48 Matrik: Jurnal Manajemen, Strategi Bisnis dan Kewirausahaan Vol. 17, No. 1, Februari 2023

P-ISSN: 1978-2853

E-ISSN: 2302-8890


MATRIK: JURNAL MANAJEMEN, STRATEGI BISNIS DAN KEWIRAUSAHAAN

Homepage: https://ojs.unud.ac.id/index.php/jmbk/index

Vol. 17 No. 1, Februari (2023), 48-60

Determining Value Co-Creation Behaviour toward Customer Loyalty and Customer Retention on the SRC’s Business Platform



Muhammad Baehaqi1), Ragil Setyo Cahyono2). Sulis Riptiono3)           sinta 2

University of Putra Bangsa, Indonesia1) University of International Business and Economics, Beijing2)

University of Putra Bangsa, Indonesia3)

Email: [email protected]

DOI : https://doi.org/10.24843/MATRIK:JMBK.2023.v17.i01.p04

ABSTRACT

Customer retention is the maintenance of long-term customer-company relationships through customer satisfaction thereby creating loyalty. Value co-creation is proven to have a significant role in creating customer loyalty, so that customer loyalty becomes actual retention for the company. The role of shared value creation should be considered in customer relationship mechanisms. This study aims to produce an analysis of the role of value co-creation behavior on customer retention. This focus is novelty in research, because no confirmation was found in previous studies that produced a relationship between the two. Customer loyalty is the variable that mediates the relationship between value creation behavior and customer retention. This research produces findings regarding the positive influence of customer involvement through value co-creation behavior on retention as a long-term customer relationship mechanism with the company.

Keywords: Value Coreation Behaviour; Customer Loyalty; Customer Retention.

INTRODUCTION

The role of customers in the industrial world has changed from isolated to connected, from unaware to informed, and from passive to active (Prahalad & Ramaswamy, 2004a). This reveals the development of customer behaviour that demands involvement with a larger of roles of customers. Several studies (Spena et al., 2012; Vivek et al., 2012) have confirmed changes in the role of customers as a consequence of information disclosure and the development of relationship models for technological support. Customers have access to information, dialogue, experimentation, global views, community and activism that lead to changes in the mechanism of relationships and roles towards the environment and companies (Prahalad & Ramaswamy, 2004a), Verhoef et al., 2010). Customers have changed from requesters of value to actors who create value (Baehaqi, 2018). Companies cannot act independently without customer intervention. The activities of designing products, developing production processes, compiling marketing messages, and controlling sales channels cannot be separated from the role of the customer (Prahalad & Ramaswamy, 2004a; Grönroos, 2012; Kotler et al., 2017).

The development of customer behaviour has an impact on the company's treatment of customers. This study will focus on two approaches in responding to changes in customer behaviour. First, the customer engagement approach through value co-creation (Prahalad & Ramaswamy, 2004; Verhoef et al., 2010; Vivek et al., 2012) which emphasizes customer value collaboration, experience building, and resource collaboration in the service chain

(Vargo et al., 2008). The importance of value co-creation and its impact on customer behaviour has been widely presented in various academic studies such as customer loyalty (Lam et al., 2004); (Cossío-Silva et al., 2016); (Lee et al., 2018), sharing economy (Zou & Shao, 2022), perceived value (Solakis et al., 2022), and customer satisfaction (Woratschek et al., 2020; Hong et al., 2021). There is no confirmation of rejection from the results of these studies, so it can be said that value co-creation has become a major current of thought in relation to customer behaviour. Second, the relationship marketing approach (Vivek et al., 2012) which emphasizes the efforts of business people in anticipating change through maintaining relationships or customer retention. The link between value co-creation on customer retention is a new focus in the literature, because it was not found in previous research studies that presented the implications of value co-creation on customer retention. Some researchers believe that customer loyalty is actual retention in business (Gustafsson et al., 2005), so the study focuses more on the impact of value co-creation on customer loyalty. This study is a pioneer in examining the relationship between value co-creation and customer retention. The both approaches to the relationship model are considered strategic choices, given the dynamic development of the marketing environment, more substantial changes in customer behaviour.

