The dark Side of cocreation: how to deal with angry community members

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The Dark Side of Co-Creation
How to deal with angry community members?

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The dark Side of cocreation: how to deal with angry community members

  1. 1. Special Interest Group Virtual Stakeholder Dialogue In Interactive Marketing 39th EMAC Conference, Copenhagen June 3rd, 2010 The Dark Side of Co-CreationHow to deal with angry community members? Johannes Gebauer Dr. Johann Füller Innsbruck University School of Management
  2. 2. Research Problem How to deal with angry community members? I am EXTREMELY disappointed with this contest : ( Send complaints to SPAR: presse@spar.at or office@spar.at mbo Johannes Gebauer and Johann Füller - The dark side of co-creation
  3. 3. Research ProblemCo-creation communities as approach to integrate enthusiasticconsumers into a company’s value creation processes for example intonew product development activities and marketing(Füller 2010, Ogawa and Piller 2006, Nambisan and Nambisan 2008) Designs, Insights PR & Designs Marketing New Products & Recruiting Johannes Gebauer and Johann Füller - The dark side of co-creation
  4. 4. Research ProblemInteracting with consumers can be risky Johannes Gebauer and Johann Füller - The dark side of co-creation
  5. 5. Research Questions• For what reasons engage members of co-creation communities in negative word-of-mouth due to disappointing experiences in the co- creation process?• How should community managers and affected companies react on antagonism from a co-creation community in order to avoid damage for the brand’s reputation? Johannes Gebauer and Johann Füller - The dark side of co-creation
  6. 6. Literature ReviewThe co-creation experience• Users engage in virtual co-creation activities as they expect the participation to be rewarding for them. (Füller 2010, von Hippel 2005a).• Decisional control provides the user with a feeling of competence and leads to the perception of the co-creation activity as a compelling experience. (Mathwick and Rigdon 2004)• Consumers who co-create new products may become interested and attached to the product as they become more familiar with it. (Belk 1988)• They may even build some sort of relationship with the product, even before it is available on the market yet. (Schlosser 2003)• Enjoyable experience in co-creation have a positive influence on the participant’s attitude towards the brand. (Methwick and Rigdon 2004)• The enjoyable and rewarding experience also contributes to a positive customer relationship and enforces customer retention. (Berry and Carbone 2007, Meyer and Schwager 2007, Pine and Gilmore 1999)• Participants of co-creation projects believe that companies are genuine and that they can be trusted while enjoying their participation (Bagozzi and Dholakia 2006, Dholakia, Bagozzi and Klein Pearo 2004, Schouten, McAlexander and Koenig 2007) Johannes Gebauer and Johann Füller - The dark side of co-creation
  7. 7. Literature ReviewWord of mouth (WOM) in online communities• WOM is a form of socially sharing one’s emotions. (Wetzer et al. 2007)• People tend to articulate these emotions more likely to peers than to strangers. (Blodgett, Granbois & Walters, 1993)• Users tend to share positive and negative experiences with others if the topic is important to them and they consider it also of interest to others. (East, Hammond and Wright 2006, Smith et al. 2007)• Users who post negative comments such as complaints and even defamation have had negative experiences that usually go beyond sheer product failure and cause emotions such as anger, frustration or irritation. (Wetzer, Zeelenberg and Pieters 2007).• Posting negative consumer information on the Internet is a planned and effortful activity. (Ward et al. 2002)• WOM on the Internet is relevant for the brand image as negative WOM on the Internet has a strong influence on offline WOM. (Brown et al. 2007) Johannes Gebauer and Johann Füller - The dark side of co-creation
  8. 8. Literature ReviewConflict Management• Effective management of crisis as well as customer complaints is important for the wellbeing of organizations. (e.g. Pearson and Clair 1998, Ulmer 2001, Fink 1989, Tan, Pan and Lim 2005).• Poor solicitation, handling, and analysis of complaints inevitably lead to substantial negative consequences for a company such as unfavorable customer post-complaint reactions like word of mouth. (Homburg and Fürst 2007)• Rich and positive communication relationships with stakeholders on an ongoing basis are important for crisis preparation as pre-crisis communication has a significant impact on the perception and effectiveness of post-crisis communication. (Ulmer 2001)• Consistency in the communication in order to reduce uncertainty, promptness in the reaction and a clear determination and discussion of the responsibilities from the organization’s perspective are important strategies for successful conflict management. (Ulmer 2001, McCole 2004)• Admitting failures is unavoidable required in case it is to the point. (Coombs and Holladay 2008)• Corporations also have the right to speak out and to challenge inaccurate and/or misleading media coverage when their viability is threatened. (Hearit 1996) Johannes Gebauer and Johann Füller - The dark side of co-creation
