Cocreating Value with Customers: A Case Study of a Technology-Based Startup

Abstract

With developments related to the Internet and digital technology, consumers have shifted from passively receiving products to actively playing a role in new product development. This aim of this study was to elucidate how a technology-based startup cocreates value with customers to develop an Internet of things–based product and service. A single case study was conducted to identify a startup’s cocreation motivations, cocreation forms, and engagement platforms throughout the entire new product development (NPD) process. Open-ended interviews with a set of cue cards were used for the research inquiry. The results show that customer cocreation occurs in all the stages of the NPD process, and the role of customers varied from ideation to the postlaunch stage. Customer cocreation assists startups in refining their offerings, generating content on a virtual platform, and establishing an active user community. We suggest that entrepreneurs consider customer cocreation as an open innovation method and search for viable cocreation opportunities to grow their business.