The idea of value co-creation pioneered by Prahalad & Ramaswamy, (2004) and Vargo & Lusch, (2004) fundamentally places customers as a source of competence for companies. With their knowledge and skills, customers are in the building blocks of the engagement chain that play an active role in determining the expected value (Vivek et al., 2012). Customer value is determined individually so as to create a unique experience for customers. Companies cannot create something of value without individual involvement, so co-creation replaces exchange processes (Prahalad & Ramaswamy, 2004b). Adaptation of theories, models and frameworks of value co-creation has resulted in academic performance, especially in relation to customer loyalty and customer relationship mechanisms (Woratschek et al., 2020; Hilton et al., 2012; Saarijärvi et al., 2013). Customer loyalty has been recognized as a very valuable tangible asset for the company. Loyal customers not only generate profits for the company, but also become a bulwark against attacks by opponents, and even become a source of competitive advantage (Sashi, 2012; Cossío-Silva et al., 2016). Recognizing the importance of customer loyalty for companies, loading the right model and framework is a vital requirement for companies. This study proposes value co-creation as a framework that influences customer loyalty. As a source of competence, customers are active value creators who collaborate with companies and other actors in creating customer value (Vargo & Lusch, 2004; Grönroos & Ravald, 2011; Baehaqi, 2017). This is a novelty value in the study of customer behaviour, considering that various previous studies of customer loyalty resulted more from antecedents such as satisfaction (Banyte & Dovaliene, 2014); (Woratschek et al., 2020), perceived value (Ruiz-Molina & Gil-Saura, 2008), service quality (Zeithaml et al., 1996; Bloemer, Josee, Odekerken, 2020), also commitment and trust (Alkitbi et al., 2021; Gustafsson et al., 2005).

Establishing long-term relationships is necessary to maintain a loyal customer portfolio. Customer retention and customer share are important metrics in the context of customer relationship management (Verhoef, 2003). Customer share is defined as the ratio of customer purchases to products or services in total. Customer retention is associated with customer commitment, both affectively and calculatedly (Ndubisi et al., 2010). To maximize these metrics, companies usually use relationship marketing instruments such as loyalty

programs and direct mailing (Verhoef et al., 2007). The goal is to establish close relationships with customers, acquire customers and retain customers as long as possible. But as product preferences and the number of providers grow, there is scepticism about whether the program can be a successful tactic and strategy. Another framework needs to be prepared to anticipate this scepticism. This study proposes value co-creation as a customer relationship model in creating customer retention. Evidence that customer involvement can increase satisfaction and encourage customer loyalty (Higgins & Scholer, 2009), then value co-creation can be developed into a framework that needs to be tested for its impact on customer retention.

The existence of grocery retail in Indonesia are coloured by the domination of two big semi-modern players, namely Indomaret and Alfamart. As long of the second quarter of 2022, it is reported that Indomaret has 19,891 outlets and Alfamart has 18,810 outlets. The total of the both are 38,810 outlets spread throughout Indonesia (https://databoks.katadata.co.id). This numbers not include of modern outlets in big cities in Indonesia. The vast expanse of Indonesia's territory and the concentration of population settlements are spread out, the numbers of outlets not able to reach all of corners of the population. Outside the outlets of the two big players, we can find a large number of traditional outlets and an undetectable numbers. Intense competition occurs among traditional retail outlets as well as with semi-modern retail outlets. This condition invites the interest of PT. Sampoerna Tbk. to form a community for retail business people. Sampoerna Retail Community (SRC) was formed with the aim of conducting business collaboration and providing business assistance to traditional retail businesses so they can compete in the grocery retail competition. SRC built a strategy with the tagline "thrifty, close, friendly". The goal is to retain customers by closer relationships with customers. By placing retention as a strategy implemented by SRC, this study focuses on determining the relationship between value co-creation and customer retention.

