Takeaways from Readings

Question 1

DART Scale

Answer 1

Used to diagnose a firm’s readiness for value co-creation

Dialogue
Access
Risk Assessment
Transparency of operations

Question 2

Dialogue (DART)

Answer 2

The extent to which a company engages in open and transparent communication with its customers
Effective dialogue involves stakeholders being able to communicate efficiently with the firm (time, resource)

Question 3

Access (DART)

Answer 3

The extent to which a company provides stakeholders with access to dialogue and resources. The availability of opportunities for the customer to co-create with the firm

Question 4

Risk assessment (DART)

Answer 4

Open access and dialogue also holds consumers, as value cocreators, partly responsible for the outcomes of the value creation process. Firms should ensure consumers have a full understanding of the costs and benefits of their contributions

Question 5

Transparency in operations (DART)

Answer 5

Successful firms share information that previously may have been considered proprietary and/or strategically dangerous to reveal outside the internal environment of the firm
eg: Swedish burger restaurant shares emissions of their food options. Transparency demonstrates integrity of the firm

Question 6

Endowment effect

Answer 6

A consumer is more willing to accept compensation greater for a good they own than if they were to pay for the good

Question 7

Value Co Creation (VCC)

Answer 7

Requires firm to shift from firm-centric focus to collaborative environments (between partners and consumers)
Potential form of competitive advantage

Question 8

Development of DART scale (3 steps)

Answer 8

Item development
Measure purification
Validate DART scale

Question 9

Prosumers

Answer 9

Consumers that produce and consume value at the same time

Question 10

To what extent are consumer willing to participate and expend required effort?

Answer 10

Consumers could perform components of services to save money or pay more for the same service to be completed by service providers

Question 11

When is the endowment effect greater? (6 scenarios)

Answer 11

When consumers expect to save more than they are willing to pay
In VCC when the task for consumers is unexpected, rather than an expected task
In VCC when the tasks involved do not match consumer expectations of the service experience
In VCC when consumers have low budge constraints
In VCC when consumers lack expertise to perform service options
When labour costs in the market are high