THE INFLUENCE OF CUSTOMER EMPOWERMENT VALUES TOWARDS CUSTOMER RELATIONSHIP AMONG ADVOCATING CUSTOMERS: CASE STUDY OF SPOTIFY

• Main Author: Mazaya Ramadhani, Salsabilla
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/40998
• Institution: Institut Teknologi Bandung

Purpose. Customer advocacy is regarded as the highest level of market orientation. Adopting customer advocacy strategy will increase loyalty and decrease cost significantly. This paper examines the relationship between customer empowerment values and customer relationship’s structural bonds in regards of customer advocacy behavior with the case of Spotify as a Collaborative Consumption platform. It will be a major advantage for businesses to be able to understand the most fitting way of applying customer relationship bonds in order to capture substantial customer empowerment values. Methodology. Quantitative approach is done by conducting a survey on advocating customers identified by Net Promoter Score. Collected data are then analyzed using PLSSEM. Findings. The research resulted in an understanding that all customer empowerment values have a positive relationship towards structural bonds in customer advocacy behavior, however only value for choice and value for involvement have significant impact. Implications. There are strong correlation between the theories of customer empowerment values and customer relationship, although customer empowerment values do positively influence customer advocacy behavior as scholars have suggested, the significance aren’t equal. Practically, customers nowadays would advocate to a collaborative consumption platform if they get the value for being involved in the collaboration, choice and knowledge are not as important as involvement because those could be obtained elsewhere.