Applying Service Logic to Education: The Co-creation Experience and Value Outcomes

This study applies concepts of service logic and value to the customer experience. Customer experience is well recognised as a critical component of value but it is complex and may consist of multiple, dynamic points of contact that occur over a period of time. Further, the co-creation experience itself may provide value and, in certain contexts, value may continue to emerge over time. Education is one such context, and it is currently under- researched from this perspective. Hence, we report on a study that had two key aims: first, to investigate the link between the co-creation experience and students’ perceptions of on-going independent value creation, and second, to test the strength of links between contextual factors contributing to the co-creation experience, and consumers’ assessment of that experience. Our conceptual model was tested using a quantitative survey, distributed to a range of business students (n = 313) in Newcastle, Australia. Key measures included university facilitation of value, customer participation (student engagement, student connectedness), the co-creation experience, and students’ expectations about independent value creation. Measures were predominantly drawn from literature in service research and education. Structural equation modelling was used to test our hypotheses. Key findings were that university facilitation of value, and consumer engagement, are both antecedents of the co-creation experience, but, surprisingly, consumer connectedness is not. As proposed, the co-creation experience is directly related to ongoing value-in-use via independent value creation. Thus, the study highlights essential components in the design of value-generating processes for students: first, the processes and resources that will support a positive co-creation experience and, second, design that will be value-generating in employment and life. We suggest that replication and extension in other contexts is warranted, especially to investigate the unexpected result with respect to the social context of connectedness.