Ways of engaging consumers in co-production

Co-production refers to the involvement of consumers in the various value creating

activities through which products and services are made. The trend towards consumer
involvement started when changes in technology, consumer sophistication, and regulatory
environment were activated. Co-production reflects a strategic decision by consumers to become
involved in production-like activities. In order to understand how to engage consumers in this
activities we must understand what lead them to participate.

Economic needs

A major drive to engage in co-production is economic. With co-production, consumers

relieve manufacturers and retailers from performing some activities which lead them to reduce
the cost of the production. The use of a consumer’s time in co-production must be valued, as the
time spent in this reflects its value to the consumer. Consumers will opt for co-production when
the internal costs of co-production are lower than the the discount price from the manufacturers
or retailers. Nowadays consumers increasingly seek personalization. They may decide to become
involved in the production or design of the product and service to reduce the risk of receiving
something that is not suitable for their needs.

Satisfaction of psychological needs

The co-production decision is not purely economic. A major motivation is psychological,

the desire to be involved in meaningful activities. Many of the activities of co-production are
extended hobbies which allow consumers to exhibit their creativity. Co-production changes mass
produced products into more handcrafted items. It also makes consumers feel important when
they consult on the product they are about to buy.

Operational implications

Modern consumption culture is often tied to life styles. Another attribute is the increasing
reliance on service components. Consumers tend to engage in co-production when the product
includes a higher component of services, are related to a specific life styles, and allow them to
connect with distinct social networks.

Product and consumer characteristics

Co-production is more suitable for some products and consumers than for others. It leads
to personalization and is more easily realized in product categories where items can have diverse
specifications rather than in commodity like products. Marketers need to recognize that co-
production is no t automatic. For consumers to engage in co-production, they have to ensure
that they offer suitable products and services.
Carlos Alfonso Polanco Romano 2017-0055