Preview

The Customer as Co-Producer

Powerful Essays
Open Document
Open Document
6455 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Customer as Co-Producer
The customer as co-producer
Solveig Wikström - School of Business, Stockholm University, Stockholm, Sweden

Introduction
A look at what is happening in the world of business today shows that the focus of business development is now gradually moving away from products and factories. Instead, interest is concentrated on the various processes taking place around the customer. This orientation is not new. Concepts such as “customer orientation”, “close to the customer”, “customer segmentation” and “niche marketing” are well-known and much tested, along with ideas about “direct marketing”, “database marketing” and so on. The common denominator in all these concepts is a greater focus on the customer. Another step forward is the conception of the customer as co-producer.
The phrase itself – the customer as co-producer – occurs increasingly often in the literature (Davidow and Malone, 1992; Grönroos, 1990; Gummesson, 1991; 1993; Pine, 1993; Toffler, 1980; 1983), and we have to ask ourselves whether this is simply a variation on earlier attempts to reach the customer, or whether a pattern of action is emerging that is different, involving real rethinking and even new thinking. The most important point, of course, is how much extra value is this procedure capable of producing, and how much commitment and action is required of both the parties involved. And naturally the question also arises: how wide is the range of this new business logic? Is it restricted to industrial markets with few buyers and sellers and a well-established interactive way of working, and to service markets where the customer by definition is part of the production process? Or could it be applied to consumer markets as well?
In this paper the focus is on the co-production logic applied to consumer markets, and relating this to the experience and knowledge gained from industrial markets.
If we want to identify the basic ingredients in this idea of the customer as co- producer, we should perhaps



