The impact of value co-creation on satisfaction and loyalty: the moderating effect of price fairness (empirical study of automobile customers in Ghana)

Abstract

Recent studies on customer participation in value co-creation have shed more light on the involvement of the customer in creating unique experiences. The main purpose of this paper is to examine the moderating effect of price fairness on satisfaction and loyalty in a value co-creation context in the automobile industry. Data were collected from 532 customers of automobile buyers in 30 dealer shops in Ghana through a self-administered questionnaire. The study was analysed using SmartPLS 3.0. The main point of our findings is that price fairness not only influences satisfaction and loyalty but also has a significant and positive moderation. As the purchase of automobile is a major decision for customers, price becomes a key determinant in influencing their satisfaction and loyalty. Companies must be fair in terms of the pricing of their products as this goes a long way to affect their satisfaction and future re-purchases.

Keywords:

• value co-creation
• price fairness
• satisfaction
• loyalty
• automobile industry
• Ghana

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work was supported by Ministry of Education of the People’s Republic of China: [Grant Number 16YJA630057].