These benefits, together with ongoing revenues, learning, and enhanced market performance, can drive some desired effects for both companies e. According to a classical value creation approach, companies offer innovative products Kirca et al. Furthermore, consumers must be willing and able to interact with companies and contribute to the process, which constitutes a key challenge Lengnick-Hall et al.
For example, consumers' leit motive could relate to activities that lead to unique experiences, which then would involve both customer participation and a connection to the experience Shaw et al. Ensuring the success of a new product or service thus requires among other factors a more humanistic, detailed understanding of consumers' ethical values and transcendent motives, which determine their behavior. But acknowledgment of the concrete exchange situation product-service characteristics, technological platform also is critical. Therefore, using a marketing strategy that is oriented toward social aspects and defining the appropriate role of ICTs and Web 3.
Marketing 3. As such, it is a prominent philosophy, gaining relevance among consumers who increasingly recognize the effects of unpredictable social, economic, and environmental changes on them Kotler et al. Previous paradigms included Marketing 1. An enhanced version, Marketing 2. That is, Marketing 2. Consumers differ in their preferences, so companies must segment the market and develop unique products for different consumers Kotler et al. The new paradigm of Marketing 3. This evolution to more human-centric value propositions is shaping the future of marketing in three main ways Kotler et al.
First, mass participation and co-creation through collaborative marketing reflect how modern social media and the Internet have tapped into natural human desires for connectivity and interactivity. Companies thus seek collaborative marketing strategies, such as product or service co-creation, with consumers, employees, channel partners, and other companies that have similar goals and values. Accordingly, marketing needs to address both local and global communities simultaneously.
Third, the rise of a creative society and human—spirit marketing encourages creative people, who tend to innovate, collaborate, and express themselves more than others, to pursue their self-actualization but also demand originality and trendiness in the products and services they consume. Therefore, the conceptual approach of Marketing 3. The first I, identity , reflects the relationship between positioning and brand and seeks to address the rational portion of the value proposition. Image instead lies at the juncture of differentiation and brand and strives to capture the emotions of the target audience.
Finally, integrity represents the intersection of positioning and differentiation, and it aims to fulfill the brand promise authentically while fostering trust, commitment, and loyalty. This 3-I model demonstrates how more intangible and social factors can determine the real and perceived value created by a company. Accordingly, we anticipate that, in line with the Marketing 3. Through various value co-creation activities, organizations attract consumers, and engage them in discussions of their emotions, feelings, and expectations, thereby generating a constructive, deep exchange of ideas, resources, and services Piller et al.
Furthermore, these exchanges are more plausible as a result of the new advances in ICTs , including Web 3. These services explicitly emphasize machine-facilitated understanding of information as a means to provide a more productive, intuitive user experience. Therefore, Web 3. From another perspective, Web 3. Such technological advances offer new tools that consumers can use to interact, as well as incentives for creating new products and services. The ubiquity of the Internet, Web 3.
The Internet has increased consumers' power, through two main processes: reformulating the identity of each user through interactions with others, learning processes, and the creation of social links and increasing users' efficiency and skills Amichai-Hamburger et al. These tools also have an important role in helping companies gain advantages for the design and delivery of customized products that maximize consumers' satisfaction Du et al.
However, more skilled and powerful consumers need ICTs to help them proactively generate and evaluate new ideas, improve product details, select and personalize preferred prototypes, experience new product features e. Thus, we propose:. Proposition 1: Web 3. Motivation is an antecedent of human behavior, explaining why people behave in certain ways, what provokes these behaviors, and what directs subsequent voluntary actions Deci and Ryan, ; Nambisan, Prior literature explicates what motivates people to act, using various theories that attempt to detail the entire human motivation process Ambrose and Kulik, Thus, we present two basic motivational approaches: Maslow's and Herzberg's Maslow's Theory of Human Motivation classifies motivations according to whether they seek to meet basic, lower-order, physiological needs food, water, safety, and security or higher-order needs linked to social activities, such as esteem-building, self-actualization, or continuous self-improvement.
These needs act as motivators until they are satisfied, though some exceptions are possible Maslow, This theory is based on two essential pillars: Human needs follow a hierarchical pattern, and there is a dynamic between them. Thus, the motivation to satisfy a higher-order need should exist only if lower-order needs already have been satisfied.
Expansions of Maslow's framework generally propose similar classification patterns. For example, Herzberg et al. For these authors, only the latter are true motivators, because the hygiene factors actually cause de-motivation if people lack them, whereas their presence does not exert an effect in motivational terms.
consumer feelings about product instructions Manual
McClelland also identifies three types of needs achievement, power, and affiliation that prompt three associated motivations. Finally, Alderfer's study Alderfer, extends Maslow's theory by categorizing human needs into three types: existence , which comprises Maslow's basic needs; relatedness , encompassing Maslow's social and external self-esteem needs; and growth , which connects closely with Maslow's internal self-esteem and self-actualization needs. All in all, these theories provide a greater general understanding of human motivations and needs, for both managerial research and practice.
