Value co-creation effects on transaction cost, relational capital, and loyalty of hair salon customers: Results and implications of a Ghanaian study

Abstract

This study aimed to examine customer relational capital, transaction cost, and loyalty with value co-creation in the Ghanaian hair-dressing business sector . Participants were 455 female hair-dressing customers (mean age = 2 .56 years, SD = 1 .07 years, age range 22 to 68) . Respondents completed existing measures of value co-creation, relational capital, transaction cost, and customer loyalty . The data was analysed by performing structural equation modelling using SmartPLS . The findings show that value co-creation enhances customer relational capital, transaction cost, and loyalty . The findings further show that relational capital significantly influences loyalty, while transaction cost did not . The findings of this study imply that value co-creation is of competitive advantage, influencing relational capital and customer loyalty . Relational capital with customer transaction cost is important to customer-oriented value co-creation in the hair-dressing industry