Value co-creation processes between retailers and consumers

This study analyzes the process of value creation from suppliers and customers in the furniture industry, taking into account the Service-Dominant logic perspective. From a theoretical perspective, one of the main expected contributions of the present paper is the approach to the concept demand chain management, knowledge management and Customer relationship management from an integrated perspective with Service-Dominant logic and value co-creation between retailer and consumer as the thread that connects all the previous concepts. In S-D logic the role of producers and consumers are not distinct: “value is co-created jointly and reciprocally, in interactions among provider and beneficiary through the integration of resources and the application of competencies” (Vargo, Maglio, Akaka, 2008, p. 146). Competition is gained by integrating resources and developing superior competences in order to co-create high value. The notion of competitive advantage is so shaped to fit into the Service-Dominant logic as a function of how a firm applies its operant resources to meet customer’s needs better than another firm. Based on SD logic and value co-creation we develop a framework to value co-creation where the model by Payne et al, (2007) highlights the process of value creation and the model by Grönroos (2008) gives the role of actors. Customer knowledge is the basic foundation for the effectiveness development of the value creation processes. The research context is the Spanish furniture retailing sector. This is a very vulnerable sector and, so, the furniture retail stores that are not in tune with consumers preferences and needs and understand how can co-create value with consumers are disappearing.