Customer Co-Creation on Revisiting Intentions in Tourism Sector

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This entry is adapted from the peer-reviewed paper 10.3390/su152115261

Co-creation is primarily an organizational process that involves the participation of managers, employees, and customers, but the customer always plays the final and essential role. Managers are responsible for designing processes that allow customers to take an active role, enabling organizations to make necessary adjustments to meet customer needs. In tourism, the co-creation process begins with customers and the elements of the service they will enjoy, which can be in an online environment (such as during the booking process) and physical elements such as layout, equipment, and culture, among others. Additionally, interpersonal dimensions play a fundamental role in co-creation.

co-creation tourism services customer participation service experiences

1. Introduction

The diversity of products and services available to consumers poses some challenges when choosing. There are situations where satisfaction falls short of expectations ^[1]. The increasing intensity and competitiveness that affect the service sector represent a challenge for companies to orient themselves toward the customer and deliver a quality service of superior value ^[2].

Companies are adopting the co-creation process with customers to adequately meet customer needs and achieve high satisfaction levels through unforgettable experiences. This is the case in the tourism sector, where customer interaction is highly needed to provide a distinct and valuable experience. A superior value proposition is a source of competitive advantage, customer satisfaction, loyalty, and positive influence on recommendations and intention to revisit ^[3]^[4]^[5]^[6].

Value creation can arise through co-creation. In the tourism sector, the application of this concept, through interaction between the provider and the customer, can trigger unique or personalized experiences, leading to higher satisfaction levels. Service providers aim to achieve this as one of their main objectives as reputation and profitability are directly linked ^[7]. When there is a co-creation process with the customer, it is expected to meet their needs and provide memorable experiences, leading to positive recommendations and an increased intention to revisit. However, in the tourism sector, it has been challenging to understand the motivations of consumers that lead to revisits.

The service economy has been experiencing overwhelming competitive growth, and the pursuit of delivering superior value has become essential for companies ^[8]. Therefore, the success of companies relies on perceiving consumer needs and generating and promoting customer satisfaction and loyalty ^[9]^[10]. This assertion assumes even greater relevance in the studied sector because the tourism sector is characterized by high competitiveness and the need for greater involvement between the company and the customer. This customer orientation in tourism services arises mainly from the difficulty of achieving customer satisfaction; thus, companies are seeking new forms of long-term relationships ^[11].

Customer orientation plays a crucial role in the high competitiveness of the economy and the hotel sector. The goal is to maintain a long-term relationship with the customer, known as customer loyalty. To generate revenue and profits, one of the managers’ most important tasks is ensuring and maintaining customer loyalty ^[12].

2. Customer Co-Creation on Revisiting Intentions in Tourism Sector

2.1. Co-Creation, Experience, and Satisfaction in Tourism Services Sector

Services are known for their specific characteristics, which differ from products, making them unique. They are intangible, heterogeneous, perishable, and ultimately inseparable from production/consumption ^[13]^[14]. This implies that strategies for their delivery are more complex compared to products. The provision and consumption of a service depend on various dimensions, with the service provider and the consumer being the most impactful actors. The inability to deliver the same service consistently is related to customer needs and interaction during service consumption. Given this difficulty, service providers need a strategy oriented towards delivering a quality service as it can be a success factor ^[13]^[14]^[15]. To deliver a quality service, service providers need to understand the expectations and needs of consumers to offer a superior value service ^[15]. Customer expectations are essential for understanding their needs. They are dynamic based on factors such as the service provider’s image, marketing processes, ideologies, and word-of-mouth ^[16].

Regarding another concept associated with services, satisfaction, authors Homburg, Wieseke, and Hoyer ^[17] refer to satisfaction as an outcome that confirms the consumer’s expectations in a pre-consumption phase, where expectations are confirmed after service consumption. If the consumer is satisfied with the service performance, there is a greater probability of becoming a loyal customer, increasing the likelihood of a long-term relationship. A quality service generates a satisfaction effect on the consumer, and their intention to purchase is greater ^[18]. The higher the levels of quality and the customer’s perception of superior value, the more significant the impact on customer satisfaction ^[19]. The probability of a customer intending to revisit a service is higher when their satisfaction is greater ^[20]. One way for customers to perceive the value of the service is by participating in its creation, that is, by engaging in a co-creation process with the service provider. For example, hotel chains are adopting co-creation processes in their services, allowing customers to tailor the service to their needs, resulting in high levels of customer satisfaction ^[21].

