Customer brand engagement and co-production: an examination of key boundary conditions in the sharing economy

Abstract

Purpose Digital platforms have transformed how brands engage with collaborative consumption actors, such as prosumers. This study aims to examine the role of customer innovativeness and perceived economic value as important boundary conditions on the effects of customer brand engagement behavior on co-production, which subsequently influences customer satisfaction. Design/methodology/approach The authors test the model using survey data from 430 users of a digital platform (i.e. UBER) in Australia. Hypotheses were tested using the bias-corrected bootstrapping method. Findings The findings suggest that customer innovativeness and perceived economic value positively moderate the effects of customer brand engagement behavior on co-production. Further, the mediating effects of co-production on satisfaction are stronger for highly innovative customers and for those who associate high perceived economic value with the brand. Research limitations/implications This study provides novel insights on the boundary conditions of the effects of customer brand engagement behavior on co-production. Future research could apply this study’s conceptual framework to other digital platforms to extend the generalizability of this framework. Practical implications This study provides managerial insights into how firms can customize marketing strategies to encourage customers as prosumers in co-production by targeting highly innovative customers and focusing on perceived economic value. Originality/value This study builds on service-dominant logic and social exchange theory to examine the role of customer innovativeness and perceived economic value as novel boundary conditions in digital platform ecosystems.