Value fusion : The blending of consumer and firm value in the distinct context of mobile technologies and social media

Purpose – The purpose of this paper is to introduce the concept of Value Fusion to describe how value can emerge from the use of mobile, networked technology by consumers, firms, and entities such as non‐consumers, a firm's competitors, and others simultaneously. Design/methodology/approach – The paper discusses the combination of characteristics of mobile devices that enable Value Fusion and discusses specific value and benefits to consumers and firms of being mobile and networked. Value Fusion is introduced and defined and set apart from related, other conceptualizations of value. Examples are provided of Value Fusion and the necessary conditions for Value Fusion to occur are discussed. Also discussed are the conditions under which the use of mobile, networked technology by consumers and firms may lead to Value Confusion instead of Value Fusion. Several research questions are proposed to further enhance the understanding and management of Value Fusion. Findings – The combination of portable, personal, networked, textual/visual and converged characteristics of mobile devices enables firms and consumers to interact and communicate, produce and consume benefits, and create value in new ways that have not been captured by popular conceptualizations of value. These traditional conceptualizations include customer value, experiential value, customer lifetime value, and customer engagement value. Value Fusion is defined as value that can be achieved for the entire network of consumers and firms simultaneously, just by being on the mobile network. Value Fusion results from producers and consumers: individually or collectively; actively and passively; concurrently; interactively or in aggregation contributing to a mobile network; in real time; and just‐in‐time. Originality/value – This paper synthesizes insights from the extant value literature that by and large has focused on either the customer's or the firm's perspective, but rarely blended the two.