Customer value co-creation over the relationship life cycle

Drawing from the theory of relationship dynamics, the purpose of this paper is to investigate how the relationship life cycle moderates the link between relationship quality and customer value co-creation. As customer-firm relationships pass through different stages (exploration, buildup, maturity, and decline) characterized by distinct customer behaviors, this study proposes a dynamic conceptual framework.

A questionnaire was administered in financial services firms. The final valid sample comprised 2,000 individuals. Subjective customer information from the questionnaire was combined with objective data that the financial entity provided.

The results demonstrate that the relationship life cycle plays a key moderating role, revealing that, in the buildup and maturity stages, the influence of relationship quality on customer value co-creation is stronger than in the decline stage. However, for customers in the exploration stage, relationship quality does not lead to customer value co-creation behaviors.

As customer relationship stages are constantly evolving, this study provides companies with additional interesting tools to personalize business strategies and to adapt marketing investments to the specific situation of customers.

To the authors’ knowledge, this is the first study to consider how the relationship life cycle influences the strength with which relationship quality promotes customer value co-creation.