Managing the co-creation of value

Conceptual/Theoretical Paper

Abstract

Central to service-dominant (S-D) logic is the proposition that the customer becomes a co-creator of value. This emphasizes the development of customer–supplier relationships through interaction and dialog. However, research to date suggests relatively little is known about how customers engage in the co-creation of value. In this article, the authors: explore the nature of value co-creation in the context of S-D logic; develop a conceptual framework for understanding and managing value co-creation; and utilize field-based research to illustrate practical application of the framework. This process-based framework provides a structure for customer involvement that takes account of key foundational propositions of S-D logic and places the customer explicitly at the same level of importance as the company as co-creators of value. Synthesis of diverse concepts from research on services, customer value and relationship marketing into a new process-based framework for co-creation provide new insights into managing the process of value co-creation.

Keywords

Co-creation Co-production Service-dominant logic Value 

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Copyright information

© Academy of Marketing Science 2007

Authors and Affiliations

  1. 1.Australian School of BusinessUniversity of New South Wales, UNSWSydneyAustralia
  2. 2.Nyenrode Business UniversiteitBreukelenThe Netherlands
  3. 3.Discipline of Marketing, Faculty of Economics and BusinessThe University of Sydney, NSWSydneyAustralia

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