The Role of Value Co-Creation in Improving Customer Loyalty with Customer Satisfaction as Mediating Variable

Abstract

The objective of this conceptual paper is to keep up with the changes in marketing paradigm, which involves customer’s active participation in the creation of goods and service values offered by companies in order to maintain customer loyalty to the companies. The success of new products relies not only on product quality but also on market condition customer targeting and even product launching time. The product development process in the new wave marketing era requires companies to co-create with experts who are able to identify and create quality products. This study aims to identify the relationship between value co-creation and customer loyalty, the relationship between value co-creation and customer loyalty with the mediation of customer satisfaction, and the relationship between customer loyalty and customer loyalty. This study uses SEM-PLS by observing its outer and inner models. Keywords—value co-creation, customer satisfaction, customer loyalty, new wave marketing