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       By	
  embracing	
  new	
  rules	
  of	
  (Internet)	
  marketing	
  and	
  
         utilizing	
  crowdsourcing	
  a	
  firm	
  can	
  become	
  truly	
  
                            customer	
  oriented	
  
                                                    	
  
	
  
                   BUSN32	
  Internet	
  Marketing,	
  Branding,	
  Consumers	
  
                                          2012-­‐02-­‐29	
  
                                                    	
  
                                    Individual	
  Assignment	
  
                                           Written	
  by	
  	
  
                                 Pia	
  Faulseit	
  (840125-­‐T247)
Table	
  of	
  Content	
  
1	
   INTRODUCTION.............................................................................................................................. 2	
  
2	
   THEORETICAL	
  FRAMEWORK ........................................................................................................... 3	
  
     2.1	
   NEW	
  RULES	
  OF	
  INTERNET	
  MARKETING .....................................................................................................3	
  
     2.2	
   CUSTOMER	
  ORIENTATION ......................................................................................................................3	
  
     2.3	
   CROWDSOURCING................................................................................................................................4	
  
3	
   CASE	
  EXAMPLES ............................................................................................................................. 6	
  
     3.1	
   MY	
  STARBUCKS	
  IDEA ............................................................................................................................6	
  
     3.2	
   TCHIBO	
  IDEAS......................................................................................................................................7	
  
4	
   DISCUSSION ................................................................................................................................... 9	
  
5	
   CONCLUSION ................................................................................................................................11	
  
6	
   BIBLIOGRAPHY ..............................................................................................................................12	
  
	
  

	
  




	
                                                                                                                                                                  1	
  
1	
       Introduction	
  	
  
The	
   rapid	
   development	
   and	
   use	
   of	
   Information	
   and	
   Communication	
   Technology	
   within	
   recent	
   decades	
  
has	
  brought	
  about	
  several	
  changes	
  for	
  the	
  business	
  and	
  marketing	
  environments	
  (Wind	
  2008,	
  p.	
  23;	
  Lutz,	
  
2011,	
   p.	
   225).	
   The	
   Internet	
   has	
   created	
   new	
   rules	
   and	
   possibilities	
   for	
   companies	
   and	
   their	
   marketing	
  
operations	
  as	
  well	
  as	
  the	
  potential	
  to	
  enhance	
  customer	
  orientation.	
  Marketing	
  is	
  now	
  characterized	
  by	
  
a	
   high	
   degree	
   of	
   interaction	
   and	
   collaboration	
   between	
   companies	
   and	
   their	
   customers	
   and	
   this	
  
relationship	
  shift	
  has	
  created	
  a	
  customer	
  that	
  is	
  increasingly	
  empowered.	
  (Winer,	
  2009,	
  p.	
  109f.;	
  Wind	
  
2008,	
  p.	
  21;	
  Pires	
  et	
  al.,	
  2006,	
  p.	
  939)	
  

As	
   empowered	
   customers	
   becoming	
   co-­‐inventors,	
   co-­‐creators	
   and	
   co-­‐marketers,	
   the	
   strict	
   borders	
  
between	
  companies	
  and	
  customers	
  dilute	
  (Wind	
  2008,	
  p.	
  22)	
  and	
  some	
  companies	
  even	
  seek	
  to	
  leverage	
  
this	
  by	
  deliberately	
  ceding	
  “…power	
  to	
  the	
  collective	
  for	
  specific	
  brand	
  decisions	
  and	
  tasks.”	
  (Fournier,	
  
Avery,	
   2011,	
   p.	
   196)	
   One	
   way	
   in	
   which	
   companies	
   are	
   tapping	
   into	
   the	
   collective	
   for	
   idea	
   generation,	
  
advertising	
  or	
  to	
  inform	
  the	
  product	
  pipeline	
  is	
  crowdsourcing	
  (Fournier,	
  Avery,	
  2011,	
  p.	
  196).	
  

The	
   implementation	
   of	
   collaborative	
   approaches	
   like	
   crowdsourcing	
   within	
   business	
   and	
   marketing	
  
practice	
  is	
  a	
  growing	
  trend.	
  However,	
  there	
  is	
  a	
  lack	
  of	
  academic	
  contribution,	
  especially	
  from	
  marketing	
  
research,	
  to	
  this	
  growing	
  field.	
  (Lutz,	
  2011,	
  p.	
  225;	
  Bonabeau,	
  2009,	
  p.	
  46,	
  50;	
  Zheng	
  et	
  al.,	
  2011,	
  p.	
  58)	
  
According	
   to	
   Lutz	
   (2011,	
   p.	
   233),	
   academic	
   research	
   in	
   marketing	
   tends	
   to	
   follow	
   rather	
   than	
   lead	
  
marketing	
  practice	
  with	
  regards	
  to	
  collaborative	
  approaches.	
  Therefore,	
  the	
  purpose	
  of	
  this	
  paper	
  is	
  to	
  
address	
  this	
  gap	
  by	
  exploring	
  crowdsourcing	
  from	
  a	
  marketing	
  perspective	
  and	
  investigating	
  its	
  potential	
  
as	
  a	
  vehicle	
  for	
  companies	
  to	
  become	
  truly	
  customer	
  oriented.	
  	
  To	
  explore	
  this,	
  three	
  concepts	
  –	
  Internet	
  
marketing,	
   customer	
   orientation	
   and	
   crowdsourcing	
   –	
   are	
   outlined	
   based	
   on	
   a	
   literature	
   review.	
   With	
  
the	
   lack	
   of	
   academic	
   literature	
   on	
   crowdsourcing	
   from	
   a	
   marketing	
   perspective,	
   journal	
   articles	
   from	
   the	
  
adjacent	
   fields	
   of	
   Research	
   and	
   Development	
   (R&D),	
   Innovation	
   Management	
   and	
   Design	
   are	
   consulted.	
  
Two	
  case	
  examples	
  are	
  provided	
  that	
  show	
  how	
  crowdsourcing	
  can	
  be	
  used	
  by	
  companies	
  for	
  customer	
  
orientation.	
  Finally,	
  a	
  conclusion	
  is	
  drawn	
  and	
  suggestions	
  for	
  future	
  research	
  are	
  given.	
  	
  

	
  




	
                                                                                                                                                                   2	
  
2	
       Theoretical	
  framework	
  
The	
   following	
   theoretical	
   framework	
   outlines	
   and	
   defines	
   the	
   three	
   concepts	
   –	
   Internet	
   marketing,	
  
customer	
  orientation	
  and	
  crowdsourcing.	
  

