Theme E: Consumer participation 2

Question 1

The tradition view means

Answer 1

Value creation was a firm-centric process. And value was transferred to customers through exchange transactions. (“Value-in-exchange).

Question 2

Normative implications for G-D logic

Answer 2

Relationship management (through communication, satisfaction, etc.) to maximize CLV.

Question 3

Limitation of firm-centric view are …

Answer 3

• Only concentrate on the attributes of firm’s offering.
• Cannot represent the benefits/value of customers.
• Neglect the active role of consumers in generating value.

Question 4

The shift from a firm’s offerings (goods and services) towards value proposition (services) implied that …

Answer 4

The value is not embedded in the resources but inferred in the usage. So, the offering is to facilitate that benefits.

Question 5

Service-dominant logic

Vargo and Lusch, 2004

Answer 5

shifts toward the view that value creation is mainly customer-centric, involving participation and engagement.

Question 6

Value proposition definition

Answer 6

a set of benefits that firms promise to customers to satisfy their needs.

Question 7

Value outcomes are

Answer 7

determined by individual customers, so they are unique, differentiated, and subjective.

Question 8

Value processes

Answer 8

• involve interaction between customers using their own resources, and firm’s resource.
• be involved in the process (from supplier to disposal) to deliver service.
• when the network of actors and resources gets bigger, customers integrate them to generate the value they want.

Question 9

Changing perspective on relationships from G-D logic

Answer 9

• Dyadic bonds represented by trust and commitment

- Long-term patronage – repetitive transactions

Question 10

Changing perspective on relationships to S-D logic

Answer 10

• Complex, networked structure of market
• Value co-creation
• Emergent, temporal nature of value creation
• Reciprocal, service-for-service nature of exchange
• Contextual nature of value determination

Question 11

Normative implications for S-D logic

Answer 11

• Collaborate with customers to develop mutually beneficial value propositions.
• Co-create value through service-for-service exchange

Question 12

4 participative roles for consumers

Answer 12

• as a productive resource
• as a partial employee
• as a co-producer
• as a value co-creator

Question 13

Customer as a productive resource

Answer 13

• It cope with the decreased availability of HR using the help of technology. ex: ATM, self-checkout
• Benefit: reduce cost and increase business productivity.

Question 14

Customer as a partial employee

Answer 14

• Customer socialization (ex: build appreciation of roles/scripts and organization’s value and norms).
• Applied theories of HRM to find ways to improve interaction effectiveness and reduce transaction costs.
• Benefit: Improve service quality and satisfaction.

Question 15

Customer as a co-producer

Answer 15

• Consumers involve in the production process and collaborate with firms by their own creativity and resources.
• It may involve collaboration with other customers (share ideas) or actors (voluntary organizations) in the network.
• Benefits: augment personalized value to customers. It enables customization and sense of control.

Question 16

Consumer as a value co-creator

Answer 16

• Understand consumers’ life and think about the way how firm can fit into their life.
• Firms involve in the usage/consumption stage by integrating their resources into consumer processes previously considered to be autonomous. (Ex: Waitrose app)
• Benefits: augment personalized value to customers
• Consumers indirectly interact with firms when they use, access or combine resources.

Question 17

Five forms of co-production in innovation

Russo-Sena and Mele, 2012

Answer 17

• Co-design: Draw, learn, teach, discuss
• Co-evaluation: Evaluate, vote, connect
• Co-ideation: Share ideas, knowledge and practices, comment, discuss
• Co-launch: Elicit votes, review
• Co-test: Identify risks, trial

Question 18

In-role behaviour

Answer 18

mandatory activities in joint or consumer sphere that enable successful service outcome. Ex: taking medication, choosing food, answering service-provider questions.

Question 19

Extra-role behaviour

Answer 19

voluntary activities beyond role expectations of customers, that benefit the firm and other customers. Ex: helping other customers, positive WOM

Question 20

What encourages consumers to participate?

Answer 20

• Consumer: Goals, Involvement, Role clarity, Ability (Resources: knowledge, skills, physical/material, social connections)
• Provider: Trust, Perceived expertise, Commitment

Question 21

Key characteristics of high (vs. low) level of participation:

Answer 21

• Number of roles (over a series of activities)
• Complexity of roles
• Standardization of service
• The resources consumers contribute to perform roles to create value for themselves and others

Question 22

Customer engagement may be manifest:

Answer 22

• Behaviourally – repeat purchase, cross-buying, using
• Cognitively – goal progress, trust, goodwill, commitment
• Emotionally – love, passion
• Socially – connecting with others, interacting, giving social support (e.g. blogging, advising)

Question 23

Engagement is… (Hollebeek et al., 2016)

Answer 23

a customer’s motivationally driven, volitional investment of focal operant resources (including cognitive, emotional, behavioral, and social knowledge and skills), and operand resources (ex: equipment) into brand interactions in service systems.

Question 24

Benefit of customer engagement

Answer 24

• affords a richer view of interactions among firms, existing and potential customers (and networks).
• critical to the iterative process of relationship development by reflecting the intensity of an individual’s participation in and connection with an organization or brand.

Question 25

Consumers as collaborative innovators

Answer 25

• providing new product ideas and suggestions
• “co-producers” providing input on product features and design trade-offs
• “product testers” assisting in the identification of product design flaws
• “product users”

Question 26

The key to participation

Answer 26

Customer goals, resources and their cognitive aspects of their relationship with brands/organizations

Question 27

Types of contributors in C2C collaboration

Answer 27

• Information providers: pure contributors (motivated by learning and reputation), reciprocal contributors (motivated by others’ contribution).
• Information seekers: pure askers (need answers), lurkers (do nothing).

Question 28

Motives in C2C collaboration

Answer 28

advice-seeking
concern for other consumers
economic benefits
helping the company 
platform assistance
self-enhancement (to become intelligent shopper)
social benefits 
venting negative feelings

Question 29

CE foundational processes (Tom Chen et al., 2016)

Answer 29

• Customer resource integration: combine, assimilate and apply new focal operant/operand resources.
• Customer knowledge sharing: share information or experience-based with others.
• Customer learning: process and acquire new knowledge

Question 30

CE benefits (Tom Chen et al., 2016)

Answer 30

• Customer individual operant resource development: through brand interaction
• Customer interpersonal operant resource development: through initiating or receiving knowledge sharing with others.
• Customer co-creation: interactive, joint, collaborative or personalized activities.