An investigation of relationship marketing strategies to enhance value co-creation in the Chinese private businesses
Abstract
The research that was undertaken aimed at evaluating the various ways through which relationship marketing could be optimized in order to enhance value co-creation in an organization. Moreover, the research evaluated the various constructs of relationship marketing and also the relationship between relationship marketing and value co-creation. The research employed a qualitative research design in which the main form of data collection was through the use of secondary data through the use of systematic literature review. Studies were selected based on a search criteria and later quality analysis was undertaken on the selected studies to determine their relevance to the research questions. Results of the study indicate that the constructs and antecedent of relationship marketing include the following; trust, commitment, quality and effective allocation of organizational resources. Moreover, results from the study indicate that relationship marketing fosters value co-creation through increasing the level of consumer-organizational trust, fostering high level of consumer-organizational commitment, increased quality services and products and effective allocation of organizational resources.
Table of Contents
1.0 CHAPTER ONE: INTRODUCTION 3
1.1 Introduction 3
1.2 definitions of terms 4
1.3 problem statement 5
1.4 significance of undertaking the research 6
1.5 research objectives 6
1.7 research limitations 7
2. CHAPTER TWO: LITERATURE REVIEW 8
2.1 Introduction 8
2.2 value co-creation 8
2.3 relationship marketing 9
2.4 determinants of relationship marketing 11
2.5 relationship marketing and value co-creation 13
2.6 literature review summary 15
3.0 CHAPTER THREE: METHODOLOGY 16
3.1 introduction 16
3.2 research philosophy 16
3.3 research tradition 17
3.4 research design 18
3.5 Data instruments 19
3.6 Data collection 20
3.6.1 Data collection 20
3.6.2 Workflow diagram 21
3.6.3 Key words, databases and years 22
3.7 Quality appraisal 22
3.7.1 Examination of titles, abstracts, full articles 23
3.7.2 Inclusion and exclusion criteria and ethics 23
3.8 chapter three summary 24
4.0 CHAPTER FOUR: RESULTS 25
4.1 Journal Articles included in the study 25
4.2 Quality appraisal 27
4.3 Themes: 42
5.0 DISCUSSION 45
6.0 CONCLUSION AND RECOMMENDATION 50
1.0 CHAPTER ONE: INTRODUCTION
1.1 Introduction
There are various dynamics that are being experienced in the business environment and such dynamics have forced various organizations to develop strategies that are aimed at giving the organization a competitive advantage. Additionally, the same analysis is also provided by Bharadwaj, Varadarajan and Fahy (2015), when they stated that in order to remain competitive in the market, business undertakings should be at the fore front in adopting and implementing competitive advantage strategies. However, according to West, Ford and Ibrahim (2015), business competitive advantage strategies are diverse and multifaceted in nature and in order to remain relevant organizations need to adopt customer oriented and focused competitive advantage strategies that aim at creating value in an organization. Moreover, according to Grönroos and Voima (2013), organizations need to move from the traditional form of delivering value towards value co-creation in which the customer is considered as an integral and important construct towards development and sustenance of organizational value. According to Aarikka-Stenroos and Jaakkola (2012), one of the strategic competitive advantage strategy that can be adopted by organizations is through undertaking of relationship marketing that is aimed at value co-creation.
According to Sheth, Parvatiyar and Sinha (2015), the concept relationship marketing is an emerging concept in the business environment that promises to deliver value to consumers and give an organization a competitive advantage. Moreover, Brodie, Ilic, Juric and Hollebeek (2013), stresses the importance of value co-creation in an organization in the sense that value co-creation leads to higher levels of customer satisfaction as well as high levels of customer loyalty. However, as Collins and Butler, P. (2015) notes, many organizations in the Chinese private sector have not been able to effectively link relationship marketing with value co-creation. This has plunged many organizations into a brink of collapse due to lack of emphasis on undertaking relationship marketing with the aim of value co-creation. Moreover, as Atherton and Smallbone (2013) states, many organizations in the Chinese private sector are mainly focused on developing strategies that are aimed at increasing profitability at the expense of co-creating value with the customers.
The research that was undertaken was aimed at evaluating the various ways through which relationship marketing can be optimized in order to co-create value in an organization. Specifically, the research employed a qualitative research design in which the main form of data collection was through analyzing secondary data sources from peer reviewed journal articles.
1.2 Problem statement
There are various advantages that are associated with relationship marketing in the business context. For instance, as Vivek, Beatty and Morgan (2012), posits, relationship marketing enables organizations to understand consumer spending patterns leads to higher levels of consumer loyalty, leads to consistent and excellent customer experiences, and promotes higher levels of innovation in an organization. However, as Ulrich, D. (2013) posits, in order for organizations to stay competitive in the market, there is great need for various organizations to add value to various organizational activities. This is attributed to the benefits associated with value creation such as increased customer loyalty, increased brand awareness, and higher levels of excellent customer experiences. However, as postulated by Porter, Devaraj and Sun (2013), many organizations continue to undertake value creation without considering the customer into the equation of value creation. This subsequently leads to development of organizational value strategies in which the consumer is seen as a passive component. According to Barrutia and Gilsanz (2013), this subsequently leads to adoption of value creation initiatives that are unsuccessful. Specifically, as Frow, Nenonen, Payne and Storbacka (2015) states lack of integrating organizational activities towards value co-creation have plunged most organizations at the brink of collapse. Moreover, Hallikas, Immonen, Pynnönen and Mikkonen (2014) states that many organizations have not been able to leverage on the advantages associated with relationship marketing due to lack of aligning relationship marketing initiatives towards value co-creation. Many organizations in the Chinese private sector continue to emphasize on undertaking marketing initiatives that are aimed at increasing immediate profitability rather sustaining long term relationships with customers through value co-creation. As a result, many organizations in Chinese private sector continue to adopt unsuccessful marketing initiatives that do not emphasize on value co-creation. This presents a major problem statement that is addressed in the research undertaking. For instance, the research addresses the research problem of various relationship marketing strategies that can be employed by Chinese private sector organizations in order to co-create value. .
1.3 Significance of undertaking the research
Undertaking the research was of vital importance in the sense that it gave an insight in understanding the various ways through which organizations can undertake relationship marketing in order to co-create value. Undertake relationship marketing with the aim of value co-creation is of vital importance to both the organization and the customers as well. For instance, customers are positioned to benefit in the sense that it will lead to higher levels of excellent customer experiences, value for their money and high quality goods and services from the organization. On the other hand, the organization is positioned to benefit in the sense that it will lead to higher levels of profitability due to high levels of customer loyalty, higher levels of competitive advantage due to increased customer base, low costs of undertaking organizational marketing initiatives, higher levels of innovation and development of quality products and services.
1.4 Research Aims and objectives
Research aim
The research was aimed at determining whether relationship marketing enhances high value preposition in the Chinese private sector. Also, the research was aimed at analyzing the various constructs of relationship marketing and how relationship marketing strategies can be optimized in co-creating value in an organization.