Another important description of human motivations comes from Herzberg , who distinguishes extrinsic from intrinsic motivational factors. When people are intrinsically motivated, they experience interest and enjoyment, feel competent and self-determining, and hold an internal locus of control, such that they perceive themselves as the masters of their destinies and outcomes, through their behavior. Conversely, when people are extrinsically motivated, they need external factors such as money or verbal support to motivate them to act.
Again, others have developed and enriched Herzberg's intrinsic—extrinsic theory with subsequent research. For example, self-determination theory Deci and Ryan, ; Ryan and Deci, relies heavily on the concepts of intrinsic and extrinsic motivation, such that competence to succeed in difficult tasks and be able to achieve expected results and autonomy to have the ability to choose needs are described as intimately related with intrinsic motivations, whereas relatedness to establish a sense of mutual respect and trust with others is classified as an extrinsic type of motivation.
Consumers might also participate if they believe doing so facilitates their access to social standing and reputation Zwass, ; Chen et al. From this activity, they can learn what they appreciate most Wasko and Faraj, ; Zwass, , and in many cases, participation appears valuable in itself, enabling them to meet their self-esteem, self-efficacy , and self-expression needs Bandura, ; Kollock, Furthermore, their interests might be motivated altruistically Kollock, ; Roberts et al.
Integrative revision of classical motivational taxonomies and co-creation motivators. On the one hand, intrinsic motivations relate to the nature of the activity itself and are rooted in the personal satisfaction that can be achieved by performing the activity Kozinets, , but extrinsic motivations are utilitarian in nature and associated with attaining external, functional, and practical incentives, distinct from the activity per se Daugherty et al. On the other hand, lower-order needs are associated with preserving physiological, subsistence i.
When consumers who participate in co-creation activities are motivated extrinsically to meet lower-order needs, practical purposes are their real motives e. When they are motivated intrinsically and seek to meet lower-order needs, they really participate in co-creation activities for practical purposes related to learning and enjoying the personal hedonism they derive from co-creating new and unique goods. With regard to higher-order needs, consumers often focus on relatedness and likely participate in co-creation activities for extrinsic motives e.
Finally, to meet higher-order needs, s elf-esteem, self-efficacy , and self-expression can prompt intrinsically motivated consumers to participate in co-creation activities. Thus, given that both intrinsic and extrinsic motivational aspects play a role in explaining consumers' willingness to engage in co-creation activities, we propose:.
Proposition 2 A : Consumers engage in co-creation activities to receive external goods, beyond performing the activity itself, reflecting their extrinsic motivation. Proposition 2 B : Consumers engage in co-creation activities to receive internal goods related to performing the activity itself, reflecting their intrinsic motivation. Although this integrative revision of consumers' motivations to co-create is new to extant literature and offers a clearer general understanding of this issue, some necessary elements are still missing.
We posit that these motives revolve around ethical and transcendent issues. In particular, modern consumers devote increasingly more emphasis to ethical values in their purchase decisions e. Creative people also might participate for spiritual motives rather than to attain material benefits Kotler et al. Thus, consumers' willingness to participate is based not only on intrinsic or extrinsic motivations but also on transcendent motives, including the benefit their collaborations have for others in wider society.
The service-dominant S-D logic Abela and Murphy, places strong emphasis on service and the co-creation of value as essential elements for marketing area; it also has had powerful influences on marketing practitioners and researchers Williams and Aitken, To encourage consumers' participation in co-creation activities, businesses need to behave in accordance with the values that motivate those consumers Williams and Aitken, In the modern era, ethics is one such value.
That is, in the era of Marketing 3. Increasingly, consumers are more and more concerned about the effects of their purchase choices, both for themselves and for the world around them Harrison, Accordingly, they increasingly look for solutions for their own concerns about how to make the global world a better place, such that they are guided by ethical values in their purchase decisions Shaw et al. For example, the extent to which a product provides freedom of choice, independence, and curiosity are key assessments, and the brand needs to inspire a sense of benevolence, security, equality, environmental friendship, and rules conformity Shaw et al.
This ethical axis governing consumers' purchase decisions also offers a proxy for consumers' growing concerns about society's welfare. In modern environments, consumers' decisions to participate in co-creation activities evolve mainly according to their altruistic desire to contribute Kollock, ; Zeityln, ; Zwass, ; Roberts et al. Consumers guided by these motives, through their actions, likely seek to satisfy others' needs rather than their own, similar to the way that people guided by ethical values such as solidarity, service, or altruism might be inclined to do.
