DOI : https://doi.org/10.18517/ijaseit.10.2.7126

Development of a Revenue Model for Buyers in Co-Creation Environment

Young Jae Park (1)
(1) Department of Management Information Systems, Tongmyong University,428 Sinseon-ro Nam-gu , Busan, 48520, Republic of Korea
Fulltext View | Download
How to cite (IJASEIT) :
Park, Young Jae. “Development of a Revenue Model for Buyers in Co-Creation Environment”. International Journal on Advanced Science, Engineering and Information Technology, vol. 10, no. 2, Mar. 2020, pp. 578-84, doi:10.18517/ijaseit.10.2.7126.
Citation Format :
With the advancement of information communications technology (ICT) and dissemination of mobile devices, new businesses are constantly emerging, and collaboration and cooperation between suppliers and consumers are also leading to innovation. Furthermore, to enhance consumer loyalty or to attract new customers, marketing activities are further advancing by utilizing cutting-edge information technology. In particular, user experience is highly emphasized, influencing the stages of planning and developing products, and is even used as a means of marketing. Creating new value and joint innovation through direct customer engagement is indeed a new challenge from design to production, marketing, sales, and delivery of products or services. Personal information on the internet is rapidly increasing due to the advancement of information technology which leads to an increasing use of social networking services and web search, as well as easier access to the internet itself. More companies are attempting to link corporate strategies to the analyses of such personal information and customer propensity or preferences, which is considered key to corporate success. As such, the mobile environment has become a new business tool and channel for sales and purchase for both companies and customers, and new business models to utilize mobile devices are emerging. Services can use the user location to provide information on the areas or shops near the user. User profile can also be provided to advertisers and product sellers, and the advertisers can advertise products that certain users may be interested in based on the user profiles. Users can compare the lowest prices and get information on the related or similar products. This study suggests a buyer revenue model based on such scenario and reviews the technical issues in implementing the model.

J. (Snow) Wu, R. Law and J. Liu, “Co-creating value with customers: a study of mobile hotel bookings in China,” International Journal of Contemporary Hospitality Management, Vol. 30, Issue 4, pp. 2056-2074, 2018.

T. Y. T. Wong, G. Peko, D. Sundaram and S. Piramuthu, “Mobile environments and innovation co-creation processes & ecosystems,” Information & Management, Vol. 53, Issue 3, pp. 336-344, 2016.

C. K. Prahalad and V. Ramaswamy, The Future of Competition: Co-Creating Value with Customers, Harvard Business Press, USA, 2004.

H. Chesbrough, Open services innovation: Rethinking your business to grow and compete in a new era, San Francisco, CA: John Wiley & Sons, 2010.

G Gemser and H Perks, “Co”creation with customers: An evolving innovation research field,” the Journal of Product Innovation Management, Vol. 32, Issue 5, pp. 660-665. 2015

Kumar Rakesh Ranjan and Stuart Read, “Value co-creation: concept and measurement,” Journal of the Academy of Marketing Science, Vol. 44, Issue 3, pp 290-315, May 2016.

P. Timmers, “Business Model for Electronic Markets,” Electronic Markets, Vol. 8, No. 2, pp. 3-8, 1999.

J. F. Rayport and B. J. Jaworski, e-Commerce, McGraw-Hill, 2002.

C. K. Prahalad and V. Ramaswamy, “The New Frontier of Experience Innovation,” Sloan Management Review, pp. 12-18, 2003.

T. Kang, “A New Business model for E-commerce: T-commerce and Its Implications on Financial Institutions,” Journal of Global Business and Trade, Vol. 12, No. 1, pp. 37-42, May 2016.

R. Lamboglia, D. Mancini and P. Piedepalumbo, New Business Model for Value Co-creation in Smarter Universities, in Conference New Business Models - Toulouse Business School, Vol. 16, 17 June 2016.

C. Morosan and A. DeFranco, “Co-creating value in hotels using mobile devices: A conceptual model with empirical validation,” International Journal of Hospitality Management, Vol. 52, pp. 131-142, January 2016.

C. Dennis, M. Bourlakis, E. Alamanos, S. Papagiannidis and J. JoÅ¡ko Brakus, “Value Co-Creation Through Multiple Shopping Channels: The Interconnections with Social Exclusion and Well-Being,” International Journal of Electronic Commerce, Vol. 21, Issue 4, pp. 517-547, 2017.

Chia-Hui Yu, Chia-Chang Tsai, Yichuan Wang, Kuei-Kuei Lai and Mina Tajvidi, “Towards building a value co-creation circle in social commerce,” Computers in Human Behavior, 2018. Available: https://doi.org/10.1016/j.chb.2018.04.021/

S. G. Hong, H. J. Kim and H. R. Choi, “The Conceptual Model of a SNS Platform for Co-creation,” Journal of the Korea Industrial Information System Society, Vol. 17, No. 3, pp. 95-104, 2012.

J, Magretta, “Why Business Model Matter,” Harvard Business Review, Vol. 80, No.5, pp. 86-92, 2005.

B. Park, H. Choi, J. KIm, J. Lee, C. Kim, K. Lee, Y. Park and M. Park, “Real-Time Location Tracking System Suitable for Global Shipping Logistics,” Journal of the Korean Institute of Information and Communication Engineering, Vol. 18, No. 5, pp.1207-1214, 2014.

T. Finin, R. Fritzson., D. McKay and R. McEntire, “KQML as an Agent Communication Language", in Proc. of the Third International Conference on Information and Knowledge Management (CIKM94), pp.456-463, 1994.

Authors who publish with this journal agree to the following terms:

    1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
    2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
    3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).