2.1	
   New	
  rules	
  of	
  Internet	
  marketing	
  

With	
  the	
  advent	
  of	
  the	
  Internet,	
  a	
  new	
  digital	
  medium	
  arose	
  which	
  has	
  significantly	
  changed	
  marketing	
  
operations	
   (Wind	
   2008,	
   p.	
   23;	
   Lutz,	
   2011,	
   p.	
   225)	
   from	
   a	
   linear,	
   one-­‐way	
   flow	
   of	
   information	
   from	
  
organizations	
  to	
  customers	
  to	
  instead,	
  an	
  exchange	
  of	
  information	
  which	
  increasingly	
  takes	
  place	
  in	
  the	
  
form	
   of	
   a	
   dialogue	
   on	
   a	
   one-­‐to-­‐one,	
   many-­‐to-­‐many	
   or	
   multi-­‐modal	
   level	
   (Rowley,	
   2004,	
   p.	
   26;	
   Winer,	
  
2009,	
  p.	
  108;	
  Muñiz,	
  Schau,	
  2011,	
  p.	
  209).	
  Through	
  this	
  new	
  communication	
  model	
  that	
  enables	
  users	
  to	
  
generate	
   and	
   continuously	
   modify	
   content	
   (User	
   Generated	
   Content)	
   (Kaplan,	
   Haenlein,	
   2010,	
   p.	
   61),	
  
organizations	
  now	
  have	
  the	
  possibility	
  to	
  interact	
  with	
  customers	
  and	
  engage	
  them	
  in	
  a	
  collaborative	
  and	
  
participatory	
   way	
   (Winer,	
   2009,	
   p.	
   108f.;	
   Kaplan,	
   Haenlein,	
   2010,	
   p.	
   61)	
   facilitating	
   new	
   customer	
  
relationships	
  and	
  mutual	
  value	
  creation	
  (Rowley,	
  2004,	
  p.	
  24;	
  Fournier,	
  Avery,	
  2011,	
  p.	
  195).	
  Additionally,	
  
the	
   Internet	
   marketing	
   environment	
   has	
   hailed	
   new	
   rules	
   of	
   authenticity	
   and	
   transparency,	
   which	
  
organizations	
   need	
   to	
   keep	
   in	
   mind	
   when	
   operating	
   online	
   (Fournier,	
   Avery,	
   2011,	
   p.	
   198;	
   Weinberg,	
  
Pehlivan,	
  2011,	
  p.	
  276).	
  Internet	
  marketing	
  can	
  be	
  defined	
  as	
  “Applying	
  digital	
  technologies	
  which	
  form	
  
online	
   channels	
   to	
   market	
   […]	
   to	
   contribute	
   to	
   marketing	
   activities	
   aimed	
   at	
   achieving	
   profitable	
  
acquisition	
   and	
   retention	
   of	
   customers	
   […]	
   to	
   improve	
   customer	
   knowledge	
   […],	
   then	
   delivering	
  
integrated	
   targeted	
   communications	
   and	
   online	
   services	
   that	
   match	
   their	
   individual	
   needs.”	
   (IDM	
   in	
  
Chaffey,	
  2008,	
  p.	
  19)	
  Social	
  Media	
  sites	
  are	
  increasingly	
  where	
  this	
  new	
  Internet	
  marketing	
  takes	
  place	
  
and	
   it	
   is	
   crucial	
   to	
   remember,	
   “it’s	
   all	
   about	
   participation,	
   sharing,	
   and	
   collaboration,	
   rather	
   than	
  
straightforward	
  advertising	
  and	
  selling.”	
  (Kaplan,	
  Haenlein,	
  2010,	
  p.	
  65)	
  	
  

The	
  above	
  discussion	
  outlines	
  how	
  the	
  digital	
  era	
  has	
  changed	
  the	
  rules	
  of	
  marketing	
  but	
   it	
  is	
  important	
  
to	
   note	
   that	
   the	
   role	
   of	
   customers	
   has	
   also	
   changed.	
   Customers	
   are	
   no	
   longer	
   passive	
   recipients	
   of	
  
marketing	
   messages	
   but	
   rather,	
   they	
   take	
   an	
   active	
   role	
   by	
   developing	
   and	
   disseminating	
   marketing	
  
messages,	
   co-­‐creating	
   marketing	
   content,	
   and	
   becoming	
   increasingly	
   in	
   control	
   of	
   what	
   is	
   said	
   about	
  
brands	
   or	
   products.	
   This	
   power	
   shift	
   has	
   fundamentally	
   changed	
   the	
   relationship	
   between	
   companies	
  
and	
  customers.	
  (Wind	
  2008,	
  p.	
  21f.;	
  Winer,	
  2009,	
  p.	
  112;	
  Rowley,	
  2004,	
  p.	
  26f.;	
  Muñiz,	
  Schau,	
  2011,	
  p.	
  
210)	
   The	
   concept	
   of	
   ‘consumer	
   empowerment’	
   is	
   widely	
   discussed	
   in	
   the	
   literature	
   (e.g.	
   Fournier,	
   Avery,	
  
2011,	
  p.	
  193;	
  Pires	
  et	
  al.,	
  2006,	
  938	
  f.;	
  Muñiz,	
  Schau,	
  2011,	
  p.	
  210;	
  Wind,	
  2008,	
  p.	
  21).	
  	
  

2.2	
   Customer	
  orientation	
  

The	
   concept	
   of	
   customer	
   orientation	
   is	
   part	
   of	
   the	
   theory	
   of	
   market	
   orientation,	
   which	
   is	
   primarily	
  
addressed	
  by	
  two	
  major	
  groups	
  of	
  authors	
  within	
  academic	
  literature.	
  	
  

Slater	
   and	
   Narver	
   (1990,	
   p.	
   21;	
   1994,	
   p.	
   22)	
   conceptualize	
   customer	
   orientation	
   as	
   one	
   of	
   three	
   major	
  
components	
   of	
   market	
   orientation	
   and	
   state	
   that,	
   “A	
   business	
   is	
   market-­‐oriented	
   when	
   its	
   culture	
   is	
  
systematically	
  and	
  entirely	
  committed	
  to	
  the	
  continuous	
  creation	
  of	
  superior	
  customer	
  value.	
  Specifically,	
  
this	
   entails	
   collecting	
   and	
   coordinating	
   information	
   on	
   customers,	
   competitors,	
   and	
   other	
   significant	
  
market	
  influencers	
  […]	
  to	
  use	
  in	
  building	
  that	
  value.”	
  (Slater,	
  Narver,	
  1994,	
  p.	
  22)	
  While	
  Narver	
  and	
  Slater	
  
incorporate	
  customer	
  orientation	
  as	
  one	
  component	
  within	
  their	
  theory	
  of	
  market	
  orientation,	
   Kohli	
  and	
  