As such, and with the recognition that the Marketing 3. Extended integrative revision of classical motivational taxonomies and co-creation motivators. Applied to a consumer context, and specifically to engagement in co-creation activities, a transcendent motivation might mean practices such as collaboration, cooperation, help, and service , in an effort to meet lower-order needs.
Consumers might engage in these practices during the realization of co-creation activities for practical reasons related to their needs to grant knowledge, experience, skills, or competencies that they have acquired and believe might be useful to others. Consumers also might cooperate in the hope they can receive help when they are in need.
However, when consumers engage in co-creation activities to meet their higher-order needs, the collaboration is usually regarded as an end in itself. The consumers think authentically about transcending their personal sphere to acknowledge the welfare of wider society and contribute to the common good. Thus, consumers can fulfill their spiritual needs and develop their human side when participating in co-creation activities, which constitutes an increasingly critical demand among creative consumers today Kotler et al.
In this new era, consumers increasingly emphasize ethical values and seek to make purchase decisions in a conscious manner, such that they think carefully about the environmental, ethical, and social costs Beagan et al. Although the influences of these motivations vary in strength, they are complementary, supplementary, and potentially simultaneous in both time and action. In the modern era of ethical consumption Harrison, ; Shaw et al. Consistently, we propose:. Proposition 3: The ethical values—driven Marketing 3.
Proposition 4: Consumers engage in co-creation activities to meet their need to give to others, care for others' welfare, reflecting their transcendent motivation. In seeking new ways to create consumer value, current marketing developments, such as the S-D logic, may prove especially useful. The S-D logic is based on the premise that companies do not deliver value but rather work out value proposals. Consumers themselves individually create value by using or consuming products and services.
This new approach also emphasizes that the customer's participation in the product and service experience is indispensable for creating more value, such that both consumers and company employees are active participants in the creative process. Two further elements are implicit to this process and should be fostered by companies: consumer empowerment and consumer engagement.
Both elements have been addressed repeatedly in co-creation literature as essential to allow for the process to flow and generate positive outcomes for both consumers and companies. This delegation is increasingly possible in the new era; due to new technologies, consumers have been enabled to interact with the world on various levels e. The Internet and new Web 3. Thanks to advances in new technologies Web 3. The Internet and new ICTs also allow consumers to interact with others, role play, test their social skills which strengthens their sense of self-identity , and enjoy mastery experiences which increases self-efficacy perceptions Hamburger et al.
In turn, other positive outcomes for consumers and companies are likely. First, in terms of the effects for companies, consumer empowerment may cause consumers to perceive that the brand that has assigned them more power produces higher quality products and services, leaving them more motivated and committed to co-creation activities Zeithaml and Bitner, , as well as the related brands and companies.
Second, regarding the effects on consumers, the perceived quality of consumers' own contributions to the co-creation process should enhance their satisfaction, with both their own services and the tasks Kelley et al. When these positive emotional experiences occur repeatedly, consumers' loyalty to the focal brands and companies gets reinforced, such that a virtuous cycle initiates Lam et al.
Consumer engagement is also essential to co-creation processes, and those processes may vary depending on its level DeFillippi and Roser, Patterson et al. Such traits are fostered by Web 3. As a result, high-quality relationships consumer-to-consumer and consumer-to-business arise from continuous dialogue Prahalad and Ramaswamy, ; Jaworski and Kohli, ; Auh et al. Specifically, through the social relationships established in the co-creation process, consumers engage easily in dialogue with others in each stage of the product design or delivery process Payne et al.
This dialogue during the co-creation process encourages shared emotions, behaviors, and knowledge Payne et al. Through virtual experiential interactions and encounters, consumers perceive that their engagement in the co-creation activities ensures the utilization of their own personal resources Payne et al. Co-creation processes enable them to communicate directly with one another and share their experiences, which also can lead to personalized interactions , depending on how each consumer prefers to interact with the company Prahalad and Ramaswamy, As a result, consumers' co-creation activities likely boost consumer satisfaction with the co-creation process and their maintained social relationships Bowden, , which then becomes the seed of social capital within the social community e.
With regard to the benefits for companies, several studies show that consumer co-creation processes increase consumer trust in the community setting in which their social relationships have developed e. The involvement of these external agents in the co-creation process, who work as partial employees Dong et al. Because consumers prefer not to have products and processes imposed on them, co-creation processes help differentiate the company from competitors, because they enable consumers to co-construct to suit their own contexts and needs Prahalad and Ramaswamy, The important benefits from encouraging consumers to engage in co-creation processes thus entail, for example, cost effectiveness, risk reduction Prahalad and Ramaswamy, , and differentiation Ramaswamy and Gouillart, Brand perceptions result from consumers' relationships with brands, and these relationships mimic interpersonal relationships Fournier, , so satisfactory co-creation processes logically should cause perceptions of brand authenticity and sincerity.
