Managing the co-creation of value |
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Authors: | Adrian F Payne Kaj Storbacka Pennie Frow |
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Institution: | (1) Australian School of Business, University of New South Wales, UNSW, Sydney, 2052, Australia;(2) Nyenrode Business Universiteit, Straatweg 25, P.O. Box 130, 3620 AC Breukelen, The Netherlands;(3) Discipline of Marketing, Faculty of Economics and Business, The University of Sydney, NSW, Sydney, 2006, Australia |
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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. |
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Keywords: | Co-creation Co-production Service-dominant logic Value |
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