Online value co-creation during the “dreaming” phase, brand image and uncertainty avoidance

Abstract

Purpose: The aim of this study is to propose an explanatory research model for the formation of service-firm brand image in the online context, within the theoretical framework of service-dominant logic (SDL). The study analyzes how brand image can be strengthened through individuals’ online value co-creation—with the firm, with online platforms, or with other consumers—during the “dreaming” phase prior to selecting and purchasing a service, taking into account the moderating role of consumers’ uncertainty avoidance and the influence of strategic online reputation management on the value-creation process.

Design/methodology/approach: A quantitative empirical study was carried out among Spanish and British service consumers.

Findings: The results show that, for Spanish consumers (from a high uncertainty-avoidance culture), online value co-creation with online platforms and with other consumers in the “dreaming” phase has a positive and significant effect on service-firm brand image, while, for British consumers (from a low uncertainty-avoidance culture), online value co-creation with the firm has a positive and significant effect on brand image. Moreover, it is shown that strategic online reputation management has a positive and significant effect, in the “dreaming” phase, on value co-creation with the firm, with online platforms, and with other consumers.

Originality: The study constitutes an advancement in the development of SDL theory, being the first to center on the very earliest stage in the customer journey—the “dreaming” phase—to empirically measure the effect of online value co-creation on service-brand image, as well as the moderating role of consumers’ uncertainty avoidance and the effect of strategic online reputation management on value co-creation.

Practical implications: The results also have important business implications for service firms, showing how interaction with consumers in online media can enhance their brand image.