Co-creating value with customers: a study of mobile hotel bookings in China

Purpose This study aims to develop a framework to explain the reciprocity of the value co-creation process in mobile hotel booking context and to clarify values for customer and supplier. Design/methodology/approach A research framework was developed based on the previous literature to derive insights on value co-creation process. Online surveys were conducted among mobile hotel bookers in China. Confirmatory factor analysis and structural equation modeling were used to test the proposed framework. Findings The findings suggested that suppliers should improve the values for customers (functionality, usability and perceived value) to achieve values for themselves [customer lifetime value (CLV), customer knowledge value (CKV), customer referral value (CRV) and customer influencer value (CIV)]. The relation between satisfaction and CLV was moderated by the CIV from other customers. Practical implications Suppliers should enhance customer value from the aspects of functionality, usability and perceived value to earn a competitive advantage. Moreover, for suppliers, non-transactional values such as other CIV play an increasingly critical role apart from economic value for development. Originality/value This study not only added empirical analysis on value co-creation in m-Tourism but also extended the current literature by validating a research model which integrates website evaluation research with Kumar et al. (2010)’s customer engagement value framework. Instead of serving as a mediator, mobile app was regarded as one of the indispensable actors involved in value co-creation.