Cited by 2,463Service and Product InnovationBusiness Strategies and InnovationInnovation and Knowledge Management

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Co‐creating unique value with customers

Prahalad, C.K., Ramaswamy, Venkat·2004·Strategy & Leadership

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Abstract

The traditional system of company‐centric value creation (that has served us so well over the past 100 years) is becoming obsolete. Leaders now need a new frame of reference for value creation. In the emergent economy, competition will center on personalized co‐creation experiences, resulting in value that is truly unique to each individual. The authors see a new frontier in value creation emerging, replete with fresh opportunities. In this new frontier the role of the consumer has changed from isolated to connected, from unaware to informed, from passive to active. As a result, companies can no longer act autonomously, designing products, developing production processes, crafting marketing messages, and controlling sales channels with little or no interference from consumers. Armed with new tools and dissatisfied with available choices, consumers want to interact with firms and thereby co‐create value. The use of interaction as a basis for co‐creation is at the crux of our emerging reality. The co‐creation experience of the consumer becomes the very basis of value. The authors offer a DART model for managing co‐creation of value processes.

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Influence of Experiential Consumption and Social Environment of Local Tourists on the Intention to Revisit Tunisian Guesthouses: Mediating Role of Involvement in the Experience
Khazami, N., & Lakner, Z. (2021) · Sustainability · doi:10.3390/su13126584 · Cited by 8
Supporting co-creation processes through modelling
Jamieson, D., & Martin, M. (2021) · Public Money & Management · doi:10.1080/09540962.2021.1996929 · Cited by 8
“…that the online cost-efficiencies and availability of multimedia-rich interactions to provide a more sustainable means of creating value in new forms of producer-consumer collaboration (see Füller et al., 2009) and the call from Prahalad and Ramaswamy (2004) for new building blocks for co-creation.”
Background
A typology of strategies for user involvement in innovation processes
Storvang, P., Haug, A., & Nguyen, B. (2020) · Prometheus · doi:10.13169/prometheus.36.4.0347 · Cited by 8
Patterns of publications in social media-based co-creation: a bibliometric analysis
Kargaran, S., Shahri, M. H., Ghorbani, Z., Saberi, A., Jamali, S. M., & Ebrahim, N. A. (2022) · VINE Journal of Information and Knowledge Management Systems · doi:10.1108/vjikms-09-2021-0222 · Cited by 8
Facilitation in Complexity
Nechkoska, R. P., Manceski, G., & Poels, G. (2023) · Contributions to management science · doi:10.1007/978-3-031-11065-8 · Cited by 7
Barriers towards Open Government Data Value Co‐Creation: An empirical investigation
Wiedenhöft, G. C., Matheus, R., Saxena, S., et al. (2023) · The Electronic Journal of Information Systems in Developing Countries · doi:10.1002/isd2.12270 · Cited by 8
Uncovering Backers’ Intention to Participate in Reward-Based Crowdfunding: The Role of Value Cocreation
Gangi, F., Daniele, L. M., Scuotto, V., et al. (2023) · IEEE Transactions on Engineering Management · doi:10.1109/tem.2023.3267088 · Cited by 8
“Concurrently, the VCC concept broadened its boundaries from the marketing literature to embrace collaborative practices occurring between organizations and stakeholders enabled by digital ecosystems [2], [5], [54].”
Background
Low and high outcome quality in co-created hospitality services: Two explanations for consumer satisfaction
Alarcón‐López, R., López-López, I., & de Maya, S. R. (2023) · Journal Of Vacation Marketing · doi:10.1177/13567667231181466 · Cited by 8
“Early research posited that consumers become active creators of unique value when they interact closely with companies to “ co-create ” such value together (Prahalad and Ramaswamy, 2004).”
A Personal Values-Based Approach to Understanding Users’ Co-Creative and Co-Destructive Gaming Experiences in Augmented Reality Mobile Games
Elo, J., Lumivalo, J., & Tuunanen, T. (2022) · Pacific Asia journal of the Association for Information Systems · doi:10.17705/1pais.14503 · Cited by 8
Neuromarketing: Evaluating Consumer Emotions and Preferences to Improve Business Marketing Management
Zeng, I. M., & Marques, J. A. L. (2023) · European Conference on Management, Leadership and Governance (ECMLG) · doi:10.34190/ecmlg.19.1.1876 · Cited by 9
“Indeed, co-creation involves customers and service companies collaborating to create service value and deliver desired customer experiences (Prahalad and Ramaswamy, 2004).”
Background

Authors: Prahalad, C. K., & Ramaswamy, V.
Affiliations: University of Michigan (US)
Venue: Strategy & Leadership
Publisher: Emerald
Published: 2004-06
Volume: 32
Issue: 3
Pages: 4-9
ISSN: 0094-064X (ISSN-L)
1087-8572
DOI: 10.1108/10878570410699249
OpenAlex: W2046500054
Cited by: 2,463
References: 0
Citations by year: 2026: 131 · 2025: 166 · 2024: 167 · 2023: 149 · 2022: 165 · 2021: 160 · 2020: 130 · 2019: 167 · 2018: 159 · 2017: 144 · 2016: 153 · 2015: 138 · 2014: 148 · 2013: 139 · 2012: 92
FWCI: 38.45
Type: journal article
Language: en
Open access: closed
Locations: Strategy and Leadership (publishedVersion)
Topics: Social Sciences › Business, Management and Accounting › Marketing › Service and Product Innovation
Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategies and Innovation
Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
Keywords: value co-creation, customer co-creation, consumer interaction, consumer empowerment, DART model, value creation, emerging economy, customer experience

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Co‐creating unique value with customers

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