Jaworski	
   (the	
   second	
   group	
   of	
   authors)	
   conceptualize	
   market	
   orientation	
   differently	
   and	
   refer	
   to	
  
customer	
   orientation	
   in	
   connection	
   with	
   the	
   broader	
   concept	
   of	
   market	
   intelligence	
   (Kohli,	
   Jaworski,	
  
1990,	
   p.	
   3f.;	
   Jaworski,	
   Kohli,	
   1993,	
   p.	
   54).	
   “Market	
   orientation	
   is	
   the	
   organization-­‐wide	
   generation	
   of	
  

	
                                                                                                                                                                      3	
  
market	
   intelligence	
   pertaining	
   to	
   current	
   and	
   future	
   customer	
   needs,	
   dissemination	
   of	
   the	
   intelligence	
  
across	
  departments,	
  and	
  organization	
  wide	
  responsiveness	
  to	
  it.”	
  (Kohli,	
  Jaworski,	
  1990,	
  p.	
  6)	
  

While	
   both	
   groups	
   of	
   authors	
   conceptualize	
   customer	
   orientation	
   differently	
   within	
   their	
   theories	
   of	
  
market	
  orientation,	
  the	
  understanding	
  of	
  customer	
  orientation	
  as	
  such	
  is	
  overlapping	
  (Nwankwo,	
  1995,	
  p.	
  
6).	
  They	
  commonly	
  state	
  that	
  customer	
  orientation	
  is	
  a	
  central	
  element	
  of	
  market	
  orientation	
  and	
  that	
  it	
  
entails	
   acquisition,	
   assessment	
   and	
   superior	
   understanding	
   of	
   information	
   about	
   customers’	
   current	
   and	
  
future	
   needs,	
   expectations	
   and	
   preferences	
   (Narver,	
   Slater,	
   1990,	
   p.	
   21;	
   Kohli,	
   Jaworski,	
   1990,	
   p.	
   3f.).	
  
This	
   model	
   of	
   information	
   gathering	
   goes	
   beyond	
   traditional	
   customer	
   research	
   to	
   identify	
   not	
   only	
  
expressed	
   but	
   also	
   latent	
   customer	
   needs	
   (Slater,	
   Narver,	
   1998,	
   p.	
   1002;	
   Kohli,	
   Jaworski,	
   1990,	
   p.	
   4).	
  
Through	
  an	
  understanding	
  of	
  and	
  responsiveness	
  to	
  customer	
  needs,	
  organizations	
  can	
  create	
  superior	
  
customer	
  value	
  and	
  enhance	
  customer	
  satisfaction	
  and	
  relationships	
  (Narver,	
  Slater,	
  1990,	
  p.	
  21;	
  Slater,	
  
Narver,	
   1994,	
   p.	
   22f.;	
  Jaworski,	
   Kohli,	
   1993,	
   p.	
   53;	
   Kohli,	
   Jaworski,	
   1990,	
   p.	
   6;	
   Aziz,	
   Yasin,	
   2004,	
   p.	
   5f.).	
  
Moreover,	
   by	
   embedding	
   market	
   orientation	
   into	
   their	
   business	
   cultures,	
   organizations	
   can	
   gain	
  
sustainable	
   competitive	
   advantages	
   and	
   are	
   likely	
   to	
   increase	
   business	
   performance	
   and	
   profitability	
  
(Kohli,	
  Jaworski,	
  1990,	
  p.	
  13,	
  Jaworski,	
  Kohli,	
  1993,	
  p.	
  64;	
  Narver,	
  Slater	
  1990,	
  p.	
  21f.;	
  Slater,	
  Narver,	
  1994,	
  
p.	
  26).	
  	
  

The	
  theory	
  of	
  market	
  orientation	
  has	
  since	
  been	
  refined	
  and	
  built	
  upon	
  (Slater,	
  Narver,	
  1998,	
  p.	
  1001)	
  
with	
   the	
   terms	
   ‘market	
   orientation’	
   and	
   ‘customer	
   orientation’	
   now	
   used	
   almost	
   interchangeably	
   and	
  
associated	
   with	
   terms	
   like	
   ‘marketing	
   concept’	
   and	
   ‘customer	
   first’	
   (Nwankwo,	
   1995,	
   p.	
   6).	
   However,	
  
most	
  authors	
  addressing	
  this	
  topic	
  still	
  refer	
  back	
  to	
  the	
  initial	
  theories	
  of	
  market	
  orientation	
  by	
  Kohli	
  &	
  
Jaworski	
  and	
  Slater	
  &	
  Narver	
  (e.g.	
  Nwankwo,	
  1995;	
  Yan,	
  2011;	
  Aziz,	
  Yasin,	
  2004,	
  Luo,	
  Seyedian,	
  2004).	
  

2.3	
   Crowdsourcing	
  

The	
  term	
  crowdsourcing	
  initially	
  appeared	
  in	
  a	
  2006	
  article,	
  “The	
  rise	
  of	
  crowdsourcing,”	
  written	
  by	
  Jeff	
  
Howe	
  and	
  published	
  in	
  the	
  online	
  magazine,	
  Wired	
  (Busarovs,	
  2011,	
  p.	
  54;	
  Howe,	
  2006a,	
  p.	
  1).	
  According	
  
to	
  Howe	
  (2006b),	
  crowdsourcing	
  can	
  be	
  defined	
  as	
  “…the	
  act	
  of	
  taking	
  a	
  job	
  traditionally	
  performed	
  by	
  a	
  
designated	
   agent	
   (usually	
   an	
   employee)	
   and	
   outsourcing	
   it	
   to	
   an	
   undefined,	
   generally	
   large	
   group	
   of	
  
people	
  in	
  the	
  form	
  of	
  an	
  open	
  call.”	
  Although	
  the	
  concept	
  as	
  such	
  existed	
  before	
  2006	
  (Busarovs,	
  2011,	
  p.	
  
54),	
  Howe’s	
  definition	
  of	
  crowdsourcing	
  is	
  generally	
  accepted	
  and	
  commonly	
  used	
  in	
  current	
  literature	
  
by	
  authors	
  such	
  as	
  Miziolek	
  (2011,	
  p.	
  16),	
  Lutz	
  (2011,	
  p.	
  225)	
  or	
  Poetz	
  and	
  Schreier	
  (2012,	
  p.	
  246).	
  With	
  
the	
   advancement	
   of	
   the	
   Internet	
   to	
   Web	
   2.0,	
   companies	
   are	
   now	
   able	
   to	
   “…tap	
   into	
   ‘the	
   collective’	
   on	
   a	
  
greater	
  scale	
  than	
  ever	
  before”	
  (Bonabeau,	
  2009,	
  p.	
  46).	
  The	
  concept	
  of	
  crowdsourcing	
  leverages	
  these	
  
new	
  possibilities	
  and	
  strives	
  to	
  solve	
  problems	
  with	
  the	
  help	
  of	
  the	
  masses	
  (Busarovs,	
  2011,	
  p.	
  54;	
  Zheng	
  
et	
   al.,	
   2011,	
   p.	
   57).	
   This	
   can	
   take	
   place	
   on	
   companies’	
   websites,	
   social	
   networks	
   or	
   on	
   special	
  
crowdsourcing	
   platforms	
   (e.g.	
   InnoCentive)	
   which	
   all	
   connect	
   companies	
   with	
   individuals	
   (Busarovs,	
  
2011,	
  p.	
  57;	
  Zheng	
  et	
  al.,	
  2011,	
  p.	
  59;	
  Doan	
  et	
  al.,	
  2011,	
  p.	
  88).	
  	