Value Co-Creation Behaviour (VCB). Customers have developed as active actors who can create shared value, collaborate with companies in creating innovations, and become active partners of companies (Bijmolt et al., 2010). According to Vivek et al., 2012), these changes are a form of customer engagement. Customers have unlimited needs and wants, while companies have limited resources to meet customer expectations and desires. This idea requires a relationship model that provides space for both parties to exchange information, provide access, build the trust and share of risks (Prahalad & Ramaswamy, 2004a). Between the customer and the company has an agreed value that is co-created as expected value. A very influential notion in this regard is Service Dominant (S-D) Logic (Vargo et al., 2008; Vargo & Lusch, 2004). The core concept of S-D logic is that the customer is always a value creator. Customers are active actors and collaborative partners in relational exchanges, customers create shared corporate value through involvement in the entire service value chain (Grönroos, 2012; Merz et al., 2009).

Value co-creation is a process in which customers integrate their knowledge and experience to participate in the products, services or designs offered by the company, thereby generating their own preferences and fulfilment of needs as expected value (Prahalad & Ramaswamy, 2004b). The concept of value co-creation according to Vargo & Lusch, (2004) refers to the process of exchanging resources carried out between customers and companies, enabling both parties to obtain greater benefits.

Yi & Gong, (2013) have developed a dimensional scale of customer co-creation behavior into two parts, namely; participation behaviour and citizenship behaviour. Customer participation behaviour refers to the behaviour required (in roles) for the successful creation of shared value. In a broad sense, participation behaviour refers to all customer involvement behaviours in the expected value creation process. Meanwhile, in a more specific sense, the dimension of customer participation behaviour includes responsible behaviour, where the customer is an active actor who participates in carrying out tasks, and is also responsible for

the success of the service (Yi et al., 2011). Furthermore Yi & Gong, (2013) identified customer participation behaviour including information seeking, information sharing, responsible behaviour, and personal interaction.

While customer citizenship behaviour is voluntary behaviour (extra role) that provides extraordinary value to the company but is not always necessary for shared value creation (Bove et al., 2009; Yi et al., 2011; Yi & Gong, 2013). Previous researchers used a lot of citizenship behaviour to measure employee involvement in organizations that are more familiar with the term organizational citizenship behaviour (OCB) (Bove et al., 2009; Yi et al., 2011; Yi & Gong, 2013). Three dimensions in OCB include participation, loyalty and cooperation (Bettencourt, 1997). In the context of customers, these dimensions are then developed into three other dimensions, namely making recommendations, providing feedback to the organization, and helping other customers (Groth, 2005). Referring to these various opinions, Yi & Gong, (2013) further identified customer citizenship behaviour including feedback, advocacy, helping and tolerance.

Customer Loyalty. Customer loyalty is described as a multidimensional construct consisting of purchase intention, recommendation, price tolerance, word of mouth, complaint behaviour, and tendency to leave (Zeithaml et al., 1996; Bloemer, Josee, Odekerken, 2020; Schirmer et al., 2018). Loyalty involves the customer's feelings towards the business, which then drives the intention to repurchase, recommendations, and even the willingness to become part of the business (Cheng, 2011). It is therefore important to identify how customers feel about the business in order to understand this multidimensional construct. Kumar et al., (2006) identified loyalty into two dimensions, namely the attitude dimension and the behavioural dimension. Attitude loyalty is defined as a customer's feelings towards a product or service, while behavioural loyalty is indicated by repeat purchases and specific intentions for the product or service (Kumar et al., 2006). The attitude dimension is a psychological construct while the behavioural dimension is a substantial element (Cheng, 2011). Multidimensional identification of different customer loyalty shown by Ganesh et al., (2000) who identified loyalty into two constructs of loyalty behaviour namely; active and passive. Active loyalty behaviour is a conscious behaviour that is deliberately carried out. His actions are reflected in purchases and purchase intentions. Passive behaviour is identified when purchase intention or behaviour is influenced by switching and price changes. However, it is not easy to explain these various loyalty constructs as standard dimensions. Another opinion emerged from Dick & Basu, (1994) who considered loyalty as multidimensional which was not only measured by repeated purchases. In terms of customer loyalty, Dick & Basu, (1994) identifies customers with four categories namely; loyal, latent loyalty, false loyalty and no loyalty. The measurement is based on the relative attitude of customers and repeat patronage (Dick & Basu, 1994; Rowley & Dawes, 1999; Lam et al., 2004).

