Co-creation as possible exploitation

Praveen Sugathan ()
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Praveen Sugathan: Indian Institute of Management Kozhikode

No 335, Working papers from Indian Institute of Management Kozhikode

Abstract: Extant research indicates that co-creation has several benefits. However, claims have recently been made that co-creation involves double exploitation and unfairness, and that consumers therefore not only put effort into co-creating a product or service, but may also end up paying more for a co-created offering. This study involves two experiments that offer empirical insights into these claims. Our results suggest that co-creation does not really result in any perception of unfairness. Moreover, contrary to expectations, cuing the consumer with the cost incurred by the firm (i.e., setup cost) for enabling co-creation, actually does not act as a moderator of unfairness or does not check the perception that the firm is making higher profits. The study participates in the ongoing debates regarding co-creation and tries to redirect the possible advocacy of exploitation due to co-creation, thereby addressing probable impediments to the acceptance of co-creation practices.

Keywords: Co-creation; Price; Fairness; Consumer; Exploitation; Ethics (search for similar items in EconPapers)
Pages: 03 pages
Date: 2019-03
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Persistent link: https://EconPapers.repec.org/RePEc:iik:wpaper:335

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