Making Customers More Loyal: The Role of Value Cocreation in Branded Apps

The paper develops a conceptual model that examines how value in use enhances value co-creation and then brand loyalty, and captures how value-in-use could change customer perception of branded app entertainment and perceived usefulness, leading to value co-creation. Data from 463 brand app users show that all hypothesized relationships are supported, except H5 (ENT -> COC). That means value co-creation is driven by value-in-use and perceived usefulness, but not by app entertainment. Moreover, value co-creation, in turn, has an impact on brand loyalty. Additionally, mediation effects exist in two paths: first, branded app entertainment and perceived usefulness mediate the effect of value-in-use on value co-creation; and second, branded app entertainment, perceived usefulness, and value co-creation mediate the effect of value-in-use on brand loyalty. The paper ends with theoretical and practical implications.