Emphatic understanding as a source of value co-creation

Purpose - The paper examines how experience-driven design methods support an understanding of value co-creation and differentiation in changing service ecosystems. The aim is to build linkages between topical debate on S-D logic, brand research, service design and experience-driven design approaches. Furthermore, we demonstrate empirically the dynamic and socially constructive nature of value co-creation with an emphasis on unique, holistic experience and image co-construction among beneficiaries, as a means of differentiation. Methodology - Qualitative multi-case and participatory fieldwork approach were adopted in the context of residency in Finland. We focused with six SME companies on topical real estate management service by means of emphatic understanding and holistic experience of the residents as end customers as a powerful means for differentiation in the changing industry. Findings - An experience-driven design approach seems to deepen the understanding of value co-creation and differentiation among personnel in real estate management service companies towards a service mindset. However, empirical findings also revealed that the complex dynamics of transformation were inhibited by institutionalized practices and enabled by new value creation opportunities. Research limitations - The chosen research approach provided rich empirical data. However, the findings are tentative with case-study limitations, and thus open avenues for further research. Practical implications - The experience-driven design approach seems relevant, and methods applicable across industries to support adopting the service mindset in practice. Originality/value - The paper brings a new insight to the topical research debate by linking S-D logic, brand research and experience-driven design approaches, and exploring them empirically, particularly in rather unstudied real estate management service context with great value creation opportunities.