Higher Price: A Benefit of Online Value Co-Creation Activities in Sponsored Communities

This study examines how online value co-creation activities benefit brands in the form of willingness to pay a higher price (WPHP). We propose a framework of value co-creation in three management fields (product design, marketing, and after-sales service) and empirically examine the relationships among co-creation activities, customer-brand relationships, and customers' WPHP. Interestingly, we find that the co-creation activities in two of the three management fields can enhance both customers' brand passion and self-brand connection, which increases their WPHP only through the full mediation of brand satisfaction. Our findings contribute to theories on IT value and value co-creation.