Value Co-Creation in Modern Marketing: Its Impact on Loyalty and Word-of-Mouth on E-Commerce Platforms

Abstract

In the digital marketplace, consumer engagement has become a crucial determinant of business success, especially within
e-commerce platforms where competition is intense. Traditional transactional marketing is no longer sufficient; instead, firms must
embrace value co-creation, enabling consumers to actively contribute to product and service development through reviews,
feedback, customization, and content sharing. This study examines the impact of value co-creation on customer loyalty and
electronic word-of-mouth (e-WOM), with a particular focus on the mediating role of loyalty. A quantitative research design was
applied using survey data from 250 active e-commerce users in Indonesia. Measurement items were adapted from established
scales, and data analysis was conducted with Partial Least Squares Structural Equation Modeling (SEM-PLS). Results indicate that
value co-creation significantly enhances loyalty (β = 0.58, p < 0.001) and e-WOM (β = 0.42, p < 0.001). Loyalty itself has a positive
effect on e-WOM (β = 0.36, p < 0.001) and partially mediates the relationship between value co-creation and e-WOM. These
findings underscore the strategic importance of positioning consumers as co-creators to strengthen loyalty and stimulate advocacy
in digital marketplaces. Theoretically, the study extends Service-Dominant Logic and Relationship Marketing by clarifying the
pathways from co-creation to loyalty and e-WOM. Practically, it offers insights for e-commerce firms to design participatory
strategies that encourage customer involvement. Limitations include the cross-sectional design and the focus on Indonesian users,
suggesting future research should employ longitudinal and cross-country approaches.