The Effect of Co-creation of Value on Service Quality-Customer Loyalty Chain and the Role of Relationship Quality in Higher Education Institutions

Abstract

This study investigated the causal relationship of co-creation of value with service quality, attitudinal loyalty and relationship quality in a higher education context. It also investigated the relationship between service quality and relationship quality and attitudinal loyalty. The data was gathered from 818 students of public and private universities from major cities of Pakistan. A multidimensional model was tested through SEM using AMOS 24. The foremost insight is that co-creation is a powerful paradigm that shape the attitudinal disposition, permeates into the quality evaluations of services as well as influence the assessments of the quality of relationship of students with Higher Education Institutes (HEIs). Additionally, the results ratify that service quality is a strong antecedent of relationship quality and improved attitudinal makeup which manifests in positive future intentions of patronage by the students. Implications, limitations and future research are discussed.