Co-Creation of Value : Creating New Products Through Social Media

Co-creation of value with consumers is an emerging marketing paradigm for the firms. One way to understand co-creation of value is to examine co-creation of value at the new product development (NPD) stage, when consumer has yet to interact with the fully formed product. We first describe the emergence of social media as an evolution of the social nature of the web. Then we describe social validation, social information, and social inspiration as three processes that help explain why consumers like to be part of co-creation at the NPD stage. Finally, we describe two stages of NPD in the context of co-creation with consumers: ideation and prototyping, and discuss implications for the emerging markets like India