This study considers the process of regional Re-Birth against the depopulation of Teshima, located in the Seto Inland Sea (Tonosho-town, Shodo-district, Kagawa Prefecture). The island was the subject of a scandal with largest illegal industrial waste since the 1970s. Now, the industrial waste issue on the island is mainly removed the ART SETOUCHI, art festival, attracted 150,000 visitors in 2016, and is held once every three years. The study focuses on the effects of ART SETOUCHI (Contemporary art festival) and the regional characteristics (especially focusing on local foods). Based on these two key characteristics, the structure model of Re-Birth aimed CSV, that is, balancing economic value and social value by Value Co-Creation among various actors centered on Local residents and New residents. In this study, Value Co-Creation defines value recognition by Local residents and New residents, based on the concept of value co-creation (4C's approach) by Muramatsu (2015) , S-D-Logic by Vargo and Lush (2004) and S-Logic by Grönroos (2006). This study explores not only the structure model of Re-Birth, but also how to adapt the model even in such harsh environmental areas, like Fukushima, suffering with depopulation, aging, and reputational damage. We see that, Regional Re-Birth means, the story that Local residents and New residents aim to establish the self-government system to have initiatives against the negative state refined as polluted land. At such time, independent, self-reliance, and self-consideration are important factors as condition of Value Co-Creation.

This study is one of a study of the innovation process of Co-Created Value (CCV) typed Supermarkets in Japan. The study is done through a collaboration style with Yaoko and Hallo-day, which are recognized as the most CCV typed Supermarkets in Japan for the past 6 years (The two Supermarkets are similar to Wholefoods Market and Wegmans in the U.S.). Basically, this study aims to indicate the mechanism of why these SM manage to grow continuously. The hint to finding the answer in these SM is hidden in“Highly Sticky Information (HSI)”, which is the precious information attached to these employees working in Meal Solution Space refined as “Cooking Support Corner (CSC)”. This HSI is only the source of a competitive power. In Management and Marketing study, I believe the Market Orientation (MO) and CCV is strongly related. To note, inside the company function is MO, and outside relation of the company and the consumer is defined as CCV (See Figure 1). The existing studies in this study are summarized into five directions; “Theory of Sticky Information (TSI), Service-Dominant Logic (SDL), Service-Logic (SL), CCV, and MO”. First, TSI by v. Hippel (1994) and Ogawa S. (1998) were advocated. This theory explains that the HSI is attached to people, and it is the precious information (e.g., Consumers’ needs, insights, and dissatisfaction experience in retailing) and its transfer cost is expensive. Therefore, the company must find a way to collect this precious information in low cost and smoothly absorb such information effectively in their company. In order to do so, the company needs to have a place to communicate with their customer. This lead to the incremental innovation of interactive community space within SM. Secondly, the SDL by S.L. Vargo and R.F. Lusch (2004), and the SL by C.Grönroos, (2006) were advocated. Their concept is basically common understanding of“Consumer 1)shinya.nakami182367@gmail.com Creates Context Value.”However, SDL tends to centralize the concept from the point of the goods more so compared to SL, ; SDL is based on 4Ps marketing in the U.S., whereas the SL is based on the relationship marketing and service marketing in North Europe. Third, the CCV by C.K. Prahalad & V. Ramaswamy (2004) and Muramatsu,J. (2015, 2016) were advocated. Their concept is related to the SDL and the SL. In short, their concept explains that the Value communicates and interacts with consumers and employees in the communication space (Real-Store or Virtual), then, the consumers may need to explain a bit, and finally they create the context value. This stream is the “CCV in Marketing.”And it is important that“Consumers Create Customer Experience”.Nowadays, as many may have already recognized, the CCV is closely related to “Omni-channel”phenomenon. At last, MO by K. Kohli & B.J. Jaworski (1990) and J.C. Narver & S.F. Slater (1990) were advocated. Their concept is constructed roughly in three processes. First step is to collect the customers’ needs and insights. Second step is to sharing such resource within the company. Third step is a feedback, which allows improvements and the production of goods and service to the customers. MO shows how the company understands and work with the customers’ viewpoint. In summary, TSI, SDL, SL, CCV and MO are closely linked with the concept of “Customer Satisfaction and Engagement Orientation by V. Kumar (2016)”in service marketing. And this study is very unique to connecting CCV and MO based upon“TSI”in Japanese CCV typed SM, using not only quantitative, but also in qualitative survey. Next, the purpose of this study is to analyzed the relationship between Performance and “CCV and MO” with awareness of HSI, which is attached to the employees working in Meal Solution Corner of CCV typed