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Value fusion: The blending of consumer and firm value in the distinct context of mobile technologies and social media

Bart Larivière (Based at the Center for Service Intelligence, Ghent University, Ghent, Belgium)
Herm Joosten (Based at the Institute for Management Research, Radboud University Nijmegen, Nijmegen, The Netherlands)
Edward C. Malthouse (Based at the Integrated Marketing Communications, Northwestern University, Evanston, Illinois, USA)
Marcel van Birgelen (Based at the Institute for Management Research, Radboud University Nijmegen, Nijmegen, The Netherlands)
Pelin Aksoy (Based at the Department of Electrical and Computer Engineering, George Mason University, Fairfax, Virginia, USA)
Werner H. Kunz (Based at the College of Management, University of Massachusetts Boston, Boston, Massachusetts, USA)
Ming‐Hui Huang (Based at the Department of Information Management, College of Management, National Taiwan University, Taipei, Taiwan)

Journal of Service Management

ISSN: 1757-5818

Article publication date: 14 June 2013

Abstract

Purpose

The purpose of this paper is to introduce the concept of Value Fusion to describe how value can emerge from the use of mobile, networked technology by consumers, firms, and entities such as non‐consumers, a firm's competitors, and others simultaneously.

Design/methodology/approach

The paper discusses the combination of characteristics of mobile devices that enable Value Fusion and discusses specific value and benefits to consumers and firms of being mobile and networked. Value Fusion is introduced and defined and set apart from related, other conceptualizations of value. Examples are provided of Value Fusion and the necessary conditions for Value Fusion to occur are discussed. Also discussed are the conditions under which the use of mobile, networked technology by consumers and firms may lead to Value Confusion instead of Value Fusion. Several research questions are proposed to further enhance the understanding and management of Value Fusion.

Findings

The combination of portable, personal, networked, textual/visual and converged characteristics of mobile devices enables firms and consumers to interact and communicate, produce and consume benefits, and create value in new ways that have not been captured by popular conceptualizations of value. These traditional conceptualizations include customer value, experiential value, customer lifetime value, and customer engagement value. Value Fusion is defined as value that can be achieved for the entire network of consumers and firms simultaneously, just by being on the mobile network. Value Fusion results from producers and consumers: individually or collectively; actively and passively; concurrently; interactively or in aggregation contributing to a mobile network; in real time; and just‐in‐time.

Originality/value

This paper synthesizes insights from the extant value literature that by and large has focused on either the customer's or the firm's perspective, but rarely blended the two.

Keywords

Citation

Larivière, B., Joosten, H., Malthouse, E.C., van Birgelen, M., Aksoy, P., Kunz, W.H. and Huang, M. (2013), "Value fusion: The blending of consumer and firm value in the distinct context of mobile technologies and social media", Journal of Service Management, Vol. 24 No. 3, pp. 268-293. https://doi.org/10.1108/09564231311326996

Publisher

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Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited