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CO-CREATION AND MARKETING:A REVIEW OF LITERATURE AND CASE HISTORIES

POLITENICO DI MILANO

Facoltà di Ingegneria dei Sistemi

Supervisor: Prof. Giuliano Noci – Politecnico di MilanoAssistant Supervisor: Eng. Lucio Lamberti – Politecnico di Milano Co-supervisor: Prof. Paolo Neirotti – Politecnico di Torino

Master Graduation Thesis by: Thai Thi Thanh Binh

POLO REGIONALE DI COMO

Master of Science in

Management, Economics and Industrial Engineering

2CO-CREATION AND MARKETING: A REVIEW OF LITERATURE AND CASE HISTORIES - Thai Thi Thanh Binh

BACKGROUND

OBJECTIVES

LITERATURE

REVIEW

CASE STUDY

MANAGERIAL

IMPLICATIONS

LIMITATIONS

1. BACKGROUND

2. OBJECTIVES

3. LITERATURE REVIEWMethodologyResultsConclusions

4. CASE STUDYMethodologyResultsConclusions

5. MANAGERIAL IMPLICATIONS

6. LIMITATIONS

CONTENT


BACKGROUND

OBJECTIVES

LITERATURE

REVIEW

CASE STUDY

MANAGERIAL

IMPLICATIONS

LIMITATIONS

BACKGROUND – The concept choice

• What is co-creation

• Why we have to study co-creation– Scholarly community– Practice

• Why companies are interested in co-creation

• What are the problems of approaching co-creation

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• Reviewing literature in co-creation in general

• Reviewing literature in co-creation in marketing

• Reviewing the relation between ICT and co-creation

• Examining co-creation in practice with case studies.

CO-CREATION AND MARKETING: A REVIEW OF LITERATURE AND CASE HISTORIES - Thai Thi Thanh Binh

BACKGROUND

OBJECTIVES

LITERATURE

REVIEW

CASE STUDY

MANAGERIAL

IMPLICATIONS

LIMITATIONS

OBJECTIVES OF THE THESIS

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• Objective: overview of significant literature published on the topic to date


BACKGROUND

OBJECTIVES

LITERATURE

REVIEW

CASE STUDY

MANAGERIAL

IMPLICATIONS

LIMITATIONS

LITERATURE REVIEW - Methodology

• The review methodologyo References collectiono The constraintso Reviewing processo Organization

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• Research and Innovation

• Accounting and Finance

• Information System

• Supply chain and Operation

• Marketing

• Strategy and General Management


BACKGROUND

OBJECTIVES

LITERATURE

REVIEW

CASE STUDY

MANAGERIAL

IMPLICATIONS

LIMITATIONS

LITERATURE REVIEW – Results in general

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• 3 phaseso The fragmented phase (1980-1999),o The quiet evolution (2000-2003) o The booming phase (2004-now).

The fragmented phase

Issue/topic Contribution Stream/scholar Time

Born of the

concept

Coin the term "prosumer" Alvin Toffler 1980

Co-

production

Bring back the concept to interest;

Customer involvement in production

process; the first to focus on consumer

market

Solveig

Wikström

1996

Co-creation

in

relationship

marketing

Customer is part of value creation

process

Relationship

marketing- Evert

Gummesson

1998

The quiet evolution


Co-creation

marketing

Co creation marketing is one of the

consequences of customer centricity,

advantage of co-creation marketing

Customer centricity 2000

Co-creation in

relationship

marketing

Focusing on customer value creating

process

Relationship

marketing-

Gronroos

2000

Mass

customization

Mass customization as a form of co-

creation using web-based as a platform

Liechty, John

&Ramaswamy

2001

Co-creation and

service orientation

User involvement as a form of co-creation

in B2B

Alam, I 2002

Co-creation and

service orientation

Key elements of user involvement Bendapudi, Leone 2003

Co-production Psychological Implications of customer

participation in co-production

Bendapudi, Leone 2003


BACKGROUND

OBJECTIVES

LITERATURE REVIEW

CASE STUDY

MANAGERIAL IMPLICATIONS

LIMITATIONS

LITERATURE REVIEW – Results in marketing

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• Co-creation in EDL

(Prahalad & Ramaswamy)


BACKGROUND

OBJECTIVES

LITERATURE

REVIEW

CASE STUDY

MANAGERIAL

IMPLICATIONS

LIMITATIONS

LITERATURE REVIEW – Results in marketing

• Co-creation and innovation• Managing the co-creation process• Co-creation and branding• Co-creation and the market concept• Co-creation in self service• Transformation of CRM• Co-creation in B2B• ………………….

