Should consumers participating in co-creation be compensated? A study of customer participation in high- and low- involvement processes

Abstract

This paper examines how and why co-creation leads to satisfaction and purchase intention. An online study portrayed to look like a company asking for help in cocreation manipulated participants to engage in either an exchange or communal relationship, as well as varied the level of participant involvement. The results indicate that consumers who form an exchange relationship with the company and are compensated for co-creation reach significantly higher levels of satisfaction and purchase intention than consumers who are enticed to form a communal relationship and complete co-creation as a favor. These findings indicate that managers should compensate consumers in their co-creation initiatives, and refrain from trying to form communal-based relationships with participating consumers. The present study also finds that satisfaction mediates the effects of relationship framing on purchase intention completely, whereas higher involvement directly leads to higher purchase intention. Taken together, these findings shed light on the causal link between the underlying psychological processes and resulting value outcomes in co-creation. Theoretical and managerial implications are discussed to help companies maximize the value of their cocreation activities.