  

Since	
   the	
   concept	
   of	
   crowdsourcing	
   is	
   relatively	
   new,	
   there	
   is	
   limited	
   literature	
   available,	
   especially	
   from	
  
a	
  marketing	
  perspective.	
  Therefore	
  the	
  consulted	
  academic	
  literature	
  originates	
  from	
  adjacent	
  fields	
  and	
  
approaches	
   crowdsourcing	
   in	
   terms	
   of	
   different	
   areas	
   of	
   application,	
   such	
   as	
   user-­‐driven	
   innovation	
  
(Busarovs,	
  2011),	
  new	
  product	
  development	
  (Poetz,	
  Schreier,	
  2012),	
  decision-­‐making	
  (Bonabeau,	
  2009),	
  
or	
   packaging	
   and	
   design	
   (Miziolek,	
   2011).	
   Crowdsourcing	
   has	
   its	
   roots	
   in	
   the	
   idea	
   of	
   open	
   source	
  
solutions	
  (OSS)	
  but	
  is	
  applied	
  outside	
  the	
  field	
  of	
  software	
  development	
  (Howe,	
  2006b;	
  Poetz,	
  Schreier,	
  
2012,	
   p.	
   246).	
   The	
   concept	
   of	
   crowdsourcing	
   was	
   initially	
   implemented	
   in	
   the	
   field	
   of	
   R&D	
   projects,	
   such	
  
as	
   Innovation	
   Management	
   and	
   New	
   Product	
   Development	
   (Miziolek,	
   2011,	
   p.	
   16;	
   Albors	
   et	
   al.,	
   2007,	
   p.	
  


	
                                                                                                                                                                                 4	
  
197).	
   Traditionally,	
   these	
   projects	
   were	
   solely	
   performed	
   company-­‐internal	
   by	
   the	
   responsible	
  
departments	
  (e.g.	
  R&D,	
  Marketing,	
  Engineering),	
  but	
  with	
  the	
  growing	
  need	
  to	
  be	
  innovative	
  in	
  today’s	
  
business	
   landscape,	
   there	
   is	
   an	
   increasing	
   tendency	
   to	
   look	
   for	
   innovation	
   and	
   ideas	
   to	
   emerge	
   from	
  
outside	
   of	
   the	
   company.	
   (Busarovs,	
   2011,	
   p.	
   53;	
   Poetz,	
   Schreier,	
   2012,	
   p.	
   245;	
   Ebner	
   et	
   al.,	
   2009,	
   p.	
   243)	
  
Based	
   on	
   this,	
   Busarovs	
   (2011,	
   p.	
   53)	
   refers	
   to	
   crowdsourcing	
   as	
   a	
   business	
   philosophy	
   for	
   user-­‐driven	
  
innovation	
  oriented	
  towards	
  true	
  customer	
  needs.	
  	
  

Crowdsourcing’s	
   collaborative	
   model	
   is	
   a	
   growing	
   trend	
   and	
   besides	
   R&D	
   projects,	
   it	
   is	
   increasingly	
   used	
  
to	
   address	
   business	
   problems	
   and	
   challenges	
   in	
   marketing	
   and	
   its	
   adjacent	
   fields	
   such	
   as	
   branding,	
  
advertising,	
   market	
   research	
   and	
   design	
   (Fournier,	
   Avery,	
   2011,	
   p.	
   196;	
   Miziolek,	
   2011,	
   p.	
   16;	
   Lutz,	
   2011,	
  
p.	
   225;	
   Bonabeau,	
   2009,	
   p.	
   50f.).	
   Regardless	
   of	
   the	
   area	
   of	
   application,	
   the	
   concept	
   of	
   crowdsourcing	
  
directs	
   a	
   task	
   towards	
   a	
   large,	
   undefined	
   group	
   of	
   people	
   via	
   the	
   Internet	
   to	
   make	
   use	
   of	
   collective	
  
intelligence	
   (Fournier,	
   Avery,	
   2011,	
   p.	
   196;	
   Busarovs,	
   2011,	
   p.	
   54;	
   Bonabeau,	
   2009,	
   p.	
   46).	
   The	
  
mechanism	
  relies	
  on	
  a	
  self-­‐selection	
  process	
  among	
  participants	
  who	
  are	
  willing	
  and	
  able	
  to	
  respond	
  to	
  
the	
   given	
   task	
   (Poetz,	
   Schreier,	
   2012,	
   p.	
   246),	
   which	
   can	
   range	
   from	
   routine	
   to	
   complex	
   to	
   creative	
  
(Busarovs,	
   2011,	
   p.	
   54).	
   According	
   to	
   Zheng	
   et	
   al.	
   (2011,	
   p.	
   59),	
   crowdsourcing	
   can	
   implicate	
   a	
   contest	
  
where	
   tasks,	
   requirements,	
   duration	
   and	
   rewards	
   are	
   defined	
   by	
   a	
   company	
   who	
   then	
   evaluates	
   the	
  
participants’	
   proposed	
   solutions.	
   However,	
   the	
   motivation	
   to	
   participate	
   in	
   crowdsourcing	
   does	
   not	
  
necessarily	
   need	
   to	
   be	
   based	
   on	
   monetary	
   rewards,	
   it	
   can	
   also	
   be	
   based	
   on	
   other	
   intrinsic	
   or	
   extrinsic	
  
factors	
  such	
  as	
  value	
  driven	
  incentives,	
  recognition	
  or	
  the	
  pleasure	
  of	
  solving	
  a	
  task	
  (Zheng	
  et	
  al.,	
  2011,	
  p.	
  
76f.;	
  Bonabeau,	
  2009,	
  p.	
  49).	
  Besides	
  solution	
  generation,	
  crowdsourcing	
  is	
  increasingly	
  used	
  to	
  evaluate	
  
proposed	
  ideas	
  and	
  is	
  often	
  implemented	
  for	
  both	
  reasons	
  in	
  successive	
  steps	
  so	
  that	
  idea	
  creation	
  and	
  
voting	
  for	
  selection	
  are	
  part	
  of	
  the	
  process	
  (Bonabeau,	
  2009,	
  p.	
  47;	
  Fournier,	
  Avery,	
  2011,	
  p.	
  196).	
  