Co-creation is defined by the customer’s participation in creating products/services. Through this participation, organizations gain knowledge and insights about customers, which can then be used to deliver personalized services with superior value ^[22]^[23]^[24]. Companies need a customer-oriented approach as all company behaviors should be aligned with customer needs to satisfy them ^[25]. Companies with this orientation “prioritize customer needs and organize their activities to meet expressed and latent customer needs” ^[26]. A customer-oriented approach often involves personalizing interactions and offerings based on individual customer preferences. Personalized experiences create a stronger emotional connection with customers, making them more likely to remain loyal ^[27].

Co-creation is primarily an organizational process that involves the participation of managers, employees, and customers, but the customer always plays the final and essential role. Managers are responsible for designing processes that allow customers to take an active role, enabling organizations to make necessary adjustments to meet customer needs. Prahalad and Ramaswamy ^[28] proposed a model (DART) that can be considered the pillar of co-creation, consisting of dialogue, access, risk, and transparency. All interaction channels between customers and the company are essential for value creation as each touchpoint can be an opportunity to understand what can be “produced”. Subsequently, managers have a decisive role in analyzing what has been learned and whether it should advance, leading the company to innovate in the service.

For a viable co-creation process to occur, the objectives of both parties must be aligned as this is the only way to create value for both the company and the customers. If this alignment is observed, the value creation process becomes futile, making it easier to reap the benefits of cooperation, which will ultimately result in wasted resources ^[29].

Co-creation is a process that many companies from various sectors have already adopted. However, there are services in which the level of co-creation is lower due to the characteristics of the specific area of operation ^[30]. However, in the tourism sector, the level of co-creation is higher due to the need for involvement ^[31]. The impact of co-creation on value perception can vary depending on whether the participants are residents or tourists. This implies that the influence of co-creation activities is context specific ^[32].

In tourism, the co-creation process begins with customers and the elements of the service they will enjoy, which can be in an online environment (such as during the booking process) and physical elements such as layout, equipment, and culture, among others. Additionally, interpersonal dimensions play a fundamental role in co-creation ^[33]. During and after the service consumption, the customer becomes a co-creator and the perceived value of the service increases, contributing to customer retention and increasing the likelihood of revisiting ^[34].

Mustak, Jaakkola, and Halinen ^[35] stated that customer participation leads to the conception of offerings more aligned with customer expectations and needs, resulting in superior value creation. In other words, customer participation is expected to positively influence the perceived value and experience obtained from a particular service ^[36]. From the customer’s perspective, when co-creation is present, customers have a more excellent perception of the attributes of the products and services being created and, subsequently, offered. This increases the relationship and interaction with the organization and the likelihood of consumption as customers have certainty about the value of the product/service ^[37]. This is because customers’ perception of the underlying value is higher when they participate in the service creation process. As a result, the experience is higher, customer satisfaction increases, and the likelihood of wanting to repeat the service is also higher. Therefore, some companies enable customers to co-create, for example, by allowing them to develop their own experience by choosing the destination, vacation days, and activities, among others. This is expected to result in a higher level of co-creation between the customer and the company and higher levels of satisfaction.

Tourism experiences typically occur in distinct stages, including pre-trip planning, service experimentation, and post-service evaluation upon return ^[38]. Consumers go through different experiences in these stages, forming diverse evaluations of the experience influenced by their daily lives and the complexity of tourism services ^[38]^[39]. Hence, customer participation can have an impact on the customer orientation of service providers. When customers actively engage in providing feedback, sharing preferences, and collaborating in the service design process, it enhances the service provider’s understanding of their customers’ needs and expectations ^[40].

Intention to revisit is the customer’s willingness to repeat a previously consumed service ^[41]. Creating a co-creation experience to meet the increasing demand for customer experiences and increase their intention to revisit is a highly competitive and effective strategy that managers should consider, especially in tourism where co-creation processes are more prevalent ^[42]^[43]. However, it is essential to understand the customer’s experience in tourism. Thus, the concept is the subjective personal reactions and feelings associated with tourism activities ^[44]. The experiences of co-creation and their key components (the experience provided by the service, interaction, perceived value, and memorability) are critical factors influencing customers’ intention to revisit the service ^[45]. Therefore, when perceived value is higher and the experience becomes more memorable, a more favorable attitude is created towards the intention to revisit the service. However, repeating a tourism service requires some novelty or the perception of superior value; otherwise, the intention to revisit tends to be lower ^[46]^[47]^[48]. Tourism managers must adapt their services to provide customers with new experiences and, more importantly, understand their needs. Customers are increasingly seeking new add-ons to enhance their service experiences.

