COMMUNITY-BASED ACTION MODEL THROUGH CUSTOMER ENGAGEMENT TO REINFORCE VALUE CO-CREATION: BEHAVIORAL APPROACH
Radeswandri, Ginta Ginting
Universitas Terbuka
Abstract
Building community engagement involving consumers, business actors, farmers and others stakeholders as part of marketing strategy for creating value co-creation has become a phenomenon for increasing sustainable consumption. In order to address the issue, this paper proposes a community-based action model for making value co-creation and for examining how far it affects behavioral aspects (intention and actual purchase). To measure and analyze the proposed model, organic food business mostly run by entrepreneurs (Small Medium Enterprise) is selected as a unit of analysis. Consumers of organic food tend to be influenced by subjective norms when buying products, including recommendation from other people. This paper aims at measuring the impact of four variables (community engagement, value co-creation, intention to repurchase and actual use) by selecting a specific sample which includes respondents who purchase and consume organic food. By using Partial Least Square to run data obtained from 165 respondents from various regions in Indonesia, it is found that customer engagement strongly influence value co-creation (0.601), and intention to repurchase organic food has an impact on actual use (0.866). It can be concluded that strengthening community engagement will increase purchasing intention, which then impacts on the actual purchase. Future research needs to consider two things: grouping organic food products specifically (vegetable, food, drink) and price factor that is still expensive.
Keywords: Community Engagement, Value Co-creation, Intention to repurchase, Actual Purchase, organic food
Topic: Economics and business research methods