Customer co‐creation in service innovation: a matter of communication?

Abstract

Purpose -Customer co-creation is becoming increasingly popular among companies, and intensive communication with customers is generally seen as a determinant of the success of a new service or product. The purpose of this study is to analyze customer co-creation based on four dimensions of communication -frequency, direction, modality, and content -in order to understand the value of customer co-creation in service innovation. One of the key aims of the study is to investigate whether all dimensions of customer co-creation have an effect on product and market success, and if the effect depends on the degree of innovativeness of a development project. Design/methodology/approach -The authors conducted a study including 334 managers with experience in new service and product development to examine how development projects applied customer co-creation in terms of communication in order to address future customer needs. Data were analyzed using partial least squares (PLS). The first analysis was performed with a sub-sample of 207 development projects regarding incremental innovations. A subsequent analysis was performed with a sub-sample of 77 development projects on radical innovations. Findings -A total of three of the four dimensions of customer co-creation (frequency, direction, and content) have a positive and equally significant effect on product success when developing incremental innovations. For radical innovations, frequency has a positive effect and content has a negative significant effect on product success. These findings suggest that co-creation and innovation can be combined, but that the choice of methods for co-creation differs depending on whether incremental or radical innovations are developed. Originality/value -Despite a general consensus that co-creation with customers is beneficial, there is a lack of agreement regarding how and why. The present article addresses this shortcoming and shows that co-creation is largely about communicating with customers in order to understand their future needs. On the other hand, a company working on radical innovations may wish to limit customer input that is too concrete or solution based.

A new approach to retailing for successful competition in the new smart scenario

“…Although literature provides evidence on the extent to which involving consumers in service development with emphasis on the consumer co-creation experience Gustafsson et al, 2012;Heinonen et al, 2013;Karpen et al, 2012;Ngo and O'Cass, 2013;Teixera et al, 2012;Vargo and Lusch, 2004;Veryzer and Borja de Mozota, 2005), in retailing this view is currently under-investigated. In fact, the current focus in retail services is on the possibility of improving the process with advanced technological innovations (Demirkan and Spohrer, 2014;Kourouthanassis et al, 2007;Leitner and Grechenig, 2009;Pantano, 2014).…”

“…Furthermore, these systems allow both consumers and retailers to easily communicate with each other, share comments on products and services, and collaborate in the creation of the service (highly facilitated by self-service systems) (Teixeira et al, 2012;Veryzer and Borja de Mozota, 2005). As a consequence, these systems also affect the way consumers interact with sellers and retailers (Gustafsson et al, 2012;Ko and Kincade, 2007;Leitner and Gretchenig, 2009;Wood and Reynolds, 2013). Their requests might be submitted directly through these technologies, which mediate all interactions (Pantano, 2014).…”

“…Retailers need to develop ad-hoc capabilities for integrating their own knowledge and skills with the ones emerging by interactions with consumers in the development of new customised services (Chathoth et al, 2013;Gustafsson et al, 2012;Lusch et al, 2006). These new services better satisfy consumers' needs due to the level of customisation provided by the clients' involvement in the service co-creation (Ngo and O'Cass, 2013;Pantano and Viassone, 2015;Zwass, 2010).…”

Enhancing Education for Sustainable Development in Environmental University Programmes: A Co-Creation Approach

“…Nowadays, this fact is a core value in an HE inclusive system [44]. Although several approaches and criteria have been already provided by scholars in an HE context, there is still lack of consensus on how to implement co-creation processes [45][46][47][48].…”

“…It implies a shift of perspective in HE from a value-delivery approach-"doing something to students"-to a co-creation approach-"doing something with students". Therefore, this new approach holds that HE should not simply "provide" value to students, but that students should actively participate in the process, playing an active role through direct interaction [45,46]. Resources, then, come not only from the faculty's side (as the traditional supplier), but also from the student's, resulting in resource integration in the production of HE service [55].…”