Co-production and customer loyalty in training services

Abstract

The vocational training system in Vietnam has been continued to grow strongly with high competition, especially, particularly in the private sector. Trianing centers have started to focus on new marketing techniques such as customer engagement, in order to increase the amount of students. Given this context, this study attempts to emplore the linkage between co-production of student and their loyalty. Particularly, this study was conducted to identify the impact of four factors, namely: Affective Commitment, Student Expertise, student-advisor Communication, and Interactional Justice in vocational training industry on Co-production and clarify Co-production impact on customer loyalty. Data were conveniently collected from four vocational training centers in Ho Chi Minh city. There were 233 participating respondents. The study employed SPSS 21.0 and AMOS 22.0 for analyzing data and assessing the SEM model. Regarding the model test of the influence of Affective Commitment, Communication, Student Expertise, and Interaction Justice to student’s Co-production, this research confirmed a positive impact of two first factor to Co-production . The more training centers have good co-production activities, the more their students will be loyalty. The model also released the strongest influence between Communication and Co- production. The results provide an evidence for managerial implication to focus on building and implementing co-production in vocational training service. Co- production plays an important role in building student loyalty to provide the next source of competitive advantage. Keywords: co-production; customer loyalty; vocational training service; Affective Commitment; Communication; Student Expertise; Interaction Justice viii