From controlled to loose co-production: benefits distribution between firms and consumers

Literature on innovation and recent marketing contributions stressed the involvement of consumers in the co-production of value, by emphasizing either the role of a single consumer or the community in such process. Few studies coupled the two interrelated dimensions and analyzed their impacts on customers’ behavior and firm marketing strategies, specifically in terms of benefits achieved. The paper aims at filling this theoretical gap by distinguishing between individual and social co-production, where different levels of consumer engagement can be identified with diverse value sharing outcomes. We argue that not all customers are interested in being involved in the co-production concerning all their consumption activities. Depending on their commitment to participate (centrality of the consumption activity for the customer) and the co-production nature (individual vs. social) four alternative options of co-production emerge, with distinctive managerial features.