2. Introduction
Research to date suggests that relatively little is
known about how consumers integrate their resources
and engage in co-creation of value with the service
provider. Thus, the present study develops a
framework of the facilitators or antecedents of the co-
creation of value for understanding and managing
creation of unique value. Thus, the study examines
the co-creation efforts of the customers of fashionable
boutiques of a Jammu city.
4. RESOURCE INTEGRATION
• Resource Integration generally means combining supplier’s
and customer’s knowledge, skills, activities, efforts, time and
money so that they work together. The resources have been
classified as mental, physical and emotional (Rodie and Kleine
2000) .Two dimensions of resource integration are:
• Information sharing
• Co-ordiness effectiveness.
5. Expertise
• Expertise is defined as the understanding of the skills associated with a
particular component, including design, production, and marketing
knowledge as well as other skills related to a good or service (Grant, 1996;
Wernerfelt, 1984).
• Supplier firms with expertise related to a particular component typically
are able to produce the component more efficiently and effectively than
firms without such expertise because they possess appropriate personnel,
equipment, and knowledge (Penrose, 1959; Conner, 1991; Grant, 1996;
Rubin, 1973).
• Customer expertise represents a customer’s accrued knowledge about how
a product should perform and a general understanding of the average
performance of similar brands in a product category (Sharma and
Patterson, 2000). Customer expertise, therefore, encompasses not only
firm-specific knowledge but also market-based knowledge .
6. CUSTOMER PARTICIPATION
• Customer participation is defined as “the degree
to which the customer is involved in producing
and delivering the service” (Dabholkar 1990, p.
484).
• Customer participation is defined as the extent
to which customers share information, provide
suggestions and engage in shared decision
making process. It reflects customer’s effort in
co- producing a service ( Chan et al. 2010).
• When a customer participates in a supplier's
NPD process, each party knows the pertinent
knowledge possessed by the other, which helps
them evaluate and recognise what information
to share and increases the efficiency of their co-
ordination effort (Dyer and Singh 1998; Larson
1992).
7. Co-Creation of Value
As customers work as “partial employees” in the design process, their
expertise directly influences the quality of the work. The manner in which
a customer engages in value co-creation is determined by the customer’s
ability, role clarity, and perceived value for co-creation (Meuter et al.
2005).
Normann and Ramirez (1993) argued that the goal of business is not to
create value for customers but rather to mobilise customers to co- create
value
According to a service-dominant view of marketing, “value can only be
created with and determined by the user” (Lusch and Vargo 2006, p. 284),
thus the customer is always a co-creator of value. The co-creation of value
helps firms to understand customers’ point of view, identify their needs
and wants (Lusch and Vargo 2006; Payne, Storbacka, and Frow 2008).
8. Dimensions of Co-creation of Value
Ability in co-creation refers to customers’ knowledge and
skills that enable them to perform effectively in value co-
creation, i.e., what they “can do” rather than what they
“want to do” or “know how to do” (Meuter et al. 2005).
Customer role clarity in co-creation is defined as the extent
to which the procedures, goals, criteria, and knowledge of
consequences are clear to a customer and influence his/her
likelihood of co-creation. In addition, the role the customer
plays as a value co-creator (“partial employee”) has a direct
influence on service quality.
9. Perceived value in co-creation refers to customer’s
subjective evaluation of the benefits of co-creation. For
example, when customers decide to use self-service
technologies instead of using interpersonal services, the
potential rewards can be feelings of accomplishment
and enhanced self-efficacy, and enjoyment of the self-
serving process (Meutere at al., 2005).
11. Consumer need for uniqueness
• The “perceived uniqueness” of a product is the degree to
which a customer looks upon the product as different from
other products in the same class (Tian et al. 2001). The
significance of uniqueness is very much emphasised in the
Theory of Consumers’ Need for Uniqueness, which
explains how an individual’s need for uniqueness can
influence brand responses and the need to be distinct from
others (Ryan 2008; Tian, Bearden, and Hunter 2001)
through the possession of material goods (Knight and Kim
2007). According to this theory, an individual looks for
differentiation (Clark, Zboja, and Goldsmith 2006) and
intentionally ignores pre-arranged social standards and
customs in order to distinguish himself or herself from the
group (Snyder and Fromkin 1977). A consumer shares his
pleasure or displeasure with the service and service
provider by exchanging thoughts, ideas, or comments with
other consumers (Bone 1992).
12. UNIQUENESS ARIVES FROM
Market Differentiation: It occurs when a
firm creates a unique image in the market-
place and achieves customer loyalty through
meeting customer’s particular needs.
Innovation Differentiation: It arises
when a firm creates the most up-to-date
and attractive products by leading
competitors in quality, efficiency,
design innovations and style.
