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Running Head: EXPERIENTIAL VALUE and SATISFACTION RELATIONSHIP

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Running Head: EXPERIENTIAL VALUE and SATISFACTION RELATIONSHIP Running head: EXPERIENTIAL VALUE AND SATISFACTION RELATIONSHIP EXPERIENTIAL VALUE AND SATISFACTION RELATIONSHIP IN PEER TO PEER MARKETPLACE: CO-CREATION CAPABILITY AS A MODERATOR A Thesis Presented to the Faculty Of ISM University of Management and Economics In Partial Fulfilment of the Requirements for the Degree of Master of International Marketing By Ausra Griksaite May 2016 EXPERIENTIAL VALUE AND SATISFACTION RELATIOSNHIP 2 Abstract The research study explores the role of co-creation capability as a moderator on experiential value – satisfaction relationship. Co-creation capability is defined as ability to facilitate and enhance mutually beneficial interaction and resource integration processes with individual actors in peer to peer marketplace. Based on the theoretical perspective of Service - Dominant logic as an emerging marketing paradigm, value co-creation is considered to be at the core marketing activity yet value is derived from unique customer experiences and experiential value is rooted in interactions. In essence, interactions in peer to peer marketplaces are inevitable part of the service exchange process while experiential value compiled of four dimensions namely aesthetics, playfulness, service excellence and customer return on investment is induced by usage of the service. Defining customer satisfaction as the attitude change from the consumption experience the study hypothesizes that co-creation capability moderates experiential value – satisfaction relationship. Using data sample gathered from peer to peer marketplace Vinted, the findings of the study indicate that two dimensions of experiential value, i.e. aesthetics and customer return on investment are significant predictors of customer satisfaction in peer to peer marketplace. Furthermore, the results reveal that co-creation capability only moderates the relationship between customer return on investment and satisfaction in such a way that higher co-creation capability weakens the aforementioned relationship. Keywords: experiential value, co-creation capability, peer to peer marketplace, customer satisfaction, Service Dominant Logic. EXPERIENTIAL VALUE AND SATISFACTION RELATIOSNHIP 3 Table of Contents List of Figures .........................................................................................................................................5 List of Tables ...........................................................................................................................................6 Introduction .............................................................................................................................................7 Literature review .................................................................................................................................. 13 Sharing economy, retail industry and peer-to-peer marketplaces ....................................... 13 Satisfaction definition ............................................................................................................. 17 Importance of satisfaction ...................................................................................................... 19 Experiential value: development and definition ................................................................... 23 Experiential value and satisfaction relationship ................................................................... 28 The rise of Service Dominant logic ....................................................................................... 31 From value co-creation to co-creation capability ................................................................. 35 Links between customer satisfaction, experiential value and co-creation capability........ 39 Conclusions of literature review ............................................................................................ 41 Research Methodology ........................................................................................................................ 43 Theoretical framework............................................................................................................ 43 Research design ....................................................................................................................... 47 Research context and data sample ......................................................................................... 50 Instrumentation ........................................................................................................................ 51 Ethical considerations ............................................................................................................. 56 EXPERIENTIAL VALUE AND SATISFACTION RELATIOSNHIP 4 Validity and reliability ............................................................................................................ 57 Empirical research results ................................................................................................................... 61 Profile of the respondents ....................................................................................................... 61 Descriptive statistics ............................................................................................................... 66 Correlations.............................................................................................................................. 67 Hierarchical multiple regression analysis ............................................................................. 70 Discussion and conclusions ................................................................................................................ 80 Satisfaction – experiential value relationship ....................................................................... 80 Co-creation capability as a moderator ................................................................................... 85 Theoretical and managerial implications .............................................................................. 88 Limitations of the research and recommendations for future research .............................. 89 Conclusions.............................................................................................................................. 90 References ............................................................................................................................................ 95 Appendices ......................................................................................................................................... 115 Appendix 1. Co-creation as a moderator. ........................................................................... 115 Appendix 2. Original research questionnaire in Lithuanian .............................................. 116 Appendix 3. Correlation matrix ........................................................................................... 118 Appendix 4. Regression coefficients and multicollinearity statistics ............................... 119 Appendix 5. Normal P-P Plot of Regression Standardized Residuals ............................. 120 Appendix 6. Scatterplot of Standardised Regression Residuals ....................................... 120 EXPERIENTIAL VALUE AND SATISFACTION RELATIOSNHIP 5 List of Figures Figure 1. Total venture capital funding for major clothing resale start-ups……………….….…16 Figure 2. The Cycle of Good service………………………………………………….….……..21 Figure 3. Cycle of Good P2P Service……………………………………………………………23 Figure 4. Theoretical model of the research……………………………………………….…….44 Figure 5. Moderator effect……………………………………………………………….………46 Figure 6. The interrelationship between the building blocks of research developed……………48 Figure 7. Distribution of respondents by age……………………………………………….……63 Figure 8. Distribution of respondents by place of residence…………………………………….64 Figure 9. Distribution or respondents by place of residence…………………………………….64 Figure 10. Distribution of respondents by income………………………………………………65 Figure 11. Distribution of respondents by purchase frequency………………………………….65 Figure 12. Means of research variables…………………………………………………….……66 Figure 13. Linear relationship between satisfaction and customer return on investment……….77 Figure 14. Final model of the research………………………………………………………..…79 EXPERIENTIAL VALUE AND SATISFACTION RELATIOSNHIP 6 List of Tables Table 1 Typology of Customer Value……………………………………………………25 Table 2 Typology of Experiential Value………………………………………………..26 Table 3 The research of experiential value relative to satisfaction …………………29 Table 4 The main constructs and measures of the current research …………….…..53 Table 5 Reliability of main measures ………………………………………….…….…59 Table 6 Reliability of co -creation capability dimensions ………………………….…59 Table 7 Profile of the respondents ………………………………………………………62 Table 8 Descriptive statistics of research variables ……………………………….…66 Table 9 Correlations……………………………………………………………….……67 Table 10 Correlation coefficient and correlation strength …………………….…….68 Table 11 Multiple regression analysis predicting satisfaction (Step 1, 2 and 3)….73 Table 12 Multiple regression analysis predicting satisfaction (Step 4 and 5)…..…75 Table 13 Results of testing the hypotheses ………………………………………….…78 EXPERIENTIAL VALUE AND SATISFACTION RELATIOSNHIP 7 Introduction “ The customer is king, again” is argued in The Economist Intelligence Unit research report (Baker, 2013, p. 4). The growing access to information and ability to connect
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