Customer Retention. Customer retention is generally understood as part of relationship marketing where customers are placed as the focus of long-term relationship maintenance (Verhoef, Reinartz, et al., 2010). Other studies confirm that customer retention can be created if the company is able to fully meet customer expectations, so that customer satisfaction is met (Ndubisi et al., 2010). Satisfaction is a customer's emotional reaction to what they receive, the purpose of the transaction and the fulfilments of customer needs (Alkitbi et al., 2021). Customer retention expresses the future desired result for satisfaction, so long-term relationship is indicated by satisfaction. Other studies also show that retention is

not only influenced by customer satisfaction, but also related to trust and commitment (Nasir & Morgan, 2017).

VCB Toward Customer Loyalty. Customer involvement is very important to create customer loyalty (Banyte & Dovaliene, 2014). The modern customer requires involvement in determining expected value. The higher their engagement, the higher their perceived value (Higgins & Scholer, 2009), creating customer satisfaction and ultimately driving customer loyalty (Velázquez et al., 2011). Customer engagement is implemented through VCB. The two behavioural dimensions (Yi & Gong, 2013), namely participatory behaviour and citizenship behaviour represent the value co-creation constructs whose implications will be tested for customer loyalty. Thus the hypothesis can be formulated as follows: Hypothesis 1 (H1): Value co-creation behaviour has a positive effect on customer loyalty.

VCB Toward Customer Retention. Verhoef, (2003) shows that customer retention and customer share can be influenced by affective commitment and loyalty programs that provide economic incentives to customers. However, the effect is very small. Companies can use other approaches to create greater customer retention (Verhoef, 2003; van Doorn et al., 2010). VCB with its behavioural dimensions (Yi & Gong, 2013) has been recognized as a construct that has a positive influence on various retention antecedents such as customer satisfaction (Alkitbi et al., 2021), customer loyalty (Cossío-Silva et al., 2016), and commitment customers (Ndubisi et al., 2010). This study proposes the VCB dimension as a variable that influences customer retention. The hypothesis; Hypothesis 2 (H2): Value cocreation behaviour has a positive effect on customer retention.

Customer Loyalty Toward Customer Retention. Customer retention is understood as a form of long-term relationship with customers, therefore building a dynamic and sustainable framework is a strategic step for business people (Lemon & Verhoef, 2016; Verhoef, 2003). Besides being able to reduce costs, long-term relationships are believed to be able to generate company profitability (Lee et al., 2018; Ruiz-Molina & Gil-Saura, 2008). Some researchers argue that long-term relationships can occur when customers have loyalty to the company, because loyalty is actual retention in business (Gustafsson et al., 2005). Loyal customers will provide long-term affective benefits through positive advocacy and word of mouth, and provide benefits from repeat purchase behaviour (Cossío-Silva et al., 2016). Through the dimensions of attitude and behaviour (Kumar et al., 2006), customer loyalty makes an important contribution to customer retention. The formulation of the hypothesis is: Hypothesis 3 (H3): Customer loyalty has a positive effect on customer retention and mediates the relationship between value co-creation behaviour and customer retention.

