It is a Win-Win Situation. : A quantitative study about the effects of perceived co-creation benefits on customer-based brand equity (CBBE).

Abstract: Background: Brand managers are always trying to find ways to increase brand profitability and creating a stronger competitive advantage. Part of the marketing activities implemented by brand managers is geared towards building brand equity. Managers have now recognized the importance of the customer in creating brand equity and therefore implement co-creation as a way of creating value together with the customer. Co-creation allows for the firm to bring the customer closer. Two dimensions of brand equity which are brand loyalty and brand experience were chosen for this study. Purpose: The purpose of this study is to explain the effects of perceived co-creation benefits on brand loyalty and brand experience (CBBE). Methodology: To meet the purpose, the study proposes an explanatory design with a quantitative approach. After reviewing relevant literature, three benefits were found important for the customers and in connection to the purpose of a researched model based on six hypotheses was developed. The empirical data was collected through a self-administered questionnaire which was distributed online with a total of 119 responses which were recorded and passed the qualification question whether they follow a brand on social media. Findings: The authors found evidence that perceived co-creation benefits have an effect on CBBE. It was found that particularly hedonic benefits have a significant effect on brand loyalty. Another finding was that social integrative benefits also has an effect on brand experience.