Author(s) :

Lina Mcharo, Dev Jani.

Volume/Issue :

Abstract :

This study aimed at relating other customer perceptions, value co-creation behaviour and perceived benefits in service SMEs, particularly hair dressing salons. A structured questionnaire to patrons of hair dressing salons in Dar es Salaam, Tanzania yielded 220 cases. An exploratory factor analysis was employed in validating and selecting the respective items under the three study variables. A multiple linear regression was employed to test the hypotheses. The results indicate that other customer perceptions and value co-creation behaviour significantly influence the patrons’ perceived benefits derived from salon experience. Practically, the results offer insights on how service SMEs can strategically manage their customers. Theoretically, the findings improve our understanding of the relationship between the three study variables that are yet to be tested under different contexts. The study avails valid instruments for other customer perceptions and value co-creation behaviour that can be used in similar studies. Cross sectional survey from a single country (Tanzania) might not reflect other contexts, thus calling for more studies in different contexts. The study has taken a new approach on value co-creation by integrating perception of other customers and service providers’ effects on perceived value in the context of small and medium hair dressing saloon.

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