Innovative companies are leading the challenge to involve customers and public, and have realized that cooperation with them is vital to maintaining a competitive advantage. In this participatory culture customers want a relationship with those brands that matter. This brings us to the concept of co-creation.
Co-created value arises in the form of personalized unique experiences for the customers and ongoing revenues, learning and enhanced market performance drivers for the firm. The traditional view of value creation has been focused on the company, regardless of the perceived value the customer or consumer. However, the globalization process and information technology are forcing companies to be more sensitive to user experience.
Nowadays, creating customer experiences is less about products and more about relationships, according to this Payne, Storbacka and Frow (2008) state, “Traditionally, suppliers produce goods and services, and customers purchased goods and services. Today customers can engage in dialog with suppliers during each stage of product design and product delivery”(p. 84).
In the article the authors “explore the nature of value co-creation in the context of SD logic” (Payne, Storbacka and Frow, 2008, p. 83). To complete they research they developed a conceptual framework for co-creation of value consisting of three components: customer value-creating process, supplier value-creating process and encounter processes.
The first component is the customer value-creating process. The relationship is bidirectional. The consumer is an active element involved in the exchange and production of a product or service. “The customer’s value creation process can be defined as a series of activities performed by the customer to achieve a particular goal” (Payne, Storbacka and Frow, 2008, p. 86). The customer ceases to be passive (target) to be active (co-producer)
The second component is the supplier...