Co-creation actively seeks to facilitate interactions between consumers and companies, so creating and maintaining an authentic, open dialogue and incorporating consumer needs in new product or service development processes should enhance brand authenticity perceptions. If the co-creation process also gets communicated to the general target group with a sincere storyline, brand sincerity perceptions should grow stronger Dijk et al. Co-creation creates such close consumer—brand interrelationships that consumers' brand loyalty is increasingly probable in these settings Luo et al.
In summary, important benefits derive from new business insights into co-creation, for both consumers and companies. On these theoretical grounds and arguments, we propose:. Proposition 5: When consumers engage in co-creation activities, it boosts value for both consumers and companies, in multiple forms.
Consumers are increasingly willing to integrate ethics into their product purchase decisions.
A product cannot be ethical per se , but it can be augmented by ethical considerations or attributes that are perceived positively Crane, The more an object relates to these ethical values, the more involving it may be for consumers e. As noted previously, consumers' co-creation offers important benefits for both consumers and companies; we also posit that these benefits increase when the product or service they are co-creating features ethical characteristics. For example, at the company level, emerging research on brand building processes suggests that consumers' trust in brands depends on whether they perceive that brands are ethical or, more important, offer products and services that are just, honest, and trustworthy Singh et al.
Considering that altruistic and courteous behaviors prompt enhanced positive affect Sung and Kim, , a brand that is perceived as ethical will elicit positive emotional responses among its consumers and invoke a stronger level of brand affect among them Glomb et al. At the consumer level, when co-creation processes involve ethical products and services, consumers gain more value from their participation.
In parallel with findings that reveal that committing moral deeds creates a sense of purpose, meaning in life, and relative gains in happiness Hoffman et al. Also, research reveals that long-term, supportive collaborations are likely to be enhanced when the decisions that each party to the relationship makes evoke perceptions of fairness or ethicality Ruiz-Palomino et al.
Brand loyalty tends to apply to ethical companies because it is based on a consumer commitment for future transactions. Thus, when consumers perceive fairness in a company's service or product transaction, as well as in the process for handling customer claims, repurchase intentions grow Hellier et al. Customer—brand relationships cannot be sustained in the face of ethical misconduct by the company Roman, ; Huber et al.
In view of these arguments, the consumer co-creation process for developing ethical products should lead to increased positive benefits for both consumers and companies. Thus we propose:. Proposition 6: The value of consumers' engagement in co-creation activities for both companies and consumers is higher when co-creation involves ethical products. This model incorporates both theoretical and empirical contributions from prior literature and seeks to affirm a better understanding of the process of consumer co-creation, both is antecedents and consequences.
Furthermore, it includes ethics as an essential element. As described in the previous sections, several areas of research provide the foundation for this proposed model, including consumer co-creation e. An integrative model of the causes of the co-creation process and its positive effects. The first part of the model depicts the essential elements that initiate and influence the co-creation process.
These new interactive spaces also support strong relationships and a sense of social community, through the easier, increased interactions with others, learning processes, and social links. This model also includes motivational factors that might lead consumers to engage in co-creation activities. However, in modern society, with its focus on ethical and social values, consumers seek out companies that offer products and services to address social, economic, and environmental problems Kotler et al.
Creative people also prefer to follow spiritual, social, or ethical motives, rather than simply attaining material or personal goals Kotler et al. Value co-creation thus is based on interactive, social processes promoted by consumers and companies, in which valuable resources are integrated and value is distributed among agents Prahalad and Ramaswamy, Thus, consumers work as partial employees who adhere voluntarily to the inspiring community project, promoted by companies.
Two core outcomes for consumers derive clearly from these processes: consumer empowerment , spanning self-determination and self-efficacy perceptions, and consumer engagement , which produces access to social relationships, creates effects that are positive in and of themselves i. The model also reveals that companies benefit from cost effectiveness consumers as partial employees , risk reduction Ramaswamy and Gouillart, , market differentiation Prahalad and Ramaswamy, , and brand loyalty Kim and Slotegraaf, ; Luo et al.
The model highlights the important value generated by consumers and companies. Companies should leverage the benefits of fostering consumer empowerment and engagement in co-creation processes. Because we increasingly are moving toward a world in which value results from an implicit negotiation between the individual consumer and the company Prahalad and Ramaswamy, , the co-creation of value with consumers is a new business model that companies should embrace, so that they can compete in an efficient, differentiated manner Prahalad and Ramaswamy, ; Ramaswamy and Gouillart, Although continuing improvements to Web 3.
