ABSTRACT
This chapter discusses why customer value creation behaviour might influence firm performance and reviews the theoretical and empirical literature on the effects of customer value creation behaviour on outcomes. According to Ennew and Binks, the outcome of customer value creation depends on customer participation behaviour. They argue that customer participation behaviour influences perceptions of service quality. In turn, through its influence on service quality, customer participation behaviour also has an effect on customer satisfaction and customer loyalty. Economic benefits and relational benefits, which are consequences of customer participation behaviour, are also shown to affect customer satisfaction and thereby customer loyalty. Customer participation behaviour is positively related to employee satisfaction, because it can enhance customer satisfaction by increasing the likelihood that needs are met and that the benefits the customer seeks are actually attained. Perceived service quality is then expected to enhance customer satisfaction and thus customer loyalty.