Research objectives
In order to address the research gap depicted in the problem statement, the following objectives were developed:
i. To investigate whether relationship marketing enhances high value prepositions in the Chinese private sector business.
ii. To determine the various constructs and determinants of relationship marketing
iii. To investigate how relationship marketing strategies can be optimized in order to co-create value between customers and organizations
1.5 Research questions
From the above research objectives, the following research questions were developed
i. Does relationship marketing enhance high value prepositions in the Chinese private sector business
ii. What are the various constructs and determinants of relationship marketing?
iii. How can relationship marketing strategies be optimized in order to co-create value between customers and organizations in Chinese Private Sector?
1.6 Research limitations
The major limitation that is depicted in the research that was undertaken is the limitation associated with the applicability of the results. The research was aimed at evaluating how relationship marketing can be undertaken in order to co-create value in the Chinese Private sector. The above presents a major limitation in the applicability of the research findings in the sense that the results obtained can only be applied in the Chinese private sector and cannot be generalized to include application in Chinese public sector. This is attributed to the fact that the consumer in the private sector in China is viewed as the driver for business success and profitability through consuming the products and services offered by the organization. On the other hand, the consumer in Chinese Public sector is viewed as citizens who need to get services from the national and local government. The above disparity in the conceptual definition and perception of consumer in the Chinese public and private sector implies that the results that were obtained cannot in any sense be applied in the public sector domain in China. Thus there is need for further research to be undertaken that addresses relationship marketing for value co-creation in both the private and public sectors in China.
2. CHAPTER TWO: LITERATURE REVIEW
2.1 Chapter introduction
The purpose of the literature review evaluates the various empirical studies that have been undertaken regarding the concept of relationship marketing and value co-creation. Specifically, the literature review undertakes thematic analysis with the aim of evaluating common themes as well as gaps that are depicted in the literature regarding relationship marketing and value co-creation.
2.2 Value co-creation in organizations
2.2.1 Definitions of value co-creation
There are various definitions of value co-creation in literature (Grönroos & Voima, 2013). For instance, as defined by Grönroos (2011), value co-creation is defined as the process in which the organizations create value through engaging the customer in the process of creating and sustaining value. Moreover, as defined by Zwass (2010), value co-creation involves all activities undertaken by both the consumer and the organization in a collaborative manner in creating value. For the purpose of this research, value co-creation can be defined as a collaborative management approach in which the organization collaborates with consumers in order to produce mutual outcomes of value. The above definition of value co-creation implies that value co-creation is a collaborative approach between the consumer and the organization in order to create shared value outcomes.
2.2.2 Value co-creation in organizations
According to Aarikka-Stenroos and Jaakkola (2012), value co-creation is considered as a phenomenon that is emerging and gaining popularity among various business entities, a factor attributed to the advantages associated with value co-creation. Moreover, as postulated by Yi and Gong (2013), the increased emphasis on value co-creation by organizations has been instigated by the need to integrate customers in the process of co-creating value dispositions in an organization. The same sentiments were also stipulated by Prahalad and Ramaswamy (2004a). According to Prahalad and Ramaswamy (2004a), the traditional approach in creating value where the customer was seen as a passive component is becoming and outdated phenomenon and there is need for various company to change their value focus paradigm to a customer centric approach. For instance, Prahalad and Ramaswamy (2004a) continue to state that value co-creation in an organization can be enhanced through embracing and enhancing higher levels of interactions between the customer and the organization. Moreover, a study undertaken by Payne, Storbacka and Frow (2008) introduces the aspect of experiential marketing as an organization strategy to integrate customers in the process of value co-creation. From the above analysis, it is evident that a common theme emerging from value co-creation is that value co-creation aims at collaborative development of value between the organization and the company. However, many organizations have not embraced the aspect of value co-creation as stated by Prahalad and Ramaswamy (2004b). According to Prahalad and Ramaswamy (2004b), despite the fact that consumers have variety of options for goods and services, most consumers are dissatisfied in the sense that many organizations do not embrace value co-creation. Prahalad and Ramaswamy (2004b) continue to state that value co-creation can be enhanced through development of effective interactions between the consumer and the organization. Additionally, Prahalad and Ramaswamy (2004b) continues to state that organizations can embrace other strategies such as; increased dialogue with consumers, undertaking risk-benefit analysis of value co-creation as well as increased levels of transparency.
2.3 Relationship marketing
2.3.1 Definition of relationship marketing
There are various definitions of relationship marketing (Christopher & Ballantyne, 2013). For example, as defined by Palmatier, Jarvis, Bechkoff and Kardes (2009), relationship marketing can be described as the organizational initiatives that are aimed at undertaking collaborative marketing activities with consumers. Moreover, as defined by Das (2009), relationship marketing can be defined as the integrated marketing initiatives that are undertaken by the organization and the consumer. For the purpose of this research, relationship marketing is the organization process in which the customer is considered as the central focus in developing and sustaining long term customer relationship and loyalty through effective collaborative marketing initiatives. From the above initiatives, it is evident that relationship marketing emphasizes on developing long term customer relationships, enhancing customer loyalty and achieving a collaborative marketing initiatives between the customer and the organization.
2.3.2 Relationship marketing in organizations
According to Morgan and Hunt (1994), relationship marketing can be defined as the process of developing, establishing, and maintaining successful marketing relational exchanges between the consumer and the organization. The same analysis is also provided by Gruen, Summers and Acito (2000), when they stated that relationship marketing can be generally defined as the process through which organizations are able to undertake joint marketing initiatives with consumers and relevant stakeholders. Moreover, in another study by Ngo and O’Cass (2013), relationship marketing entails all organizational marketing activities that involve both the consumer and the organization working in a collaborative manner to achieve common marketing objectives. From the above definition of relationship marketing, it is evident that most of the empirical studies points out to the common theme of undertaking collaborative marketing initiatives between the consumer and the organization.
Additionally, there are various advantages that are associated with relationship marketing. For instance, as postulated by Armstrong, Adam, Denize and Kotler (2014) relationship marketing enables an organization to enhance higher levels of trust among consumers which eventually leads to higher levels of consumer loyalty. Moreover, as postulated by Wang, Hutchinson, Okumus and Naipaul (2013), relationship marketing also enables an organizations to understand consumer needs and preferences, hence developing products and services that are in tandem with consumer needs and preferences. Additionally, according to Berry (1995), relationship marketing enables organizations to reduce costs incurred in undertaken marketing through development of effective marketing strategies with consumers. Moreover, Berry (1995) continues to state that undertaking relationship marketing enables an organization to increase its profitability levels through having lower rates of customer defection. Additionally, Berry (1995), explores the importance of relationship marketing from a customer point of view. For instance, as postulated by Berry (1995), effective relationship marketing enables customers to have quality services and products. This eventually leads to customers having value for their money through high value dispositions.
From the above analysis, it is evident that the main theme emerging from the above analysis regarding relationship marketing is that relationship marketing is aimed towards undertaken marketing initiatives collaboratively between the organization and the consumers.
