Connectivity Marketing: Consumer Participation in Value Creation

Prof Agus W. Soehadi PhD Prasetiya Mulya Business School

Evolution of Marketing Thought

To Market (Matter in Motion)

Market To (Management of

Customers & Markets )

Market With (Collaborate with

Customers & Partners to Create & Sustain

Value)

Through 1950 1950-2010 2010+

Lush and Vargo 2007

Service Dominant Logic View

Marketing focuses on the exchange of competencies such as skills and knowledge; and customers

co-produce the service and thus are part of the value creation process (Vargo and Lusch 2004)

Co-Creation of Value

Value Exchange to Value In-Use

The Whole Exchange Process

Operant Operand Consumers

Companies

Operant Operand

Economic Material Object

Social Cultural Physical

Core Competence Sense & Response

Collection of Production Make & Sell

Value Proposition Value in Use

Arnould et al (2006)

Vargo & Lusch (2004)

Co-Creating theValue

Consumer Community

Community gives an opportunity for customers to grow their competencies. Customer competencies are valuable

resources for building co-creation opportunities

(Schau, Muniz and Arnould 2009)

The Value Creation Process between Company & Consumers

Value Proposition

Company Consumer Company Desired Value Consumer Desired Value

Interaction Balanced Value

Pongsakornrungsilp 2010

Dialogue Involvement Consumption

Interaction

Engagin

g

Educating

Enrich

ing

Co

mm

itmen

t Relatio

nsh

ip

Co

mp

rom

ise D

iscussio

n

Sharing Embodiment

Individual

Individual

Individual

Individual Individual Individual

Individual Individual

Competencies Grow

Grow of Competencies within the Consumer Community

Pongsakornrungsilp 2010

Business Platform

Partner Community Employee Community

Customer-Community Advocacy/Boycotts

Word-of-Mouth Marketing

Consumer-Community Prospect Communities

Orchestrating the Interaction Government/NGO Community

Soehadi 2013

The Consumunity Model

Community Catalyst Community

Society

Corporate

Other Communities

Soehadi and Ardianto 2007

2007 ICE – I

Kontribusi Komunitas kepada Produsen

2008 ICE – 2

Kontribusi Komunitas kepada Masyarakat

2009 ICE – 3

Interaksi antar Komunitas

2010 ICE – 4

Strategy Bisnis dan Komunitas

Karyawan

2012 ICE-6

Community & Co-Creation Value

The Consumunity Research

2011 ICE – 5

Strategy Kolaborasi Komunitas & Bisnis

Consumunity and Co-Creation Value (Soehadi Model 2012)

Community

Company Operant

Resources

Customer Operant

Resources

Co-Creation Value

.889 .137

.534 .958

CMIN/df = 5.948 P= .0000 TLI = 873 CFI = .912 RMSEA = .074

Co-Creation Building Path

Co-Consumption (Unique Experience)

Co

-Pro

du

ctio

n

(Su

pe

rio

r V

alu

e P

rop

osi

tio

n)

Low

Low

Med

Med Hi

Hi

Co-Engaging Co-Learning Co-Enriching

Co-Advocating

Co-Developing

Co-Participating Co-Involving

Co-Modifying Co-Innovating

Soehadi 2013

Thank You