Such intentions can be fostered if consumers perceive that they will gain multiple forms of benefits from engaging in co-creation activities, as well as insofar as they participate more in such processes, which should give them confidence in their ability to complete tasks and participate in value co-creation, lead them to take ownership of the activities, reduce their risk perceptions, and allow them to enjoy the whole experience more Dong et al.
Our research represents a relevant contribution to the fields of business and marketing, specifically to the area of consumers' co-creation value. Our first contribution is the valuable synthesis of representative literature and expanded, diversified knowledge that we have gained around the co-creation process involving consumers. Through an integrative literature review methodology Torraco, ; Yorks, , we have developed a conceptual model to describe both the antecedents and the positive outcomes of consumers' engagement in co-creation processes.
Based on ethical theory, we have provided a fresh new understanding by offering sound support to the role that ethical values and transcendent motives play in boosting consumers' co-creation processes, which fills a missing gap in afore-mentioned literature review. The second important theoretical contribution refers to the advances that our article represents for the better understanding of the reasons why consumers engage in value co-creation activities with companies.
Specifically, our study incorporates transcendent motives as a complement and extension to the classical intrinsic—extrinsic motivation theory Herzberg, to understand this process. Although abundant literature emphasizes intrinsic i. Consumers' willingness to participate is based not only on intrinsic or extrinsic motives but also on the need to benefit, through their collaborations, third parties in the wider society, which corresponds to the new ethical values-driven Marketing 3. Our third contribution refers to the adequate specification that our model makes about the influential roles of new technologies—web 3.
In these new contemporary times, consumers increasingly are emphasizing ethical values and seeking to make purchase decisions in a conscious manner, by carefully thinking about the ethical, environmental, and social costs derived. Accordingly, the way consumers are conceived and seen must be changed in order to adapt to the new times successfully.
Consequently, the ethical values-driven Marketing 3. Under the umbrella of this paradigm, companies are seen as entities that must treat consumers as human beings, with intelligence, heart, soul, and spirit, as well as aspire to live such ethical values as cooperation, friendship, and human welfare. Therefore, as a result of consumers perceiving this congruence in ethical values with companies, the co-creation process is helped to start and develop over time, which is clearly identified in our conceptual model.
Of course, to implement and follow the Marketing 3. Web 3. Finally, we importantly contribute to literature by identifying the positive outcomes and the process by which these are obtained when consumers' engagement in co-creation activities occurs. In this sense, one important part of our conceptual model refers to the specific positive outcomes that these activities entail for both companies, and importantly, consumers, which aims to fill a void in literature.
Our integrative review of literature revealed that these activities might result in important, very valuable outcomes for companies i. The presence of ethical characteristics in the product or service co-created is sensitive so as to strengthen the value created for both consumers and companies. Because one important motivation for co-creation is the value which is created for others, when co-creation processes involve ethical products and services, consumers tend to gain more value from their participation. In parallel with findings that reveal that committing moral deeds creates a sense of purpose, meaning in life, and relative gains in happiness, consumers who co-create ethical items are more likely to experience good feelings and satisfaction as well as better personalized co-creation experiences.
Also, these consumers are expected to increase their trust, commitment and loyalty to the brand and the company with which they are collaborating. All these positive outcomes would also be fostered insofar consumers perceive they gain multiple forms of benefits from engaging in co-creation activities, as well as they will participate more and more in such processes.
All in all, our integrative review of literature offers new understandings around the engagement process of consumers in co-creation activities, and has given rise to some interesting conclusions that should be well considered in business and marketing management. Companies must collaborate with consumers, who play a key role in generating value and competitive advantages by providing information, fresh ideas, and co-creating new, improved products and services.
They are sources of creativity as well as sources of social, ethical values imprints in the product design, and development processes, which is imperative to be successful in the new contemporary times. The consumer role has evolved so much that today consumers are now described as active agents, protagonists, or value co-creators.
These roles also converge to describe not just now actively and constructively consumers are today but also the importance of their market experiences, joint activities, and relationships with companies. That's why managers should acquire an integral understanding of the antecedents making consumers engage in value co-creation activities. With this in mind, our integrative review allows us to highlight the important role played by that instrumental devices i.
However, new to literature, special emphasis has been laid on ethical values and, specifically, on personal transcendent motives as antecedents. Modern society is increasingly focusing on ethical values, along with consumers seeking companies that offer creative products, services that truly solve the current social, economic, and environmental problems. Humanity, morality, and spirituality are common elements behind these creative solutions Zohar, In this vein, to encourage consumers' engagement in co-creation activities and creativity, companies' alignment with ethical and transcendent values should not be obviated, nor the design and development of ethical, responsible items.