2.4 determinants of relationship marketing
There are numerous studies that have been undertaken that points out to various determinants and constructs of relationship marketing in an organization. For instance, as postulated by Nevin (1995), one of the main determinants of relationship marketing is the ideological concept of trust. Gowthaman (2010) states that high level of trust is an important determinant of the success of relationship marketing in the sense that trust will enable the organization and the customer to effectively engage in collaborative marketing initiatives without fear of compromise. Additionally, as postulated by Gowthaman (2010), high levels of trust between the organization and the customer lead to higher levels of loyalty between the customer and the organization. Gowthaman (2010) continues to state that higher levels of loyalty facilitate effective relational marketing between the organization and the customer. Moreover as postulated by Palmatier, Dant, Grewal and Evans (2006), high level of consumer trust leads to effective relationship marketing while low levels of consumer-organizational trust undermines effective relationship marketing. The same sentiments are also postulated by Moorman, Deshpande & Zaltman (1993) when they stated that low levels of consumer trust leads to poor relationship marketing initiatives in an organization. For example, Palmatier et al (2006) continues to state that low levels of consumer trust is instigated by the fear from both the customer and the organization as well. For instance, Palmatier et al (2006) continue to state that organizations do not trust consumers with confidential organizational data while on the other hand; consumers do not trust organizations with personal information.
In another study, Shamdasani and Balakrishnan (2000) evaluated the importance of organizational quality in facilitating relational marketing between the organization and the customer. For instance, Shamdasani and Balakrishnan (2000) stated that organizational quality leads to higher levels of consumer trust which eventually leads to synergetic collaboration between the organization and the customer in developing relational marketing initiatives.
Additionally, another determinant of relationship marketing is the aspect of commitment between the organization and the customer. As postulated by Morgan and Hunt (1994), higher organizational commitment levels enable both the consumer and the organization to channel the relevant resources towards enhancing effective relationship marketing. For instance, Morgan and Hunt (1994) continue to state that higher levels of organizational commitment will enable the organization to dedicate the required tangible and intangible resources towards effective development of relationship marketing strategies.
Last but not least, as postulated by Morgan and Hunt (1999), another determinant of relationship marketing is the amount of financial resources the organization dedicates towards relationship marketing strategies. For instance, Morgan and Hunt (1999) continues to state that huge investments in relationship marketing strategies enables an organization to harness the available resources towards effective collaboration and development of relationship marketing.
In summary, from the above analysis, it is quite evident that there are several determinants of effective relationship marketing in an organization. For instance, some of the determinants and constructs of effective relationship marketing include but not limited to the following; trust, commitment, available financial resources and organizational quality.
Table 1: A table indicating the constructs of relationship marketing
Constructs of relationship marketing
1. commitment between the organization and consumer
2. organizational quality
3. Available financial and human resources
4. Trust between the organization and consumer
2.5 Research framework: Relationship marketing and value co-creation
As earlier stated, there are various advantages associated with undertaking relationship marketing and value co-creation in an organization. However, various organizations have not been able to leverage on the advantages associated with value co-creation and relationship marketing due to lack of integrating relationship marketing and value co-creation. For instance, there are little empirical studies that have been undertaken regarding the concept of relationship marketing and value co-creation. This is attributed to the fact that many empirical research mainly focus on how relationship marketing can be undertaken in order to improve on the company’s profitability levels without integrating value co-creation (Saarijärvi, H., Kannan, P. K., & Kuusela, H. (2013). Moreover, numerous empirical evidence points out to various ways through which relationship marketing can be undertaken. For example, studies such as Clark and Melancon (2013) illustrate how social media can be used to undertake relationship marketing. The study undertaken by Clark and Melancon (2013) does not address how relationship marketing can be used to undertake value co-creation. Moreover, in another study Wu and Lu (2012) studies the relationship between customer relationship management, relational marketing and organizational performance. In their study, Wu and Lu (2012) did not address the concept of relationship marketing in co-creating value but rather focussed on how organizational performance can be enhanced through relationship marketing. Moreover, in another study, Grönroos and Helle (2012), investigated the advantages associated with undertaking relationship marketing to an organization. For instance, the research by Grönroos and Helle (2012) fails to address the concept of how relational marketing can be used to co-create value in an organization.
Figure 1: Conceptual framework: Relationship between relationship marketing and value co-creation
RELATIONSHIP MARKETING
2.6 Summary of literature review
In summary, from the above analysis, is evident that many organizations continue to emphasize on undertaking relationship marketing in order to enhance organizational performance as opposed to enhancing value co-creation. Moreover, from the above analysis, there are four main determinants of relationship marketing which are; trust, commitment, available financial and human resources and organizational quality. However, from the literature analysis undertaken, there are no empirical studies that points out to how organizations can optimize relationship marketing strategies based on the determinants of relationship marketing to co-create value. This presents a gap in literature in the sense that most organization in the Chinese private sector continue to embrace relationship marketing for improving profitability rather than optimizing relationship marketing strategies in order to co-create value.
3.0 CHAPTER THREE: METHODOLOGY
3.1 Chapter introduction
The research that was undertaken was based on a qualitative research design in which the main form of data collection was through the use of secondary data sources. Moreover, the research that was undertaken employed the constructivist research philosophy in which the main form of data was secondary data. Moreover, data analysis was undertaken through the use of thematic analysis in which various empirical studies were analyzed in order to determine common themes that emerged in the empirical evidence.
3.2 research philosophy
As defined by Gliner and Morgan (2000), a research philosophy can be generally defined as a methodological and chronological way of thinking and undertaking a research. Specifically, as postulated by Gliner and Morgan (2000, 17), a research philosophy can be defined as, “a way of thinking about and conducting a research. It is not strictly a methodology, but more of a philosophy that guides how the research is to be conducted.” Collis and Hussey (2003) states that there are two types of research paradigms that a researcher can employ in undertaking a research. They are the positivist research philosophy and the phenomenological research paradigm. Collis and Hussey (2003) continue to state that the phenomenological research paradigm emphasizes on qualitative research designs while the positivist research paradigm emphasizes on quantitative research designs. Creswell (1994) defines the phenomenological research philosophy as a research philosophy that aims at analysing human behaviour from a researcher’s perspective and point of view. On the other hand, as postulated by Collis and Hussey (2003), the positivist research paradigm emphasizes on quantitative research designs in which the main focus is in understanding social phenomena. Moreover, Bryman (2004) states that the positivist research paradigm is mainly based on the development of hypothesis and later rejecting or adopting the hypothesis based on the results of the data analysis undertaken. Bryman (2004) continues to state that positivist research paradigm emphasize on objectivity while phenomenological research paradigm emphasize on subjectivity. For instance, as postulated by Tarozzi and Luigina (2010, p. 19), “The object of phenomenological research is the participants’ experience of phenomena, the way in which consciousnesses give meaning to their world in an inter-subjective dimension. Experience, where phenomenological social research is located, is the description of the phenomenon as it appears to the researcher’s consciousness.”
Specifically, the research that was undertaken was based on the constructivist research philosophical dimension. According to Husserl (2012), the constructivism paradigm emanated from the Edumund Hussler’s phenomenology philosophy. The constructivism research paradigm emphasizes on understanding and interpreting meaning based on a certain situation or stand point. The constructivism research paradigm is based on the assumption that knowledge is constructed by individuals in their social context and researchers should emphasize on understanding the lived experiences of individuals. The research that was undertaken was based on the constructivism research paradigm in the sense that the research was aimed at evaluating lived relational marketing experiences of customers and organizations from a social perspective. Moreover, the constructivist research paradigm was employed in the sense that it emphasizes on the use of qualitative design in undertaking a research.
