Co-creation & consumer involvement in NPD

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

Joyce van Dijk MSc Joycediscovers.wordpress.com @Joycediscovers

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?


1. The concept of co-creation

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


Co-creation is a systematic collaboration

Purposive collaboration between

consumers and companies,
where they systematically

interact, learn, share information,

and integrate resources to
develop or improve products

(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

I can
I enjoy it! express
myself

I feel My skills are
empowered recognised
to influence

I like I like to help
interacting others

I can develop I can make
myself some money

WHY do consumer co-create?

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

Priester: “open up to new
Key Findings: Gebauer:“lead-users are very
ideas, dare to let go of
Reijnders: important, but average users
control, dare to enter new
“What works are also very valuable.”
markets and diverge from old
today, might not
ways of thinking and doing.”
work tomorrow”

De Ruyck: “Conduct makes Van Kesteren:
the co-creation claim Blankert: “You
“Do not expect get closer to
legitimate and easier for consumers to
consumers to trust. consumers.
independently come Consumers will
up with innovative feel more
solutions.” connected to
“Once you open the your brand.”
doors to co-creation, it Sanders:
is difficult to close “Co-creation allows intensive
them,” De Laat collaboration, but crowdsourcing
creates more buzz”


Challenge to change company mindset

Main challenges for companies

 Management mind shift

 Deciding on objectives

 Managing expectations

 Freedom VS. management and monitoring

 Unravel latent needs

 Feedback and recognition


3. MSc experiment

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


Does co-creation affect brand & 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 99% of target group does
target group co-creates not co-create


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 -> But what about the large
• An increased positive brand image majority of consumers who do
NOT participate?
Studies show that co-creating:
• Creates more relevant products -> But can performance be
• Enhances product performance (sales) due to perception effects?


Test effects on non-co-creators

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

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


Test effects on non-co-creators

Method

Experiment set up as concept test questionnaire
Closed consumer panel
2 manipulated variables: Co-creation level (A/B/C)
Representative of Dutch population
and brand (Honig/Samo)
100% awareness 100% distribution
Brand Co-creation level sample: 530 respondents
Final

Honig A: producer created B: co-created C: co-created +’extra’ proof

Samo A: producer created B: co-created C: co-created +’extra’ proof


Brand attitude constructs

The effect of the co-creation claim on consumers’ …

Brand attitude

• 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)


Product evaluation & claimed behaviour

The effect of the co-creation claim on consumers’ …

Product evaluation & intention

• 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


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…


Co-creation & consumer involvement in NPD

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