CO-CREATION Definition- “Co-creation is an active, creative and social process, based on collaboration between producers and users, that is initiated by the firm to generate value for customers."
Prahalad and Ramaswamy (2000) :- Customers from being a passive audience for a firm’s offerings to becoming active players and co-creators of knowledge and value.
We see this process in services(e.g. hairstyling) but will increasingly see it for physical products. For example, in coming years, General Motors plans to allow customers to customize an automobile that will be manufactured to their specifications The extent of co-creation marketing depends on how much customer knowledge a company is able to accumulate and use
Enables and empowers customers to aid in product creation, pricing, distribution and fulfilment and communication. Enhance customer loyalty and reduce the cost of doing business. It means collaborating with and learning from customers by being adaptive to their individual and dynamic needs.
Steps in Co-creation Defining clear objectives for the project. Figuring out who are the right customers to involve in the process. Working with the customers to find out what they really want to include in the product or service. Selecting the partners to be included in your network. Overcoming the internal resistance to change.
Limitations Markets, companies and people do not change. Collaboration is much harder than competition. To change the mind set of people within the company into the way that the external customer thinks is not easy.
Co-creation 50 lakh prize money and 1% on the turnover NIKE ID- Nike giving customers online tools to design their own sneakers
Co-creation at the strategic level-APPLE iPod- Generated a new environment to experience the Music (“Music Access and Listening” Experience Environment) Through iTunes, Apple Has Opened Up the “Music Management and Downloading” Experience Environment Through iMix and the sharing playlists, Apple allows music fans to interact with a community
The concept of co-creation What Co-creation IS NOTWhat Co-creation IS Customer focus Customer is king or customer is always right Co-creation is about joint creation of value by the company and the customer. It is not the firm trying to please the customer Delivering good customer service or pampering the customer with lavish customer service Allowing the customer to co-construct the service experience to suit their context
What Co-creation IS NOTWhat Co-creation IS Mass customization of offerings that suit the industry’s supply chain Joint problem definition and problem solving Transfer of activities from the firm to the customer as in self- service Creating an experience environment in which consumers can have active dialogue and co-construct personalized experiences; product may be the same, but customers can construct different experiences
What Co-creation IS NOTWhat Co-creation IS Product varietyExperience variety Meticulous market researchExperiencing the business as consumers do in real time Demand-side innovation for new products and services Innovating experience environ- ments for new co-creation experiences
Co-creation in Marketing Dynamics of customer value perceptions The link between customer education and participation Consumer-centric innovation Experience marketing and collective learning in business networks
Co-creation in marketing Dynamics of customer value perceptions The link between customer education and participation Consumer-centric innovation
THE DYNAMICS AND MEASUREMENT OF CUSTOMER VALUE: Customer participation and its impact on customer perceived value CUSTOMER EDUCATION AND PARTICIPATION : Managing customer participation through customer education
CONCLUSION Co-creation also enables organisations to listen to people and learn. Having an open door to the consumer allows you to gain greater insight and obtain feedback and views quickly so you can rely less on assumptions.