Customer Participation, Perceived Service Innovation, and Loyalty–Model Inventory

Abstract

The Customer Participation, Perceived Service Innovation, and Loyalty–Model (Nyadzayo, Leckie, & Johnson, 2023) is a 22-item inventory designed to systematically investigate the complex relationship between consumer perceptions and resulting behavioral outcomes in service contexts. Specifically, the model explores how customers’ perceptions of Service Innovation aspects—including innovativeness, service newness, and relative advantage—interact with active Customer Participation to influence subsequent value perception, satisfaction, and eventual consumer Loyalty.

The items comprising this instrument were adapted from several foundational studies in marketing and consumer behavior (e.g., Yim et al., 2012; Harris & Goode, 2004). The measure underwent rigorous validation, with content validity established by academic experts. The resulting measure was empirically tested using an online survey administered to Australian customers of the ride-sharing service, Uber. The data were subsequently evaluated using Structural Equation Modeling (SEM), confirming the robust factor structure, reliability, and validity of the proposed instrument.

Keywords

Customer Participation, Loyalty, Perceived Innovativeness, Perceived Relative Advantage, Perceived Service Newness, Perceived Value, Satisfaction, Service Innovation

Authors

Nyadzayo, Munyaradzi W., Leckie, Civilai, Johnson, Lester W.

Purpose

The primary objective of this measurement model is to provide a standardized tool for empirically assessing the interconnectedness of crucial variables in the service sector. It is specifically formulated to measure the degree of Customer Participation and the innovative characteristics perceived in services, relating these inputs to key consumer outcomes such as satisfaction and long-term Loyalty.

By quantifying these constructs, the scale allows researchers and practitioners to gain a deeper understanding of how service firms can leverage innovation and customer involvement to enhance perceived value and secure enduring consumer relationships.

Construct

The inventory is designed to measure seven distinct, yet interrelated, psychological and behavioral constructs relevant to service consumption and innovation adoption. The instrument functions as a comprehensive model assessing the antecedents and outcomes of perceived Service Innovation.

The constructs assessed by the 22-item measure include:

• Customer Participation: The extent to which customers are actively involved in the service delivery process.
• Perceived Innovativeness: The customer’s perception of the service provider’s creativity and novelty in offerings.
• Perceived Service Newness: The degree to which the customer views the service as fundamentally new or different from existing options.
• Perceived Relative Advantage: The customer’s belief that the new service offers superior benefits compared to alternatives.
• Perceived Value: The overall assessment by the customer of the utility of a service based on perceptions of what is received and what is given.
• Satisfaction: The emotional response reflecting the congruence between expectations and actual service delivery experience.
• Loyalty: The customer’s commitment to repurchase or re-patronize the service in the future.

Validity

The validity of the Customer Participation, Perceived Service Innovation, and Loyalty–Model was established through rigorous statistical and expert evaluation, focusing primarily on content validity and Discriminant Validity.

Content Validity: This was ensured by engaging academic experts who thoroughly reviewed the proposed items. Their evaluation confirmed that the instruments adequately represented the theoretical scope and nuances of the study constructs, ensuring comprehensive coverage of the latent variables.

Discriminant Validity: Statistical evidence supported adequate Discriminant Validity, confirming that the constructs measured distinct concepts and were not overly correlated. This was demonstrated in two ways: First, the square roots of the Average Variance Extracted (AVE) values for each construct exceeded the correlations observed between that construct and all other constructs. Second, the Heterotrait-Monotrait Ratio (HTMT) values, which ranged from 0.39 to 0.76, were all below the conservative cut-off threshold of 0.85 (Henseler et al., 2015), providing strong support for the distinct nature of the measured variables.

Reliability

The reliability of the instrument was assessed primarily through measures of Internal Consistency, ensuring that the items within each construct cohered reliably.

Internal Consistency: The consistency across items was confirmed using multiple established metrics. The Cronbach’s alpha coefficients for all constructs exhibited a robust range, falling between 0.81 and 0.95. This range significantly exceeds the generally accepted minimum threshold of 0.70, indicating high reliability and adequate convergence (Hair et al., 2010). Furthermore, supporting these findings, the Construct Reliability (CR) estimates were consistently greater than 0.70, and the Average Variance Extracted (AVE) values were all greater than the recommended 0.50 threshold (Hair et al., 2010), further solidifying the instrument’s strong Internal Consistency.

Factor Analysis

The factor structure of the 22-item inventory was rigorously tested using advanced multivariate statistical techniques, including Confirmatory Factor Analysis (CFA) and assessment for common method bias.

Confirmatory Factor Analysis (CFA): The results of the Confirmatory Factor Analysis demonstrated an acceptable fit for the proposed measurement model. Key fit indices confirmed the structural integrity: the chi-square to degrees of freedom ratio (χ²/df = 1.74, based on χ² 188 = 326.93) was well below the conservative threshold of 3.0. Other indices supporting acceptable fit included the root mean square residual (RMR = 0.038), the Tucker–Lewis Index (TLI = 0.97), the Confirmatory Fit Index (CFI = 0.98), and the root mean square error of approximation (RMSEA = 0.047).

Common Method Bias: To evaluate potential bias arising from data collected using a single electronic survey method, Harman’s one-factor test was performed. The results indicated that a single-factor model exhibited extremely poor model fit (χ² 252 = 3402.201, χ²/df = 13.50, p < 0.001; SRMR = 0.192, TLI = 0.57, CFI = 0.61, RMSEA = 0.171). The lack of fit for the single-factor model suggests that a single underlying construct does not account for the majority of the variance, providing evidence that common method bias is not a significant concern for the instrument’s validity.

Instrument

Test Type: Original

Format: Inventory/Questionnaire

Language Available: English

Population Group: Human (Male, Female, Transgender)

Age Group: Adulthood (18 yrs & older), Young Adulthood (18-29 yrs), Thirties (30-39 yrs), Middle Age (40-64 yrs)

Population Details: Respondents were customers of Uber located in Australia, surveyed electronically.

Test Methodology: Test Validity, Content Validity, Discriminant Validity, Test Reliability, Internal Consistency, Factor Analysis, Confirmatory Factor Analysis, Measurement Model, Structural Equation Modeling (SEM).

Number of Items: This is a 22-item measure.

Keywords

Customer Participation, Loyalty, Perceived Innovativeness, Perceived Relative Advantage, Perceived Service Newness, Perceived Value, Satisfaction, Service Innovation

Authors

Nyadzayo, Munyaradzi W.

• Author ORCID Identifier: http://orcid.org/0000-0003-0802-2119
• Affiliation: University of Wollongong in Dubai, Faculty of Business
• Affiliation Email addresses: [email protected]
• Correspondence Address: [email protected]

Leckie, Civilai

• Affiliation: Swinburne University of Technology, Department of Management and Marketing

Johnson, Lester W.

• Author ORCID Identifier: http://orcid.org/0000-0003-3577-2804
• Affiliation: Swinburne University of Technology, Department of Management and Marketing

Permissions & Fee and Test Year

Permissions: Contact Corresponding Author

Commercial: No

Fee: No

Test Year: 2023

Reference’s

Nyadzayo, M. W., Leckie, C., & Johnson, L. W. (2023). Customer participation, innovative aspects of services and outcomes. Marketing Intelligence & Planning, 41(1), 1–15. https://doi.org/10.1108/MIP-03-2022-0090

Items of the Customer Participation, Perceived Service Innovation, and Loyalty–Model Inventory

IMPORTANT: The following scale items must be preserved in their original language and must not be changed in any way.

No data is Available