KARLSHOCHSCHULE INTERNATIONAL UNIVERSITY

Seminar Paper
Co-creation and its impacts on film tourism as reflected by The Lord of the Rings and Harry
Potter Tours
Nguyen Thi, Thu Thuy

WS 2014

23.12.2014

Contents

Introduction ................................................................. 3
I. Literature review ........................................................ 4
1.1 Studies on co-creation ....................................................................................4
1.2 Opportunities and challenges of co-creation .......................................5
1.2.1 Opportunities of co-creation ................................................................5
1.2.2Challenges of application co-creation ...............................................7
1.3The process of co-creation ............................................................................8
II. Impacts of the concept co-creation on film tourism. ........... 9
III. Case study: Co-creation in case of Studio Tour with examples
Lord of the ring tours and Harry Potter tours ................... 12
IV. Conclusion ............................................................ 17
References ................................................................ 18

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Introduction
Globalization has had a great impact on economic activities, of course, including services. Wilson, Zeithaml et al (2012) explained that services are not tangible things that can be touched, seen and felt, but are rather intangible deeds and performances. Similarly,
Ballantyne and J. Varey mentioned in their paper that services is an interactive process of
“doing something for someone” that is value. In fact, all activities of economic always have at least a connection to the service. Nowadays, most of the process of business actitivites would be grounded in services logic, theory and principles. In 1995, Evert Gummesson agrued that:
The focus is not on products, but on the consumers' value -creating processes, where value emerges for consumers, and is perceived by them...the focus of marketing is value creation rather than value distribution. So, service as a new dominant logic seems to be the new concept to replace the traditional concept goods-dominant logic, which called service - dominant logic (hereafter
S-D Logic). In the line with S-D logic, companies were succeeding by paying the attention to the human’s experiences through co-creation technique. Concerning with this matter, Shaw et al (2009) observed that the co-creation process is just one critical dimension of S-D Logic and open innovation culture. In recent years, there has been an increasing interest in topic
Co-creation.
Co-creation has been applied in many companies such as Nike, Apple, BMW,
Starbucks and so on. Certainly, they have been benefiting a lot from their customers. As a result, the concept co-creation would be replicated over the world and used in plenty of branches, of course, even in the field of tourism. The same as other sectors, tourism has changed days by days due to the necessary of innovation. Considering the history of tourism development, it is quite hard to make tourists feel satisfied (Stephen J. Page and Joame
Connell: 2006) and satisfaction is considered as a tool that helps tour operators achieve their business goals. Therefore, the concept of co-creation could generate the win-win situation by constructing a tight connection between the customers and the companies.
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Because of the power of co-creation in context tourism, a large number of authors have written about this interested topic before. Nevertheless, it is not redundant to conduct further research on such matter. This paper dealt with the concept of co-creation and its influence on film tourism along with two examples Lord of the rings tours and Harry Potter tours. Because this topic is quite large, this research on co-creation would be more effective and productive by concentrating on film tourism.

I.

Literature review
“Coming together is a begining, staying together is progress, and working together is success.”- Henry Ford

