In these days, the ceaselessly alteration in customers’ favoring, globalization and the innovation of technology have forced organizations to adapt and operate in ways that have never been done before. Customers have more choice because of product variation and multichannel sales, the number of competitors in market is rising due to globalization and technology has been developed to increase productivity and decrease cost. All these changes have created a shift in doing business, the traditional business centric where firms create value and deliver to the customer is being challenged. The firm-centric view regards value creation happening inside the firm, ascribing both firm and customer distinct roles as producer and consumer and focusing on “targeting and managing the ‘right’ customer” (Prahalad & Ramaswamy, 2004, p.6).
With the development of Internet technology, namely the introduction of Web 2.0 has elevated the communication to a new level where people can interact actively and immediately from anywhere in the world. Customer information has always been valuable source of data that firms and corporations strive to acquire, hence, the technology plays as an important medium for the possibility of customer involvement. Moreover, it seems that consumers are willing to contribute their time and energy to co-create with companies. This co-creation means sharing ideas, comments and knowledge. (Prahalad & Ramaswamy, 2004) As a consequence, more firms and corporations are adapting to the new trend and integrate customer effort into their new products and services development.
The involvement of customer in the process of creating value has redefined the traditional way business is conducted to a ‘customer-centric’ view in which firms collaborate and exchange knowledge with their customers by actively involving them in new product development (NPD) processes in order to create value. (Sawhney, Verona, & Prandelli, 2005) Customer can actively contribute to product innovation at many stages of ideation and product development, commercialization and post launch stages; providing insight about customers’ preferences and ideas based on interaction and continuous feedback given by the costumers contributes to the development and realization of products or services properly reflecting customers’ needs. (Mascarenhas, Kesavan, & Bernacchi, 2004; Mulder & Stappers, 1997; Romero & Molina, 2011)
Co-creation in new product development has been largely applied in developed countries, where customers have high demand in product specification and utility. Many businesses of top industries created forums and social pages for feedbacks, exchanging knowledge as well as employ new ideas from their own customers. For example, BMW Group, the world-class car manufacturer has launched their Co-creation Lab where individuals interested in car-related topic share their experience, ideas, and collaborate with others or teams of BMW Group. “Participants not only evaluate...