Tourism services are characterized by their complexity, distinguishing them from general consumption experiences. In tourism, the service provided and hospitality have a strong influence. It is essential to understand that tourism services are highly experiential and expressing their utility takes work ^[49]. There is a problem associated with tourism companies as they often believe they have a better understanding of the field than their customers, and thus, customer evaluations and revisiting decisions are rarely considered. Tourists are seldom invited to co-create a tourism experience ^[50]. A customer-oriented approach is crucial to identify customer needs and cultivate long-term relationships accurately. In tourism, customer satisfaction can positively influence customer relationships, loyalty, and willingness to repurchase services ^[51]. In fact, loyalty can play a role in influencing tourists’ revisiting intentions in the tourism and hospitality industry.

2.2. Memorable Experiences

Reinforcing the previous ideas and in the same line of thought, Coudounaris, Sthapit ^[52], and Marschall ^[53] suggest that the intention to revisit a service is directly linked to the service experience. In other words, a memorable experience will influence the intention to revisit.

Memorable experiences can strengthen relationships by creating shared memories, fostering emotional connections, and deepening the bonds between individuals. These experiences often become the stories people share and reminisce about, reinforcing their social ties ^[54]. Memorable experiences can be influenced by a variety of factors, and they often play a significant role in shaping lives and relationships. Some of these factors are related to emotional intensity, as memorable experiences often involve strong emotions ^[55]; to novelty, as novel experiences are more likely to be memorable ^[56]; and to social interaction, as studies show that shared experiences with others, such as traveling with friends or family, can enhance the memorability of an event ^[54].

When customers perceive a memorable experience in tourism, they recall experiential feelings such as excitement, pleasure, and fun, among others ^[57]. In the study by Hirschman and Holbrook ^[58], these feelings were significant in consumers’ service evaluation. Thus, when there is a favorable evaluation of the experience considering these feelings, the intention to revisit significantly increases. The experience in service consumption, perceived value, and the degree of co-creation influence the customer’s intention to revisit. If the perceived value is higher, the memorability of the experience by customers is also proportionally higher. The experience can directly influence memorability. A differentiated experience that is noticeable, involving interaction with employees and the company’s culture, contributes to memorable experiences ^[59]. With those above, it is perceived that memorable experiences influence the intention to revisit. However, more than this may be needed; therefore, it is necessary to understand how co-creation in a particular sector can develop customer interaction to encourage repeat services. The process that generates a co-creation experience involves the following stages: (1) consumption experience, (2) perceived value, (3) experience memorization, and (4) co-creation behavior. In other words, the experience influences the satisfaction and memorization of the experience ^[60]^[61]^[62].

2.3. The Application of Co-Creation and Intention to Revisit in the Tourism Sector

A service’s co-creation with customers has emerged as a highly relevant concept in the academic world, particularly in tourism and hospitality businesses. The hotel sector is characterized by its competitive environment, making it mandatory to create the highest possible value that differentiates customers. For example, hotels need to evolve from mere accommodations to providers of lodging services ^[21]. Before delving further into the research on co-creation in tourism, it is crucial to understand why this concept has been gaining increasing relevance in the tourism industry. Firstly, technological advancements have allowed customer participation in specific processes, altering the distribution of tourism. In the case of travel agencies, they have to face a process of re-intermediation, mainly due to mechanisms such as online bookings. Secondly, customers desire to take ownership and regularly control what they consume. In addition to increased customer power through online reservations, social media allows customers to share experiences and opinions about services easily. Finally, companies have realized that customers can be relevant and valuable co-producers in creating, communicating, and delivering products or services ^[63]^[64].

Customer experiences lie at the core of the tourism and hospitality industries. For example, allowing customers to co-create a trip can help companies provide ideal services tailored to customers’ specific needs. This personalized service enables the generation of a unique experience ^[65]^[66]. It is essential to understand how the experience unfolds in tourism, namely the different stages that constitute the experience in this sector. Firstly, there is the event planning stage (with families and friends), followed by service consumption and experimentation, and finally, the perception of service satisfaction after consumption. Tourism companies play a different role in each stage ^[67]^[68]^[69]. Therefore, customer participation refers to the extent to which tourists actively engage in or contribute to various aspects of their travel experience. When tourists actively participate in planning their trips, making choices about activities, and customizing their itineraries, they feel a sense of ownership over their experiences. This co-creation of experiences can enhance overall satisfaction and make the trip more meaningful. For instance, tourists who plan their own adventures or select specific attractions are likely to have a more enjoyable time. Overall, customer participation can significantly impact the consumer’s experience in tourism services by allowing for personalization, empowerment, and co-creation of memorable experiences. Service providers in the tourism industry often recognize the importance of involving customers in various aspects of their journey to create more satisfying and fulfilling travel experiences.