There	
  are	
  a	
  number	
  of	
  advantages	
  and	
  risks	
  of	
  using	
  crowdsourcing,	
  but	
  for	
  the	
  purpose	
  of	
  this	
  paper,	
  
only	
   certain	
   aspects	
   are	
   relevant	
   and	
   will	
   be	
   discussed.	
   Crowdsourcing	
   can	
   be	
   an	
   alternative	
   to	
   or	
  
complement	
   traditional,	
   internal	
   problem-­‐solving	
   approaches	
   by	
   generating	
   more	
   ideas	
   from	
   a	
   diverse	
  
and	
   impartial	
   crowd	
   instead	
   of	
   relying	
   solely	
   on	
   internal	
   expertise	
   (Poetz,	
   Schreier,	
   2012,	
   p.	
   248;	
  
Busarovs,	
   2011,	
   p.	
   59;	
   Miziolek,	
   2011,	
   p.	
   17;	
   Ebner	
   et	
   al.,	
   2009,	
   p.	
   243).	
   It	
   can	
   be	
   used	
   to	
   overcome	
   a	
  
divergence	
  between	
  an	
  expert’s	
  attempt	
  to	
  find	
  a	
  solution	
  and	
  real	
  customer	
  needs	
  (Busarovs,	
  2011,	
  p.	
  
53)	
  or	
  to	
  identify	
  valuable	
  consumer	
  insights	
  (Miziolek,	
  2011,	
  p.	
  17).	
  Concurrently,	
  there	
  exists	
  the	
  threat	
  
of	
   not	
   reaching	
   a	
   critical	
   mass	
   of	
   participants	
   or	
   engaging	
   a	
   group	
   that	
   does	
   not	
   represent	
   the	
   target	
  
group	
   or	
   consumer	
   base	
   and	
   therewith,	
   their	
   real	
   needs	
   (Miziolek,	
   2011,	
   p.	
   17,	
   Busarovs,	
   2011,	
   p.	
   57;	
  
Poetz,	
  Schreier,	
  2012,	
  p.	
  255).	
  Moreover,	
  quantity	
  does	
  not	
  necessarily	
  equal	
  quality,	
  thus,	
  the	
  generated	
  
ideas	
  may	
  not	
  be	
  appropriate	
  for	
  the	
  problem	
  or	
  may	
  lead	
  to	
  undesirable	
  outcomes	
  (Miziolek,	
  2011,	
  p.	
  
17;	
  Bonabeau,	
  2009,	
  p.	
  48;	
  Poetz,	
  Schreier,	
  2012,	
  p.	
  245;	
  Fournier,	
  Avery,	
  2011,	
  p.	
  202).	
  	
  

There	
  are	
  a	
  number	
  of	
  key	
  issues	
  to	
  remember	
  when	
  considering	
  crowdsourcing.	
  	
  Control	
  is	
  one	
  crucial	
  
factor	
  –	
  finding	
  the	
  right	
  balance	
  between	
  ceding	
  control	
  to	
  the	
  crowd	
  and	
  keeping	
  the	
  management	
  and	
  
overall	
   strategic	
   direction	
   in	
   the	
   hands	
   of	
   the	
   company	
   (Miziolek,	
   2011,	
   p.	
   17;	
   Bonabeau,	
   2009,	
   p.	
   48;	
  
Poetz,	
   Schreier,	
   2012,	
   p.	
   248).	
   Furthermore,	
   companies	
   need	
   to	
   balance	
   the	
   need	
   for	
   a	
   diversity	
   of	
   ideas	
  
with	
   the	
   level	
   of	
   expertise	
   to	
   ensure	
   quality	
   (Bonabeau,	
   2009,	
   p.	
   48).	
   Turning	
   to	
   the	
   crowd	
   can	
   reveal	
  
contrary	
  interests,	
  misbehaviour	
  and	
  critiques	
  which	
  would	
  then	
  need	
  to	
  be	
  addressed	
  (Bonabeau,	
  2009,	
  
p.	
   48).	
   Every	
   case	
   should	
   be	
   carefully	
   considered,	
   weighing	
   the	
   potential	
   benefits	
   and	
   downfalls	
   of	
  
crowdsourcing	
   with	
   the	
   particular	
   task/problem	
   in	
   mind	
   (Busarovs,	
   2011,	
   p.	
   58;	
   Miziolek,	
   2011,	
   p.	
   17).	
  




	
                                                                                                                                                                                     5	
  
3	
       Case	
  examples	
  
There	
   are	
   a	
   number	
   of	
   companies	
   and	
   brands	
   that	
   implement	
   crowdsourcing	
   as	
   a	
   tool	
   to	
   generate	
   ideas	
  
or	
  solutions	
  for	
  a	
  given	
  problem	
  (Lutz,	
  2011,	
  p.	
  225).	
  MyStarbucksIdeas.com	
  and	
  Tchibo-­‐Ideas.de	
  are	
  two	
  
interactive	
   platforms	
   that	
   are	
   examples	
   of	
   crowdsourcing	
   being	
   used	
   for	
   customer	
   orientation	
   from	
   a	
  
marketing	
   angle.	
   Due	
   to	
   limited	
   academic	
   literature	
   dealing	
   with	
   the	
   selected	
   cases,	
   the	
   descriptive	
  
outlines	
  below	
  are	
  based	
  mainly	
  on	
  an	
  analysis	
  of	
  the	
  platforms.	
  

3.1	
   My	
  Starbucks	
  Idea	
  

One	
  mentioned	
  crowdsourcing	
  platform	
  in	
  the	
  marketing	
  literature	
  is	
  MyStarbucksIdea.com	
  by	
  the	
  U.S.	
  
coffee	
   chain	
   Starbucks	
   (Fournier,	
   Avery,	
   2011,	
   p.	
   196;	
   Kaplan,	
   Haenlein,	
   2010,	
   p.	
   66).	
   The	
   company	
  
describes	
   MyStarbucksIdea.com	
   as	
   “…an	
   online	
   community	
   dedicated	
   to	
   sharing	
   and	
   discussing	
   ideas	
  
and	
  allowing	
  you	
  to	
  see	
  how	
  Starbucks	
  is	
  putting	
  top	
  ideas	
  into	
  action.”	
  (Starbucks	
  Corporations,	
  2010a)	
  

MyStarbucksIdea.com	
   invites	
   individuals	
   to	
   share	
   ideas	
   on	
   how	
   Starbucks	
   can	
   create	
   better	
   customer	
  
experiences	
   in	
   order	
   to	
   improve	
   its	
   business	
   (Kaplan,	
   Haenlein,	
   2010,	
   p.	
   66;	
   Starbucks	
   Corporation,	
  
2010a).	
   Users	
   register	
   online	
   and	
   upload	
   ideas	
   into	
   three	
   main	
   categories	
   –	
   products,	
   experiences	
   and	
  
involvement	
  –	
  which	
  are	
  then	
  divided	
  into	
  sub-­‐categories	
  with	
  ideas	
  ranging	
  from	
  small	
  improvements	
  
to	
  revolutionary	
  changes	
  (Starbucks	
  Corporation,	
  2010a;	
  Starbucks	
  Corporations,	
  2010b).	
  




