Services marketing scholars have been forced both to
reevaluate the idea of value being embedded in tangible
goods and to redefine the value-creation process. As with
much of the reexamination and redefinition that has originated
in the services marketing literature, the implications
can be extended to all of marketing. For example, Gummesson
(1998, p. 247) has argued that “if the consumer is the
focal point of marketing, value creation is only possible
when a good or service is consumed. An unsold good has no
value, and a service provider without customers cannot produce
anything.” Likewise, Gronroos (2000, pp. 24–25;
emphasis in original) states,
Value for customers is created throughout the relationship
by the customer, partly in interactions between the customer
and the supplier or service provider. The focus is
not on products but on the customers’ value-creating
processes where value emerges for customers and is perceived
by them,… the focus of marketing is value creation
rather than value distribution, and facilitation and support
of a value-creating process rather than simply distributing
ready-made value to customers.
We agree with both Gummesson and Gronroos, and we
extend their logic by noting that the enterprise can only offer
value propositions; the consumer must determine value and
participate in creating it through the process of coproduction.
If a tangible good is part of the offering, it is embedded
with knowledge that has value potential for the intended
consumer, but it is not embedded with value (utility). The
consumer must understand that the value potential is translatable
to specific needs through coproduction. The enterprise
can only make value propositions that strive to be better
or more compelling than those of competitors.
Services marketing scholars have been forced both toreevaluate the idea of value being embedded in tangiblegoods and to redefine the value-creation process. As withmuch of the reexamination and redefinition that has originatedin the services marketing literature, the implicationscan be extended to all of marketing. For example, Gummesson(1998, p. 247) has argued that “if the consumer is thefocal point of marketing, value creation is only possiblewhen a good or service is consumed. An unsold good has novalue, and a service provider without customers cannot produceanything.” Likewise, Gronroos (2000, pp. 24–25;emphasis in original) states,Value for customers is created throughout the relationshipby the customer, partly in interactions between the customerand the supplier or service provider. The focus isnot on products but on the customers’ value-creatingprocesses where value emerges for customers and is perceivedby them,… the focus of marketing is value creationrather than value distribution, and facilitation and supportof a value-creating process rather than simply distributingready-made value to customers.We agree with both Gummesson and Gronroos, and weextend their logic by noting that the enterprise can only offervalue propositions; the consumer must determine value andparticipate in creating it through the process of coproduction.If a tangible good is part of the offering, it is embeddedwith knowledge that has value potential for the intendedconsumer, but it is not embedded with value (utility). Theconsumer must understand that the value potential is translatableto specific needs through coproduction. The enterprisecan only make value propositions that strive to be betteror more compelling than those of competitors.
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