2004

• Co-creation in SDL

(Vargo & Lusch)

• Cross-stream and individual contributions

The booming phase

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ICT


ICT with co-

creation

ICT enables and foster innovation Solveig Wikström, prahalad &

Ramaswamy

1996-

2008

Internet with co-

creation

Internet with mass customization,

co-marketing, co-creation

experience

Liechty, John, Arun Sharma, Jagdish

N. Sheth, Venkat Ramaswamy

2001-

2008

Internet for customer engagement

in product innovation, role of

online and virtual customer

environment, Internet based

collaboration mechanism and

managerial implication

Nambisan, Mohanbir Sawhney,

Gianmario Verona, Emanuela

Prandelli, Robert A. Baron, Jordi

Vilaseca Requena, Joan Torrent

Sellens and Ana Isabel Jime’nez

Zarco

2002-

2007

Multichannel co-

creation

Multichannel: opportunity and

challenges for better co-creation

Prahalad & Ramaswamy, Scott A.

Neslin, Venkatesh Shankar, JO

Thomas, T Grandison

2004-

2008


BACKGROUND

OBJECTIVES

LITERATURE REVIEW

CASE STUDY


LIMITATIONS

LITERATURE REVIEW – Results in ICT – Co-creation

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• Literature gaps and blanks o No clear conceptualization of co-creation marketingo Lack of empirical researcho Lack of research on the impact of co-creation activities

in business performanceo Capabilities and antecedents to embrace co-creationo Platform for collaboration between firm and customer in

co-creationo There should be better connection between literature

and practice.


BACKGROUND

OBJECTIVES

LITERATURE

REVIEW

CASE STUDY

MANAGERIAL

IMPLICATIONS

LIMITATIONS

LITERATURE REVIEW – Conclusions

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• Cases collectiono Articles/books → host company /initiative website → interneto Internet → host company /initiative website → internet: forum…

o Lack of specific information: result

o Other languages: Sweden, French…


BACKGROUND

OBJECTIVES

LITERATURE

REVIEW

CASE STUDY

MANAGERIAL

IMPLICATIONS

LIMITATIONS

CASE STUDY – Methodology

• The constraints

• Structure


BACKGROUND

OBJECTIVES

LITERATURE

REVIEW

CASE STUDY

MANAGERIAL

IMPLICATIONS

LIMITATIONS

CASE STUDY – Results: example of SPREADSHIRT

• The company:• Co-creation activity :

o Time:

since 2002o Form of co-creation:

Open community ideation and product design and development

o Channels used:

Interneto Activities: o Results:o Similar cases:

Zazzle, Cafepress, Ponoko, Shapeways, OriginalSnowboartArt.com

o Fast growing: > 250 employees

o 2009: 400,000 partners: Samsung, Coca Cola, Chuck Norris, The Guardian, CNN…; >100,000 products designed by community on website; 30,000 new designs/ week.

o 1 million t-shirts sold in 2008, growth of 40%

o Awards

o Online platform for users to design, buy, sell personalized apparels: 100 items.

o Users’ online shops: determine and earn commission on order through Spreadshirt.

200987654321200098765432119901940

PRODUCT FINISHING

MASS CUSTOMIZATION

CO-DESIGN

CO-MARKETINGNEW PRODUCT IDEATIONAND DEVELOPMENT

ONLINE RESEARCH COMMUNITY

OPEN COMMUNITY IDEATION AND PRODUCT DEVELOPMENT

REAL TIME MARKETING AND SERVICE ADAPTATION

PERSONALIZED EXPERIENCE

70/ 30 cases


BACKGROUND

OBJECTIVES

LITERATURE

REVIEW

CASE STUDY

MANAGERIAL

IMPLICATIONS

LIMITATIONS

CASE STUDY – Results

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o Diversified sectorso Active firmso Internet: important channelo Multichannel

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• Personalized & value locus

• Multichannel

• Diversified

•Sophisticated


BACKGROUND

OBJECTIVES

LITERATURE

REVIEW

CASE STUDY

MANAGERIAL

IMPLICATIONS

LIMITATIONS

CASE STUDY – Results

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• Co-creation activities are getting more diversified and sophisticated, enable by ICT.

• The trends:

o Primitive customer involvement to co-creation with customer and customer community

o Standard customer value to personalized customer valueo Locus of value creation from within firm to within market and

communities, pre- use to in-use, from R&D to inside experience network

o One channel to multichannel


BACKGROUND

OBJECTIVES

LITERATURE

REVIEW

CASE STUDY

MANAGERIAL

IMPLICATIONS

LIMITATIONS

CASE STUDY – Conclusions

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• Overall picture of the evolution of co-creation concept in literature and practice:o Literature generated on the issueo How other firms use co-creation in the past and now

• Direction of co-creation in next practice

• How to embrace co-creation: form, scale, firm’s sector illustrated with best practices

• ICT as a powerful platform


BACKGROUND

OBJECTIVES

LITERATURE

REVIEW

CASE STUDY

MANAGERIAL

IMPLICATIONS

LIMITATIONS


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• Literature reviewo Broad concepto Time constrainto Access to the material

resources

• Case studyo Lack of informationo One-side informationo Cases collected from

secondary sources

• Field work with host company and consumers.

• Scope for specific interest

• More sources of material


BACKGROUND

OBJECTIVES

LITERATURE

REVIEW

CASE STUDY

MANAGERIAL

IMPLICATIONS

LIMITATIONS

LIMITATIONS AND FURTHER DEVELOPMENT

• Longitudinal analysis


THANK YOU!

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