1.1

Studies on co-creation

Heraclitus of Ephesus - a Greek philosopher said “No man ever steps in the same river twice”. Every thing in the world ‘flows’, changes and develops relentless. People have always been looking for a better way, and a better life (H. Plattner, C. Meinel and L. Meinel:
2012). The S-D logic is also such that change from the goods-dominant logic (hereafter G-D
Logic). In the G-D Logic, for intance, communication between producers and customers are
‘one-way’. The producers centres on manufactering the goods as the first priority and the customers are secondary. In contrast, the S-D Logic changes the perspects of company and customer community, so that the customers can join in the value creating process
(Grissemann and Stockburger-Sauer:2012). Moreover, Payne et al (2008) discussed that SD logic suggest relevant meanings are created by the experiences a customer has over time.
All the studies reviewed so far, however, suffer from the fact that G-D Logic is same as a stepping stone for the growth of S-D Logic. In the old time, customers in the line of G-D
Logic were quite passive in consumption. In S-D Logic, with their real experiences, customers become more active that could help the providers innovate their products or services by co-creation process. In many points of fact, the consumers could be the cocreator of value by interacting with company. They would notice the advantages and disadvantages of products through the utilisation time, and sometime they have some ideas to develop and put more values into the products. When people create ideas, they excited about it and want to make commitments (H. Plattner, C. Meinel and L. Leifer: 2012).
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As a matter of fact, there are many way to create value for customers, but value cocreation process seems to be most effective. The word ‘co-creation’ could be discribed also more or less this concept: ‘the idea of creativity developed together with others’ (Ind:
2012). According to Lush and Vargo (2006), customer co-creation is defined as a customercenters concept only occurs in the service provision and consumption stage of the service process. However, such explanation tends to overlook that fact that the co-creating process is still occurring silently in other stages of manufacturing and consumption. Ind (2012) observed that co-creation suggests the interaction of individuals within a framework to evolve, redefine or invent something that new. Similarly, H. Bauer (2010) explaines that the term co-creation refer to the rudimentary precept that the involment of both the customer and the producer is required to create the value. Prahalad and Ramaswamy (2004) agree with these above points, they wrote that co-creation is about joint creation of value by the company and the customer. On the other hand, Prebensen and Foss (2010) propose a lager definition of the concept of co-creation that it handelt with the customers as serving themselves, cooperating with the service providers and adopting roles in interaction with people and products. In some cases, co-creation is about learning how to creat meaningful and rewarding experiences (Ramaswamy and Gouillart: 2010). Generally, co-creation is an active creative and social process base on the coordination between user and producer to generate new value for consumers.

1.2

Opportunities and challenges of co-creation
1.2.1 Opportunities of co-creation

Almost authors, who interest in this topic, agree that the core principle of cocreation is ‘engaging people to create valuable experiences together while enhancing network economics’. In the book the Power of co-creation of Ind (2010), he proposes a model about co-creation:

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According to this model, it is clear that co-creation is an exchange process with four core principle, namely network relationship, engagement platforms, context of Interactions and Experience mind-set. These interactions could generate the core new value as a basis for win-win situation, which created by the satisfaction of customers and the turnover of enterprises. Nowadays, goods are not the subject which people want to buy, but the services, which known as intangible products. Because of that reason, it is quite hard to elevate their quality. The companies try to build connections with their target groups in the market to approach right strategies in order to achieve their goals. Consumer research is expensive and slow, but innovation is necessary for the success of a business. Many businesses fail on the market because they deny the super power of the community with their customers.
Integrating customers in the production of market value is not only economically necessary and strategically effective but most of all essential for maintaining competitive advantage through innovation. By application the co-creation process, they could reduce the market research cost, and also innovate in the right direction, increase the satisfaction of customers and gain the customer loyalty (Ind:2010). A really good example in this case is the success of Nike. After launching the Nike+ as a partner with Apple, Nike could generate new ideas rapidly; learn directly from the behavior of its customers; and build deeper relationship and trust with the community (Ramaswamy and Guillart:2010). The profit of Nike has been increasing relentless. Moreover, the benefits could be seen of Nike such as reducing the cost of marketing through the positive word of mouth created; sharing the risk of product development with partners and mitigating the risk of capital investment. Similarly, Norman and Ramirez (1993) agree that self-service could reduce cost. They proposed the example
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about the online tickets and check-in at the airport. These example reflect the advances of technology. Heiko Gebauer also discusses that the co-creation could provide a competitive advatage, increase customer satisfaction and loyalty and instil confidence through the creation of positive emotion bonds. Perhaps the most serious disadvantage of this viewpoint is the customer loyalty. If the concept co-creation is applied popularly and successfully, consumers do not need to keep a rigid adherence to only one brand or company. Prahallad and Ramaswamy (2004) do not agree with the viewpoint of Bebauer and some other authors. They argue that co-creation can reduce the loyalty. Because of the word of mounth, consumers could approach with plenty of information sources for intance about a firm. As a result, they can choose the firms they want to have a relationship with.
Being active consumers, they have more knowledge and they pay according to their utility rather than according to the company’s cost of production.

