Co-creation experiences: The next practice in value creation

Abstract

Consumers today have more choices of products and services than ever before, but they seem dissatisfied. Firms invest in greater product variety but are less able to differentiate themselves. Growth and value creation have become the dominant themes for managers. In this paper, we explain this paradox. The meaning of value and the process of value creation are rapidly shifting from a product- and firm-centric view to personalized consumer experiences. Informed, networked, empowered, and active consumers are increasingly co-creating value with the firm. The interaction between the firm and the consumer is becoming the locus of value creation and value extraction. As value shifts to experiences, the market is becoming a forum for conversation and interactions between consumers, consumer communities, and firms. It is this dialogue, access, transparency, and understanding of risk-benefits that is central to the next practice in value creation.

‘From mosh pit to posh pit’: Festival imagery in the context of the boutique festival

“…Here, a link can be made to the paradigm of value co-creation which rests on the utilization of the creative skills of individuals (e.g. Prahalad and Ramaswamy 2004). Alternative to the view of the empowered participant outlined by Seffrin (2007), we interpret the affirmation of co-creative agency as a means whereby value is generated through the appropriation of the creative work of socially cooperative consumers (Zwick, Bonsu and Darmody 2008).…”

“…Conceptualizations of different forms and degrees of collaboration between producer and consumer constitute a strong current area of research in marketing and consumption studies, framed as the co-creation of value (see Pongsakornrungsilp and Schroeder 2011). In short, the proposition is that value is jointly created through interaction between informed and empowered producers and consumers (Prahalad and Ramaswamy 2004). As such, value co-creation is inscribed in a relationship between autonomous agents who deploy their skills for mutual benefit; features commonly associated with the type of agency furthered by neoliberal discourses (Gershon 2011).…”

The Role of Customers’ Involvement in Value Co-creation Behaviour is Value Co-creation the Source of Competitive Advantage?

“…Co-creation has been defined in terms of co-creation of value (Prahalad & Ramaswamy 2004;Vargo & Lusch 2004). They state that co-created experience becomes an important basis of value.…”

“…In general, customers' contributions and behaviour are distinguished (Hutter, Hautz, Fueller, Mueller & Matzler, 2011). According to the authors' approach, other studies describe the attributes of co-creation from activities' perspective (Gebauer, Johnson & Enquist, 2010), the customer (Tynan, McKechnie & Chhuon, 2010), capability (Fujioka, 2009), experience (Gentile, Spiller & Noci, 2007;Prahalad & Ramaswamy, 2004), the roles (Andreu, Sánchez & Mele, 2010;Grönroos, 2008), service (Vargo, Maglio & Akaka, 2008), and the value (Ueda, Takenaka & Fujita, 2008). Durugbo & Pawar (2014) developed a unified model of cocreation that integrates the functions of a supplier and consumers' involvement based on existing value-in-exchange and value-in-use and in order to select co-creation techniques.…”

Management dilemmas in innovative supplier networks

“…Co-creation and collaboration between organisations is regarded as a necessity for competitive innovation in global markets (Chesbrough 2003;Christensen and Raynor, 2003;Prahalad and Ramaswamy, 2004;Vargo et al, 2008). Companies whose dominant thinking in strategic management used to be focused on core competences, lean and efficient supplier network (Cox, 1999;Prahalad and Hamel, 1990) are now attempting to create more value add to and within their value networks (Cai et al, 2014b) with increasingly automated production systems (Jovane et al, 2003).…”