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Summary
The paper aims to study the co-creation trend and explain its benefits in the marketing area in particular; the target includes marketing professionals. Research in this field is required to determine ways to support a firms success through customer co-creation. Essentially, the study is based on secondary data analysis. The customer co-creation trend, or including customers in the development of a companys new products and services, is growing rapidly. Co-creation is a practical method for marketing professionals to explore opportunities for advancement. Modern businesses are progressively shifting toward a value-creation-based service-for-service exchange framework.
Integrating innovation and development into the companys strategy is one of the most significant needs and interests of businesses in terms of marketing techniques. One of these new accelerators is the concept of value co-creation. Because co-creation activity and its effects are difficult to replicate, including such an approach in marketing strategy may create a competitive advantage.
The fundamental causes of the trend are globalization and intense competition that urge firms to grow closer to their clients to match their expectations better. Improved corporate performance and customer satisfaction are examples of co-creation effects. Co-creation of services or commodities comprises working with consumers or having them participate in the product or service design process. The paper addresses the six faces of co-creation to educate marketing experts on entry into industries where co-creation is prevalent.
Introduction: Background, Purpose, Scope, and Method
The leading business trends, such as globalization, the significance of R&D, consumer empowerment supported by technology innovation encourage the more strategic use of co-creation initiatives. A plethora of research has been conducted on the benefits of co-creation, with the assumption that co-creation produces value for both the customer and the firm (Van den Broeke & Paparoidamis, 2021). According to Gerke (2020), the co-creation trend has an exciting background. In the twenty-first century, the consumer of products and services has emerged as a critical player in customer-centered value creation (Gerke, 2020). The first essential distinction between value co-creation and other economic activities and exchanges is that all economic activities and exchanges are relational (Gerke, 2020). Consequently, value is only generated in interactions involving at least two actors, and, therefore, it is always co-created.
The paper aims to analyze the co-creation trend and explain its benefits in the marketing field in particular; the scope includes marketing specialists. The investigation in the area is necessary to identify how to enable a firms success via customer co-creation. The study limitation is that the research is based on the secondary data analysis as a method, without conducting primary research. According to Ruggiano and Perry (2019), using pre-existing data is a reliable option for researchers with time and budget constraints. The material was identified utilizing the databases Scopus and ScienceDirect. Co-creation, marketing, and customer co-creation were among the search phrases used. To be eligible for a literature review, the publication dates of journal papers and books should be no more than five years old, precisely between 2017 and 2022. The research includes citations from reputable online sites, peer-reviewed journals, and recent news articles published in recognized periodicals such as The Conversationalist.
Finding and Analysis
Trend Identification
Integrating customers and businesses to co-create with a purpose increases positive business outcomes. Van den Broeke and Paparoidamis (2021) state that customer co-creation, or incorporating customers in a companys new product or service development, is gaining popularity. Taking a value co-creation approach, businesses recognize that extending product lifetimes rather than encouraging over-consumption can produce more sustainable value (Gerke, 2020). Hence, firms have turned to co-creation to effectively discover and meet customer requirements, enhancing the success of the proposed solutions and fostering sustainability.
Co-creation allows businesses and customers to collaborate on a common purpose and possibilities for growth. According to Kerzner (2019), co-creation is a practical approach for identifying development prospects for marketing specialists. Furthermore, it is more effective than market research since it incorporates new ideas from customers to provide higher value. Co-creation is an essential component of value proposition innovation because it allows for a deeper understanding of consumers, their perception of value, and requirements (Kerzner, 2019). According to Gerke (2020), the economic and social system has historically shifted from a goods-for-goods to a goods-for-money trading system. Nonetheless, modern firms are increasingly moving toward a service-for-service exchange structure based on value co-creation. The customer co-creation trend is significantly growing in marketing (Kezner, 2019). Thus, marketing specialists should focus on consumers perceptions of value to understand their present demands and uncover new prospects for developing innovative goods and services.
One of the most critical demands and interests of businesses in terms of marketing approaches is incorporating innovation and development into the companys strategy. Chepurna and Criado (2018) suggest that the idea of value co-creation is one of these innovative accelerators. Because co-creation activity and its outcomes are strenuous for competitors to duplicate, including such a method into marketing strategy may provide a competitive edge (Chepurna & Criado, 2018). Currently, the trend is advancing via the use of new technology.
