The effects of co-creation* on consumer perceptions

The effects of co-creation* on consumer perceptions

*Co-creation between firms and consumers in new product development

Joyce van Dijk 841018208030 MSc thesis ECH chairgroup Prof. Dr. G. Antonides

The effects of co-creation on perception

Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides

Content of this presentation

1. What is co-creation and why is it important?

2. Main question and sub questions for the thesis

3. Relevance

4. Main theory

5. Expected outcomes & conceptual model

6. Research method

7. Treatments



What is co-creation?

“Purposive and intentional collaboration between consumers and producers, where

they systematically interact, learn, share information and integrate resources with

the result of co-creating value” (Van Dijk, 2011)

Why is it important?•Changing consumer: empowered, critical, better informed

•Web 2.0 and social media: interconnected world

•Consumer in search of authenticity

•Firms: search for new innovation & marketing strategy

•Customer-centricity (from pushing products to cultivating cust. value)



Example

Pickwick Dutch tea blend25 Hyves members co-created with Pickwick experts, both online and offline, to develop the new tea blend, co-design the package and the marketing campaign.

Pickwick referred to the co-creators in the tv commercial and on the tea’s packaging



Back to the thesis…

Main question:(To what extent) are perceptions affected when consumers know that a product is developed in co-creation with consumers? (compared to a product that is exclusively ‘producer’ created?)

•Does co-creation enhance ‘authenticity’ and ‘sincerity’ of brands?

•Does co-creation affect trust and how consumers relate to a brand?

•Does co-creation affect how new products are evaluated?

•Does co-creation influence behavioral intentions towards the product/brand?

•Does it matter how the co-creation is communicated?



Relevance

Current research focuses on the co-creation process itself: e.g. required management skills, motivations of co-creation participants

Studies show effects on consumers who participate in co-creation:•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-creation:•Creates more relevant products•Enhances product performance (sales)

-> But what about consumers who did NOT participate?

-> But can performance be due to perception effects?



Relevance

Just one study about effects of co-creation on perceptions of consumers:

More favorable attitude, and consider them more customer-oriented (Fuchs &

Schreier, 2011)

-> However, Fuchs and Schreier (2011) don’t test brand effects , use

fictitious labels, and no FMCG products.

Interviews with co-creation practitioners show (Van Dijk, 2011):

•Great curiosity to know effects on consumer perceptions

•Belief that brand and product perceptions are indeed affected by co-creation

•Unsure about what effects exactly will occur and how strong the effects will be



Theory

Brand associations and personality

Consumers distinguish between brands based on brand associations (Keller, 1993)

• Meanings consumers attach to brands (in their memory)

• Partly determined by brand image

• Distinguish between brand images by attributes such as brand personality

• Brand personality perception: result of brand actions



Adapted from Keller (1993)



Theory

Sincere brands

Research shows consumers now search for sincere and authentic brands (Holt,

2002; Gilmore & Pine, 2007). These are brands that don’t appear commercialized,

but are viewed as sincere friends or part of a community (Beverland, 2005).

Descriptive measures of ‘sincere’ brand personality (Aaker , 1999):(5-point Likert scale: 1 = "not at all descriptive," 5 =extremely descriptive”)

down-to-earthfamily-orientedsmall-townhonestsincerereal

wholesomeoriginalcheerfulsentimentalfriendly



Theory

Brand relationship strength

Better predictor of consumer actions (Aaker et al. 2004)

Indicators of consumer-brand relationship strength (Aaker et al. 2004):

1. Commitment: willingness to continue the brand relationship

2. Satisfaction: happiness with brand performance

3. Intimacy: closeness, willingness to share information

4. Self-connection: fit between brand personality and consumer’s personality



Theory

Product evaluation

Do consumers evaluate co-created products differently?

Measures for new product evaluation (Song & Xie, 2000; Bruner et al., 2005):

1. Overall appeal: Is the product attractive, what appeals the most?

2. Innovativeness: Is the product innovative and different from available products?

3. General product advantage: How superior is the product relative to similar products?

4. Uniqueness: To what extent are product features unique relative to available products?



In short: expected effects hypotheses

Main focus of this experimental study Expected outcome

Does co-creation affect consumer perceptions? (main question) +

Does elaboration of the co-creation message moderate effects?Does product involvement and brand familiarity moderate effects?

++

Does co-creation have an effect on how consumers..:

• Evaluate ‘Sincerity’ of a brand? (brand personality)

•Relate to brands: commitment, satisfaction, intimacy, self-connection

•Trust brands and view them as a good quality partner?

•Evaluate products? (advantage, uniqueness, innovativeness)

•Intent to behave towards the product/brand? (WOM, trying out)

+++++





Method

• Scope: Fast-moving consumer goods sector (FMCG): familiar products, relatively cheap, low effort and risk, rapid consumption In FMCG sector brands are the main differentiation point (Wood, 2000)

•Method: Experimental (post-test-only) control group design Manipulated variables: branded product (existing brand X/ fictitious

brand Y) and treatment (A/B/C). Between-subjects design: every respondent is randomly exposed to only one product and one treatment

•Execution: Online questionnaire, data collection via Insites Consulting consumer panel

Brand Co-creation level (treatment)

X A B CY A B C



The experiment treatments

Respondents are part of group X (well-know brand) or group Y (fictitious brand) are exposed to one of the three treatments:

• Treatment A: (control group) Concept board with a description of the product, presented as producer-created

•Treatment B: Concept board, description of product, presented as co-created•Treatment C: Concept board, description of product presented as co-created

+ evidence to support this claim

What will I find out?!

Want to know the results? Keep track of my progress onJoycediscovers.wordpress.com

Joyce van Dijk 841018208030 MSc thesis ECH chairgroup Prof. Dr. G. Antonides

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The effects of co-creation* on consumer perceptions