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Value Co-Creation

Part 5. Product Innovation and Management

  1. Gaurav Bhalla

Published Online: 15 DEC 2010

DOI: 10.1002/9781444316568.wiem05055

Wiley International Encyclopedia of Marketing

Wiley International Encyclopedia of Marketing

How to Cite

Bhalla, G. 2010. Value Co-Creation. Wiley International Encyclopedia of Marketing. 5.

Author Information

  1. Knowledge Kinetics, Reston, VA, USA

Publication History

  1. Published Online: 15 DEC 2010

Abstract

Value co-creation is a collaborative model of marketing and innovation, in which the customer/consumer is an integral and essential resource to the value creation process. In this model, value is co-created by both the company and the customer/consumer. Today's markets are characterized by internet-connected, globally aware consumers, who both want to and are willing to spend time and effort articulating the specifics of the needs they want satisfied-which, when, and in what context. This collective voice has the tangible power to shape and influence individuals' notions of value and how they subsequently vote with their purchase dollars. This new way of thinking about value creation, which is jointly driven by the company and its customers/consumers is at odds with the traditional linear, sequential, value-chain-oriented view of value creation and value delivery. Consequently, the pattern of adoption of this emerging business practice is uneven and heterogeneous; a few early adopters like P&G, Unilever, Nike, American Express, Mercedes Benz, and Dell have already thrown their hat in the ring. It is only a matter of time before a larger majority follows.

Keywords:

  • value co-creation;
  • customer collaboration;
  • innovation;
  • marketing;
  • customer value