Value co-creation effects on transaction cost, relational capital, and loyalty of hair salon customers: Results and implications of a Ghanaian study

Abstract

This study aimed to examine customer relational capital, transaction cost, and loyalty with value co-creation in the Ghanaian hair-dressing business sector. Participants were 455 female hair-dressing customers (mean age = 2.56 years, SD = 1.07 years, age range 22 to 68). Respondents completed existing measures of value co-creation, relational capital, transaction cost, and customer loyalty. The data was analysed by performing structural equation modelling using SmartPLS. The findings show that value co-creation enhances customer relational capital, transaction cost, and loyalty. The findings further show that relational capital significantly influences loyalty, while transaction cost did not. The findings of this study imply that value co-creation is of competitive advantage, influencing relational capital and customer loyalty. Relational capital with customer transaction cost is important to customer-oriented value co-creation in the hair-dressing industry.

Keywords:

• loyalty
• relational capital
• transaction cost
• value co-creation

Acknowledgement

We would like to acknowledge the financial support by the Research Project (No: 16YJA630057) of Ministry of Education of China.