co-creation & consumer involvement in npd

The role of ‘co-creation’ in product innovation and marketing

Joyce van Dijk MSc Joycediscovers.wordpress.com @Joycediscovers

http://nl.linkedin.com/in/joycediscovers

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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



http://www.insites.eu/

http://www.frankwatching.com/archive/author/joyce-van-dijk/



http://www.gamechanger.nl/co-creatie/the-next-cocreator-themasessies-2012/multidiscplinaire-inzichten-vergroten-middels-co-creatie/


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?





1. The concept of co-creation

What is co-creation and why is it a relevant concept?





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)





Companies use co-creation to increase success

Companies:

Advertising clutter

Relevancy

Effectiveness

Reduces R&D costs

Increase market success

Facilitate dialogue





Consumers want to be involved in brand decisions

Consumers:

Empowered

Informed

Authentic

Idea source

Brand partner





Consumers can play different roles in NPD





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





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%)





1. What is co-creation? What companies co-create?





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





2. Co-creation in practice

What do the practitioners say?





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





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”





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





3. MSc experiment

Does co-creation affect consumers’ brand and product perceptions?





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?





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?





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





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





• 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’ …





• 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’ …





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…




http://joycediscovers.wordpress.com/research/

http://joycediscovers.wordpress.com/research/

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co-creation & consumer involvement in npd

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