Value co-creation Behaviors and Hotel Loyalty Program Member Satisfaction based on Engagement and Involvement: Moderating Effect of Company Support

Abstract

The experience economy, at its core, focuses on the economic value existing in staging experiences for consumers, engaging them personally and memorably during service delivery (Pine & Gilmore, 1999). The tourism and hospitality industry is one of the best sources of experiences because it is at the forefront of staging experiences (Oh, Fiore, & Jeoung, 2007). In fact, the survival of the industry relies on the ability to create unique and memorable positive experiences for customers (Walls, Okumus, Wang, & Kwun, 2011). In responding to customer desire for memorable experiences, the hotel industry has shifted from a product-focused, physical asset-intensive strategy to a customerand experience-centric strategy (Bharwani & Jauhari, 2013; Campos, Mendes, Oom do Vale, & Scott, 2018). Value co-creation has emerged, as a result of this shift. In value co-creation, rooted from Service- Dominant (S-D) logic, a company and customer create value by integrating and applying resources to benefit both parties (Vargo & Lusch, 2004). This means that companies no longer have a competitive advantage merely by offering high-quality products or services, but instead focus on creating unforgettable and one-of-a-kind experiences for customers consuming their product or service. Ultimately, the goal of value co-creation is to enhance value and experience for customers, so the industry must understand the mechanism of value co-creation and develop practical ways to implement it in customer relationship marketing.