1.2.2 Challenges of application co-creation
It is undeniable that failure always exists along side with success. The co-creation’s concept may sound simple; however it is both essential element of creative thinking and highly complex. It is about creating positive synergies for all parties involved (Hass
Plattner:2010). Most of the co-creation process would be conducted in the social network such as Facebook, Twitter, You Tube and so on. The advantage of this method is approaching to the target market easily. Howerver, the question has to be found out by all managers is how many people in the social networks would like to participate in cocreating process. The good ideas just come from a small group of people. Besides a number of companies are successful when they implicate the co-creation process on social network, not less companies are failt in this bath. Instead of help the companies with the real nice ideas, some customers have used these chances to ridicule the company.
According to Bernard Cova, people inside the company are not used to work with people who are not employees. The employees do not need to share their salaries or commissions with customers. Yet, in truth it is difficult to link employers and customers in order to work together. In addition, it is also strange for many companies that hands over so much responsibility to external stakeholders, who do not really understand the
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organizational culture. This step could hold the risks such as ruin the mission and vision statement of a company. Ind (2012) proposes another side of co-creation as challenge to beliefs about the role of management, the value of expert, the need of control over customer experience and the importance of quality assurance.

1.3

The process of co-creation

Goornroos (2008) provided three elements that lead to the outcome: customers sphere, suppliers sphere and joint sphere. Similarly, Monika Skaržauskaitė (2012) proposes a process model in her research:

Considering to this model, three sections would be recognized:

customer’s sphere,

organization’s sphere and the Joint sphere (value in use). In the first section customer’s sphere, the value creaion of customers is processing, in which the customer create a new value to the products or services based on their individual experiences. In the second section is the creating process of organisation, in which the products and services are manufactering. The value exchange would be implicated in the third section, which is considered as the encounter of these above section.
However, the authors overlook the fact that the more satisfied the customer feel, the more money they are ready to pay. The customers have to pay more for the products or services, even though they are the creators, who generate the main core value for. In the context of tourism, the individual tours is extremely expensive than the mass tour products.
From the perspective of companies, co-creation enables an organization to gain profit, but from the other perspective of customer, it is quite contradictory that they create the new value and pay more money for that. When the customers join in co-creation process, they are generating the new value not only for themselves but also for the other customers.
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Also wrote on this topic, Fronteer strategy observed that there are five steps to cocreate:

First step is to inspire participation to motivate people to join in the value co-creating process: open up and show what’s in it for them. This step allows people to personlize their experiences. The next step is called select the very best. As the name, this is period to select the best ideas and also the best people. The most importance in this step is to choose right tools or areas to reach the target group. Then, it is necessary to connect creative minds.
From thousand ideas, they have to combine them to depict a greater value. This concept is exactly the same as the method in Lego. After that, the new value should be shared and finally, the products would be innovated. Thank to the advances of technology, co-creation process would be more and more easier and more effective.

II.

Impacts of the concept co-creation on film tourism
2.1 What is film tourism?
First of all, to go further on co-creation in the context of film tourism, it is important

to clarify the definition film tourism. Film tourism seems to be a new type of tourism for film fan tourists. Meinnel (2010) explains: “The term ‘film and TV tourism’ defines tourism visits inspired by seeing a location on television or at the cinema.” Similarly, J. Connell
(2011) obverses that film tourism is tourism activity induced by viewing of a moving image, and is accepted as encompassing film, television, pre-recorded product and also digital media. In fact, film tourism is defined not only as visiting locations depicted in films for example the tours to Harry Potter film locations in the UK or to Lord of the Rings in New
Zealand, but also as other activities related to tourism for instances visiting of film or TV
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programs for instances the Academy awards, the Cannes film festival, the golden globe awards, and so on. In particular, J. Connell (2011) proposes a model for the scope of film tourism: However, this paper would be focus on the attraction of film and tour of studio set in the field of tourism.
Travel decisions are influenced by private and personal motivation, including the
‘pull’ anf ‘push’ factors. In fact, film or media’s products influence tourists’ motivations greatly. Mundt (2013) mentions in his book that there are two kinds of factors namely
Push- and Pull- factors, which belong to the travel motivation of tourists. Similarly, Uysal
(2008) explains that push motivations are related to internal or emotional aspects. On the other hand, the pull motivation is connected to external or situational aspects. Many audiences, who are fans of films or movies, are motivated to travel because of their immeasurable love for movies, which are called push motivation, and/ or because of the attraction of the fascinated scenes in movies, which are called pull motivation. Also wrote on this point, Riley and Van Doren (1992) considered films and movies as pull factor in tourist motivation. Macionis (2004) argued that pull and push framework provide an approach for explaining the motivations underlying film tourist behavior. It is almost certain that visitors have been coming to film sites to re-live an experience and emotion that were aroused in films. Meinnel discusses that the media of film and television affect on tourists’ destination choices. The successful films can create more destinations, diverse the tour products. In addition, Beeton (2014) acknowledged the impacts of increased tourism, particularly in relation to the host communities where TV series and movies are set and or

