Purpose of this paper
This paper explores how Prahalad’s five activities of co-creation (customer engagement, self-service, customer involvement, problem-solving, and co-design) to public transit service enhance the success of a public-transport service.
Design/methodology/approach
This research was based on a single case study of the Swiss federal railway operator (SBB).
Findings
Our findings enrich the concept of value co-creation. It is apparent that value is co-created by one or more of the activities (customer engagement, self-service, customer experience, problem-solving and co-design). The focus on only one of the value co-creation activities might be insufficient to achieve a competitive advantage; rather, organisations should take a comprehensive view of value co-creation if they are to exploit its full strategic potential.
Research limitations/implications
Research limitations are mainly due to the nature of the qualitative research approach.
Practical implications
That public-transport operators should open up their processes and systems to include the active participation of customers. Customer relationship management should base primarily on the knowledge that customers possess, rather than focusing on knowledge about customers.
Social implications
Public transit supports environmental sustainability. However, governments should not only seek to increase transport capacity. Instead, they should encourage value co-creation by engaging customers in marketing activities, offering self-servicing opportunities, creating customer experiences, solving customer problems, and co-designing services in collaboration with customers.
Originality/value
The study avoids the current tendency of many studies to explore rather isolated aspects of value co-creation. We provide a comprehensive framework to help organisations manage the value co-creation process.