LAUSR

An increasing number of scholars and practitioners are advocating for the exploration of the demand-side consequences of business model (BM) design from the customer’s perceptual perspective. Consistent with this view, this paper discusses how BM design can achieve customer loyalty through the mediating role of customer citizenship behavior. Therefore, this paper puts forward a series of hypotheses regarding relationships among BM design, customer citizenship behavior, and customer loyalty and further tests these hypotheses through hierarchical regression analysis from data collected from Chinese customers. The results show that both efficiency-centered and novelty-centered BM designs are the antecedents of customer citizenship behavior and customer loyalty. The results also show that efficiency-centered and novelty-centered BM designs can directly affect customer loyalty, and indirectly affect customer loyalty through the mediating role of customer citizenship behavior. Our findings contribute to research on the relationship between BM design and customer loyalty, and research on the demand-side consequences of BM design. Our findings also contribute to research on the link between BM design and marketing, and research on BM design for corporate sustainability. Our findings have management implications for practitioners as well.