Supermarkets, and to make a theoretical framework. The main SM reference is Yaoko in Saitama prefecture and Hallo-day Co. in Fukuoka prefecture, Japan. They both hold two unique and strong points. First, they have a clear cooperate policy. Another is that they have established a clear business positioning. In their interviews, the head representatives from both SM stated that, the most important key for the SM is to be loved by their customers, and to be trusted. Also, my hypothesis was that because the two SM companies had the strong character of CCV orientation, they can continue on with the incremental innovation. The reason why is that, they had 5 elements from customers’ viewpoint, “Koten-keiei” based on Chain Operation, CCV Orientation, Hypothetical Culture, Learning Organization, and Cross-Functional Organization (Nakami 2015, 2016). With 5 such key elements, they manage to increase the sales and profit for over 20 years. In Retailing, store has two meanings. One is a space for selling goods, the other is that it is a “community space” for the residents in each region. Nowadays, the latter role seems to be especially important for strategy in differentiating with Virtual-retailer versus Real- retailer. The two SM companies, Yaoko and Hallo-day, have interactive communication space called “CSC”at the store. The employees as house-wife is working in CSC (Often times, the employees are also relatable to consumers as they themselves are housewife working part time.). By communication of employees and customers in CSC learns about customers’ needs, insights, and possible dissatisfaction in service and even some resource issues within the consumer’s family. These precious information are the most precious and important resources for the retailers. Therefore, CSC is positioned as the information center between the store and the Headquarter. But the average SM has not recognized this importance. They have recognized CSC simply as a Sample Tasting Corner. This is a big mistake. They see the place as similar to eat-in-corner. CSC is the space of “Solving Problem”in the customers based on Job theory by C.M. Christensen (2016). In this study, there is one more important viewpoint, which is known as MO. This concept was proposed by Kohli & Jaworski (1990) and Narver & Slatter (1990). This study is based on the concept of MO in the action viewpoint by Kohli & Jaworski, where the employees working in CSC has the HSI from the customers and share this with the store amongst different departments along with the headquarter, and to propose the counter action to the customers. If the retailing has understood this concept, they would be able to produce incremental innovation. The research question of this study as mentioned in prior, has two unique points. One is to why this study analyzes the importance between performance and HSI, CCV and MO both the consumer’s side and Company’s side. In short, one of the character is how the consumer reputes the CSC with HSI. Second is to how the middle management (GM and manager) working in Yaoko and Hallo-day’s headquarter and the management (shop manager and the chief in each department) in the store repute the CSC, and to what degree do they hold the ability of MO (See Figure 2). There are two analysis approaches in this study. First, Regression Analysis approaches the store-loyalty-focuse of CSC from consumers’ side. Second is Covariance Structure Analysis, which is similar to Sakagawa’s where after the factor analysis of MO and CCV ability in both Headquarter and Store management workers within he company side. The summary of this study is as follows. The consumers see the CSC as the space to gain further and deeper knowledge of goods and a place of communal gathering and interactive space, with mind also placing in hopes that they can provide awareness to the workers in regards to their dissatisfaction in service or further requests and demands in service. On the other hand, the management layers in headquarter reminds CSC as the space of cross MD and the space to execute MO”. The store manager is almost same similar to the management layers in headquarter. However, the difference in view of the two may seem the only true difference is MD Standardization. The reason why is that a manual is needed to establish MO within a store. This CCV typed study result seems to be similar to the study result of Sakagawa’s Chain Store Model in Japan (2016) that MD Standardization is important to execute MO in Retailing especially. In present, this study is continuing to build up the research framework compared between Chain Store Model in Japanese SM by Sakagawa Y. (2016) and CCV Model, and whether there is a CSC in store or non-cooperating supported Hallo-day SM quantitatively. At the GMC2018, I plan to deliver the report of analyzed result and the research framework. Finally, these findings of quantitative and qualitative study will be useful and beneficial towards the study of innovation process in the retailing, both consumers’ and companys’ viewpoint. Perhaps, HSI will be more effective to create CCV and MO in Retailing as the platform between the consumers and retailers continues to seek for enhancement in high quality and demand. Also, this study will be extended to Omni-channel study to make Customer Experience in Real store and Virtual (Customer Touch-point).