3.3 research tradition
According to Saunders, Lewis and Thornhill (2006), there are two main form of research tradition that a researcher can employ in undertaking a research. They are the deductive and the inductive research traditions. The deductive research tradition is mainly based on the development of hypothesis and later undertaking data collection and analysis in order to reject or adopt the developed hypothesis. Moreover, Saunders et al (2006) continues to state that most deductive research traditions are quantitative in nature and employs the use of scientific data analysis methodology in order to test the hypothesis developed. On the other hand, the inductive research tradition is mainly based on the ideology of studying human behaviour in its natural setting based on a theoretical framework. Moreover, according to Babbie (2010), most qualitative research designs employs the inductive research design in the sense that they emphasize on studying human behaviour from a social context. The research that was undertaken was based on the inductive research design in the sense that the research design was qualitative and emphasis was placed on understanding the social context of relationship marketing between the organization and the consumer.
3.4 research design
The research employed the qualitative research design in the sense that the main form of data collection and analysis was through the use of secondary data. The choice of qualitative research design was selected in the sense that qualitative studies are characterized with various advantages. For instance, as postulated by Merriam and Tisdell (2015), some of the advantages associated with qualitative designs include the following; qualitative research designs are appropriate in studying limited cases in depth, qualitative research designs are highly adaptive and can respond to changes in the process of undertaking the research, data is usually collected in its natural setting which reduces research bias, qualitative research designs are highly elaborate and can illustrate a study phenomenon in details and allows a researcher to study a phenomenon in details. Specifically, the qualitative research design was selected in order to study the limited phenomenon of relationship marketing for value co-creation in detail and in depth. However, one major limitation associated with qualitative research designs is that it is prone to researcher’s own bias and interpretation. In order to reduce the level of research biasness, the researcher employed a number of strategies to reduce the level of personal bias in the undertaking of the research:
The researcher employed the use of secondary data sources rather than using other qualitative primary data collection that are prone to researcher’s bias such as observation and interviews.
Employing secondary data classification in which secondary empirical evidence that was employed was classified according to common themes in order to avoid misclassification bias in the undertaking of the research.
3.5 Data instruments
According to Bryman and Bell (2015), data collection instruments represent the various tools and approaches that a researcher employs in gathering data. For instance, data collection instruments can be generally categorized into two main categories of primary data collection instruments as well as secondary data collection instruments. Primary data collection instruments are those instruments that can be used to collect fist hand data experiences from research participants. Some of the primary data collection instruments include the following; case studies, observation, interviews, and the use of questionnaires. On the other hand, as postulated by Bryman and Bell (2015), secondary data sources involves the use of published materials such as books, journal articles, publications, and company reports. The choice of secondary data was based on a number of advantages associated with secondary data. For example, according to Bryman and Bell (2015), one advantage associated with secondary data is that secondary data is easy to analyze and interpret compared to primary data analysis such as interviews and observations. Secondly, secondary data saves on time in the sense that the researcher does not have to record personal experiences and undertake data collection through the use of questionnaires that require a lot of interpretation and writing. Moreover, secondary data sources are considered as being appropriate in undertaking comparative and longitudinal studies.
3.6 Data collection
3.6.1 Data collection
As earlier stated, the research employed the use of secondary data in which the main source of research data was through the use of published journal articles and reports. Specifically, a search criterion was developed in order to filter out the required journal articles with common themes on relational marketing and value co-creation in Chinese private sector. Later a quality assessment was undertaken on the journal articles obtained in order to culminate in high quality academic journals that emphasized on relationship marketing and value co-creation in the Chinese private sector. Specifically, the Google Scholar database was used to identify the relevant journal articles that were analyzed for common themes. The Google scholar database was selected in the sense that it has an inbuilt search criteria that allows a researcher to search for journal articles and order by relevance and year of publication. Additionally, the following search criteria was employed in searching for relevant journal articles
Search criteria: relational marketing AND value co-creation AND Chinese private sector
3.6.2 Workflow diagram
A summary of steps used in the systematic literature review regarding relationship marketing for value co-creation in Chinese private sector
3.6.3 Data Sources
` The main database that was employed was the Google Scholar database in which three main keywords were employed in the search criteria. The three key words that were employed in identifying relevant articles were the following; relational marketing, value co-creation and Chinese private sector. The Google search was limited to journal articles published between 2008 and 2015. Moreover, the AND logical operator was employed in undertaking the search in order to limit the search to journal articles that contained information on all the key words that were employed in the undertaking of the research (relational marketing, value co-creation and Chinese private sector).
3.6.4 Journal articles included in the study
Based on the inclusion and exclusion criteria, a total of 18 articles were selected as being relevant to the research questions that were developed. The following table provides a summary of the journal articles that were selected based on evaluation of abstracts, titles and the inclusion criteria.
Table 1: Articles included in the study
Reference Topic Journal Name Research design and synthesis
Brodie, Ilic, Juric, & Hollebeek, 2013 Consumer engagement in a virtual brand community: An exploratory analysis. Journal of Business Research, 66(1), 105-114. qualitative
Grönroos, C A service perspective on business relationships: The value creation, interaction and marketing interface. Industrial marketing management, 40(2), 240-247. qualitative
Vargo & Lusch, 2010 From repeat patronage to value co-creation in service ecosystems: a transcending conceptualization of relationship. Journal of Business Market Management, 4(4), 169-179. Qualitative
Sashi, C Customer engagement, buyer-seller relationships, and social media. Management decision, 50(2), 253-272. Quantitative
Desai, D Role of relationship management and value co-creation in social marketing. Social Marketing Quarterly, 15(4), 112-125. Qualitative
Nambisan & Baron, 2009 Virtual customer environments: testing a model of voluntary participation in value co‐creation activities. Journal of product innovation management, 26(4), 388-406. Quantitative
Zwick, Bonsu & Darmody Putting Consumers to WorkCo-creationand new marketing govern-mentality. Journal of consumer culture, 8(2), 163-196 qualitative
Jaakkola & Alexander The role of customer engagement behavior in value co-creation a service system perspective. Journal of Service Research, 1094670514529187. quantitative
Payne, Storbacka, Frow, & Knox Co-creating brands: Diagnosing and designing the relationship experience. Journal of Business Research, 62(3), 379-389 Quantitative
Aarikka-Stenroos & Jaakkola, 2012 Value co-creation in knowledge intensive business services: A dyadic perspective on the joint problem solving process. Industrial Marketing Management, 41(1), 15-26. Qualitative
Gummesson & Mele. Marketing as value co-creation through network interaction and resource integration. Journal of Business Market Management, 4(4), 181-198. Qualitative
Grönroos. Adopting service business logic in relational business-to-business marketing: value creation, interaction and joint value co-creation. Otago forum (Vol. 2, No. 9). Qualitative
Grönroos. Marketing as promise management: regaining customer management for marketing. Journal of Business & Industrial Marketing,24(5/6), 351-359 Qualitative
Cheung, Myers, & Mentzer. Does relationship learning lead to relationship value? A cross-national supply chain investigation. Journal of operations management, 28(6), 472-487. Quantitative
Christodoulides, Jevons & Bonhomme Memo to marketers: Quantitative evidence for change. Journal of advertising research, 52(1), 53-64. Quantitative
Grönroos & Ravald Service as business logic: implications for value creation and marketing. Journal of Service Management, 22(1), 5-22. Qualitative
Fournier & Avery The uninvited brand. Business Horizons,54(3), 193-207. Qualitative
Ferguson. Word of mouth and viral marketing: taking the temperature of the hottest trends in marketing. Journal of consumer marketing, 25(3), 179-182. Quantitative
3.7 Reliability and Validity
Quality appraisal process was undertaken in order to determine the level of external and internal bias in various studies. The researcher employed a quality instrument that was adapted from Kitchenham (2007) in order to determine the level of quality depicted in the various quantitative and qualitative researches identified. The quality of the research articles identified were rated on a Likert type of responses with the following scores (0- unacceptable, 1-poor, 2-acceptable, 3-good and 4-excellent). Studies that had a score of 2 and above were included in the final sample of the articles that were analyzed for common themes.
