Customer engagement behavior in individualistic and collectivistic markets

Managing customer engagement behavior (CEB) is a strategic priority for firms to build and sustain long-term customer-firm relationships. This research examines the different types of customer engagement behavior (i.e. augmenting CEB, co-developing CEB, influencing CEB and mobilizing CEB). The study also examines the relationship between service fairness, different forms of trust (cognitive and affective), value-in-use (ViU) and CEB. The research model was tested across two developed (USA and Australia) and two developing economies (India and China). Results suggest that CEB is a higher-order construct and its structure is consistent across the developed and developing markets. In terms of cross-cultural differences, service fairness has a stronger influence on affective trust in the developing economies as compared to developed economies. Findings indicate that to motivate customers in developed and developing markets to engage, service providers need to treat them fairly, build cognitive and affective trust and understand how they create value-in-use.