Research On Total Customer Participation For Value Harmonization

Creating value for customers is the essence of corporation strategy instead of beating competitors in the product market. Traditional enterprises pay more attention to shaping strengths for value creation from the internal resources rather than from the external, therefore ignoring customers as an active role for value creation. With the changing role of customers, companies increasingly recognize the importance of creating value with customers. Total Customer Participation (TCP) is a kind of business model oriented to create value by enterprise and customer together. By using theoretical verification, empirical verification and mathematical model, this dissertation focuses on TCP to demonstrate how it harmonizes Customer Value (CV) and Enterprise Value (EV) and what kind of influences it has on CV and EV. The main research conclusions are as the following:TCP is the solid guarantee to realize Instant Customerization (IC). The development from Mass Customization (MC) to IC is the inevitable tendency of business operation. In addition, there exists some similarities as well as obvious differences between TCP and Customer Relationship Management (CRM). Both TCP and CRM advocate customer-centered idea to win Customer Satisfaction (CS) and Customer Loyalty (CL), which companies can obtain valuable customer information and customer knowledge from their relationship and consequently achieve win-win for companies and customers. However some obvious differences exist between TCP and CMR, such as types of customers, the interactive scope between customers and enterprises, and the principles for maximizing CV.TCP has a significant positive effect on both CV and CS; meanwhile, CV has the same influence on CS as well.10 items of TCP,11 items of CV and 3 items of CS, which were established in this dissertation, are available to the related research. TCP has positive influence on EV. The results of empirical verification show that TCP has a significant positive impact on Customer Purchasing Value (CPV), Public Praise Value (PPV) and Customer Information Value (CIV). Each of these three factors has a significant positive impact on EV correspondingly.The value harmonization mechanism of TCP lies in its integration of customer capability and enterprise capability. The gaps of information, perceived value and satisfaction were eliminated by customer participation of every hierarchy, full processes and lifetime, which harmonize CV and EV efficiently, thus enabling enterprise to increase CV more accurately and more effectively.