Online value co-creation during the “dreaming” phase, brand image and uncertainty avoidance

Purpose: The purpose of this study is to propose an explanatory research model for the formation of service-firm brand image in the online context, within the theoretical framework of service-dominant logic (SDL). The study analyzes how brand image can be strengthened through individuals’ online value co-creation – with the firm, with online platforms or with other consumers – during the “dreaming” phase prior to selecting and purchasing a service, taking into account the moderating role of consumers’ uncertainty avoidance and the influence of strategic online reputation management on the value-creation process. Design/methodology/approach: A quantitative empirical study was carried out among Spanish and British service consumers. Findings: The results show that, for Spanish consumers (from a high uncertainty-avoidance culture), online value co-creation with online platforms and with other consumers in the “dreaming” phase has a positive and significant effect on service-firm brand image, while, for British consumers (from a low uncertainty-avoidance culture), online value co-creation with the firm has a positive and significant effect on brand image. Moreover, it is shown that strategic online reputation management has a positive and significant effect, in the “dreaming” phase, on value co-creation with the firm, with online platforms and with other consumers. Practical implications: The results also have important business implications for service firms, showing how interaction with consumers in online media can enhance their brand image. Originality/value: The study constitutes an advancement in the development of SDL theory, being the first to center on the very earliest stage in the customer journey – the “dreaming” phase – to empirically measure the effect of online value co-creation on service-brand image, as well as the moderating role of consumers’ uncertainty avoidance and the effect of strategic online reputation management on value co-creation.