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Assessing co-creation based competitive advantage through consumers’ need for differentiation

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  • Sahi, Gurjeet Kaur
  • Devi, Rita
  • Gupta, Mahesh C.
  • Cheng, T.C.E.

Abstract

The extant literature analysing the impact of value co-creation on consumers' need for differentiated products is sparse, so the present study examines the role of consumers' need for differentiation in relating value co-creation with consumers' word-of-mouth to foster competitive advantage. Specifically, we investigate the effects of innovation differentiation and market differentiation on micro businesses' abilities to co-create value and generate positive word-of-mouth, which ultimately helps them sustain their revenues. We collect data from a sample of 196 female consumers who participated in the co-creation process used in the micro businesses to design trendy apparel. We use structural equation modelling to test the hypotheses. Having a strong desire for differentiation in their dresses, these consumers invest their resources and capabilities in designing their own apparel. The results show that value co-creation not only leads to consumers’ need for differentiated products (enabling the differentiation strategy), but also results in negative word-of-mouth. More particularly, value co-creation leads to differentiated offerings but consumers desirous of possessing unique products do not spread positive words about the professional designer. As a result, sustaining economic development in emerging economies dominated by micro and small businesses is still a big challenge.

Suggested Citation

  • Sahi, Gurjeet Kaur & Devi, Rita & Gupta, Mahesh C. & Cheng, T.C.E., 2022. "Assessing co-creation based competitive advantage through consumers’ need for differentiation," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:joreco:v:66:y:2022:i:c:s0969698922000042
    DOI: 10.1016/j.jretconser.2022.102911
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