Assessing consumers’ co-production and future participation on value co-creation and business benefit: An F-P-C-B model perspective

Abstract

Co-production and active participation of the consumers are considered to have enhanced the value co-creation activities that would ensure business benefits of a firm. The marketing literature available does not explicitly explain the philosophy that would motivate the consumers to help to increase values for co-creation activities. In this context, attempts have been made to identify the factors that would impact on co-production and consumers’ participation to co-create values. By studying literature and theories such as theory of co-creation, theory of value creation, information processing theory, marketing theory and expectancy value theory, a conceptual model called F-P-C-B (Future Participation (F) - Co-production (P) - Co-creation (C) - Business Benefit (B)) has been developed along with nine hypotheses. The data was from 362 respondents in India and the model was tested using PLS based analysis. The study shows that it is important for the firms to shift from product-oriented activities to customer-related strategies. It is also found that for obtaining more profitability and better business results, customers should be involved in business activities by way of involving in co-design, idea generation, and other relevant activities of the firms. Moreover, the study highlights that knowledge sharing between the customers and the firm authorities ensures better business values.