Causes and Effects
Nowadays, globalization and fierce competition encourage businesses to get closer to their customers to meet their demands better. As a result, organizations started to evolve to give the most remarkable customer experience possible to maintain competitive advantages. Chepurna and Criado (2018) emphasize that new concepts have emerged over the years and been constructed on a revised logic that is more focused on the intangibility of resources, customer connections, and the co-creation of value. It was determined that both a customer and a marketing professional from a firm are necessary components for co-creation (Chepurna & Criado, 2018). The consumer is the centre point around which the whole value co-creation process revolves, and the marketing specialist enables this process.
Essentially, as a convenient platform, the Internet may aid marketers in customer co-creation. Chepurna and Criado (2018) acknowledge that the Internet is beneficial in turning one-way customer interaction into an ongoing discussion with them. Furthermore, the Internet serves as a platform for developing virtual consumer environments, which allow a firm to learn more about its customers. Thus, co-creation effects include better business performance and customer satisfaction. According to Sharma (2021), significant changes in company performance necessitated coordinated community movement during the COVID-19 pandemic. Digitalization and customer participation were obvious; thus, marketers should continue to investigate the co-creation trend to succeed.
Looking Ahead
Co-creation of services or goods entails collaboration with customers or their involvement in the product or service design process. According to Ranjan and Read (2017), this collaboration has three different types. Firstly, consumers exchange expertise or information with the company directly or indirectly. Second, customers connect with both staff and products/services, creating deep engagement so that both companies and customers recognize the value they provide to each other. Finally, clients might be psychologically engaged in the joint operation process beneath these aspects (see Figure 1).
When the product or service is completed, the emphasis on co-creation transfers to the customer. This second level of value co-creation is described by three main features (Ranjan & Read, 2017). Firstly, beyond its functional features, the customers experience appraisal of the product or service proposal is critical to engaging the customer in this second stage. Consequently, consumers networked behaviors strengthen their ideas and identities, resulting in interactions with the proposition that improve customers lives. Third, consumers mental models associate identification with the use process, providing customization, a one-of-a-kind consumption value derived from the satisfaction of performing or a distinctive experience. Therefore, understanding the six steps will prepare marketing specialists for entry into the workforce where the co-creation trend is occurring.
Conclusions
Co-creation is a vital component of value proposition innovation because it enables a more in-depth knowledge of customers. Modern businesses are progressively shifting toward a value-creation-based service-for-service exchange framework. Because the customer co-creation trend is gaining traction in the marketing industry, it is critical to understand how consumers and businesses may collaborate to generate value. According to the findings, marketing professionals should concentrate on customers value perceptions to fully understand their current wants and unearth new opportunities for developing innovative products and services. Co-creation is more effective than market research because the trend includes fresh ideas from consumers to deliver more excellent value. Additionally, marketing specialists should learn the six faces of co-creation to succeed.
References
Chepurna, M. & Criado, J. R. (2018). Identification of barriers to co-create on-line: The perspectives of customers and companies. Journal of Research in Interactive Marketing, 12(4), 452-471. Web.
Gerke, A. (2020). How value co-creation can change our world of consume and dispose into consume and pass on. The Conversation. Web.
Kerzner, H. (2019). Innovation project management methods, case studies, and tools for managing innovation projects. Wiley.
Ranjan, K. R., & Read, S. (2017). The six faces of value co-creation: A field guide for executives. Rutgers Business Review, 2(1). Web.
Ruggiano, N., & Perry, T. E. (2019). Conducting secondary analysis of qualitative data: Should we, can we, and how?, Qualitative Social Work, 18(1), 81-97. Web.
Sharma, P. (2021). Customer co-creation, COVID-19 and sustainable service outcomes. Benchmarking: An International Journal, 28(7), 2232-2258. Web.
Van den Broeke, M., & Paparoidamis, N. (2020). Engaging in or escaping co-creation? An analytical model. International Journal of Production Economics, 231. Web.
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