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filmed. This is certainly true in case of Heartbeat, a UK TV series, the small village, in which much of it filmed; many residents were affected by the increased number of visitors.
2.2 Co-creation in film tourism
Film tourism is still a small niche but remark a distinct type of tourist behavior, activity and experience. The high-profile tourism destinations in the world are the UK, USA,
Korea, Australia and New Zealand, where the visitor numbers is more and more increased because of the success of the film. It is a potential benefit that film tourism could contribute to the economic. J. Connell (2008) shows an example in UK that around £ 1.9 billion is contributed in 2009 by film fan tourists. Particularly, film tourism took only 10% of tourism trips to the UK. Fundamentally, films, which enable to create more unique and satisfied experiences for tourists, play a role in case of tourism as motivation factor. It could be a win- win situation among film producers, tour operators and tourists when they work effectively in co-creation. One of the most essential factors influencing the success of a movie or film is location. The process of selecting the appropriate location for filming is undertook under attention significantly. In case of New Zealand, where a number of blockbusters were shot such as the Piano (1993), the last Samurai (2003) and special The
Lord of the Ring (LOTR) trilogy (2001,2002, 2003), there has been a coordination between film and tourism to generate a large profit for the economic in general and promote the development tourism in specific.
Moreover, film tourism could create new culture landscape (Jewell and McKinnon:
2008), not only generating a motivation to travel but also forming a part of place identity. It could be a new trend of travel for many people, who want to have more unique experiences through traveling to the places they have seen in their favorite films. This kind of tourism depends much on the emotion and individual perspectives of tourists. Tooke and Baker
(1996) mention that the attraction of filmed locations is greater when plots and locations are interrelated and emotional connections formed between the viewer and the spectacle.
The similarity of film and tourism is emotional factor. Clearly, film producers try to arouse the audience’s emotion by the context, animations and also the locations’ effect. Specially, tourism industry depends on the human’s emotion, which has a strong impact on travel motivation and travel destination decisions and so on. Since the development of filming
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technique, after being underwent the editing and cinematography process, the scenes on films would affect attractively more on the travel decisions. Furthermore, most of the travel decisions were made from the daily life’s activities including film and television. J. Connell
(2008) mentions that “film may have the power to shape the perception and experience of place within the confines of social and cultural systems.” Because of the dependence on emotion of tourism in general and film tourism in specific, it is essential to generate a connection among the stakeholders. The concept of co-creation in this case is completely appropriate for the win-win situation.
The effectiveness of the co-creation technique has been exemplified in a report by
Ramaswamy (2010). This can be illustrated briefly in case of Club Tourism in Japan. This club does not only sell tours, but also co-create experiences with its customers, employees and travel partners, which include airlines and hotel chains (Ramaswamy and Gouillart:
2010). They connect ideas into a brainstorm about new trips, modification to existing trips and desirable new experiences. They have listened to the suggestions from tourists and tried to incorporate those into travel arrangement. The core point is the community: they are successful because they recognize the power of connecting customers with travel partner and community resouces. This is a great example of the co-creative power of live, face to face interaction with customers.