Quality appraisal was undertaken through the use of a quality instrument that was adapted from Kitchenham (2007). The instrument was used to determine the quality appraisal of both the qualitative and the quantitative studies that were included in the analysis.
Table 2. Quantitative quality assessment analysis
Quality
parameter Sashi, C. M. (2012). Customer engagement, buyer-seller relationships, and social media. Management decision, 50(2), 253-272. Nambisan, S., & Baron, R. A. (2009). Virtual customer environments: testing a model of voluntary participation in value co‐creation activities. Journal of product innovation management, 26(4), 388-406. Jaakkola, E., & Alexander, M. (2014). The role of customer engagement behavior in value co-creation a service system perspective. Journal of Service Research, 1094670514529187. Payne, A., Storbacka, K., Frow, P., & Knox, S. (2009). Co-creating brands: Diagnosing and designing the relationship experience. Journal of Business Research, 62(3), 379-389. Cheung, M. S., Myers, M. B., & Mentzer, J. T. (2010). Does relationship learning lead to relationship value? A cross-national supply chain investigation. Journal of operations management, 28(6), 472-487.
Design
Are the aims clearly stated? 4 4 3 3 4
Do the study measures allow the questions to be answered? 3 3 4 4 4
Was the sample size justified 3 4 4 3 3
Are the variables used in the study adequately measured
(i.e. are the variables likely to be valid and reliable)? 4 3 3 3 4
Are the measures used in the study fully defined? 4 3 4 3 4
Is the scope (size and length) of the study sufficient to
allow for changes in the outcomes of interest to be
identified? 3 4 4 4 4
Conduct
Are the data collection methods adequately described? 4 4 4 4 4
Analysis
Was the denominator (i.e. the population size) reported? 4 3 3 4 3
Are the study participants or observational u
nits adequately
described? For example, SE experience, type (student, practitioner, consultant),
nationality, task experience and other relevant variables. 4 4 4 4 4
Are the statistical
Methods justified? 3 3 3 3 3
Is the purpose of the analysis clear? 4 4 4 4 4
Was statistical significance assessed? 4 4 4 4 4
If statistical tests are used to determine differences, is the actual p value given? 3 3 3 3 3
Conclusions
Are all study
questions answered? 4 4 4 4 4
How are null findings interpreted? (I.e. has the possibility
that the sample size is too small 4been considered?) 4 4 4 4 4
How do the results add to the literature? 3 3 3 3 3
If statistical tests are use
d to determine differences, is
practical significance discussed? 3 3 3 3 3
TOTAL AVERAGE SCORE 3.5294
3.5294
3.5882
3.5294
3.7059
Continuation of table 2 (Quality appraisal of quantitative studies)
Quality
parameter Christodoulides, G., Jevons, C., & Bonhomme, J. (2012). Memo to marketers: Quantitative evidence for change. Journal of advertising research, 52(1), 53-64. Ferguson, R. (2008). Word of mouth and viral marketing: taking the temperature of the hottest trends in marketing. Journal of consumer marketing, 25(3), 179-182.
Design
Are the aims
clearly stated? 3 4
Do the study
measures allow
the questions to
be answered? 3 4
Was the sample
Size justified 3 3
Are the variables
used in the study
adequately
measured
(i.e.are the
variables likely to
be valid and
reliable)? 3 3
Are the measures
used in the study
fully defined? 4 3
Is the scope(size
and length of the
study sufficient
to
allow for changes
in the outcomes
of interest to be
identified? 4 3
Are the data
collection
methods
adequately
described? 3 3
Was the
denominator (i.e.
the population
size) reported? 4 3
Are the study
participants of
observational
units adequately
described? For
example, SE
experience, type
(student,
practitioner,
consultant),
nationality, task
experience and
other relevant
variables.
4 3
Are the statistical
methods
justified? 4 3
Is the purpose of
the analysis
clear? 4 3
Was statistical significance
assessed? 3 3
If statistical test
are used to
determine
differences, is the
actual p value
given? 4 3
Are all study
questions
answered? 4 3
How are null
findings
interpreted? ( i.e
has the
possibility
that the sample
size is too small
for been
considered?) 4 3
How do the
results add to the
literature? 4 4
If statistical tests
are used
to determine
differences, is
practical significance
discussed? 3 4
TOTAL AVERAGE
SCORE 4.066 3.66
Table 3. Quality appraisal of qualitative studies
Quality assessment parameter Brodie, R. J., Ilic, A., Juric, B., & Hollebeek, L. (2013). Consumer engagement in a virtual brand community: An exploratory analysis. Journal of Business Research, 66(1), 105-114. Grönroos, C. (2011). A service perspective on business relationships: The value creation, interaction and marketing interface. Industrial marketing management, 40(2), 240-247. Vargo, S. L., & Lusch, R. F. (2010). From repeat patronage to value co-creation in service ecosystems: a transcending conceptualization of relationship. Journal of Business Market Management, 4(4), 169-179. Desai, D. (2009). Role of relationship management and value co-creation in social marketing. Social Marketing Quarterly, 15(4), 112-125. Zwick, D., Bonsu, S. K., & Darmody, A. (2008). Putting Consumers to WorkCo-creationand new marketing govern-mentality. Journal of consumer culture, 8(2), 163-196. Ferguson, R. (2008). Word of mouth and viral marketing: taking the temperature of the hottest trends in marketing. Journal of consumer marketing, 25(3), 179-182.