The thesis of this study is that, “Health and Wellness”should be prioritized to enhance the store loyalty in Japanese Supermarkets. In order to prioritize, one must understand where the“Health and Wellness”is in the study of Supermarket marketing. As of current situation in Japan, facing two major critical issues, Aging society in advanced culture, and the 3.11 natural disaster linking with the nuclear issues, following hypothesis is made,“Health and Wellness”plays the sensitive and strong role in“Quality”Factor, which reflects store loyalty directly along with the other three; Service, Assortment, and Price of the Quantitative research to Yaoko supermarket customers (see Figure 1). In conclusion, the research question of this study is that, would“Health and Wellness”eventually become an independent 5th key factors constructed store loyalty in the future? The existing study in this study is summarized into two directions;“CSV, Marketing 3.0, and Co-Created Value”and“Store Loyalty”. First, CSV reported by Porter & Kramer (2011) aims to be compatible, both in social and economic values. On the other note, CSR aims to only create a social value. And Marketing 3.0 reported by Kotler, Kartajaya, & Setiawan (2010) is Value-driven marketing similar to CSV. The key concept is focused on the importance of Cooperate Mission, Vision, Value and Co-Creation with consumers and regional community. Precisely, the Marketing 3.0 is related with the concept of Co-Created value (Prahalad & Ramaswamy, 2000; Vargo & Lusch, 2004). In summary, such question may rise; why does a company focus to the idea of CSV, Marketing3.0 nowadays? It is obvious to state, a company suffers from the pressure created by commodity phenomenon of goods and services. Therefore, in order to face such pressure, a company aims to upgrade from the functional value to the ideated value or social value. And this is the basic idea of Marketing 3.0. Next, consumers are very sensitive to social goods and values when they purchase the goods and services more than ever before. Therefore, a company faces to build up not only the economic value but also the social value; which is the basic idea of CSV. In short, both a company and consumers are focused now to the concept of the sustainability as “Health and Wellness” in Japan, where the basic qualities are already covered and are way below the considerable point. With this, essentially, the sustainability is the CSV and Marketing 3.0. Secondly, the research framework of Store loyalty in this study is based on the existing study of Baker, Parasuraman, Grewel, & Voss (2002). And based on Baker’s Store Loyalty Model, this study reflects quantitative research result to Yaoko supermarket customers. The result is that, Store Loyalty to supermarkets of“Co-Created Value” type in Japan is constituted to both “service” (e.g., Emotional satisfaction from shopping, Comforts created by the store atmosphere, and Proposal ability by the employees) and “Quality” for “fresh”foods (e.g., Freshness, Safety). This existing study indicates that, the retailing needs “Customer Perspective” and “Co-Created Value Perspective” in order to earn the store loyalty image within the category of “Service” and “Quality”. The Research Question of this study as mentioned in prior is , would“Health and Wellness”eventually become an independent 5th key factor constructing store loyalty in near future? As a first step, hypothesis of this study is that,“Health and Wellness”reflects directly to the major factor in “Quality” of the 4 factors (e.g., Service, Quality, Assortment, and Price) reflecting the strength of store loyalty. This study adopted three methods; Result of quantitative research to Yaoko supermarket customers in the store (August 8,9,10, and 17, 2014), the others are in-depth interviews (December 28, 2015, Feburary 13, and March 29, 2016), and Group interviews (Feburary 27, 2016) towards numerous customers in different societal groups (e.g., Young family, Post family, and Seniors) at the Yaoko store (see Figure 1). Additionally, quantitative study using POS and Yaoko customer panel will be conducted in this spring of 2016. Therefore, I will be able to further report the detailed result by GMC2016. Also, I am in part of ongoing study of the Health Marketing about Supermarket in Japan collaborating with the Healthcare Workshop in the Distribution Economics Institute of Japan in 2016. With this, I will add on the collaborating study effort in GMC2016. Due to the space limitation, this submission paper only suggests the summary of empirical study. In this study, the interview for Yaoko Top management (August 4 and 11, 2015) was done in with Yaoko Co Head Quarters in Saitama prefecture, which is the most famous “Co-Created Value” supermarkets in Japan. Yaoko conducted the experiment of“Health and Wellness”in Asakaoka, which is their new store in Saitama prefecture completed in Nov. 2015. Yaoko aims to differentiate not only MD, but also Social Value from the competitors. Yaoko Top management and“Health and Wellness”leader has stated that, we would like to be known as the “Yaoko”. Just like now, “Wholefoods Market ” is known by their supermarket name. Such brand strength shows that the cooperate brand