Figure 1. Theoretical Framework

METHODS

This research was conducted in 6 provinces in Indonesia namely; DKI Jakarta, West Java, Banten, Central Java, DI Yogyakarta and East Java. With the distribution of respondents in 6 provinces, this research sample is considered to represent Indonesian customers. The samples collected were 336 respondents, then processed using the PLS-SEM method through the WarpPLS version 7.0 software. The choice of the PLS-SEM method in this study is because the PLS-SEM method is considered to have a high level of precision in the case of predicting customer behaviour (Sholihin & Ratmono, 2013).

The demographic profile of the respondents is shown in table 1. The characteristics of the respondents show that 60% of the respondents are women and the majority are housewives (45%). Meanwhile, in terms of age, the majority of respondents were aged 31-40 years (30%) with the education level of the majority being senior high school graduates (36%).

Table 1. Characteristics of Respondents

Characteristics

Category

Frequency

Percentage

Gender

Male

134

40

Female

202

60

Age

16-20 years old

48

14

21-25 years old

61

18

25-30 years old

84

25

31-40 years old

102

30

> 40 years old

41

12

Education

Junior High School

94

28

Senior High School

114

36

Diploma/Bachelor

62

19

Others

56

17

Job

Housewife

151

45

Student

92

27

Private/Government Employees Entrepreneur

53

16

Others

32 8

10

2

Source: Data Analysis of WarpPLS

Evaluation of the outer model is intended to demonstrate the validity and reliability of the data obtained. The factor loading approach is used to show the reliability of the data provided that the factor loading has a coefficient > 7.0 (Sholihin & Ratmono, 2013). Table 2 presents the structure of loading and cross loading where validity is considered satisfactory because factor loading has a coefficient of > 0.7. While discriminant validity can be seen through cross loading in table 2 where the square root AVE value must have a higher number than the value of other constructs that are on the diagonal or below it. Table 2 already shows conformity with the indicators, so that discriminant validity is considered satisfactory.

Tabel 2. Combined Loadings and Cross-Loadings

VCB

CL

CR

Type (a

SE

P Value

X1

0.765

0.018

-0.179

Reflect

0.049

<0.001

X2

0.853

0.235

-0.266

Reflect

0.048

<0.001

X3

0.694

-0.581

0.209

Reflect

0.049

<0.001

X4

0.727

0.048

0.481

Reflect

0.049

<0.001

X5

0.884

0.223

-0.276

Reflect

0.048

<0.001

X6

0.849

0.067

0.137

Reflect

0.048

<0.001

X7

0.793

-0.125

-0.004

Reflect

0.049

<0.001

Y11

0.259

0.912

-0.280

Reflect

0.048

<0.001

Y12

0.116

0.910

0.061

Reflect

0.048

<0.001

Y13

0.074

0.922

0.037

Reflect

0.048

<0.001

Y14

-0.087

0.908

-0.100

Reflect

0.048

<0.001

Y15

-0.369

0.898

0.286

Reflect

0.048

<0.001

Y21

-0.015

-0.172

0.925

Reflect

0.048

<0.001

Y22

-0.158

0.256

0.911

Reflect

0.048

<0.001

Y23

0.171

-0.080

0.929

Reflect

0.048

<0.001

Notes: Loadings are unrotated and cross-loadings are oblique-rotated. SEs and P values are for loadings. P values < 0.05 are desirable for reflective indicators.

Table 3 shows the value of convergent validity as measured by the Cronbach's Alpha value indicator > 0.7; Composite Reliability > 0.7; and Average Variances Extracted (AVE) > 0.5 (Sholihin & Ratmono, 2013). According to Imam, )2011) the Cronbach's Alpha (CA) value is closer to 1, the more it has perfect reliability. In the case of CA = 0.575, the reliability value is considered moderate, but the data can still be said to be valid. Of all the measurement indicators, the results are in accordance with the required values. Therefore it can be said that all variables in this study are valid and reliable.