Several studies have concluded a significant relationship between satisfaction, loyalty, positive word-of-mouth (WOM), and higher intentions to revisit ^[70]^[71]^[72]. According to Rajaratnam, Nair, Pahlevan Sharif, and Munikrishnan ^[73], the perceived quality of the destination significantly influences consumer satisfaction in the tourism sector. Consumers’ emotional experiences while consuming the service impact their satisfaction and, in turn, their intention to recommend the service to other consumers ^[74]. On the other hand, some authors have found that the relationship between destination satisfaction and loyalty does not necessarily imply an intention to revisit the destination but rather an extension of satisfaction ^[75]^[76]^[77]. Some authors have analyzed variables that impact the intention to revisit and positive WOM in the tourism sector. For example, Reitsamer and Brunner-Sperdin ^[78] found that tourists’ well-being influenced their intention to revisit. At the same time, Lin ^[79] concluded that a gastronomic experience impacted tourists’ willingness to revisit the service.

Regarding specific studies that approach co-creation and the intention of revisiting a tourism service, such as those by Cheng and Lu ^[80], Buonincontri et al. ^[81], González-Mansilla et al. ^[21] and Sugathan et al. ^[82], the analyzed variables sought to understand the customer experience and the variables that influence it, as well as to determine what influences the customer’s intention to revisit. In other words, how co-creation, perceived value, and satisfaction, among others, can positively or negatively influence the customer’s experience with a tourism service and subsequently affect/influence their intention to revisit. The main conclusion to be drawn from both studies is that co-creation positively enhances the perceived value of an experience; when an experience is positive, satisfaction levels generally exceed expectations, and as a result, the intention to revisit is higher. Due to the complex context of the tourism sector, co-creation is an essential process to improve the customer experience and gain a better understanding of consumer behavior. As a limitation, the studies have data collection carried out in specific locations and sectors, such as Asian islands, which affects the generalizability of the studies to other contexts. In conclusion, both studies confirm the influence of co-creation on various concepts, such as the perceived value of memorable experiences, among others. Regarding the intention to revisit, it is observed that all variables contribute to this effect of a customer having the intention to revisit the service. However, none can affirm whether there is a direct effect with this variable.

Since co-creation is a complex process, it is vital to understand the level of co-creation and its implication on revisiting intentions. The search for novelty is why tourists are interested in revisiting a destination. Even after having a memorable experience, they may intend to return to a different place ^[83]. Positive experiences have pleasant outcomes, and consumers who have them consider repeating the consumed service in the future ^[84]^[85]. Tourism experiences affect consumer satisfaction, spending levels, and happiness ^[86]. This interaction involves active participation, pleasant memories, and affective reactions ^[85]. With those mentioned above, it can be understood and concluded that the customer’s experience and motivation to return to a tourism service are strongly interconnected.

Tourist motivation refers to the underlying reasons and factors that inspire individuals to travel and engage in tourism activities. Understanding these motivations is crucial for businesses and destinations to cater to tourists’ desires and create appealing travel experiences ^[87]. Also, the demotivation of tourists, which refers to factors or barriers that discourage or hinder individuals from traveling or participating in tourism activities such as economic constraints, safety concerns, environmental issues, health issues or language barriers ^[88], can influence the co-creation environment and the revisit intention. In summary, the quality of experiences in tourism services has a direct and lasting impact on tourists’ intentions to revisit a destination. Positive experiences tend to enhance revisiting intentions, while negative experiences can deter tourists and harm the destination’s reputation.

In an environment where the level of co-creation is low, the perceived value of revisiting intentions will be lower because the consumer already has an acquired experience of that service ^[89]. As mentioned before, novelty attracts tourists to repeat a service but if there has been previous contact, repeating experiences in the same place will reduce customer satisfaction. However, it is essential to highlight that the customer’s expectations will be higher in a future visit due to the previous contract. Consequently, the effect of the experience will result in a reduced revisiting intention ^[89]. This highlights the fundamental importance of co-creation because service providers need to seek to understand customer satisfaction with the service enjoyed to be able to meet their needs correctly. Most of the time, in the case of revisiting, the exact services will be offered, resulting in a very high percentage of customers having the same experiences and satisfaction levels decreasing towards the destination.

When the co-creation environment is higher, expectations are assumed to be even higher because co-creation has already occurred. Customers have used their knowledge and efforts to improve the service, leading to a memorable experience ^[90]^[91]^[92]. When customers utilize resources to co-create, they are expected to have a better perception of the value of the experience and, consequently, a reinforcement effect on their revisiting intentions. Therefore, Sugathan and Ranjan ^[82] conclude that revisiting intentions are higher in high co-creation environments. In conclusion, the level of co-creation will impact revisiting intentions. However, if there is no co-creation, novelty and memorable experiences may not be sufficient for the customer to intend to use the same service aga

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