Co-creation experiences: The next practice in value creation
Article first published online: 15 JUL 2004
© 2004 Wiley Periodicals, Inc. and Direct Marketing Educational Foundation, Inc.
Journal of Interactive Marketing
Volume 18, Issue 3, pages 5–14, Summer 2004
How to Cite
Prahalad, C. K. and Ramaswamy, V. (2004), Co-creation experiences: The next practice in value creation. J. Interactive Mark., 18: 5–14. doi: 10.1002/dir.20015
- Issue published online: 15 JUL 2004
- Article first published online: 15 JUL 2004
Consumers today have more choices of products and services than ever before, but they seem dissatisfied. Firms invest in greater product variety but are less able to differentiate themselves. Growth and value creation have become the dominant themes for managers. In this paper, we explain this paradox. The meaning of value and the process of value creation are rapidly shifting from a product- and firm-centric view to personalized consumer experiences. Informed, networked, empowered, and active consumers are increasingly co-creating value with the firm. The interaction between the firm and the consumer is becoming the locus of value creation and value extraction. As value shifts to experiences, the market is becoming a forum for conversation and interactions between consumers, consumer communities, and firms. It is this dialogue, access, transparency, and understanding of risk-benefits that is central to the next practice in value creation.