13. Innovativeness From Customers’
Perspective
Innovativeness is the consumer’s
propensity to buy new and
different products rather than
remain with prior choices and
consumption patterns (Im et al.,
2003). It can also be defined as
the degree to which a consumer
is willing to adopt new ideas
relatively earlier than other
members in a social system
(Rogers, 1995).
14. Research Gap
Previous researchers (Kleinaltenkamp et al. 2013;
Arnould, Price, and Malshe 2006; Vargo and Lusch
2006) have suggested that there is a need to better
understand how consumers integrate resources and
use their expertise to create value. As consumers
increasingly engage in creative activities and
experiences, it is important to understand what value
consumer creativity brings to brands and how it can
be encouraged and harnessed. Moreover, firms must
understand how consumers juggle their own and firm
resources and expertise in order to compensate for
specific types of operant resource deficits.
15. • Thus, the contribution of this paper is to add to an
understanding of consumers as resource integrators
through a detailed study of consumer interactions and
shared expertise in the context of apparels designing
in the boutiques.
16. Hypotheses
H1: Resource integration significantly predicts
customer participation.
H2: Customer expertise and supplier’s expertise
significantly influence customer participation.
H3: Customer participation significantly affects co-
creation of value.
H4: Co-creation of value leads to unique innovative
offerings.
17. Research Methodology
• Item survey:
Sr.No Construct/Dimensions Source of Information
1. Resource Integration
Information sharing Subramaniyam and Venkatraman (2003);
Subramaniyam and Henderson (1999), Heide and
John (1990).
Co-ordination Effectiveness Jap (1999).
2. Expertise
Customer Expertise Feick and Price (1987); Angur (1997) and Burton
(2002).
Supplier Expertise Walker and Weber (1984); Stump and Heide (1996).
18. 3. Customer Participation Chan et al. (2010); Auh et al. (2007); Betton
Court (1997); Claycomb, Lengnick-Hall and
Ink (2001); Hsieh,Yen and Chin (2004)
4. Co-creation of Value
Ability in future co-
creation
Meuter et al. (2005)
Role clarity in future co-
creation
Meuter et al. (2005)
Perceived value in future
co- creation
Meuter et al. (2005)
19. 5 Unique
offerings
Market
Differentiation
Chandler and Hanks (1994); Brewer, (1991, 1993); Timmor and
Katz-Navon (2008); Tigert et al. (1976); Sivadas and Machleit
(1994).
Innovation
Differentiation
Chandler and Hanks (1994); De Wulf, Odekerken Schröder, and
Iacobucci (2001); Goldsmith et al. (1998).
20. • II. Respondents: The study is confined to Jammu city only
and the respondents were the female members of Amar Singh
club of Jammu.
• III. Sample size: As on 2012, the total number of members
was 1196. The sample size was calculated by using the
formula given by Burns and Bush (2007, p. 378). The formula
is as under-
n=S2
Z2
/e2
The sample size arrived at 204. The nth number that got
generated (1196/204) was 6. Accordingly, a list of every sixth
member of the club to be contacted from the director was
prepared.
21. OUTLIERS
Outliers are those observed data, which
completely differ from other respondents of
the sample. Two graphical techniques for
identifying outliers are scatter plot and box
plot. In the present study outliers were
checked item-wise through box plot. There
were 204 respondents out of which we
observed 8 outliers, finally deleted from the
data set. Thus, the usable sample arrived at
196 only.
22. RESEARCH TOOLS
The statistical tools used for testing the data
were:
1.Confirmatory Factor Analysis (CFA)
2.Structural Equation Modelling (SEM)
23. I. Confirmatory Factor Analysis:
• CFA is a deductive approach and multivariate
statistical technique that is used to test how well the
measured variables represent the construct and model
building. It is conducted with the objective of
verifying the fitness of each latent construct.
• In the present study, it was performed to assess the
fitness, reliability and validity of 5 measured
constructs, viz., RI, CE, CP, CCV and UO. Reliability
was assessed through the computation of Cronbach’s
alpha, composite reliability and average variance
extracted (Table 1, 2 and 3).
27. II. STRUCTURAL EQUATION
MODELLING
After applying CFA, SEM was conducted by
using AMOS 16.0 to assess fitness of the
structural model. A structural model is a
conceptual representation of the relationship
between latent constructs. With the help of
SEM, we examined the direct relationship
between all the antecedents and consequences
of co-creation of value.
28. RELATIONSHIPS IN THE MODEL
RI-CP Maglio and Spohrer (2008); Spohrer et al. (2008);
Vargo, Maglio and Akaka (2008)
Exp-CP Korkman (2006) and Vargo and Lusch (2008)
CP-CCV Fang, Palmatier and Evans (2007) and Chan,
Yim, and Lam (2010)
CCV-CM Fiore et al. (2004) and Merle et al. (2008)
CCV-CA Cardoso, Costo and Novais (2010)
30. HYPOTHESES TESTING
Hypothesis SRW P
value
Accept/Rej
ect
H1a: Resource integration is the significant
predictor of customer participation.
