The Importance of Co-creation for Building Service Brand Equity

Research has shown that engaging in co-creation can enable brands to attain higher levels of brand trust, brand affect, and brand loyalty. However, research on the influence of co-creation on service brand equity remains limited. This is unexpected, because several scholars have argued that innovation initiatives (e.g., co-creation) should be oriented toward enhancing brand equity. Therefore, this article empirically investigates the effect of co-creation on service brand equity, taking into account relevant mediators and moderators. The data were collected via an online survey, and analyzed using structural equation modelling. The findings show that the effect of co-creation on service brand equity is partially mediated by recognition benefits, and that the attractiveness of alternative brands positively moderates the influence of co-creation on recognition benefits.