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Here's a summary of my studies on co-creation and consumer involvement in new product development.
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The role of ‘co-creation’ in product innovation and marketing
Joyce van Dijk MSc Joycediscovers.wordpress.com @Joycediscovers
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
Introduction
Joyce van Dijk
• MSc in Management, Economics and Consumer behaviour
• Specialisation: consumer behaviour
• Focus: the connected consumer and co-creation
• FrankWatching | Wordpress blog | Twitter | Workshops
Gerrit Antonides Tom de Ruyck
Behavioural Economist Connected Research Manager
Wageningen University Insites Consulting
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
Presentation set-up
1. Defining the concept: What is co-creation and what roles can consumers have in NPD?
2. Interviews: What do co-creation practitioners say?
3. MSc Experiment: How does co-creation affect brand and product perceptions?
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
1. The concept of co-creation
What is co-creation and why is it a relevant concept?
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
Purposive collaboration between
consumers and companies,
where they systematically
interact, learn, share information,
and integrate resources to
develop or improve products
Co-creation is a systematic collaboration
(based on Prahalad & Ramaswamy, 2004)
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
Companies use co-creation to increase success
Companies:
Advertising clutter
Relevancy
Effectiveness
Reduces R&D costs
Increase market success
Facilitate dialogue
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
Consumers want to be involved in brand decisions
Consumers:
Empowered
Informed
Authentic
Idea source
Brand partner
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
Consumers can play different roles in NPD
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
Intrinsic motivations drive co-creative consumers
WHY do consumer co-create?
I feel empowered to influence
I like interacting
I enjoy it! I can
express myself
My skills are recognised
I like to help others
I can develop myself
I can make some money
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
Co-creation increases sales and w-o-m
Example: Pickwick Dutch tea blend
Results were much higher than usual line extensions:
Distribution: 99 % according to Nielsen data (expected 80%)
Market share within black tea 2,2 % (expected 1 %)
Awareness among tea-users 51% (goal 35%)
Activated interest to buy 17,5% (goal 10,5%)
Repeat purchase 11% (goal 6%)
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
1. What is co-creation? What companies co-create?
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
1. What is co-creation? What companies co-create?
More than 50% of Fortune 500 companies have made
open innovation an integral part of their innovation strategy.
Consumers have become the focus of attention in this arena
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
2. Co-creation in practice
What do the practitioners say?
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
Interviewing consultants and managers
Interviews with co-creation practitioners
1. Michael Blankert, Consumer Engagement Manager at PepsiCo
2. Martijn van Kesteren, Consumer Insights Manager at Unilever
3. Johan Sanders, Innovation Manager at Sara Lee
4. Ingrid de Laat, Co-creation Consultant at RedesignMe
5. Ruurd Priester, Strategy Director at Lost Boys International (LBi)
6. Tom de Ruyck, Sr. R&D Manager at Insites Consulting
7. Johannes Gebauer, Team Manager of the HYVE Innovation Community
8. Prof. dr. Will Reijnders, Marketing prof at TiasNimbas Business School
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
Gathering key insights in the practice
Key Findings:
Priester: “open up to new ideas, dare to let go of
control, dare to enter new markets and diverge from old ways of thinking and doing.”
Gebauer:“lead-users are very important, but average users
are also very valuable.”
Blankert: “You get closer to consumers.
Consumers will feel more
connected to your brand.” “Once you open the
doors to co-creation, it is difficult to close
them,” De Laat
De Ruyck: “Conduct makes the co-creation claim legitimate and easier for consumers to trust.
Van Kesteren: “Do not expect consumers to
independently come up with innovative
solutions.”
Reijnders: “What works
today, might not work tomorrow”
Sanders: “Co-creation allows intensive
collaboration, but crowdsourcing creates more buzz”
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
Main challenges for companies
Management mind shift
Deciding on objectives
Managing expectations
Freedom VS. management and monitoring
Unravel latent needs
Feedback and recognition
Challenge to change company mindset
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
3. MSc experiment
Does co-creation affect consumers’ brand and product perceptions?
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
Research gap
Current research focus: co-creation process and co-creative consumers
Effects on non co-creative consumers are hardly known, curious because:
Only 1% of consumer
target group co-creates
99% of target group does
not co-create
Does co-creation affect brand & product perceptions?
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
Does co-creation affect brand & product perceptions?
Consumers who participate in co-creation show:
• Increased loyalty to the company
• Stronger relationship with the company
• Increased likelihood to spread positive word-of-mouth
• Increased trust in the brand
• An increased positive brand image
Studies show that co-creating:
• Creates more relevant products
• Enhances product performance (sales)
-> But what about the large
majority of consumers who do NOT participate?
-> But can performance be
due to perception effects?
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
Method
Experiment set up as concept test questionnaire
2 manipulated variables: Co-creation level (A/B/C)
and brand: established Dutch brand Honig/ fictitious brand Samo
Test effects on non-co-creators
Brand Co-creation level
Honig A: producer created B: co-created C: co-created +’extra’ proof
Samo A: producer created B: co-created C: co-created +’extra’ proof
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
Method
Experiment set up as concept test questionnaire
2 manipulated variables: Co-creation level (A/B/C)
and brand (Honig/Samo)
Test effects on non-co-creators
Brand Co-creation level
Honig A: producer created B: co-created C: co-created +’extra’ proof
Samo A: producer created B: co-created C: co-created +’extra’ proof
Closed consumer panel
Representative of Dutch population
100% awareness 100% distribution
Final sample: 530 respondents
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
• Sincere brand personality: e.g. sincere, honest, real (11 items)
• Brand qualities: e.g. reliable, trustworthy, accessible (5 items)
• Brand relationship: commitment, satisfaction, intimacy, self-
connection (8 items)
Brand attitude
Brand attitude constructs
The effect of the co-creation claim on consumers’ …
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
• Product evaluation: attractiveness, relevance, innovativeness,
uniqueness, expected success
• Willingness to pay: average between cheap & expensive
• Behavioural intentions: trial, purchase, w-o-m, recommend to others
Product evaluation & intention
Product evaluation & claimed behaviour
The effect of the co-creation claim on consumers’ …
Joyce van Dijk, sponsored by Joycediscovers.wordpress.com
Want to know more?
Read / comment on:
My literature study here
Consumer roles in NPD here
Interviews with practitioners here
Co-creation blogposts here
Dutch FrankWatching articles here
Or follow me on Twitter…