Save water, drink champagne! A case study of how a luxury company can use a digital customer interaction to enhance value.

Abstract

This study examines the implications of digitally involving customers into a luxury company, through capturing the dynamics of user innovation and value co-creation. The purpose of this research is to bring clarity in how a luxury company digitally can integrate their customers to maintain and improve customer value. In the era of digitalization and in an increasingly internet based society, the evolvement of user innovation as a co-creation process has rapidly increased. Thus, digitalization provides opportunities for companies to constantly engage and directly connect with their customers in order to develop and innovate their offerings. The empirical data of the study consists of interviews with the case company Hatt et Söner and a selfcompletion questionnaire with their customers. The results are structured around several main themes; opportunities, barriers, and customer values in a digitalized customer integration. Finally, it is concluded that a luxury company can maintain and improve value creation through building a digital members community. The study contributes to the research areas of digital innovation and organizational customer involvement, through the establishment of potential connections between the two subjects, and sheds light on an observed, yet uninvestigated topic.