For academic researchers, our theoretical model and integrative literature review should serve as stimulants of further studies on the topic, in that they provide a reference or starting point for additional research. Our findings demonstrate the need for understanding the causes and effects of consumers' participation in co-creation processes, as well as the positive effects for both consumers and companies. The findings further suggest that when consumers feel empowered, with passion and a sense of ownership, they are willing to contribute extensively for the benefit of the company. Thus, companies need to learn about their consumers' desires and needs, beyond normal exchange processes, especially considering the importance of ethical and social values for consumers today.
For managerial practice, various implications emerge from this study.
Mobile Technology Issues
The first one is related with the potential value which consumers who are willing to participate in value co-creation activities. Managers should assess the potential value of their communities of proactive customers for a greater innovation, brand loyalty, differentiation, and augmentation of competitive advantage to their companies. Consequently, organizations should take a long-term view of their customer relationships, rather than a short-term financial perspective. Within a short-term approach, companies are unlikely to boost consumers' co-creation participation; consumers need to perceive their relationship with the company as equitable, which takes time.
A long-term perspective is also more suitable, considering consumers' increasing interests in ethical and social values. It might ensure that consumers' transcendent motives align with companies' interests to contribute, ultimately, to the general welfare of society. One second implication is related to the necessary commitment of the top management team with favoring these co-creation processes, and thus allow for these processes to develop optimally. Managers who seek new ways to involve consumers in co-creation activities should institute cultural changes in their organizations.
Co-creation initiatives require flexible organizational structures, oriented toward engaging in frequent contacts with consumers and meeting their needs. This view is important to build emotional bonds between consumers and companies as well as to encourage consumers' engagement in co-creation activities Grayson, Accordingly, managers should take this commitment in mind when planning, organizing, leading, and monitoring the activities of their employees. One third implication is the creation and maintenance of relevant communication channels with consumers through platforms such as Web 3.
These efforts can translate into enhanced encounters, supporting cognition, emotion, and action-based learning for both consumers and companies, and thus result in a proactive community that fosters consumers' loyalty to the community and to the company. Although consumers' engagement in value co-creation activities strengthen these ties, and might enhance the level of community commitment on itself, the more companies invest and develop efforts in connecting consumers, the better to retain on loyal both to the community and the company.
The design of good interaction channels with consumers is thus an important element to implement the value co-creation strategy, and thus make the creative process initiated with consumers work properly. Finally, companies should be cautious about the negative potential consequences of empty value co-creation strategies. Due to the low cost and popularity of social media, many companies almost blindly take for granted advantages to initiate various value co-creation activities. However, these activities are not just about interacting with customers and managers; they rather require a strategy based on careful planning and implementation through Web 3.
Thus, managers should create policies based on ethical principles and the Marketing 3. Business brands should behave ethically regardless of the potential impact on the bottom line. However, in a highly interconnected world that has made brands more transparent, truly ethical behavior of companies and customers based on transcendent motives will be necessary to succeed in any marketplace.
Despite these contributions, we acknowledge some limitations and accordingly propose new avenues for research. First, empirical data are needed to validate the conceptual model and theoretical propositions. Other moderating effects also can be examined, such as social justice perceptions or relevant contextual variables. For example, studies might analyze the effectiveness of co-creation processes when consumers perceive a balance in their relationship with the company, or else document any negative effects that arise when a consumer perceives an unbalanced relationship.
Second, we focused on business-to-consumer interactions, but other beneficial relationships may also tend to arise, whether business-to-business links or relationships with government or third-party agencies. Additional research focused on understanding the co-creation processes that arise from these relationships thus could helpfully nourish from integrating the perspectives addressed here. Third, in line with our research goals, we concentrated on the positive effects of consumers' engagement in co-creation processes.
However, researchers could address the specific variables that might produce negative aspects, such as negative consumer sentiments, bad brand experiences, or trust reduction. Finally, a longitudinal study would offer a more dynamic view of value co-creation and help determine how these effects evolve over time. All authors listed, have made substantial, direct and intellectual contribution to the work, and approved it for publication.
The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest. National Center for Biotechnology Information , U. Journal List Front Psychol v. Front Psychol. Published online May Author information Article notes Copyright and License information Disclaimer.
This article was submitted to Organizational Psychology, a section of the journal Frontiers in Psychology. Received Mar 18; Accepted May The use, distribution or reproduction in other forums is permitted, provided the original author s or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice.
No use, distribution or reproduction is permitted which does not comply with these terms. This article has been cited by other articles in PMC. Abstract In the current highly interconnected modern world, the role of consumers has changed substantially due to their active collaboration with companies in product and process innovation.