How credible are the findings? 3 3 4 4 4 3
How has knowledge or understanding been extended by the research? 4 4 4 3 3 4
How well does the evaluation address its original aims and purpose? 3 4 4 4 3 4
How well is the scope for drawing wider inference explained? 4 4 4 4 4 4
How clear is the basis of evaluative appraisal? 4 4 4 4 4 4
How well defined are the sample design/target selection of cases/documents? 3 3 3 3 3 3
How well is the eventual sample composition and coverage described? 4 4 4 4 4 3
How well has the approach to, and formulation of, analysis been conveyed? 4 4 4 4 4 4
How well has diversity of perspective and context been
explored? 3 3 3 3 3 4
How well have detail, depth, and complexity (i.e. richness) of the data been conveyed? 4 4 4 4 4 4
How clear are the links between data, interpretation and
conclusions – i.e. how well can the route to any conclusions be seen? 3 3 3 3 4 4
How clear and coherent is the reporting? 4 4 4 4 4 3
How clear are the assumptions/theoretical perspectives/values that have shaped the form and output of the evaluation? 4 4 4 4 4 3
How adequately has the research process been documented? 4 4 4 4 4 4
TOTAL AVERAGE SCORE 3.642857
3.714286
3.785714
3.714286
3.692308
3.64
Table 3 continuation
Quality assessment
parameter Aarikka-Stenroos, L., & Jaakkola, E. (2012). Value co-creation in knowledge intensive business services: A dyadic perspective on the joint problem solving process. Industrial Marketing Management, 41(1), 15-26. Gummesson, E., & Mele, C. (2010). Marketing as value co-creation through network interaction and resource integration. Journal of Business Market Management, 4(4), 181-198. Grönroos, C. (2008, December). Adopting a service business logic in relational business-to-business marketing: value creation, interaction and joint value co-creation. In Otago forum (Vol. 2, No. 9). Grönroos, C. (2009). Marketing as promise management: regaining customer management for marketing. Journal of Business & Industrial Marketing,24(5/6), 351-359. Grönroos, C., & Ravald, A. (2011). Service as business logic: implications for value creation and marketing. Journal of Service Management, 22(1), 5-22. Fournier, S., & Avery, J. (2011). The uninvited brand. Business Horizons,54(3), 193-207.
How credible are the
findings? 4 3 4 4 4 4
How has knowledge or understanding
been extended by the
research? 4 3 4 3 3 4
How well does the
evaluation address its
original aims and purpose? 3 4 3 4 3 3
How well is the scope
for drawing wider
inference explained? 4 4 4 4 4 3
How clear is the basis
of evaluative
appraisal? 4 3 4 3 3 3
How well defined are
the sample
design/target selection
of cases/documents? 3 3 4 3 4 3
How well is the
eventual sample
composition and
coverage described? 4 4 4 4 4 4
How well has the
approach to, and formulation of,
analysis been
conveyed? 4 4 4 4 4 4
How well has diversity
of perspective and
context been
explored? 4 4 3 4 4 3
How well have detail,
depth, and complexity
(i.e. richness) of the
data been conveyed? 4 4 4 4 3 3
How clear are the links
between data,
interpretation and
conclusions – i.e. how
well can the route to
any conclusions be
seen? 4 3 4 3 4 4
How clear and
coherent is the
reporting? 4 4 4 4 4 4
How clear are the
assumptions/theoretical
perspectives/values
that have shaped the
form and output of the
evaluation? 4 4 4 4 4 4
How adequately has
the research process
been documented? 4 4 4 4 4 4
TOTAL AVERAGE
SCORE 3.72 3.652 3.69 3.634 3.72 3.52
From the above analysis, it is evident that most of the studies that were included in the analysis were studies that depicted high quality based on the quality assessment that was undertaken. This is replicated in the idea that most of the studies that were included in the study had a quality value of 4 which translated to “Good” as rated on the Likert type scale. The quality cut –off score was 3.50 which translated to a rounded value of 4.0 which denotes “Good” as rated on the Likert type scale.
3.7.1 Examination of titles, abstracts, full articles
The relevance of the studies that were identified was undertaken through analyzing the abstracts, titles and full articles. The article titles were analyzed in order to determine the level of match between the research topic and the journal articles. Moreover, the abstract was also analyzed in order to determine the methodology used in the article, the results as well as the implication of the study. Lastly, full articles were evaluated in order to determine the common themes that were evident in the research article.
3.7.2 Inclusion and exclusion criteria and ethics
Inclusion criteria
Any studies published from 2008 to 2015 that evaluated the aspect of relationship marketing for value co-creation in the Chinese private sector.
Exclusion criteria
Studies that did not evaluate the concept of relationship marketing for value co-creation in the Chinese private sector
Ethics
The research was based on evaluating secondary data on empirical evidence published regarding the research topic. This made it more difficult to obtain consent from the owners of the publications. However, in order to promote research ethics, credibility was given to the authors of the research undertaken through referencing..
3.8 chapter summary
In summary, the research employed the phenomenological research philosophy with an emphasis on qualitative research design. The research employed the use of secondary data based on empirical researches that have been undertaken regarding the research questions. Moreover, an inclusion criterion was undertaken to determine the type of research articles to include in the analysis as well as quality appraisal in order to determine the internal and external bias of the identified research articles. A benchmarking criterion of quality score of 3.50 (rounded off to 4.0 = Good) was employed in order to have high quality journal articles published from 2008 to 2015. The analysis was based on a Likert scale type responses (1-very poor, 2= poor, 3=neutral, 4=good, 5=excellent)
4.0 CHAPTER FOUR: RESULTS
4.1 Relationship marketing and value co-creation in the Chinese private sector
Based on the conceptual framework discussed above, higher levels of trust, high level of organizational quality, available financial resources and high level of commitment enhances higher levels of value co-creation. In evaluating the concept of relationship marketing in the Chinese private sector, it is of vital importance to evaluate the concept of relationship marketing at Huawei Company in China. Huawei Company is a global telecommunication company in China. Huawei Company has embraced product innovation strategies and market entry strategies that have propelled the Company to be a global leader in the telecommunications industry (Ren, Xie & Krabbendam, 2009). For instance, Huawei Company has embraced the concept of agent marketing and advertising in countries in which the company operates (Wu & Zhao, 2007). For instance, Kshetri (2009) states that through embracing agent marketing; Huawei has been able to develop high level of consumer trust towards the company’s marketing initiatives. However, as postulated by Andersen (2005), effective relationship marketing is enhanced through involving the consumer in relationship marketing initiatives. However, this is not the case at Huawei in the sense that the company does not include the consumer in its relationship marketing but rather undertakes relationship marketing with company agents who represents the interests of the consumers in countries the company operates.
However, Huawei Company has been able to allocate enough financial and human resources in undertaking relationship marketing. For instance, as postulated by Bellabona and Spigarelli (2007), Huawei Company has invested a lot of resources in undertaking collaborative marketing campaigns with agents globally. Additionally, the company embraces the development of high quality goods. According to Alden and Davies (2006), Huawei Company through embracing product innovation has been able to develop quality goods for consumers. However, Huawei has not been able to leverage on the quality parameter in undertaking relationship marketing through engaging the customers in the process of product development based on changing consumer needs. Additionally, Huawei Company has been able to depict some level of commitment towards developing effective relationships with customers and agents (Ren et al, 2009). However, the company commitment is focused towards increased social corporate responsibilities rather than focusing company commitment towards relationship marketing initiatives.
