Identifying the Processes of Value Co-Creation
This study aimed to address the issues pertaining practicalities of value co-creation from the perspective of Service-Dominant Logic (S-D) of Marketing. Using an interpretive strategy and case study method, this study responds to the call for empirical treatment of Service-Dominant Logic conceptualization. This is done by answering the question “how does integrating resources co-create value?”. A multiple-actor framework of value co-creation is derived from empirical material interpretation incorporating the nature of value realized by actors, resources and actor classifications, nature of interactions, and stages in value co-creation. The outcome of this study suggests that value co-creation is a system where actors engage in dialogues with the aim of improving ‘personal situations’. This system is comprised of various processes at four stages. For instance, resources integration among actors happens at a collaboration stage that co-creates consequences. These consequences are experiences, service offerings, relationships and fluctuations in resources and skills. Resources integration is done through reciprocal co-operative dialogue among actors. These dialogues have four types: initiating, building, sharing and critiquing (IBSC). In the next stage, value is realized in the form of inter-related facets: knowledge, monetary, relationship, functional and experience value. All these value facets together increase or decrease the experience value. Once value is realized, the next stage is the appraisal of the overall experience in the form of positive word of mouth, willingness to participate in the future, innovation, and premium valuation of the service offerings. Positive appraisal results in the improved situations of actors. Improved situations are: increase in resources, actors satisfaction, long-term and sustainable partnerships, and successful service delivery. A negative appraisal recognizes in the co-destruction of value. This framework is significant because in addition to providing implications for marketing theory and future research, 4E’s of value co-creation matrix (Engage, Event Space, Evaluation , Encourage) which are focused on resource integrations and actors, are recommended for value co-creation practices. 4E’s of value co-creation also question the efficacy of marketing mix in framing managerial decisions. 4E’s of value co-creation presents a service dominant perspective on developing marketing strategies.
Value Co-Creation, Service Dominant Logic of Marketing, Resource Integration, Service Systems, Value Co-Creation Framework
Networked Digital Library of Theses and Dissertations