                                                                                                                                                             	
  
Figure	
  1:	
  MyStarbucksIdea.com	
  

The	
  uploaded	
  ideas	
  can	
  be	
  discussed	
  and	
  voted	
  on	
  by	
  other	
  users	
  and	
  they	
  can	
  also	
  be	
  posted	
  to	
  other	
  
social	
  media	
  sites,	
  like	
  Facebook.	
  The	
  most	
  popular	
  or	
  innovative	
  ideas	
  and	
  suggestions	
  are	
  subsequently	
  
considered	
  by	
  Starbucks	
  for	
  implementation	
  (independent	
  of	
  the	
  voting	
  process)	
  (Kaplan,	
  Haenlein,	
  2010,	
  
p.	
  66;	
  Starbucks	
  Corporations,	
  2010a).	
  The	
  company	
  appoints	
  employees	
  from	
  different	
  departments	
  as	
  
‘idea	
  partners’	
  to	
  join	
  and	
  host	
  the	
  on-­‐going	
  discussions	
  and	
  advocate	
  ideas	
  and	
  suggestions	
  within	
  the	
  

	
                                                                                                                                                                  6	
  
company	
   (Jarvis,	
   2008;	
   Starbucks	
   Corporations,	
   2010a).	
   In	
   the	
   Idea	
   partners’	
   blog,	
   ‘Ideas	
   in	
   Action’,	
  
customers	
   receive	
   information	
   about	
   the	
   status	
   of	
   the	
   ideas	
   –	
   under	
   review,	
   reviewed,	
   in	
   the	
   works,	
  
launched	
   –	
   and	
   are	
   able	
   to	
   comment	
   on	
   the	
   process	
   (Starbucks	
   Corporations,	
   2010a;	
   Starbucks	
  
Corporations,	
   2010b;	
   Starbucks	
   Corporations,	
   2010c).	
   Overall,	
   the	
   mechanism	
   of	
   Starbucks’	
  
crowdsourcing	
  platform	
  does	
  not	
  involve	
  any	
  monetary	
  or	
  tangible	
  rewards	
  for	
  the	
  proposed	
  customer	
  
ideas	
  regardless	
  of	
  whether	
  they	
  are	
  implemented	
  or	
  not.	
  Customers	
  are	
  engaging	
  just	
  for	
  the	
  purpose	
  
of	
  participating	
  (Starbucks	
  Corporations,	
  2010a;	
  Jarvis,	
  2008).	
  	
  

MyStarbucksIdea.com	
   is	
   a	
   good	
   example	
   of	
   crowdsourcing	
   as	
   a	
   tool	
   to	
   engage	
   consumers	
   in	
   a	
   well-­‐
structured	
  process,	
  while	
  sending	
  them	
  the	
  message	
  that	
  their	
  input	
  matters	
  and	
  is	
  taken	
  seriously.	
  

3.2	
   Tchibo	
  Ideas	
  

The	
   German	
   coffee	
   company,	
   Tchibo,	
   successfully	
   expanded	
   their	
   business	
   beyond	
   coffee	
   sales	
   by	
  
developing	
   a	
   weekly,	
   rotating	
   product	
   range	
   that	
   is	
   theme-­‐based	
   (e.g.	
   household	
   goods,	
   sports	
  
equipment)	
   and	
   sold	
   at	
   shops	
   or	
   online	
   (Tchibo,	
   2012a;	
   Tchibo,	
   2012b).	
   To	
   interact	
   with	
   its	
   customers	
  
and	
   generate	
   ideas	
   for	
   their	
   product	
   ranges,	
   Tchibo	
   implemented	
   a	
   crowdsourcing	
   platform	
   called	
  
Tchibo-­‐Ideas.de	
  (Tchibo	
  Ideas,	
  2012a;	
  Schögel,	
  Mrkwicka,	
  2011,	
  p.	
  9;	
  Evans,	
  McKee,	
  2010,	
  p.	
  335).	
  

Users	
   register,	
   create	
   a	
   profile	
   and	
   interact	
   on	
   the	
   platform	
   in	
   three	
   ways.	
   First,	
   they	
   can	
   submit	
   their	
  
own	
   everyday	
   problems	
   in	
   the	
   form	
   of	
   tasks	
   which	
   are	
   then	
   directed	
   toward	
   other	
   users	
   for	
   input.	
  
Second,	
   users	
   can	
   propose	
   solutions	
   in	
   the	
   form	
   of	
   concrete,	
   tangible	
   products	
   to	
   the	
   uploaded	
   tasks	
  
submitted	
  by	
  other	
  users	
  or	
  themselves.	
  (Tchibo	
  Ideas,	
  2012b;	
  Tchibo	
  Ideas,	
  2012c;	
  Tchibo	
  Ideas,	
  2012d)	
  
The	
   different	
   tasks	
   and	
   proposed	
   solutions	
   are	
   divided	
   into	
   categories	
   (e.g.	
   kitchen,	
   health)	
   and	
  
correlated	
  with	
  other,	
  similar	
  tasks	
  or	
  solutions.	
  The	
  platform	
  allows	
  interaction	
  in	
  the	
  form	
  of	
  task	
  and	
  
solution	
   generation,	
   comments	
   and	
   discussion	
   but	
   users	
   are	
   not	
   able	
   to	
   vote	
   for	
   proposed	
   solutions.	
  
(Tchibo	
  Ideas,	
  2012e;	
  Tchibo	
  Ideas,	
  2012f)	
  

The	
   final	
   way	
   in	
   which	
   users	
   can	
   use	
   the	
   platform	
   is	
   to	
   propose	
   an	
   innovative,	
   market-­‐ready	
   product	
  
design	
  for	
  cooperation	
  in	
  producing	
  and	
  selling	
  with	
  Tchibo.	
  The	
  product	
  design	
  must	
  fit	
  Tchibo’s	
  product	
  
line,	
  be	
  new,	
  legally	
  defendable	
  and	
  producible.	
  If	
  a	
  cooperation	
  is	
  achieved,	
  the	
  resulting	
  product	
  will	
  be	
  
produced	
  and	
  marketed	
  by	
  Tchibo	
  with	
  the	
  trademark	
  rights	
  remaining	
  with	
  the	
  user	
  who	
  also	
  receives	
  
part	
   of	
   the	
   profit.	
   (Tchibo	
   Ideas,	
   2012g)	
   However,	
   Tchibo	
   reserves	
   the	
   right	
   to	
   utilize	
   proposed	
   tasks	
  
and/or	
   generated	
   solutions	
   from	
   the	
   first	
   two	
   interaction	
   categories	
   without	
   involving	
   users	
   in	
   the	
  
realization	
  of	
  the	
  idea	
  and	
  the	
  profit	
  (Tchibo	
  Ideas,	
  2012h).	
  	
