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This paper aims to explore and evaluate practice-based segmentation as an alternative conceptual segmentation perspective that acknowledges the active role of consumers as value co-creators.

Data comprising various aspects of customer-to-customer (C2C) co-creation practices of festival visitors were collected across five UK-based festivals, using participant observation and semi-structured interviews with naturally occurring social units (individuals, couples and groups). Data were analysed using a qualitative thematic analysis procedure within QSR NVivo 10.

Private, sociable, tribal and communing practice segments are identified and profiled, using the interplay of specific subject- and situation-specific practice elements to highlight the “minimum” conditions for each C2C co-creation practice. Unlike traditional segments, practice segment membership is shown to be fluid and overlapping, with fragmented consumers moving across different practice segments throughout their festival experience according to what makes most sense at a given time.

Although practice-based segmentation is studied in the relatively limited context of C2C co-creation practices at festivals, the paper illustrates how this approach could be operationalised in the initial qualitative stages of segmentation research. By identifying how the interplay of subject- and situation-specific practice elements affects performance of practices, managers can facilitate relevant practice-based segments, leading to more sustainable business.

The paper contributes to segmentation literature by empirically demonstrating the feasibility of practice-based segments and by evaluating the use of practice-based segmentation on a strategic, procedural and operational level. Possible methodological solutions for future research are offered.

Approached from the customer-dominant (C-D) logic perspective, this paper aims to extend current value co-creation discussions by providing conceptual insights into co-creation within customers' social sphere. Focusing on socially dense contexts in which customers consume together in dyads or collectives, the paper seeks to provide recommendations of how service managers can facilitate customer-to-customer (C2C) co-creation.

The paper bridges current thinking on value within the C-D logic with service management perspectives on C2C interactions and social science concepts on consumer communities. Examples from literature and practice are drawn on in the discussion.

The proposed framework reveals C2C co-creation as a dynamic, multi-layered process that is embedded in customers' social contexts. Value emerges in four distinctive social layers: “detached customers”, “social bubble”, “temporary communitas” and “ongoing neo-tribes”.

This paper is conceptual. Further validation of the framework in a variety of socially dense consumption settings is needed, using field-based qualitative methods such as participant observation and interviews.

Awareness of the multi-layered nature of C2C co-creation and specific practices in which value is formed provides service managers with opportunities to create value propositions that help facilitate such co-creation. Service managers across various sectors benefit from understanding how customers can be “nudged” into more socially immersive co-creation layers.

The paper contributes by introducing a C2C co-creation perspective, conceptualizing the social layers within which value is formed, and providing specific propositions to service managers with regard to servicescape structuring and other strategies that facilitate C2C co-creation.