Consumer value co-creation in a hybrid commerce service-delivery system

Abstract

Retailing firms operating in a hypercompetitive environment are increasingly leveraging a hybrid commerce strategy to reach their customers through both physical and virtual channels. This study seeks to better understand the aspects of physical and virtual retail channels that can be integrated to create value for consumers. The role of consumers in co-creating value is examined in a hybrid commerce service-delivery system. The study draws on the theoretical foundations of value co-production as well as the customer contact model to develop a set of hybrid process metrics. A structural model is then advanced to examine the relationships between these processes and consumer value. Survey data from 300 consumers assessing hybrid commerce stores were used to empirically test this value co-creation model. Results demonstrate that the integration of promotion information, product and pricing information, and transaction information enhances information quality, while the integration of information access, order fulfillment, and customer service increases service convenience. Overall, the metrics developed and the structural model results offer a better understanding of the design of an effective value-creating hybrid commerce service-delivery system. © 2010 M.E. Sharpe, Inc. All rights reserved.