References: Badaracco, J.L. (1991), The Knowledge Link: How Firms Compete through Strategic Alliances, Harvard Business School Press, Cambridge, MA. Baden-Fuller, C. and Stopford, J. (1992), Rejuvenating the Mature Business, Routledge, London. Becker, G. (1965), “A theory of the allocational time”, The Economic Journal, Vol. LXXV No. 299, pp Bouchet, D. (1994) “Rails without tries: the social imaginery and postmodern culture. Can postmodern consumption replace modern questioning?”, International Journal of Research in Brown, J.S. (1991), “Research that invents the corporation”, Harvard Business Review, January- February. Christopher, M., Payne, A. and Ballantyne, D. (1991), Relationship Marketing, Butterworth/ Heinemann, Oxford. David, P.A. (1991), “Computer and dynamo. The modern productivity paradox in a not too distant future”, The Challenge to Economic Policy, Paris. Davidow, W.H. and Malone, M.S. (1992), The Virtual Corporation, HarperCollins, New York, NY. Ekström, B. and Smitt, S. (1995), “Interactive value creation in consumer markets”, (in Swedish), Master’s thesis, Stockholm University. Firat, T., Dhala/kia, N. and Venkatesh, A. (1995), “Marketing in a postmodern world”, European Journal of Marketing, Vol Fornell, C. (1981), “Increasing the organizational influence of corporate consumer affairs departments”, The Journal of Consumer Affairs, Vol Fornell, C. and Westbroak, A. (1984), “The vicious circle of consumer complaints”, Journal of Marketing, Vol Freeman, C. (1991), “The nature of innovation and the evaluation of the productive system”, Technology and Productivity in the Challenge for Economic Policy, OECD, Paris. Grabher, G. (Ed.) (1994), The Embedded Firm. On the Socioeconomics of Industrial Networks, Routledge, London. Grönroos, C. (1990), Service Management and Marketing. Managing the Moments of Truth in Service Competition, Lexington Books, Toronto. Gummesson, E. (1991), Kvalitetsstyrning i Tjänste- och serviceverksamheter, (Quality Control in Service Businesses), CTF Högskolan i Karlstad. Gummesson, E. (1993), Quality Management in Service Organizations, ISQA. Haglund, G. and Öberg, M. (1995), “Konsumentkontakt”, (“Customer contact”), Master’s thesis, Stockholm University. Håkansson, H. (Ed.) (1982), International Marketing and Purchasing of Industrial Goods, John Wiley & Sons, New York, NY. Håkansson, H. and Östberg, C. (1975), “Industrial marketing: an organizational problem”, Industrial Marketing Management, Vol Hirschmann, N. (1970), Exit, Voice and Loyalty, Harvard University Press, Cambridge, MA. Holmström, B.R. (1991),“ Comments to Yates”, in Temin, P. (Ed.), Inside the Business Enterprise. Lundvall, B.Å. (1993), “Explaining interfirm cooperation and innovation: limits of the transactioncost approach”, in Grabher, I Milgrom, P. and Roberts, J. (1990), “The economics of modern manufacturing; technology, strategy and organization”, American Economic Review, Vol Normann, R. and Ramirez, R. (1990), Business Logics for Innovators, Book manuscript, part of Designing Interactive Strategy, John Wiley (1994). Nyström, H. (1990), Technological and Market Innovations, John Wiley, New York, NY. Peppers, D. and Rodgers, M. (1993), The One to One Future. Building Relationships. One Customer at a Time, Doubleday, Garden City, NY. Pine B.J. II (1993), Mass Customization. The New Frontier in Business Competition, Harvard Business School Press, Cambridge, MA. Pine, J., Peppers, D. and Rogers, M. (1995), “Do you want to keep your customers forever?”, Harvard Business Review, March-April. Porter, M.E. (1990), Competitive Strategy. Techniques for Analyzing Industries and Competition, Free Press, New York, NY. Rapp, S. and Collins, T. (1990), The Great Marketing Turnaround, Prentice-Hall, Englewood Cliffs, NJ. Rohlin, L., Skärvad, P.-H., and Nilsson, S.E. (1994), Strategic Leadership in the Learning Society, (in Swedish), MIL-Publishers, Dalby, Sweden. Senge, P. (1990), The Fifth Discipline. The Art and Practice of the Learning Organization, Doubleday & Currency, New York, NY. Toffler, A. (1980), The Third Wave, William Morrow, New York, NY. Toffler, A. (1983), Previews and Premisses, Pan Books, London and Sydney. Van Raaij, F. (1993), “Postmodern consumption”, Journal of Economic Psychology, Vol. 14, pp Wikström, S. and Lundkvist, A. (1995), The Role of Information Technology in Interactive Business Development, Book manuscript in Swedish. Wikström, S., Normann, R. Anell, B., Ekvall, G., Forslin, J. and Stearad, P.H. (1994), Knowledge and Value Womack, J.P., Jones, D.T. and Roos, D. (1990), The Machine that Changed the World, Macmillan, New York, NY. Yates, J.A. (1991), “Investing in information: supply and demand. Forces in the use of information in American firms”, in Temin, P

You May Also Find These Documents Helpful

  • Good Essays

    The traditional marketing model from the seller’s point of view, or the Four “Ps” of marketing, is based on Product, Price, Place, and Promotion. This model is based on the assumption that the marketplace is driven by manufacturers. According to Schultz and Kitchen (2000), manufactured-driven marketplace has “evolved” into a distribution-driven market place where major retailers or distributors like Wal-Mart control the marketplace. Schultz and Kitchen (2000) go on to state that the marketplace is continuing to evolve into a newly emerging interactive marketplace brought about by the development of the internet and new e-commerce business applications. In this new interactive marketplace, the consumer interests rule and as a result, manufacturers, according to Schultz and Kitchen (2000) must adjust to consumer needs. This new trend has led to a new marketing model from the consumer’s point of view. This model, called the Four “Cs” is consumer oriented as opposed to the traditional seller oriented Four “Ps” model. The Four “Cs” model of marketing are Customers, Company, Competitors, and Circumstances.…

    • 516 Words
    • 3 Pages
    Good Essays
  • Good Essays

    * Building the right relationships with the right customers involves treating customers as assets that need to be managed and maximized…