Keywords: value co-creation, ethical values, transcendent motives, information and communication technologies, ethical products, Marketing 3. Introduction In the recent times value co-creation has emerged as a major strength of companies to remain and gain competitiveness Zwass, Thus, this article tries to shed light on several fundamental questions: What are the antecedents i. What is the process by which co-creation leads to positive outcomes? What are the outcomes of co-creation for both consumers and companies?
Methods In this paper an integrative literature review has been conducted as a distinctive form of research to generate new knowledge to literature Torraco, ; Yorks, Analysis and propositions Co-creation and consumer 3. Table 1 Theoretical approaches to value co-creation concept. Theoretical approach Main ideas and contributions Key authors Service dominant S-D Logic Service, not goods, is the fundamental unit of exchange. Co-created value becomes a joint function of actions by the provider s and consumer s. For services to be delivered, consumers must learn to use, maintain, repair, and adapt offerings to their unique needs, usage situations, and behaviors.
Vargo and Lusch, , Service science Based on the S-D logic, service science analyzes value co-creation as configurations of people, technology, and value propositions. It integrates existing resources with those available from a variety of service systems that can contribute to system well-being, as determined by the system's environmental context. Spohrer et al. Interactions ensure that value-in-use equates with the value proposition. Relations include a multitude of actors—intermediaries, employees, actors, and society in general—and generate value co-creation.
Gummesson, , Social constructionist Value co-creation is located within a social context; that is, it is value-in-social-context not value-in-use , a view that captures the holistic nature of value. Edvardsson et al. New customer roles include product conceptualization, design, testing, support specialization, and product marketing. Customers are proactive. Nambisan and Nambisan, ; O'Hern and Rindfleisch, Post-modernism Firms shift toward offering more tailored goods and services to consumers to allow their active participation, such that they must open up more of their processes.
Firat and Venkatesh, ; Bendapudi and Leone, Open in a separate window. Thus, we propose: Proposition 1: Web 3. Consumers' co-creation motives: Ethics and transcendence Consumers' motivations to co-create Motivation is an antecedent of human behavior, explaining why people behave in certain ways, what provokes these behaviors, and what directs subsequent voluntary actions Deci and Ryan, ; Nambisan, Table 2 Consumers' motives for participating in co-creation processes.
Motivational factors Authors Financial rewards —indirect and direct monetary payoffs from co-creation activities. Donna Barclay. With the amendment of the Consumer Protection Act , consumers were then able to seek remedies under the new legislation. Whilst the effort of the government is certainly praiseworthy, this article aims to provide a critique to the fact that, unlike in the United Kingdom and Australia, the Act does not make mention of a specific body given express administrative powers to monitor such terms. This paper thus intends to compare the government agencies in Malaysia, the United Kingdom and Australia that monitor unfair contract terms.
Such contracts have become a popular mode of transacting as they promote efficiency because of the high volume of transactions struck on a daily basis. As such, it would be difficult for organizations carrying out large volumes of business to prepare diverse contracts for each individual with whom they transact. Such a contract serves as a fixed form, or template, which buyers are to sign and to which they are subsequently bound. These fixed form contracts are beneficial to society in the sense that the costs of production and distribution are reduced. The terms contained in these forms are sometimes unfair and burdensome which result in the consumer suffering the consequences of such terms upon signature.
It also served as an amendment to the Consumer Protection Act CPA , which did not specifically deal with unfair contract terms to provide redress in the situation.
Prior to this, these types of terms were dealt with under the common law. The latter statutes relate generally to any unfair term which was not individually negotiated, except for terms that fall under the purview of the subject matter or price. This paper consists of four parts. Part II narrates the Australian law and enforcement agencies that deal with unfair contract terms.
Damage from "theatrical solicitation" remains serious
Part III concentrates on the current position in Malaysia with respect to the government agencies and non-governmental organisations advocating consumer rights and protections. The final part concludes the paper and suggests possible reform options. The notion of freedom to contract is a position at which parties enter into a transaction provided both sides voluntarily, with all the material facts in hand, and coupled with the fact that parties to the contract were of equal bargaining power.
However, in certain instances, parties that enter into contracts do not stand in equal positions. In these situations, now and then, these terms turn out to be unfair. Such terms would be terms excluding or limiting liability or other forms of onerous terms. They were printed in small print on the back of tickets and order forms and invoices. They were contained in catalogues or timetables.
They were held to be binding on any person who took them without objection. No one ever did object. He never read them or knew what was in them. No matter how unreasonable they were, he was bound. But the freedom was all on the side of the big concern which had the use of the printing press. No freedom for the little man who took the ticket or order form or invoice. The little man had no option but to take it.
