Co-creating value with customers: a study of mobile hotel bookings in China

Purpose - This study aims to develop a framework to explain the reciprocity of the value co-creation process in mobile hotel booking context and to clarify values for customer and supplier. Design/methodology/approach - A research framework was developed based on the previous literature to derive insights on value co-creation process. Online surveys were conducted among mobile hotel bookers in China. Confirmatory factor analysis and structural equation modeling were used to test the proposed framework. Findings - The findings suggested that suppliers should improve the values for customers (functionality, usability and perceived value) to achieve values for themselves [customer lifetime value (CLV), customer knowledge value (CKV), customer referral value (CRV) and customer influencer value (CIV)]. The relation between satisfaction and CLV was moderated by the CIV from other customers. Practical implications - Suppliers should enhance customer value from the aspects of functionality, usability and perceived value to earn a competitive advantage. Moreover, for suppliers, non-transactional values such as other CIV play an increasingly critical role apart from economic value for development. Originality/value - This study not only added empirical analysis on value co-creation in m-Tourism but also extended the current literature by validating a research model which integrates website evaluation research with Kumar et al. (2010)'s customer engagement value framework. Instead of serving as a mediator, mobile app was regarded as one of the indispensable actors involved in value co-creation.