  




	
                                                                                                                                                                            7	
  
 
Figure	
  2:	
  Tchibo-­‐Ideas.de	
  

Tchibo	
   does	
   not	
   offer	
   monetary	
   rewards	
   for	
   proposed	
   tasks	
   and	
   solutions,	
   but,	
   tasks	
   and	
   solutions	
  
submitted	
   by	
   participants	
   can	
   be	
   selected	
   as	
   ‘tasks	
   of	
   the	
   month’,	
   ‘solution	
   of	
   the	
   month’	
   or	
   ‘solution	
   of	
  
the	
   year’,	
   winning	
   between	
   €1.200	
   and	
   €10.000	
   for	
   the	
   accolade	
   (Tchibo	
   Ideas,	
   2012i,	
   Tchibo	
   Ideas,	
  
2012j).	
  

Like	
   Starbucks,	
   Tchibo	
   classifies	
   their	
   crowdsourcing	
   platform	
   as	
   a	
   form	
   of	
   a	
   community	
   where	
   users	
   can	
  
interact	
   not	
   only	
   with	
   Tchibo,	
   but	
   with	
  each	
  others’	
  problems	
   and	
   ideas	
   taking	
   customer	
   orientation	
   and	
  
engagement	
  to	
  a	
  whole	
  new	
  level	
  (Tchibo	
  Ideas,	
  2012a).	
  So	
  far,	
  the	
  platform	
  has	
  10.305	
  registered	
  users,	
  
1.191	
   proposed	
   tasks,	
   718	
   submitted	
   solutions,	
   8.576	
   comments,	
   177	
   winners	
   and	
  19	
   resulting	
   products	
  
(Tchibo	
   Ideas,	
   2012k).	
   Tchibo-­‐Ideas.de	
   illustrates	
   the	
   different	
   possibilities	
   of	
   using	
   crowdsourcing	
   as	
   a	
  
tool	
  to	
  identify	
  customer	
  needs,	
  generate	
  solutions	
  and	
  new	
  product	
  ideas,	
  and	
  engage	
  the	
  customer	
  on	
  
an	
  entirely	
  new	
  level.	
  	
  

	
  




	
                                                                                                                                                                             8	
  
4	
       Discussion	
  
As	
   outlined	
   above,	
   the	
   Internet’s	
   impact	
   on	
   marketing	
   operations	
   has	
   changed	
   the	
   relationship	
   between	
  
companies	
   and	
   customers	
   resulting	
   in	
   more	
   reciprocal	
   interaction	
   and	
   increased	
   collaboration.	
   This	
  
discussion	
  addresses	
  the	
  question	
  –	
  can	
  companies	
  use	
  a	
  crowdsourcing	
  platform	
  as	
  a	
  vehicle	
  to	
  become	
  
truly	
  customer	
  oriented?	
  

Crowdsourcing	
   embraces	
   the	
   new	
   rules	
   of	
   Internet	
   marketing,	
   enabling	
   companies	
   to	
   interact	
   with	
   their	
  
customers	
   and	
   engage	
   them	
   in	
   the	
   generation	
   and	
   evaluation	
   of	
   ideas	
   and	
   solutions	
   for	
   improved	
  
customer	
   experiences	
   and	
   more	
   innovative	
   products.	
   This	
   concept	
   embraces	
   consumer	
   empowerment	
  
and	
  deliberately	
  cedes	
  power	
  and	
  control	
  from	
  the	
  company	
  to	
  the	
  customer.	
  Crowdsourcing	
  is	
  based	
  on	
  
Web	
   2.0	
   technologies	
   and	
   like	
   other	
   Social	
   Media	
   platforms,	
   amplifies	
   a	
   dialogue	
   between	
   companies	
  
and	
   customers.	
   Both	
   case	
   examples	
   use	
   their	
   crowdsourcing	
   platforms	
   to	
   foster	
   an	
   ongoing	
   dialogue	
  
between	
   customers	
   and	
   employees	
   initiated	
   by	
   the	
   idea	
   contributions	
   and	
   maintained	
   through	
  
discussions/comments.	
  These	
  platforms	
  provide	
  a	
  high	
  degree	
  of	
  transparency	
  since	
  all	
  suggestions	
  and	
  
discussions	
  are	
  disclosed	
  and	
  in	
  the	
  case	
  of	
  MyStarbucksIdea.com,	
  transparency	
  is	
  reinforced	
  by	
  posting	
  
the	
   ‘implementation	
   status’	
   of	
   each	
   idea	
   on	
   the	
   company’s	
   blog.	
   The	
   fact	
   that	
   the	
   ideas	
   and	
   solutions	
  
generated	
   have	
   the	
   potential	
   to	
   be	
   realized	
   in	
   the	
   form	
   of	
   new	
   or	
   improved	
   products,	
   gives	
   these	
  
crowdsourcing	
  platforms	
  a	
  high	
  degree	
  of	
  authenticity.	
  	
  

By	
   relating	
   the	
   case	
   examples	
   to	
   the	
   theoretical	
   discussion	
   of	
   crowdsourcing,	
   it	
   is	
   apparent	
   that	
   the	
  
consulted	
  literature	
  does	
  not	
  cover	
  all	
  facets	
  of	
  crowdsourcing,	
  especially	
  with	
  reference	
  to	
  marketing.	
  	
