There is little in the existing literature that provides practical information on the link between co-creation and the internet as well as guidance on how to facilitate cocreation in the online environment. This study sought to address these gaps and particularly the lack of guidance on the practical act of co-creation and the relationship between co-creation and the online environment. A quantitative research methodology with a descriptive design was followed. The data for the study was collected by way of an internet survey. The population for the research was defined as the users of the online cycling social network, www.thehubsa.co.za. A topic explaining the purpose of the study and inviting users to participate was posted on the website. The study revealed the existence of a new two factor solution related to the separate co-creation and Web 2.0 applications constructs. In this respect the Interact and Use components (co-creation) as well as the Creating and Sharing components (Web 2.0 applications) could provide the foundation for construct validity for more comprehensive scales.The ability of a user to Author content on a website was found to be of particular practical importance in facilitating co-creation. Providing this functionality to a customer may be the key to the missing “how to” element of online co-creation. The ability of a social networking website, such as www.thehubsa.co.za, to encourage general product/service usage appears to be the main attraction to advertisers. Advertisers looking to build their brands may not necessarily obtain the same benefits from the website. Findings regarding impact on usage were inconclusive and further research is suggested. Copyright / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

Background: Brand managers are always trying to find ways to increase brand profitability and creating a stronger competitive advantage. Part of the marketing activities implemented by brand managers is geared towards building brand equity. Managers have now recognized the importance of the customer in creating brand equity and therefore implement co-creation as a way of creating value together with the customer. Co-creation allows for the firm to bring the customer closer. Two dimensions of brand equity which are brand loyalty and brand experience were chosen for this study. Purpose: The purpose of this study is to explain the effects of perceived co-creation benefits on brand loyalty and brand experience (CBBE). Methodology: To meet the purpose, the study proposes an explanatory design with a quantitative approach. After reviewing relevant literature, three benefits were found important for the customers and in connection to the purpose of a researched model based on six hypotheses was developed. The empirical data was collected through a self-administered questionnaire which was distributed online with a total of 119 responses which were recorded and passed the qualification question whether they follow a brand on social media. Findings: The authors found evidence that perceived co-creation benefits have an effect on CBBE. It was found that particularly hedonic benefits have a significant effect on brand loyalty. Another finding was that social integrative benefits also has an effect on brand experience.