The Role and Proximity in Value Preferences: a Study of Consumer Co-operatives

Noreen Byrne, Kristina Heinonen and Iiro Jussila

Annals of Public and Cooperative Economics, 2015, vol. 86, issue 2, 339-361

Abstract: Proximity is seen as an essential part of the relationship between a co-operative and its members, one that is a source of member value and competitive advantage. As the restructuring trend in co-operatives has tended towards scale and centralization, proximity to the member decreases. Thus, proximity between the members and the co-operative is a major challenge. Still, proximity has received limited attention in both the co-operative and consumer (member) value literature. The purpose of this paper is to begin filling this gap by investigating the relationship between proximity (both spatial and non-spatial) and members' value preferences in a co-operative. Our findings based on a credit union member survey indicate that in terms of member value preferences, spatial proximity has an indirect impact and non-spatial proximities impact directly on member value preferences. Implications of the study are discussed.

Date: 2015
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