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17 May 2024

Social Commerce and Customer-to-Customer Value Co-Creation Impact on Sustainable Customer Relationships

and
1
College of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11564, Saudi Arabia
2
Management Department, College of Business Administration, King Faisal University, Hofuf 31982, Saudi Arabia
3
Hotel Studies Department, Faculty of Tourism and Hotels, Suez Canal University, Ismailia 41522, Egypt
*
Author to whom correspondence should be addressed.

Abstract

The advent of social commerce (SC) has transformed the landscape of online consumer behavior, emphasizing the significance of customer-to-customer relations in shaping sustainable relationships with customers. This research investigated the intricate relationships between social commerce dimensions, particularly suggestions and recommendations, forums and communities, and ratings and reviews, and their influence on customer-to-customer value co-creation (C2CVCC) and sustainable customer relationships (SCRs). A questionnaire was designed and administered to 635 respondents. We examined the psychometric properties of the measurements and subsequently applied partial least squares as a structural equation modeling method (PLS-SEM) for hypothesis testing. The findings revealed that the dimensions of SC significantly impact C2CVCC, with ratings and reviews playing a pivotal role. Furthermore, C2CVCC emerged as a substantial mediator in the path between SC and SCRs. The empirical analysis showcased strong support for the proposed model, with robust path coefficients (β) and p-values confirming direct and indirect effects. These findings offer valuable insights for businesses seeking to leverage SC and customer interactions to enhance SCRs in the digital era. Understanding the dynamics of C2CVCC within the context of SC has become essential for marketers and businesses aiming to thrive in today’s competitive online marketplace.

1. Introduction

The rise of e-commerce has brought about profound transformations in both business operations and consumer shopping habits [1]. The continuous growth and evolution of the e-commerce sector have significantly influenced shifts in consumer behavior [2,3,4]. These changes in consumer shopping patterns, particularly those facilitated through various e-commerce methods using social media platforms, are collectively referred to as “social commerce” [5]. Social media platforms like Facebook, Twitter, Instagram, and others have harnessed the power of social networking to give rise to SC, not only reshaping the traditional business-to-consumer (B2C) transactional model but also fostering interactions among consumers themselves, commonly referred to as consumer-to-consumer (C2C) transactions [6]. In this digital era, consumers have evolved from mere buyers into active contributors to value creation [7]. They engage in collaborative processes that extend beyond conventional purchasing, involving the co-creation of products, services, and overall experiences. The advent of SC, which seamlessly integrates social media with e-commerce, has taken this transformation to new heights [8]. SC empowers consumers to engage with one another, share their experiences, and exert influence over purchasing decisions [9,10]. This dynamic fusion of technology and social interaction has given birth to a vibrant ecosystem where C2C interactions hold a central role in shaping the behaviors and choices of consumers in the marketplace [11]. SC differs significantly from traditional electronic commerce models, where consumers typically interact with online shopping websites individually. In contrast, SC places a strong emphasis on the active participation of online communities, fostering robust interactions among users and the sharing of existing content and information [12]. This collaborative environment is anticipated to strengthen the bonds between sellers and customer communities [13,14]. The concepts of SC are distinct and more straightforward when compared to content marketing activities. Content marketing often involves direct occurrences, such as conferences, where personal interactions with clients occur, or digital events like webinars, as well as digital content generated by companies on their websites [15]. Furthermore, the evolution of digital marketing methods has brought about a closer connection between SCRs and engagement with social media platforms [6].
Within this context, understanding the intricate relationships between SC, C2CVCC, and SCRs has become increasingly vital. SCRs are a key metric in assessing customer behavior and predicting future buying practices [8]. An SCR signifies a customer’s inclination to revisit and make repeated purchases from a specific brand or platform [16]. Unraveling the factors that underlie SCRs is essential for businesses aiming to foster enduring customer relationships and achieve sustainable growth [17]. In this dynamic digital landscape, where consumers are not passive recipients but active contributors to value creation, exploring the dynamics between SC and C2CVCC can offer critical insights into the drivers of SCRs [18].
Previous scholars have intensively discussed the influence of SC on SCRs. These previous studies have demonstrated that SC platforms, like social media and online communities, significantly impact building customers’ perceptions, attitudes, and behaviors [19,20]. SC can improve customer engagement, strengthen trust and loyalty, and provide interactive channels for communication between businesses and customers [9,21]. Nevertheless, there is still a lack of knowledge about how social commerce impacts SCRs. As such, the C2CVCC concept highlights the collaborative process between customers to customers in value generation [22]. Previous studies have shown that through value co-creation, customer satisfaction can be sustained in the long run, and the loyalty and engagement of customers can be enhanced [23]. C2CVCC particularly involves the relationships among customers that lead to value creation, innovation, and community building [24]. Nevertheless, there is a gap in the literature which is related to the contribution of C2CVCC in the context of SC and its effect on SCRs. This research study seeks to address the knowledge deficit between social commerce and value co-creation literature by understanding how SC facilitates C2CVCC, which further leads to SCRs. Through merging the two streams of research, the study aims to present a general overview of the SC– C2CVCC—SCRs dynamics. While earlier research has separately deduced the impact of SC on SCRs and the role of C2CVCC, no study has explicitly explained the mediating role of C2CVCC within the social commerce context.
This research aimed to fill this gap by answering the main research question: how can different dimensions of SC impact C2CVV and consequently affect SCRs? By exploring how consumers engage with one another and with brands within the realm of SC, we sought to illuminate the mechanisms of value co-creation and their profound impacts on customers’ intentions and SCRs. Furthermore, this study aimed to provide actionable insights for businesses and marketers seeking to leverage the potential of SC and C2CVCC as strategic tools for enhancing customer loyalty and augmenting brand performance.
In the subsequent sections, we review the literature on SC, C2CVCC, and SCRs, emphasizing the gaps in our understanding of the interplay between these concepts. We also outline our research methodology, including our data collection and analysis procedures, and discuss the potential implications of our findings. Ultimately, this research was carried out to contribute to the expanding body of knowledge in the domain of digital marketing and consumer behavior, offering a comprehensive exploration of how SC and C2CVCC influence consumers’ intentions and SCRs in the ever-evolving digital marketplace.

