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

Abstract

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.