Value reciprocity mechanism in hotels: testing customer participation behaviour and value co-creation as mediators and previous experience as a moderator

Purpose This study investigates the reciprocity mechanism in value co-creation and clarifies how service providers may effectively trigger customer participation behaviour and boost value co-creation to enhance customer citizenship behaviour, which brings extra benefits for service providers. Design/methodology/approach By combining equity theory, social exchange theory and co-creation theory, this research proposes a model for the reciprocity mechanism in value co-creation incorporating customer co-creation perception (CCCP) conducting hotel dialogue, access, risk assessment and transparency (DART) activities; customer participation behaviour (CPB – information seeking, information sharing, responsible behaviour and personal interaction); customer citizenship behaviour (CCB – feedback, advocacy, helping and tolerance) and value co-creation in hotels. It also applies script theory to explore how customers’ previous experiences with the hotel may impact the value reciprocity mechanism. The collected data from tourists are analysed using partial least squares structural equation modelling (PLS-SEM). Findings The results confirm that CCCP drives CPB, value co-creation and CCB. CPB also enhances value co-creation, consequently boosting CCB. Moreover, CPB and value co-creation are the reciprocity mechanisms that mediate CCCP to CCB. Findings also reveal that CPB has a greater impact on value co-creation for first-time customers. In contrast, CCCP has a higher effect on value co-creation for repeat customers. Practical implications The proposed model is a managerial tool that assists practitioners in effectively driving customer participation behaviour and improving value co-creation for first-time customers and repeat customers. Originality/value This study uncovers the significance of the hospitality service provider’s DART actions in forming customer perceptions and leading customer behaviour towards value co-creation.