The Key Value Components of a Customer Value Proposition for Free-Floating Car Sharing Services in the Nordics

Abstract: A well-crafted, locally adapted customer value proposition (CVP) can aid businesses in attaining loyal customers. The main purpose of this research is to determine the key value components that should be considered for the development of a CVP, for free-floating car sharing services in the Nordic region. This is done by establishing the relationship between deductively identified value components, perceived value, satisfaction, trust, and loyalty.  A research framework is proposed, where the relationships between the different constructs are hypothesised. Quantitative data is collected from existing car sharing users in the Nordic countries, through a self-administered online questionnaire, distributed through a non-probability sampling method. The empirical data is analysed through multiple regression analysis using the software SPSS, and the extension “PROCESS”, as well as additional analysis techniques to ensure data quality. The research findings indicate that perceived convenience, need fit, and a low service price positively impact both perceived value, as well as satisfaction. Satisfaction shows a stronger, positive effect on loyalty than that of perceived value, yet, loyalty is better explained when both constructs are accounted for. Additionally, trust shows to carry a mediating effect between both satisfaction and loyalty, as well as between perceived value and loyalty. Therefore, firms operating within this context should emphasise the customer needs to provide a service which is perceived as affordable and convenient. Finally, efforts should be taken to reduce uncertainty, and promote trust between the service providers, and their users.