surpassed the type of operation as Supermarkets. One format is“Health and Wellness MD”. This format is linked with CSV, Marketing 3.0. They stated that, there are three key points of success (i.e., Internal marketing for employees, Health and Wellness Management for stakeholders, and Health and Wellness MD for customers). These tactics are asked to maintain the balance. From this, I believe that, Yaoko has a strength in balance by“Kotenkeiei ” based Chain Operation, Customers Perspective, and Co-Created Value. Therefore, they will establish this format step by step. As follows, with reference to my Yaoko quantitative research result. The result is, Store Loyalty to Supermarkets of “Co-Created Value” type in Japan is constituted by both “Service” and “Quality” reflecting “fresh”foods. On the other hand, In-depth interviews from the customers and Group interviews toYaoko supermarket customers indicated that, the consumers does not see “Health and Wellness” image in Yaoko Asakaoka Store. However, they ask “Freshness, Safety, and Quality including quality in tastes” in Fresh foods (e.g., Vegitables, Fruits, Fishes and Meats) for Supermarkets when they hear “Health and Wellness”. Also, they stick to purchasing vegetables, fruits and fish that are in its season. Quantitative research , In-depth interviews, and Group interviews results to Yaoko supermarket customers are linked to the consciousness of the consumers in “Health and Wellness”. However it is quite difficult for the retailers to change the consciousness of the consumers when dealing with the image of “Health and Wellness”. Because the retailers use on Assortment and Price is MD-based. Therefore, the retailer is not used to meal-solution and experienced value event that are key to appeal “Health and Wellness”. It is essential to understand the importance of relationships with regional communities. As of now, with such understanding, Yaoko is collaborating with Asaka City in order to enhance the result, which is precisely the “Co-Created Value”with the consumers and administration in regional community. In summary, Yaoko’s CSV and Marketing 3.0 action must be sustained for some years at least. Reason being that, there is of a complexity in establishing the store image and positioning of“Health and Wellness”for their well-aware conscious customers. This marketing strategy based on CSV, Marketing 3.0, and Co-Created Value is most advanced, original, and unique in Japanese retailing. The result will be linked with the avoidance of commodity phenomenon in the near future. This study indicates that,“Health and Wellness”should be prioritized to enhance the store loyalty in Japanese Supermarkets. This approach is differentiated from the cooperate brand image and positioning for the competitors. Currently speaking with the social situations,“Health and Wellness”reflects directly to the major factor “Quality”, which is one of the 4 factors of Store Loyalty by the result of quantitative research, In-depth interviews, and Group interviews to Yaoko supermarket customers.“Health and Wellness”to become an independent 5th key factor to construct store loyalty is still in the midst of progress. The reason is that the consciousness for“Health and Wellness”varies by the customer’s life-stage, gender, and/or that the consumer has kids or not in Japan. The highly conscious customers for“Health and Wellness”may become an independent 5th key factor to construct store loyalty because of such extremely strong value reflect compared to the others. Yet, most Japanese customers believe that“Health and Wellness” is the major factor of “Quality”, which is one of the 4 factors (e.g., Service, Quality, Assortment, and Price) of Store Loyalty according to the result of these research. This study is still on-going and currently, the store experiment is appealing the value of “Health and Wellness”to Yaoko supermarket customers. Therefore, the additional result of quantitative study shall be included and reflected, as it will be completed in prior to the GMC2016. These findings of quantitative and qualitative study will be useful towards the Health Marketing. Essentially, this is the new theoretical development and contribution as how to construct the store loyalty using the Health Marketing. Also, this study indicates the other perspective. It is very difficult for the retailers-side to notice the importance of “Health and Wellness”, and for the customers to keep the balance in“Health and Wellness”, which includes the basics such as, to eat the healthy food, to play a moderate exercise and to have a good sleep.Finally, the retailer may propose the“Health and Wellness”value in Store through Co-Created Value with the consumers in regional community. In such case, the proposal of“Health and Wellness”should be combined with Assortment , Service, Experienced Value Events. Yaoko’s“Health and Wellness”challenge is very unique and original compared to competitors. Most of the retailers are basing the focus only towards Assortment in Healthy foods. Nowadays, Retailing Innovation of Supermarkets in Japan has evolved from MD to appeal the value of “Health and Wellness”. This is called “the innovation with the leap”, as to reflecting on CSV and Marketing 3.0.