The big concern could and did exempt itself from liability in its own interest without regard to the little man. It got away with it time after time. It knew well that the little man would never read the exemption clauses or understand them. On several other occasions, even if read, the consumer may not have comprehended the consequences which follow from agreeing to such clauses as they may be worded in a complex nature. They were concerned with railways, steamships and cloakrooms where booking clerks issued tickets to customers who took them away without reading them.
In those cases the issue of the ticket was regarded as an offer by the company. If the customer took it and retained it without objection, his act was regarded as an acceptance of the offer…. These cases were based on the theory that the customer, on being handed the ticket, could refuse it and decline to enter into a contract on those terms. He could ask for his money back. That theory was, of course, a fiction. No customer in a thousand ever read the conditions.
If he had stopped to do so, he would have missed the train or the boat. An important feature in the Regulations, is the power conferred on the Director General of Fair Trading Director General  to seek injunctions to restrain the use of standard terms on the ground that they are unfair. Thus the Regulations now allow for other parties to challenge the usage of unfair terms, that being the consumer and the Director General and Qualifying bodies. Originally in , the Director General was appointed by the Secretary of the State  and remained in office for a period not exceeding five years, subject to re-appointment.
However, these positions were later re-organised in The judges unanimously decided that the term was fair by examining the notion of good faith expressed in the regulation. The Director General under regulations 10 and 12 has a mandate to receive complaints from consumers and act upon them unless he considers them to be frivolous and vexatious or where a Qualifying body has agreed to consider the complaint. With this authority handed to the Director General, the burden on the consumer is alleviated, as unfair terms can be dealt with by the Director General by requiring traders to remove or amend such terms.
In cases where such businesses refuse to do so, legal action can be brought by the Director General. It is interesting to note that the Qualifying bodies have the authority to also seek injunctions against the users of unfair terms. For the application of the injunction, the Qualifying bodies must first notify the DGFT 14 days before an application is made for the injunction. With the coming of this piece of legislation, the position of the Director General was replaced with the Office of Fair Trading OFT which took over the role of the Director.
Henceforth all rights, liabilities and any laws which referred to the powers and actions that could be initiated by the Director General were transferred to the OFT and the office of the Director was abolished. Nonetheless, just like the Director General, the powers of the OFT associated with unfair terms remain similar.
The OFT has the duty to investigate consumer complaints and in extreme circumstances bring an action for an injunction against the user of such terms although the OFT does not have the authority to bring an action for personal redress on behalf of consumers.
The case of Office of Fair Trading v. The Supreme Court unanimously ruled in favour of the appellants. Charges for unauthorised overdrafts are monetary consideration for the package of banking services supplied to personal current account customers. The facts that the charges are contingent, and that the majority of customers do not incur them, are irrelevant.
Upon receiving a complaint or acting on their own initiative, the OFT holds discussions with traders on the term s in question. Groupon accordingly agreed to amend its trade practices. The market is growing rapidly, but it's important that consumers benefit from consumer protection law as well as from the discounted offers.
Also the rewritten versions may be enforceable against the consumer versus a version which is not altered and if brought before the court and declared unfair, may not be enforceable against the consumer at all. The main role of the ACCC is to promote competition and fair trade for the benefit of consumers, businesses and the community.
In fair trading and consumer protection, its role compliments that of the state and territory consumer affairs agencies which administer the mirror legislation of their jurisdictions. This is evidenced, in part, by its website which provides consumers with information about their rights in connection with consumer law, such as guarantees and warranties contained in sales contracts, as well as unfair contract terms. The complaint letter template, available on its website, assists consumers to draft letters of complaint to retailers.
Each aspect of the process involved in making a consumer complaint is further explained as the consumer navigates through each step on the website. The site provides clear advice that is non-threatening to consumers and it also suggests alternative options such as resolving complaints via the state or territory small claims tribunals. Additionally, information is provided on the dispute resolution processes of tribunals and the process of lodging a claim.
However, there existed substantial variations between Commonwealth, State and Territory legislative schemes, which resulted in uncertainty for both businesses and consumers in determining their respective rights. The law applies to contracts that are entered into, on, or after 1 July and to terms of existing contracts that are renewed or changed on or after 1 July Courts may also impose significant penalties against corporations and individuals for contravention of certain ACL provisions. The various regulators have agreed to coordinate their effort and avoid multiple investigations of the same conduct.
It is clear that the ACCC will continue to be the lead regulator, particularly for conduct that occurs in multiple states. The ACL can also be private ly enforced. Since the ACL is both state and federal law, consumers are able to enforce its provisions through the various consumer tribunals, as well as through state and Commonwealth courts.
Firstly, it commenced two Federal Court cases, secondly it identified certain terms that would constitute breaches of the provisions contained in the ACL. The cases concerned are, firstly, ACCC v.