3. Methods

The objective of our research was to examine the impacts of various dimensions of SC (specifically suggestions and recommendations, forums and communities, and ratings and reviews) on sustaining customer relationships. This influence was examined within the context of the mediating role of C2CVCC. To achieve this, a conceptual model was constructed, drawing upon previous empirical research, and the validity of this model was assessed using empirical data obtained through a questionnaire. In pursuit of this research objective, a comprehensive questionnaire was meticulously developed and subjected to validation through a series of statistical techniques, including an assessment of common method bias (CMB) and the application of PLS-SEM. The subsequent sections provide a detailed account of the empirical research process.

3.1. Measurement Development

We developed a questionnaire grounded in the previous literature, drawing upon sources such as Han and Windsor [48]; Elshaer et al. [2]; Chou and Hsu [49]; Zadeh, Zolfagharian, and Hofacker [50]; Zhang, Guo, Hu, and Liu [13]; and Jahn and Kunz [51]. This questionnaire was then refined through collaboration with a panel of experts in this field. The questionnaire comprised 28 questions organized into two primary sections. The initial section was designed to collect socio-demographic data from the study participants, including information such as gender, age, and level of education. The second section encompassed 25 statements aimed at measuring the key study variables, namely, the three dimensions of SC, SCR, and C2CVCC. Each variable was assessed using a five-point Likert scale, spanning from one (“strongly disagree”) to five (“strongly agree”). To gauge SCR, we adapted three items from the work of Chou and Hsu [49]. C2CVCC was measured using a seven-item scale that was suggested by Zadeh et al. [50] and was tested and validated by several studies [13,51]. SC was operationalized using three distinct but related dimensions (suggestions and recommendations, forums and communities, and ratings and reviews). Each dimension had four reflective variables, as suggested by Han and Windsor [48] and validated by Elshaer et al. [2].