From the above case study of relationship marketing in Chinese private sector organizations, it is evident that Huawei Company has not effectively implemented the constructs of relationship marketing through having a direct synergetic relationship with consumers. For instance, trust is marinated through the agents of the company globally, financial resources are allocated towards marketing and advertisements without integrating relationship marketing, organizational commitment is directed towards corporate social responsibilities and consumers are not effectively involved in the process of product innovation and development as well as in the company’s marketing initiatives.
4.2 Themes:
The 18 articles that were included in the analysis were evaluated in order to determine the common themes that were present. The themes that were identified were analyzed in order to determine the relevance of the themes to the research questions.
Tables including the 18 article each as a piece of data
Articles Relevant themes
Cheung, M. S., Myers, M. B., & Mentzer, J. T. (2010). Does relationship learning lead to relationship value? A cross-national supply chain investigation. Journal of operations management, 28(6), 472-487. Consumer trust, consumer commitment and quality services
Payne, A., Storbacka, K., Frow, P., & Knox, S. (2009). Co-creating brands: Diagnosing and designing the relationship experience. Journal of Business Research, 62(3), 379-389 Quality service and products, consumer commitment
Jaakkola, E., & Alexander, M. (2014). The role of customer engagement behavior in value co-creation a service system perspective. Journal of Service Research, 1094670514529187. Increased customer commitment
Nambisan, S., & Baron, R. A. (2009). Virtual customer environments: testing a model of voluntary participation in value co‐creation activities. Journal of product innovation management, 26(4), 388-406. Increased customer commitment
Sashi, C. M. (2012). Customer engagement, buyer-seller relationships, and social media. Management decision, 50(2), 253-272. Increased customer commitment and quality services and products
Christodoulides, G., Jevons, C., & Bonhomme, J. (2012). Memo to marketers: Quantitative evidence for change. Journal of advertising research, 52(1), 53-64. High quality
Ferguson, R. (2008). Word of mouth and viral marketing: taking the temperature of the hottest trends in marketing. Journal of consumer marketing, 25(3), 179-182. Resource allocation
Zwick, D., Bonsu, S. K., & Darmody, A. (2008). Putting Consumers to WorkCo-creationand new marketing govern-mentality. Journal of consumer culture, 8(2), 163-196. Customer commitment and consumer trust
Desai, D. (2009). Role of relationship management and value co-creation in social marketing. Social Marketing Quarterly, 15(4), 112-125. High quality and increased trust
Vargo, S. L., & Lusch, R. F. (2010). From repeat patronage to value co-creation in service ecosystems: a transcending conceptualization of relationship. Journal of Business Market Management, 4(4), 169-179. High quality, high level of consumer trust and high level of consumer commitment
Grönroos, C. (2011). A service perspective on business relationships: The value creation, interaction and marketing interface. Industrial marketing management, 40(2), 240-247. Increased quality
Brodie, R. J., Ilic, A., Juric, B., & Hollebeek, L. (2013). Consumer engagement in a virtual brand community: An exploratory analysis. Journal of Business Research, 66(1), 105-114. Increased consumer commitment and increased consumer trust
Fournier, S., & Avery, J. (2011). The uninvited brand. Business Horizons,54(3), 193-207. Increased resource allocation
Grönroos, C., & Ravald, A. (2011). Service as business logic: implications for value creation and marketing. Journal of Service Management, 22(1), 5-22.
Effective assigning of resources
Grönroos, C. (2009). Marketing as promise management: regaining customer management for marketing. Journal of Business & Industrial Marketing,24(5/6), 351-359. Increased consumer commitment and increased trust
Grönroos, C. (2008, December). Adopting a service business logic in relational business-to-business marketing: value creation, interaction and joint value co-creation. In Otago forum (Vol. 2, No. 9). Increased consumer trust, increased consumer commitment and increased quality focus
Gummesson, E., & Mele, C. (2010). Marketing as value co-creation through network interaction and resource integration. Journal of Business Market Management, 4(4), 181-198. Effective resource integration and increased trust
Aarikka-Stenroos, L., & Jaakkola, E. (2012). Value co-creation in knowledge intensive business services: A dyadic perspective on the joint problem solving process. Industrial Marketing Management, 41(1), 15-26. Increased consumer commitment
Table 4 indicating frequencies and percentages of identifies themes .
Theme Frequency Percentage
Consumer commitment 11 35%
Consumer trust 8 26%
Effective resource allocation 4 13%
High level of quality 8 26%
TOTAL 31 100%
A pie chart representing the percentage response of participants
From the above pie chart, consumer commitment emerged as the highest common theme from the systematic literature review accounting for 35% of the total percentage distribution. Coming in second were themes of consumer trust and high level of quality which accounted for 26% of the percentage distribution each. Lastly, the effective allocation of resources had the least percentage distribution of 13%.
5.0 DISCUSSION
As postulated by Grönroos and Voima (2013), relationship marketing can be defined as the collaborative undertaking of marketing initiatives and campaigns between the organization and the consumer. On the other hand as defined by Christopher and Ballantyne (2013), value co-creation is the collaboration development and sustenance of value between the consumer and the organization. There are some studies that have been undertaken in the past that points out to the correlation between relationship and value co-creation. For instance, relationship marketing enables the co-creation of value in the sense that through undertaking relationship marketing there is increased level of consumer trust. From the analysis that was undertaken, it is evident that theme of increased consumer trust accounted for 8 frequency count. The 8 frequency count translates to 26% of the total themes that were depicted in the systematic literature review. For instance, in their study, Gummesson and Mele (2010) evaluated the concept of marketing as value co-creation through effective resource allocation and network interactions. In their study, Gummesson and Mele (2010) noted that effective relationship marketing leads to high value co-creation initiatives between the organization and the consumer through building trust in the network interactions. The same analysis is also provided by Cheung, Myers and Mentzer (2010). Cheung et al (2010) investigated the concept of relationship learning from relationship marketing as an antecedent of co-creating value. In their study, Cheung et al (2010) found out that undertaking relationship marketing leads to relationship learning between the organization and the customer. Cheung et al (2010) continues to state that increased relationship learning between the organization and the customer leads to value co-creation.
In another study, Zwick, Bonsu and Darmody (2008) evaluated the concept of working collaboratively with consumers in undertaking marketing initiatives. In their study, Zwick et al (2008) found out that engaging the consumers in the process of undertaking marketing initiatives is an effective strategy in enhancing value co-creation in the sense that it creates a sense of trust between the organization and the consumer. The same sentiments are also postulated by Desai (2009) when they stated that relationship marketing enhances value co-creation through increased trust between the consumers and the organization. Moreover, in another study undertaken by Vargo and Lusch (2010), Vargo and Lusch stated that through undertaking effective customer relationship both from a sales and marketing perspective leads to high value prepositions in an organization due to increased trust between the consumers and the organization as well. Additionally, Brodie, Ilic, Juric and Hollebeek (2013) stated that through high level of consumer engagement in undertaking organizational marketing initiatives, organizations can co-create value through developing high levels of trust between the organization and the consumer. Additionally, in another study, Grönroos (2009) stated that integrating the consumer in undertaking marketing management enables an organization to co-create value through developing high level of trust between the organization and consumers. The same sentiments were also replicated in a study undertaken by Grönroos in 2008. As postulated by Grönroos (2008), increased marketing interaction between the consumer and the organization leads to value co-creation through increased levels of trust between the consumer and the organization.