    • 2517 Words
    • 11 Pages
    Good Essays
  • Better Essays

    References: DeFelice, Alexandra, 2007, Future,” Seattle Times, May 23, 2007; “A Century of Customer Love,” CRM Magazine, June 1, 2005.…

    • 2423 Words
    • 10 Pages
    Better Essays
  • Best Essays

    Hux, Alton and Fredrick E. Jarman. "The Industrial Revolution." Canada : Dons Mills: Academic Press , 1982. Print .…

    • 1849 Words
    • 8 Pages
    Best Essays
  • Best Essays

    Data Mining

    • 1981 Words
    • 8 Pages

    The way in which companies interact with their customers has changed dramatically over the past few years. A customer 's continuing business is no longer guaranteed. As a result, companies have found that they need to understand their customers better, and to quickly respond to their wants and needs. In addition, the time frame in which these responses need to be made has been shrinking. It is no longer possible to wait until the signs of customer dissatisfaction are obvious before action must be taken. To succeed, companies must be proactive and anticipate what a customer desires. For an example in the old days, the storekeepers would simply keep track of all of their customers in their heads, and would know what to do when a customer walked into the store. Today’ store associates face a much more complex situation, more customers, more products, more competitors, and less time to react means that understanding your customers is now much harder to do. A number of forces are working together to increase the complexity of customer relationships, such as compressed marketing cycles, increased marketing costs, and a stream of new product offers. There are many kinds of…

    • 1981 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    A Case Study of Tesco

    • 13112 Words
    • 53 Pages

    Advent of modern technologies and availability of information to the common people have made the business guy to think about their customers and customize their product to retain…

    • 13112 Words
    • 53 Pages
    Powerful Essays
  • Powerful Essays

    langlois article

    • 16765 Words
    • 68 Pages

    David, P. A. (1990), ‘The dynamo and the computer: an historical perspective on the modern…

    • 16765 Words
    • 68 Pages
    Powerful Essays
  • Powerful Essays

    Emotional dissonance

    • 12774 Words
    • 56 Pages

    Grebner, S., Semmer, N., Lo Faso, L., Gut, S., Ka¨lin, W. and Elfering, A. (2003), “Working…

    • 12774 Words
    • 56 Pages
    Powerful Essays
  • Good Essays

    In this assignment, I am asked to discuss my opinions about the business philosophy of ‘the customer is always right’. I will discuss my thoughts and feelings on this subject and the steps I will take to enhance my customers’ experience. I will also discuss strategies I think might provide a more useful alternative to the subject.…

    • 1214 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Lovelock, C. (2008). Four Customers in Search of Solutions. In C. Lovelock, J. Wirtz, & H. S. Bansal, Services Marketing (p. 479). Toronto: Pearson Canada Inc. .…

    • 1372 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    * firms need to be more than customer-oriented → need to collaborate with and learn from customers…

    • 716 Words
    • 3 Pages
    Better Essays
  • Powerful Essays

    Shashank

    • 7891 Words
    • 32 Pages

    Identifying The Co-Creative Elements In The Wide Range Of Customer Involvement Activities: Co-Creation And Other Overlapping Concepts…

    • 7891 Words
    • 32 Pages
    Powerful Essays
  • Powerful Essays

    Gurbaxani, V. & Whang, S. (1991). The Impact of Information Systems on Organizations and Markets. Communications of the ACM, 34(1), 59-73.…

    • 28240 Words
    • 113 Pages
    Powerful Essays
  • Powerful Essays

    Disertation

    • 10208 Words
    • 41 Pages

    1. Title: Internet, consumer empowerment and marketing strategies in the Airline industries in the UK…

    • 10208 Words
    • 41 Pages
    Powerful Essays
  • Good Essays

    Consumer Brand Awareness

    • 627 Words
    • 3 Pages

    [5]. Kotler, P, & Keller, k, Marketing Management (13th ed., fifth impression, p.406). (2011), Upper Saddle River, NJ: Prentice Hall.…

    • 627 Words
    • 3 Pages
    Good Essays