.88 .000 Accepted
H2: Composite Expertise significantly
predicts customer participation
.18 .000 Accepted
H3: Customer participation significantly
predicts co-creation of value.
.72 .000 Accepted
H4: Uniqueness is strongly influenced by
co-creation of value .
.84 .000 Accepted
31. Conclusion
• The contribution of the present research to the literature on consumer
creativity is threefold. First, we showed, and illustrated that value is
created when consumers integrate and share resources and expertise
with the service providers. Then, it is demonstrated that resource
integration and sharing expertise is in fact an act of creativity and that
every act of consumption is an opportunity for a consumer to craft a
solution that is both novel and appropriate, the two widely accepted
characteristics of creative acts (Hennessey and Amabile 2010). Our final
key finding is that creativity consists of specific types of everyday socio-
cultural processes, including consumption, that lead to novel and
appropriate solutions. We argued that value is continuously (re-)created
through consumers’ relationships with their social (other consumers,
employees etc) and material (brands, products, services etc)
environments and that this creative process is inherent in all acts of
consumption.
32. Managerial
Implications
• Effective Communication, Collaboration and Coordination
Effective communication, collaboration, and coordination are important
contributing factors in achieving success in unique value creation. There are
various channels of communication, but face-to-face communication is found
to be the most effective as it provides instant feedback and multiple cues like
expression, emotions, and personal focus to the designers. The knowledge
acquired through face-to-face communication can be retained for a limited
time, then it starts diminishing gradually. So, some tools like papers,
whiteboards, and so forth, may be used by apparel designers to store
information intended for future use.
In addition, it is important that apparel designers of Jammu and customers
create opportunities to work together and fulfil the designated need, as
combined efforts are more effective. It would also help the customer to
design the product exclusively tailored according to her taste and preference.
33. • Customer Expertise and Experience
Designers are realising that the fastest way to win is by
working with customers and improving their expertise by
encouraging them to enhance their knowledge about the
latest trends viewed through advertisements about ethnic
wears and procure some new, fresh and innovative ideas
about the designs. In the context of our study, increasing
customer education and hence expertise will lead to
customers focusing increasingly on technical elements of the
service offering. Education initiatives should develop
accordingly. Thus, designers have to recognise the complexity
and urgency of generating customer experience, so as to
inculcate a sense of involvement and achievement among
target customers.
34. • Co-creation of Value
Co-created products are considered significantly more
attractive, innovative, unique and better suited to the needs as
compared to the product that is presented as non co-created.
However, very few organisations and individuals are
following it in practice as creating value in the constellation is
a complex process.
Thus, Designers should consider the fact that consumers are
the source of value creation and competitive advantage and
thus they should invite consumers to collaborate with them,
exert influence, gain recognition and enjoy themselves.
Consumers should be motivated to voice their opinion about
the product and get involved in the co- creation process.
35. • Unique Offerings
As the marketplace becomes increasingly crowded with
products and services, it is becoming difficult for companies to
stand out amidst the noise, clutter and cut throat competition.
To anticipate the shift in consumer preferences, designers
should produce unique products or services in their efforts to
remain viable and competitive. Designers should adopt the
strategy of customisation, which aims at providing products
and services that are best adapted to individual customer
preferences. The more a designer knows about her customers'
needs, the better she can serve them to their satisfaction. The
more satisfied the customer is by the perceived uniqueness of
a product or a service, the higher the differentiation both the
customer and service provider will enjoy.
36. Limitations and Future Research
• This research breaks new ground in addressing the
complicated phenomenon of resource integration and
composite expertise through customer participation in NPD.
As such, the study is subject to several limitations. These
limitations suggest areas and directions for further research.
First, the study is confined to the female members of only one
Club and thus, other clubs in the city were not included. As the
responses were obtained from female customers only, the issue
of gender biasness cannot be ruled out. Secondly, the service
experience or the word of mouth (positive or negative) of
customer has not been measured. Thus, present research can
be extended to dyadic relationship, in which the views of both
parties (customers as well as the source person) can be
analysed simultaneously.
37. • Further, focus can also be laid on other dimensions like re-
patronage and new customer acquisition. Moreover, the
study has considered the role of customers in the co-creation
and unique offerings of only apparels; further studies can
consider other services of similar nature like interior
decoration, event management, jewellery and ornament
designing.
• Lastly, further research shall be conducted on is the extent to
which consumers overcome environmental resistances and
use the external environment as a resource and integrate it,
imaginatively and creatively with their combined operant
resources to achieve value in an experiential episode.