3.2. Study Participants and Data Collection Procedures

Before commencing the data collection process, a statistical power examination was conducted to determine the sample size necessary to effectively measure the effect. This power analysis was conducted employing the G*power analysis program with settings recommended in [52]. As outlined in Table 1 below, for a PLS-SEM featuring seven paths pointing to endogenous latent constructs, at least 204 responses are required to predict a low R2 (R2 = 0.10) at a level of significance equal to 5% while maintaining a statistical power of 95%.
Table 1. Adequacy of sample size.
Consequently, we opted for a more extensive sample size for our study. As a result, data were gathered from a total of 700 respondents in the Kingdom of Saudi Arabia (KSA) via SNSs such as WhatsApp, Facebook, and Twitter, utilizing Google Forms as the data collection platform. The rationale behind selecting this larger sample size stemmed from our desire to mitigate potential challenges that could arise during the data collection process, which might include a low response rate, disengaged participants, or missing data.
At the onset of the survey, the participants were provided with a briefing regarding this study’s nature and objectives and were informed of their right to discontinue their participation at any point. Over a three-month period spanning May, June, and July 2023, 650 questionnaires were consequently completed. Regrettably, 50 remained incomplete. To ensure the quality of the data, we applied a monitoring process to identify non-engaged replies and outliers, following the method suggested by Churchill [53]. This method involved assessing and documenting the value of the standard deviation (S.D) for each respondent. Instances where the standard deviation was low or zero indicated that the respondent had consistently presented the same pattern (e.g., consistently selecting “strongly agree” (1) or “strongly disagree” (5)) throughout the survey. Such patterns signaled that the participants may not have been actively engaged when completing the questionnaire. Consequently, 15 responses exhibiting a standard deviation of less than one (S.D ≤ 1) were excluded from the analysis. Following this data refinement process, the total number of usable responses amounted to 635, resulting in an impressive response rate of 90%.

3.3. Data Analysis and PLS-SEM Outcomes

The empirical data analysis encompassed two distinct stages. The first stage was dedicated to examining the psychometric properties of the research measurements. This involved the assessment of factors such as CMB, measurement reliability, and validity. To achieve this, various statistical techniques were employed, including exploratory factor analysis (EFA), Cronbach’s alpha (α), and composite reliability (CR). The second stage of the analysis focused on evaluating the research model and hypotheses utilizing the PLS-SEM approach. The subsequent sections provide an in-depth account of the data analysis process.

4. Outer Model Evaluation

4.1. Dealing with CMB

CMB suggests that the methods employed for collecting the required data could theatrically inflate the variance observed between the model dimensions [54]. To assess whether CMB posed a concern, we conducted Harman’s single-factor test, following the guidance in [55]. This examination involved performing EFA on all research dimensions while constraining all items to load onto a single common factor without rotation. According to Harman [56], if the variance explained by this single common factor method is less than 50%, it indicates that CMB is not a significant issue within the tested dataset. The results of our analysis revealed that the common factor accounted for only 35% of the total variance among the model dimensions. Accordingly, it is unlikely that CMB significantly influenced the current dataset.

4.1.1. Tests of Internal Consistency

As per the guidelines provided in [52], internal consistency assesses the extent to which the items employed for data collection effectively measure the intended construct. In this study, we employed three commonly used measures to determine internal consistency, namely CR, Cronbach’s alpha (α), and average variance extracted (AVE). As depicted in Table 2, the estimated values of both α and CR surpassed the minimum threshold widely accepted in social business research (>0.7) [57]. Additionally, AVE values were computed and compared to the recommended minimum threshold of 0.50, as advised in [52]. Notably, the AVE values for all research dimensions surpassed this specified cutoff value, as outlined in Table 2.
Table 2. Results of outer loadings and psychometric properties.

