for the organization.   

Customer participation behavior

This refers to all forms of customer involvement and engagements in the value co-creation process.

Destination Loyalty

This is defined as the ability of a customer to continuously repeat the revisit to a particular tourist destination.

Perceived value

This is defined as the customer’s evaluation of the merits of a product or a service based on its ability to meet its specifications, especially in comparison to substitute products or services.

Revisit Intentions

This is defined as the ability of someone usually a fun seeker to visit a destination after the first visit.

• Organization of the study

This study is organized into five different chapters.

Chapter one: consists of the context of the problem, statement of the problem, objectives of the study, research questions and hypotheses, significance of the study, scope, and limitations of the study.

Chapter two: deals with the review of related literature on the subject matter.

Chapter three: attempts to describe the research design, sampling procedure/sample size determination, data collection method, operational measures of variables, test of validity and reliability, and the data analysis techniques.

Chapter four: deals with the presentation, analysis of data and discussion of findings.

Chapter five: consists of a summary, conclusions, and recommendations.