Impact of Customer Perception of Value Co-Creation for Personalization in Online Shopping

Impact of Customer Perception of Value Co-Creation for Personalization in Online Shopping

Jensolin Abitha Kumari J., Preeti R. Gotmare
Copyright: © 2022 |Pages: 20
DOI: 10.4018/IJEBR.309388
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Abstract

Electronic commerce firms adopt advanced technologies to provide personalization of marketing-mix with data for personalization co-created by consumers. This study explores customer's perception of value co-creation and how it impacts intention to co-create value. Customer perception of value co-creation for personalization in an e-commerce context was operationalized as second order construct comprising of fulfilment, service recovery, price perception, algorithmic fairness, personalization benefits, security, and privacy. Survey results of 638 respondents analyzed using AMOS showed that process quality and relationship quality mediate the relationship between customer's perception of value co-creation and intention to co-create value with relationship quality showing stronger effect. Thus, this study contributes to marketing value co-creation literature and provides implications for practicing managers.
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Literature Review

Online consumers co-create value by leaving a long digital trail of their transaction, preferential and behavioral data. Firms collect individual consumer data based on what an internet user view, compare, read, purchase on e-commerce websites, and post on social media. Firms process these large volumes of data comprising customer transactions, customer attributes, and preferences, information from social media or data brokers through Artificial Intelligence (AI) to segment and target customers in real-time (Davenport et al., 2020). AI plays a significant role in e-commerce firms in predicting what customers want to buy, at what price, and what price promotion must be offered based on the value (data) co-created by consumers (Shankar, 2018). On every visit to the e-commerce platform, a consumer share data that is crucial for the firm to create value. Firms implement AI techniques, only with the data created by customer’s (Davenport et al., 2020).

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