4.1.2. Measurement Validity

Before subjecting the proposed model and hypotheses to testing, an assessment of discriminant and convergent validity was conducted. This evaluation utilized techniques such as the “Heterotrait–Monotrait Ratio of the Correlations” (HTMT) to examine whether the constructs in our model were distinct from each other. Additionally, we employed cross-loading and “Fornell–Larcker criterion” metrics to make sure that the things we were measuring in our study were really different from each other and that the questions or items we were using to measure them were closely tied to what they are supposed to measure, but not getting mixed up with other things we were measuring. For the convergent validity assessment, the factor loadings of the items were initially assessed and scrutinized to determine if they adequately loaded onto their respective dimensions. As illustrated in Table 3, the calculated loadings of all the items fell within the range of 0.734 to 0.982, surpassing the proposed threshold score of 0.50, as advocated in [52]. The discernment validity was assessed by applying two main criteria: (1) the Fornell–Larcker criterion and (2) the HTMT ratio. The former criterion expects that the coefficient of correlation between operationalized dimensions will be lower than the square root of AVE, while the latter demands that the correlation coefficient between the dimensions is lower than the recommended level of 0.85 [52]. Table 4 shows the assessment of the two criteria. For the Fornell–Larcker criterion, the table shows that the values of all square roots of the AVEs (bold diagonal) were higher than the correlation coefficients between the model dimensions. Likewise, the table also indicates that all HTMT scores were lower than the suggested level. Accordingly, convergent and discriminant validity were assumed, and the study data were appropriate for evaluating the structural model.
Table 3. Cross-loading results.
Table 4. Fornell and Larker results and HTMT output for validity test.

4.2. Structural Model Assessment and Hypothesis Analysis

The ultimate phase of the analysis entailed the assessment of this study’s structural model, employing the PLS-SEM approach. In line with the proposed hypotheses, the proposed inner (that contained the path coefficient for hypotheses testing) and outer (that contained the factors and its related variables for testing convergent and discriminant validity) models were subjected to smart PLS v4, and the bootstrapping resampling method was executed, encompassing the default setting of 5000 iterations. The 5000 iterations default setting in PLS-SEM v4 was employed to ensure more robust, reliable, and precise analysis and model validation [40]. For all hypotheses, the evaluation was conducted through the examination of path coefficients (β) and associated p-values, with significance levels set at or below 0.05 (p ≤ 0.05). As illustrated in Figure 2 and detailed in Table 5, concerning direct influence, the results indicated that suggestions and recommendations (as a dimension of SC) had a significant direct positive influence on SCR (β = 0.174, p < 0.000) and C2CVCC (β = 0.146, p < 0.000), which supported the first (H1) and fourth (H4) hypotheses. The PLS-SEM results also indicated a significant positive influence of forums and communities (as a dimension of SC) on C2CVCC (β = 0.220, p < 0.000), supporting the second hypothesis (H2).
Figure 2. The tested PLS-SEM model. C2CVCC1–C2CVCC7: items that measure customer to customer value co-creation; For_Com1–For_Com4: items that measure forums and communities; Rat_Rev1–Rat_Rev4: items that measure ratings and reviews; Rec_Sug1–Rec_Sug4: items that measure suggestions and recommendations; SCR_1–SCR_3: items that measure sustainable customer relationships.
Table 5. Results of hypothesis testing.
However, forums and communities failed to positively and significantly predict SCR (β = −0.096, p = 0.167), which did not support the fifth hypothesis (H5). Additionally, ratings and reviews (as a dimension of SC) were found to have significant positive impacts on C2CVCC (β = 0.352, p < 0.000) and SCR (β = 0.357, p < 0.000), which supported the third and sixth hypotheses (H3 and H6). Furthermore, C2CVCC was found to have a highly significant positive influence on SCR (β = 0.504, p < 0.000), which supported hypothesis seven (H7). Regarding the indirect effect of C2CVCC, the results show that C2CVV had a full mediation role that affected the impact of forums and communities on SCR (β = 0.111, p < 0.000), supporting hypothesis nine (H9). The direct path was found to be non-significant, as reported for hypothesis five (H5). The results of the PLS-SEM supported partial mediation roles played by C2CVCC in the impact of suggestions and recommendations on SCRs (β = 0.088, p < 0.000) and in the impact of ratings and reviews on SCR (β = 0.177, p < 0.000), supporting hypotheses eight and ten (H8 and H10).
The overall model analysis showed that the proposed model explained 44% of the variance in C2CVCC and 62% of the variance in SCRs. To evaluate the model fit, we considered two critical indices: the standardized root-mean-square residual (SRMR) and the normed fit index (NFI). A well-fitting model typically exhibits an SRMR value below 0.08, while the NFI is expected to surpass 0.9 to indicate a good model fit (Bentler, 1985; Hu and Bentler, 1998). In our analysis, the NFI registered at 0.972 and the SRMR value was 0.073, both of which met the satisfactory model fit criteria. Additionally, to validate the proposed model, we calculated Stone–Geisser test criterion (Q2) values for the dependent variables, namely C2CVCC (Q2 = 0.439) and SCRs (Q2 = 0.474). Importantly, these Q2 values were found to be greater than zero (Q2 > 0), substantiating the predictive validity of the model, as per the guidelines outlined by Hair et al. [52].