Table 3. Validity and Reliability Test Result

Variable

Sources      Number of    Cronbach's Composite    Average     Square

Indicators        Alpha       Reliability     variances    Roots of

extracted     AVE

(AVE)

Value CoCreation Behaviour

(Yi & Gong,

2013)           7              0,903         0,924           0,637       0.798

Customer Loyalty

(Kumar et al., 5               0,948        0,960           0,828       0.910

2006); (Cheng,

2011)

Customer Retention

SRC Platform 3              0,944         0,944           0,850       0.922

Source: Data Analysis of WarpPLS

The results of testing the hypothesis in this study can be seen in table 4. Value cocreation behaviour has a positive influence on customer loyalty (H1). The coefficient variable is 0.85 with a p-value of 0.01. The relationship between value co-creation behaviour and customer retention (H2) is indicated by a variable coefficient of 0.23 with a p-value of 0.01. Meanwhile, the relationship between customer loyalty and customer retention (H3) directly or as mediation has a coefficient of 0.63 with a p-value of 0.01 and an adjusted R2 of 0.72. From the overall test, all hypotheses in this study are acceptable.

Table 4. Hypothesis and Test Result

Hypothesis

Coefficient of Variable

P Value

R2 Adjusted

H1

Value Co-Creation Behavior → Customer Loyalty

0.85

0.01*

-

H2

Value Co-Creation Behavior → Customer Retention

0.23

0.01*

-

H3

Customer Loyalty → Customer

0.63

0.01*

0.72

Retention

Note: Significant at P < 0.05

RESULTS AND DISCUSSION

This research yielded interesting findings. The characteristics of the respondents were dominated by housewives, namely 45%. This indicates that the products purchased are products related to household needs. Because this research does not contain the types of products available at SRC outlets, a probability perspective is used to summarize the research results. The availability of household products is one of the characteristics of SRC outlets. The differentiation that gives SRC outlets added value compared to other grocery retail outlets is the availability of daily necessities such as rice, cooking oil, vegetables, spices and other staples which are presented in bulk (non-packaged). The advantages of non-packaged products are cheaper prices with product sizes or dosages that can be adjusted according to the needs of the customer. Non-packaged products are products that are usually found in traditional markets, where buyers can determine the size or dose they want. Because it takes active interaction between buyers and waiters. It is this traditional behaviour that SRC retail outlets adopt as product and service differentiation in creating customer relationships.

"Thrifty, close, friendly" is SRC's business platform as a tagline designed to attract and build relationships (retention) with customers. As a business strategy, retention is built through price factors (thrifty), proximity to where you live (close) and ease of communication between customers and providers (friendly). Providing products in non-packaged form is proof that the business strategy tagline is applied operationally. Besides demonstrating competitive advantage through differentiation, it has been shown effective relationships with customers. These results indicate that customer retention can be created through differentiation in the provision of products and services. The fact that housewives prefer to shop at SRC outlets that are close to their homes proves that customer retention is successful. SRC outlets have emerged as an alternative that diverts customers from traditional markets. Unfortunately, so far no previous research has been found that can be used as a comparison of the findings of this study. Theoretically,The findings in this study confirm the theoretical truth that service is the basic unit of exchange (Vargo & Lusch, 2004). The SRC business platform provides knowledge and experience to customers, so that it becomes a factor that greatly influences the achievement of value co-creation (Prahalad & Ramaswamy, 2004a; Vargo et al., 2008; Grönroos, 2012). The greater the space for VCB, the greater the potential for retention through the service value chain (Sashi, 2012).

