Purpose – Using service-based logic as its theoretical lens, this study aims to approach residents’ place satisfaction in a novel way. The purpose is to explore residents’ perception of the place in which they live and to shed new light on their place satisfaction.

Design/methodology/approach – The paper is based on explorative qualitative focus group research. Data were collected in two typical municipalities in southern Sweden. The sampling procedure was purposive, resulting in six focus groups, consisting of a total of 33 residents. The empirical material was transcribed and analyzed using a structured content analysis inspired by grounded theory.

Findings – A model for understanding residents’ perceptions of what constitutes a good place to live is introduced. The model shows that many value propositions are produced in the provider sphere, independent of the user, for example by the municipality or the business sector. Other value propositions are co-created in a joint sphere, meaning that the user is actively involved in the production of these value propositions. The resident then uses different value propositions to create value-in-use in the resident sphere, independent of theprovider, and to co-create value-in-use in the joint sphere.

Originality/value – The study creates a bridge between the stream of research on place satisfaction andstudies that take stakeholders and co-creation into consideration; it shifts from the prevalent provider perspective on place branding and static place attributes to a focus on the relationship between users and providers.