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
The effects of co-creation on perception
Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides
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)
The effects of co-creation on perception
Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides
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
The effects of co-creation on perception
Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides
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?
The effects of co-creation on perception
Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides
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?
The effects of co-creation on perception
Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides
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
The effects of co-creation on perception
Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides
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
The effects of co-creation on perception
Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides
Adapted from Keller (1993)
The effects of co-creation on perception
Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides
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
The effects of co-creation on perception
Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides
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
The effects of co-creation on perception
Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides
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?
The effects of co-creation on perception
Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides
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)
+++++
The effects of co-creation on perception
Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides
The effects of co-creation on perception
Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides
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 effects of co-creation on perception
Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides
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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