This research also shows evidence that strengthens the relationship between VCB and customer loyalty (H1). VCB explains 85% of the customer loyalty variance and has high statistical significance. These results confirm previous studies which integrated the multidimensional concept of loyalty into one concise construct, namely repurchase intention,

recommendation intention, customer retention, or price tolerance (Cheng, 2011). Referring to the opinion of Kumar et al., (2006) regarding customer loyalty, the study of Cossío-Silva et al., (2016), has proven a significant relationship between VCB and customer loyalty in both attitudinal and behavioural dimensions. In a different perspective, the study of Lee et al., (2018) also produced the same findings in the fitness centre case. Customer participation through VCB benefits both the customer and the company, and in turn positively influences customer loyalty to the fitness club. Although this study does not contain the dimensions of loyalty separately, in the case of retail SRC shows findings that corroborate the studies conducted by Cossío-Silva et al., (2016) and Lee et al., (2018). This study also confirms that the dimensional behavioural scale (Yi & Gong, 2013) adopted in this study and also used in the studies of Cossío-Silva et al., (2016) and Lee et al., (2018) confirms a positive impact on customer loyalty.

The results also show that there is a positive effect of VCB on customer retention (H2). VCB explains 23% of the customer retention variance with significant. Even though the test results show a low correlation coefficient value, these results still provide a significant aspect of knowledge on the development of customer behaviour. There was no confirmation from previous research in a similar study, so there were no findings that could be used as comparisons. This research is the first to examine the relationship between VCB and customer retention, so the results of this study can be used as an initial reference in the context of the relationship between VCB and customer retention.

There is a positive relationship between customer loyalty and customer retention (H3). This result is not surprising because various previous studies (Gustafsson et al., 2005; Ranaweera & Prabhu, 2003; Zou & Shao, 2022) have produced many findings indicating a positive effect of this relationship. With a variable coefficient of 63%, customer loyalty is a strong antecedent of customer retention. Considering the low effect of the VCB relationship on customer retention (H2), it is necessary to consider mediating the relationship between the two. This study shows positive findings of customer loyalty as a strong mediator in creating customer retention. This result also reinforces the view that loyalty is the actual retention of customers (Gustafsson et al., 2005). By creating customer loyalty, customer retention is automatically formed through a long-term relationship mechanism. Theoretically, the research results answer the notion that customer participation through VCB will have a positive impact on maintaining long-term customer relationships (Verhoef, Venkatesan, et al., 2010; Ndubisi et al., 2010; Grönroos, 2012). With an R2 value of 73%, it means that the various indicators in this study make a major contribution in creating customer retention.

CONCLUSION

Customer retention is an active company action in creating maintenance of long-term relationships with customers. Customer retention can be implemented through VCB in the dimensions of participate behaviour and citizenship behaviour. VCB make customer loyalty which has the potential to result in customer retention. The higher the customer's VCB level, the stronger loyalty to the company will result. This research has proven practically and theoretically the role of VCB in the mechanism of maintaining long-term customer relationships with companies either directly or through mediation of customer loyalty.

This research contributes both practically and academically. Practically the research results provide additional knowledge about customer loyalty which has been considered as actual customer retention. Customer retention can be developed as a business strategy just like the SRC tagline, namely frugal, close, friendly. As a strategy, the SRC business platform is proven to make a practical contribution for community members to develop competitively. While contributing academically, this research provides significant novelty to marketing

studies, especially towards the development of customer behavior. The development of technology has an impact on changes in customer behavior that are very significant, so that research contributes to a broader study of customer behavior developments.The limitation of this study is the use of a non-probability sample, which tends to compromise and generalize the results, so that the transverse nature of the study precludes establishing a causal relationship. The research is unidirectional because it measures from the customer's perspective, so there is a possibility of hindering the emergence of valuable findings from other interest groups such as employees, store owners, and association officials.

This limitation opens up the possibility of more interesting further research in the future. Further research is still needed with a more integrative model so as to clarify and perfect this research. In addition, the very broad notion of co-creation allows future research on the factors that may act as antecedents of customer behaviour and its attachment to value co-creation. It is possible that differences in demographic characteristics in other regions will find different research results, so that replication of the questionnaire is interesting to do to enrich academic and practical values.

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