  9. 9. Method• Exploratory approach• Single Case Study Research (Engelhardt 1989, Yin 2008)• Case: SPAR Bagdesign Contest (Online Design Contest; Bretschneider et al. 2007, Piller and Walcher 2006, Walcher 2007)• Data: – online discussion on the web platform – system data base (user, designs, comments, evaluations) – email correspondence (community management)• Researchers were engaged in the case as community managers (Action Research; Baskerville et al. 2004; Susman et al. 1978) Johannes Gebauer and Johann Füller - The dark side of co-creation
  10. 10. SPAR Bag Designcontest • online design contest for shopping bags • 8th of June – 27th of July 2009 • 5.382 bag designs • 2.506 members • 56.873 community evaluations • 11.970 comments • 558.891 page views • 338.720 minutes residence time Johannes Gebauer and Johann Füller - The dark side of co-creation
  11. 11. Functionalities in the online design contest Design overview Design upload Community Detailed Design view with user Johannes Gebauer and Johann Füller - The dark side of co-creation
  12. 12. Designs from the contest Johannes Gebauer and Johann Füller - The dark side of co-creation
  13. 13. Jury Meeting Johannes Gebauer and Johann Füller - The dark side of co-creation
  14. 14. ResultsFor what reasons engage members of co-creation communities in negativeword-of-mouth due to disappointing experiences in the co-creation process?• Participant of co-creation activities can become frustrated when the expected outcome is inhibited (Berkowitz 1978)• Perceived loss of control leads to a feeling of powerlessness and discomfort. (Bandura 1997)• Anger, frustration, and irritation seem to be related to negative WOM for goals of venting and taking revenge (Wetzer et al. 2007) Irritation Frustration “Absolutely rediculous !!! this is no.: 1 ?!?! “I am EXTREMELY disappointed with this Was the jury drunk??? rakete “ contest : ( mbo “ “what a joke...Im really disappointed... “ehm, I don’t get it! Lame words set in Anne94“ verdana.And this bag will be printed 1 million times? ralle “ Revenge “Send complaints to SPAR: presse@spar.at or office@spar.at mbo“ Johannes Gebauer and Johann Füller - The dark side of co-creation
  15. 15. ResultsHow should community managers and affected companies react onantagonism from a co-creation community in order to avoid damage for thebrand’s reputation?• A sound relationship with the community and a basis for justification (e.g. Terms & Conditions of the contest) need to be built within the scope of pre-crisis communication in order to be able to effectively manage critical incidents.• Communication must be immediate, consistent and transparent in order to display awareness, retain trust and to provide a feeling of control to the community members.• Determination and acceptance of responsibilities is a crucial aspect in the communication with critical community members.• The community management is required to act fair but self confident. “Can you believe this setup of a competition? “Hey bob, we did not block you - you can post They blocked me as mbo from posting any as much as you want as mbo, billybob, bob, comments & even threatened me with an bobby, bobbilly or whatever bobdude you feel email. PLEASE SEND COMPLAINTS ABOUT like. Please do not double post, thats it. THIS CONTEST TO SPAR: presse@spar.at or diplomod” office@spar.at bob” Johannes Gebauer and Johann Füller - The dark side of co-creation
  16. 16. Conclusion1. There is a dark side to co-creation. Antagonism of users in co-creation projects must not be ignored and indicates a necessity to act. Rightful management of critical situations in an online community can lead to a positive perception of the co-creation project.2. Co-Creation communities are relevant stakeholders of organizations. The relationship of co-creation communities respectively its members with the company initiating the co- creation activity is characterized by equality. The according communication differs substantially from a one-to- many approach. E.g. Companies who engage co-creation communities have to accept different, also negative opinions.3. Approaches in crisis management theory need to be adopted for co-creation communities. Helpful approaches for managing critical issues such as the regarded case have been developed. Co-creation activities such as online idea contests require an adoption of these approaches to the process of collaborative creation and the online format.Outlook• Improvement of co-creation methods based on the discussed findings• Further investigation of negative aspects of co-creation Johannes Gebauer and Johann Füller - The dark side of co-creation
  17. 17. Thank you for your attention! Johannes Gebauer Dr. Johann Füller Department of Strategic Management, Marketing and Tourism Innsbruck University School of Management Universitätsstraße 15, 6020 Innsbruck email: johannes.gebauer@hyve.de Johannes Gebauer and Johann Füller - The dark side of co-creation

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