5. Discussion and Implications

The findings of this research highlight the direct influence of suggestions and recommendations, as a dimension of SC, on both C2CVCC and SCRs. These results are consistent with those of Varadarajan [58] and Friedrich [59]. They indicate that businesses should recognize the significance of fostering and facilitating C2C interactions within their SC strategies. By actively encouraging suggestion and recommendation mechanisms and creating a supportive online community, organizations can enhance customer loyalty and drive SCRs. Additionally, the findings of this research underscore the direct influence of forums and communities, as a dimension of SC, on C2CVCC. This finding is consistent with the findings by Tajvidi [60]. These platforms play a pivotal role in enhancing customer engagement, knowledge sharing, and collaborative value creation. By actively nurturing forums and communities, organizations can empower consumers to co-create value, which ultimately strengthens customer loyalty and contributes to sustained success in the digital marketplace. However, the findings of this research illuminate the direct negative influence of forums and communities, as a dimension of SC, on SCRs. While these platforms offer valuable opportunities for information exchange and peer interaction, they also present challenges related to misinformation, biased reviews, and negative sentiment. Businesses and marketers should recognize these complexities and proactively address them to mitigate their adverse effects on SCRs.
Interestingly, the findings of this research illuminate the highly positive direct influence of ratings and reviews, as a dimension of SC, on C2CVCC. These findings are consistent with [42]. These mechanisms serve as catalysts for trust-building, knowledge sharing, and collaborative value creation among consumers [61]. Businesses and marketers should recognize the significance of fostering ratings and reviews within their SC strategies, as they contribute to enhanced consumer engagement and the enrichment of the overall purchasing experience. Similarly, the findings of this research highlight the direct positive influence of ratings and reviews, as a dimension of SC, on SCRs, which is consistent with [61]. These mechanisms serve as potent trust-building tools, shaping consumer perceptions and driving their willingness to be sustained. Businesses and marketers should recognize the pivotal role of ratings and reviews in enhancing SCRs and invest in strategies that encourage authentic user-generated content. C2CVCC was found to positively impact SCRs, which was consistent with [50,62,63]. Businesses and marketers should recognize the pivotal role of C2CVCC in driving SCRs and invest in strategies that encourage collaborative value creation.
Furthermore, the findings of this research demonstrate the mediating role of C2CVCC in the relationship between SC and SCRs. C2CVCC practices serve as a bridge between consumer engagement within SC platforms and the likelihood to be retained as a customer. Businesses and marketers should recognize the pivotal role of C2CVCC in enhancing trust, engagement, and customer loyalty, ultimately contributing to sustained success in the SC realm.
The theoretical implications of this study underscore the evolving dynamics of consumer behavior within the context of SC and C2CVCC. By considering the mediating role of C2CVCC in the relationships between SC and SCRs, this research enriches our understanding of the multifaceted nature of online consumer interactions and provides a foundation for future explorations in the field of digital marketing and e-commerce. These implications emphasize the need for a more holistic approach to understanding and harnessing the power of suggestions and recommendations, forums and communities, ratings and reviews, and collaborative value creation within the evolving landscape of SC. Researchers and practitioners alike can draw on these theoretical insights to inform their strategies, ultimately contributing to the long-term success of businesses in the digital marketplace.
Practically, the implications derived from the relationships between SC, SCRs, and the mediating role of C2CVCC highlight actionable steps that businesses and platform administrators can take to leverage C2CVCC effectively. By fostering collaborative communities, emphasizing trust, personalizing interactions, and continuously improving strategies, organizations can enhance customer loyalty, drive repeat purchases, and thrive in the ever-evolving landscape of online commerce. These practical recommendations provide a roadmap for businesses to harness the power of C2CVCC and achieve sustainable success in the digital marketplace. To enhance SCRs, online businesses should actively foster collaborative spaces where consumers can engage, share experiences, and co-create value. Encouraging knowledge sharing and rewarding active participants can promote the growth of these communities. Additionally, user-generated content, such as product reviews and recommendations, plays a significant role in shaping consumer decisions in online business. Businesses should actively encourage consumers to create and share such content. Highlighting positive experiences and showcasing user-generated content can influence other SCRs. Furthermore, personalized interactions and recommendations within SC platforms can enhance customer engagement. Online businesses should leverage data analytics to tailor recommendations and content to individual preferences, thus increasing the likelihood of sustainability. Dynamic and interactive features can further engage consumers.

