Crowdsourcing and Service-Dominant Logic: The Interaction Effect of Brand Familiarity, Customer Experience and Loyalty on Value Co-Creation

Crowdsourcing is a process that enables firms to tap into the wisdom of the crowds or customers to create ideas and solve problems through value co-creation. Utilizing the idea of crowdsourcing, this research was designed using Service-Dominant (SD) Logic that suggests brand familiarity and levels of involvement of co-creators determine the success of value cocreation. Therefore, this research was conducted to investigate the interaction effects between two factors that is customer experience and loyalty. A 3x2 between-subjects factorial design was conducted using online experiment to test the hypotheses. 96 participants were asked to choose one of the six experimental conditions that required them to co-create a pizza menu for a brand. Two-way analysis of covariance (ANCOVA) was used to analyse the collected data on experience and loyalty shared by the participants. The results showed significant effect on the interaction of both variables on pragmatic experience. The result suggests that customers' pragmatic experience needs to be met in order to achieve the success desired. The present study contributes to a wealth of knowledge in the emerging field of service marketing, mainly in the application of crowdsourcing and the understanding of SD Logic.