III. Case study: Co-creation in case of Studio Tour with examples Lord of the ring tours and Harry Potter tours Both of tours Lord of the Rings and Harry Potter are applying the value co-creation’s concept. One question that needs to be asked, however, whether they use thoroughly the advantages of co-creation’s concept.
New Zealand is an excellent example for the successful strategic connection between films and tourism partly because of the historical development of film making. A plenty of blockbusters have spreading the name New Zealand and also this country’s image over the world such as The Piano in 1993 (Jane Campion), The Last Samurai (2004), King Kong
(2005) and of course, The Lord of the Rings (hereafter LOTR) (2001, 2002, 2003).
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The LORT’s success attracted a large number of tourists visiting this country.
Manifestly, it is the LORT Tour that has been conducted to meet the film fan tourists’ demand. In particular, LOTR’s film tourists want to experience both the real New Zealand and the more fantastical Middle-earth. In addition, they could anticipate an authentic and sincere experience. Pre-tour images proved crucial for the formation of their expectations and included not only a New Zealand image of a green and clean country but also the LOTR films, the novel on which the films was based, and the “behind the scenes” documentaries.
The LOTR film tourism includes such diverse attractions as remaining former film sets, the locations where the filming was set as well as film related facilities. The visitors could go sightseeing more than 80 locations/settings that were concerned with more 100 film scenes. Another successful film adaptation of novels should be mentioned is Harry Potter series, which enrich the tourism history of the British Isles. The British Isles is an island with long and deep tourism history; however, it is still under influence of the Harry Potter effect. Harry Potter series, which were based on the successful novels written by J.K
Rowling, are the most victorious cinematographic works. In fact, the Harry Potter series and the Harry’s stories could fit in with the history of the United Kingdom (UK). The Alnwick castle 1saw visitors increase by 23% with a benefit of up to £9 million extra spend.
Universal Orlando reported a 20 percent growth in attendance in 2010 with 11.2 million visitors, up nearly 2 million from 2009.
Mostly, the visitors’ motivation is too strong and they have varied expectation, which was featured in the films. When they face with a film tour, they would compare this tour with their imagines. Once the tourists faced with the specific services, they start to judge the quality of the delivered services and compare them with their expectations. Sometimes, it makes them disappointed as the real images are too different from the scenes they have seen on films. Due to this reason, it is essential to undertake the co-creation process, so that tourist could have change to join in the value creating process of tour producers. In this way, the producers could provide the attraction’s information to avoid the above risk. The customers know the reality prevent to having the day-dreams. In case of LOTR tour, it
1

Alnwick castle: The castle is used as a stand in for the exterior and interior of Hogwarts in the Harry Potter films.
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seems that the film fan tourists experience successfully both the real world of New Zealand and the reel world of Middle-earth.
It might be called a success-chain that exist in many blockbusters which are based on famous novels such as LOTR, Harry Potter, Twilight, Divergent, the Host, The hunter games and so on. The success of the novels affected on the success of the films, and again the success of the films effect on the tourism development by attracting more visitors to the film related locations. In case of Harry Potter series, as a result, the film tours are created and conducted also to meet the fan’s demand. Visitors could tour Christ College, the film inspiration for the Great Hall; Leadenhall Market, also known as Diagon Alley; and the
London Zoo, where Harry Potter accidentally frees a snake in the first film, Oxford
University to see Christ Church College's Great Hall, which featured as Hogwarts' dining hall, and locations such as Gloucester Cathedral - where the talking portraits in ‘The
Philospher’s Stone’ and Moaning Myrtle’s scenes were filmed. British Tours2 operator Jason
Doll-Steinberg said: "We do a lot of big tours, and Harry Potter is one of the bigger ones."
British Tours gave 200 to 250 Harry Potter tours to about 1,000 people in 2008. So, the benefit from Harry Potter tours could increase relentless. There are the favorite tours not only of Harry Potter film fan tourists but also the general tourists because of the great attraction from locations set at stately homes, historic and religious sites, and rural or village landscapes.
The Warner Bros, who is the producer of Harry Potter series, opened a homepage for
Harry Potter Tours. Their website Studio tour London 3 connects with other social network such as Facebook, Twitter, Youtube. Therefore, the important information about the tours would be updated and spread wider. Of course, the target visitors are the younger people, who love Harry Potter series and are able to keep up with the technology advances. They could join in the new value creative process and give feedback. However, besides the positive agreements with the products they offered, there are some critics for the tours. The comments on Harry Potter Tours page on Facebook are great examples for this case. A
British Tours Britain's longest-established private tour operator since 1958.
2