6. Conclusions

In this study, we investigated the impact of SC, employed as a multidimensional construct with three factors: suggestions and recommendations, forums and communities, and ratings and reviews on SCRs, especially the moderation of C2CVCC. Our findings not only revealed the level of complexity in these factors but also their interdependence. First, the research demonstrated a very strong link between the suggestions and recommendations (as a dimension of SC) with SCR and C2CVCC. Conversely, the PLS-SEM results disclosed a significant positive effect of forums and communities (as a part of SC) on C2CVCC. However, neither the forums nor the communities were helpful in positive and significant SCR prediction. Ratings and reviews (as a dimension of SC) were discovered to significantly impact C2CVCC. Also, C2CVCC was found to have a very strong positive impact on SCR. Regarding the indirect effects of C2CVCC, the results demonstrated that C2CVV performed its full mediation role, which changed the impact of forums and communities on SCR. The findings of the PLS-SEM confirmed the partial mediation roles of C2CVCC in the effect of suggestions and recommendations on CRs and in the effect of ratings and reviews on CR. Customer actions in the social commerce platform space promote collective value creation, knowledge sharing, product advice, and peer-to-peer support. Through these collaborative activities, customer satisfaction improves gradually. By educating themselves about the interrelationships between SC on SCRs through C2CVCC, businesses can come up with purposeful strategies to utilize these mechanisms.

7. Limitations and Further Research Opportunities

This study focused on online consumers in the KSA and may not fully represent the diverse consumer base engaging in SC. Future research should consider broader demographic and cultural variations to assess the generalizability of these findings. This research adopted a cross-sectional design, limiting our ability to establish causality. Future longitudinal studies could explore how the relationships between SC, C2CVCC, and SCRs evolve over time. This study relied on self-reported data, which may have introduced response bias. Combining self-reported data with behavioral data or employing observational methods could provide a more comprehensive understanding of consumer behavior. While this study focused on C2CVCC as a mediating variable, other factors may also play mediating roles in the relationship between SC and SCRs. Future research should explore additional mediators and their combined effects. These findings are context-specific and may vary across industries, products, and platforms. Further research should examine the nuances of these relationships in different contexts to gain a more comprehensive understanding.

Author Contributions

Conceptualization, I.A.E. and A.A.A.; methodology, I.A.E.; software, I.A.E. and A.A.A.; validation, I.A.E.; formal analysis, I.A.E.; investigation, I.A.E.; resources, I.A.E.; data curation, I.A.E.; writing—original draft preparation, I.A.E. and A.A.A.; writing—review and editing, I.A.E.; visualization, I.A.E.; supervision, I.A.E.; project administration, I.A.E.; funding acquisition, I.A.E. and A.A.A. All authors have read and agreed to the published version of the manuscript.

Funding

The authors acknowledge the Deanship of Scientific Research at King Faisal University for the financial support under GRANT A282.

Institutional Review Board Statement

The study was conducted according to the guidelines of the Declaration of Helsinki and approved by the deanship of scientific research ethical committee, King Faisal University (project number: GRANT A282, date of approval: 20 January 2023).

Data Availability Statement

Data is available upon request from researchers who meet the eligibility criteria. Kindly contact the first author privately through e-mail.

Conflicts of Interest

The authors declare no conflict of interest.

Correction Statement

This article has been republished with a minor correction to the existing affiliation information. This change does not affect the scientific content of the article.

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