Secondly, from the study that was undertaken, another common theme that emerged from the systematic literature analysis was the theme of increased consumer engagement and commitment. From the systematic literature that was undertaken, the increased consumer commitment accounted for 11 frequency counts which translated to 35% of the total theme percentage. For instance, in a study undertaken by Aarikka-Stenroos and Jaakkola (2012), the authors stated that value co-creation could be enhanced through undertaking collaborative marketing initiatives. Aarikka-Stenroos and Jaakkola (2012) continued to state that through undertaking collaborative marketing initiatives, organizations are able to increase the level of consumer commitment towards the organization. The same analysis is also provided Grönroos (2008; 2009). As postulated by Grönroos (2008;2009), increased collaboration between the consumer and the organization in undertaking marketing and sale initiatives leads to high level of consumer commitment towards the organization. As postulated by Grönroos (2008;2009), the increased consumer commitment as a result of consumers-organizational trust leads to high levels of value co-creation in an organization.
In another study, Brodie, Ilic, Juric and Hollebeek (2013) evaluated the concept of consumer engagement in a virtual brand community. In their study, Brodie et al (2013) stated that through undertaking relationship marketing of brands, organizations are able to achieve higher levels of consumer engagement which facilitates effective value co-creation initiatives. Moreover, the same analysis was also provided in a study that was undertaken by Vargo and Lusch (2010). Vargo and Lusch (2010) stated that development of relationship marketing strategies between an organization and the consumer leads to high level of consumer commitment which is the building block of co-creating value in an organization. The same analysis is also provided by Zwick et al (2008). As postulated by Zwick et al (2008) value co-creation can be enhanced in an organization as a result of high level consumer commitment due to undertaking collaborative marketing initiatives between the company and the consumers as well. Moreover, in another study undertaken by Sashi (2012), Sashi stated that effective buyer-seller relationships from a marketing perspective leads to higher levels of consumer commitment which in essence leads to high value co-creation initiatives in an organization. Moreover, the same analysis is also provided by Nambisan, S., & Baron, R. A. (2009) when they stated that voluntary participation of consumers in marketing initiatives of an organization leads to high levels of value co-creation. In another study, Jaakkola and Alexander (2014) evaluated the role of customer engagement behavior in value co-creation a service system perspective. In their study, Jaakkola and Alexander (2014) found out that value co-creation is as a result of increased consumer engagement in organizational activities especially relationship marketing. The same analysis is also provided by Payne et al (2009) when they stated that effective brand and value co-creation is enhanced when consumers and organizations engage in collaborative organizational initiatives that are not only tied to product buying and selling but also expands to include organizational marketing initiatives. Additionally, in another study undertaken by Cheung et al (2010), the authors found out that relationship learning as a result of relationship marketing enables value co-creation through increased levels of consumer trust.
Thirdly, from the research that was undertaken, the other common theme that was depicted in the analysis is the theme of increased quality emphasis by the organization. From the research that was undertaken, the theme of increased quality emphasis accounted for a frequency count of 8 which translated to a frequency percentage of 26%. For instance, in a study undertaken by Cheung et al (2010), the authors found out that through relationship learning as a result of relationship marketing, organizations are able to develop high quality goods and services which eventually lead to value co-creation in an organization. Moreover, the same analysis is also provided by Sashi (2012) who stated that through undertaking collaborative marketing interactions between the consumer and the organizations, organizations are able to co-create value with consumers. The same analysis is also provided by Christodoulides, Jevons, and Bonhomme (2012) when they stated that through relationship marketing, organizations are able to develop high quality services and products which eventually lead to value co-creation. Additionally, according to Desai (2009) undertaking collaborative initiatives with the consumer leads to development of high quality services and products which in essence facilitates the process of value co-creation in an organization. Moreover, in another study, Vargo and Lusch (2010) found out that through relationship marketing, organizations are able to focus of strategies and parameters that foster delivery of quality services and products which eventually leads to value co-creation. Moreover, in another studies undertaken by Grönroos (2008;2009), Grönroos found out that increased focus on relationship marketing enables organizations to co-create value through provision of quality services and products to consumers.
Lastly, another common theme that emanated from the research undertaking was the theme of effective resource allocation and integration. From the research that was undertaken, the theme of effective resource allocation and integration accounted for 4 frequency counts which translated to 13% of the total frequency percentage. For instance, in a study undertaken by Gummesson and Mele, C. (2010), the authors stated that through undertaking relationship marketing initiatives, organizations are able to effectively utilize the available resources which in essence lead to value co-creation. The same sentiments are also postulated by Grönroos, C., & Ravald, A. (2011) when they stated that through relationship marketing, organization are able to leverage on the diverse capabilities of consumers, employees and available resources towards co-creating value. The same analysis is also provided by Fournier and Avery (2011) when they stated that collaborative marketing initiatives between the organization and the customer leads to value co-creation through effective use of available resources. Moreover, in another study undertaken by Ferguson, R. (2008), the author notes that effective relationship marketing leads to effective use of organizational resources which eventually leads to value co-creation in an organization.
6.0 CONCLUSION AND RECOMMENDATION
6.1 Conclusion
This research that was undertaken was based on a qualitative design in which the main form of data collection was through the use of systematic literature review. From the systematic literature review that was undertaken, it was evident that relationship marketing leads to high value co-creation in an organization. Moreover, from the systematic literature review that was undertaken, the constructs and antecedent of relationship marketing include the following; trust, commitment, quality and effective allocation of organizational resources. Additionally, from the systematic literature review that was undertaken, relationship marketing fosters value co-creation in a number of ways. For instance, relationship marketing fosters value co-creation through increasing the level of consumer-organizational trust, fostering high level of consumer-organizational commitment, increased quality services and products and effective allocation of organizational resources.
6.2 Recommendations
From the above analysis, in order to increase high level of value co-creation, Chinese private sector organizations need to optimize the various relationship marketing strategies. For instance, some of the optimization strategies include the following;
Increased collaboration between consumer and organizations – in order to increase the high level of trust between the organization and the consumer, Chinese private sector organizations need to increase collaboration with consumers and entrust consumers with some organizational marketing initiatives and campaigns.
Development of consumer loyalty motivation programs – in order to enhance higher levels of consumer commitment, Chinese private sector organizations need to develop and implement consumer loyalty programs that will motivate consumers to increase their commitment towards marketing initiatives by various Chinese private sector organizations.
Implement an elaborate consumer need analysis – in order to embrace the development of high quality products and services, many organizations in the private sector in China need to develop an elaborate consumer needs analysis aimed at evaluating the changing needs of consumers and the market and developing quality products and services that are in tandem with the changing market trends and consumer needs.
Increase resource allocation to relationship marketing. In order to enhance high levels of value co-creation through relationship marketing, organization in the Chinese private sector need to increase allocation of resources in undertaking relationship marketing.
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