3

Studio tour London http://origin.wbstudiotour.co.uk/
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Facebook account wrote that “Quite frankly I was disappointed by the size of Hogwarts and the lack of the invitation to attend said school... I know it is a magical place but how they expect me to fit inside those tiny doors is beyond me […]4”
The similar issue of both LOTR and Harry Potter tours is, the film fan tourists have too much expectation when they decide to participant in these kinds of tours, due to the success of novels and films based on novels. Many tourists feel disappointed because the real sightseeing is not as wonderful as they have seen in films or in their images. Hence, the producers should public more real information and picture to help their tourists by making the good decisions. As consequence, this point could affect on the tourists’ satisfaction. In fact, although they build the communication through social networks, the linking between them and their tourists are not really tight. There are not many chances for tourists to create themselves the new tours. According to the website of Harry Potter Tours, besides the packet tours, which the tourists could book the tickets for individual person, family, group or even the gift tickets directly on the website, they do not offer the programs to support the tourists in creating the new products as they want. The tour operators have not had enough communication with their tourists. Additionally, using social networks could approach only the young tourists, who are able to utilize the technology advances. Many tourists, who have problems with internet using and of course some of them don’t use any social networks, would be overlooked.
The co-creation process in these cases LOTR Tours and Harry Potter Tours is essential. It is undeniable that there are over the world more than thousands fans of LOTR and Harry Potter and desire at least one chance on their life to immerse them in a magic world, which the film producers imparted in purposes under the effects of films.
Nevertheless, this tourist group target is still a small niche. The film producers and tour operators have been working together to generate the interesting tours. For example, the secrets or even the facts which happened in the film shooting periods could also make the tour more fascinating. Moreover, after undergoing the cinematographing process, the scenes would look more amazing, that point supports positively the tourism advertising.

4

https://www.facebook.com/hogwarts?fref=ts
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The other way around, travel agencies could introduce the sightseeing or the locations, which are appropriate for the films and contexts that help the film producers to achieve their purposes. Furthermore, the tourists could participate in creating process to conduct greater value for them and for other tourists. The younger tourists know what they want and what make them feel satisfy. Using the social networks is a step to approach tourists, which both tour operators of LOTR and Harry Potter Tours are taking advantages. Even in
Harry Potter Tours in London, they could use Wifi all the time. The main purpose is to generate a comfortable space for tourists in check-in, sharing the pictures, commenting or giving feedbacks during the tours.
Another reason for using co-creation is to keep the survival of tours as long as possible together with benefiting more and more from them. When the films achieve large success, film tourism would be appeared as a trend, whose existence belongs to how much favored the films are and how long the films are still popular. In risks, LOTR and Harry
Potter tours might be unsustainable if the producers do not think of any strategies to deal with this issue. By emphasizing, co-creation is always a great solution to innovate and develop the tours. As a result, the tourists could not feel bored to join in these tours and perceive that their ideas are respected.
In term of tourism management, through two examples in case study Lord of the rings tours and Harry Potter tours, it can be seen that co-creation has been applied but not strong enough to express its power. The manager should be more creative to conduct the concept of co-creation without the dependence on technique advances.

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IV. Conclusion
In arriving at some conclusion in this paper of co-creation, there are number of research that mentioned the concept of co-creation as a solution for innovation and development in the context of globalization. The communication among tourists, also between tourists and tour operators and the coordination between tour operators and film producers could generate a sustainable development in the field of tourism in general and in film tourism in specific. Film tourism becomes a trend, which both of senior tourists and young tourists have interest in.
The co-creating process is not simple as the theory because it bases on the communication and the coordination among many stakeholders to create new value in order to satisfy the customers or tourists in context of tourism. This paper focuses on film tourism to show the necessity in application the concept co-creation to stimulate the expansion this type of tourism, which is still a small but potential niche. We have grown too dependent on advanced technology these days. Even the application of co-creation is conducted through social networks because of its convenience. In my opinion, it could be also disadvantages because the people who do not have a good technical skills would be challenged by using the services or products; of course the consequence is they have the negative feedback to the companies. So, the challenge of many managers is how to communicate with their customers in general, tourists in specific within improvement of the above disadvantages.
This paper still has its flaws but it could be a reliable foundation for further research in the future. It could be also helpful for other researchers who have interest in such topics as co-creation and film tourism.

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