  
For	
  example,	
  neither	
  case	
  uses	
  crowdsourcing	
  to	
  address	
  specific,	
  pre-­‐defined	
  tasks	
  with	
  a	
  time	
  limit	
  as	
  
described	
  in	
  the	
  literature.	
  Rather,	
  the	
  open	
  call	
  for	
  idea	
  generation	
  takes	
  place	
  continuously	
  and	
  invites	
  
customers	
  to	
  submit	
  ideas	
  and	
  suggestions	
  based	
  on	
  their	
  own	
  interests	
  and	
  needs.	
  The	
  main	
  purpose	
  of	
  
both	
   platforms	
   is	
   to	
   leverage	
   collective	
   intelligence	
   in	
   order	
   to	
   address	
   business	
   challenges	
   and	
   to	
  
improve	
   products	
   and	
   services.	
   MyStarbucksIdea.com	
   works	
   without	
   monetary	
   rewards	
   while	
   Tchibo-­‐
Ideas.de	
  offers	
  no	
  fixed	
  rewards	
  for	
  submitted	
  tasks	
  and	
  solutions	
  but	
  rewards	
  outstanding	
  ideas	
  on	
  a	
  
monthly	
   or	
   annual	
   basis.	
   Furthermore,	
   there	
   is	
   the	
   possibility	
   to	
   enter	
   into	
   a	
   cooperation	
   with	
   Tchibo	
  
which	
  could	
  result	
  in	
  profitable	
  earnings.	
  Both	
  companies	
  utilize	
  the	
  platform	
  to	
  crowdsource	
  ideas	
  and	
  
generate	
   solutions	
   while	
   Starbucks	
   extends	
   this	
   to	
   evaluate	
   the	
   ideas	
   generated.	
   In	
   both	
   cases,	
   the	
  
companies	
  have	
  the	
  ultimate	
  decision	
  on	
  whether	
  an	
  idea	
  will	
  be	
  incorporated	
  into	
  the	
  business	
  or	
  not.	
  	
  	
  

The	
   analysis	
   of	
   MyStarbucksIdea.com	
   and	
   Tchibo-­‐Ideas.de	
   reveals	
   that	
   the	
   companies	
   have	
   taken	
   the	
  
concept	
  of	
  crowdsourcing	
  one	
  step	
  further	
  by	
  including	
  not	
  only	
  idea	
  generation	
  and	
  evaluation	
  features,	
  
but	
   also	
   aspects	
   of	
   brand-­‐communities	
   by	
   empowering	
   customers	
   with	
   a	
   shared	
   interest	
   to	
   create	
  
profiles	
  and	
  interact.	
  Only	
  a	
  few	
  authors,	
  such	
  as	
  Ebner	
  et	
  al.	
  (2009)	
  and	
  Zheng	
  et	
  al.	
  (2011),	
  address	
  this	
  
integration	
   of	
   crowdsourcing	
   and	
   community	
   building	
   in	
   academic	
   literature.	
   With	
   regards	
   to	
   the	
  
identified	
   rules	
   of	
   Internet	
   marketing,	
   the	
   chosen	
   examples	
   of	
   crowdsourcing	
   incorporate	
   key	
  
characteristics	
  such	
  as	
  interaction,	
  dialogue	
  and	
  transparency	
  to	
  an	
  even	
  larger	
  extent	
  than	
  the	
  literature	
  
describes.	
  	
  

The	
   crowdsourcing	
   platforms	
   enable	
   Starbucks	
   and	
   Tchibo	
   to	
   capture	
   valuable	
   information	
   about	
  
customer	
   needs	
   through	
   the	
   direct	
   evaluation	
   of	
   ideas	
   and	
   tasks	
   uploaded	
   by	
   the	
   consumers	
   and	
  
through	
  engaging	
  in	
  and	
  monitoring	
  on-­‐going	
  conversations,	
  demonstrating	
  the	
  powerful	
  link	
  between	
  
crowdsourcing	
   and	
   customer	
   orientation.	
   Customer	
   orientation	
   strategically	
   focuses	
   on	
   customers	
   and	
  
their	
   current	
   and	
   future	
   needs	
   in	
   order	
   to	
   offer	
   superior	
   value	
   and	
   enhance	
   satisfaction.	
   Besides	
  
gathering	
  information	
  about	
  customers	
  and	
  their	
  needs,	
  Starbucks	
  and	
  Tchibo	
  engage	
  in	
  a	
  discourse	
  with	
  


	
                                                                                                                                                                    9	
  
customers	
  and	
  collaborate	
  with	
  them	
  to	
  implement	
  ideas	
  that	
  are	
  based	
  on	
  true	
  customer	
  demands.	
  As	
  
a	
   response	
   to	
   the	
   generated	
   ideas	
   and	
   suggestions,	
   new	
   products	
  developed	
   are	
   more	
   likely	
   to	
   fulfil	
   real	
  
customer	
  needs	
  and	
  create	
  superior	
  customer	
  value.	
  Another	
  requirement	
  of	
  customer	
  orientation	
  is	
  the	
  
dissemination	
  of	
  customer	
  needs	
  throughout	
  the	
  organization.	
  The	
  Starbucks	
  example	
  demonstrates	
  this	
  
cross-­‐functional	
   coordination	
   as	
   the	
   ‘Idea	
   Partners’	
   who	
   interact	
   with,	
   monitor,	
   and	
   guide	
   ideas	
   and	
  
discussions	
   represent	
   different	
   departments.	
   Tchibo’s	
   crowdsourcing	
   platform	
   goes	
   one	
   step	
   further	
  
than	
  Starbucks’	
  as	
  it	
  invites	
  customers	
  not	
  only	
  to	
  submit	
  ideas	
  relating	
  to	
  the	
  company,	
  but	
  also	
  offers	
  
them	
   a	
   platform	
   for	
   finding	
   solutions	
   to	
   their	
   own,	
   everyday	
   problems.	
   With	
   this	
   move,	
   the	
   company	
  
places	
   its	
   customers	
   and	
   their	
   needs	
   as	
   a	
   main	
   focus	
   of	
   their	
   crowdsourcing	
   platform.	
   Through	
  
crowdsourcing,	
   both	
   companies	
   give	
   their	
   customers	
   the	
   feeling	
   that	
   their	
   input	
   matters,	
   is	
   taken	
  
seriously	
   and	
   that	
   they	
   are	
   part	
   of	
   the	
   organization.	
   Being	
   truly	
   customer	
   oriented	
   fosters	
   customer	
  
satisfaction	
   and	
   customer	
   relationships	
   and	
   as	
   Yan	
   (2011,	
   p.	
   692)	
   addressed	
   in	
   the	
   concept	
   of	
   market	
  
orientation	
  with	
  relation	
  to	
  Internet	
  and	
  Social	
  Media,	
  these	
  emerging	
  channels	
  enable	
  organizations	
  to	
  
be	
  more	
  responsive	
  to	
  customers	
  and	
  their	
  demands	
  and	
  grasp	
  their	
  prevailing	
  mood.	
  (Yan,	
  2011,	
  p.	
  692)	
  
The	
  outlined	
  case	
  examples	
  support	
  this	
  with	
  regards	
  to	
  crowdsourcing.	
  

There	
  are	
  also	
  possible	
  downsides	
  to	
  crowdsourcing	
  with	
  regards	
  to	
  customer	
  orientation	
  as	
  it	
  is	
  difficult	
  
to	
  know	
  if	
  the	
  participants	
  represent	
  the	
  actual	
  customer	
  base.	
  This	
  implies	
  that	
  gathered	
  information	
  
and	
  generated	
  ideas	
  could	
  not	
  necessarily	
  mirror	
  the	
  needs	
  of	
  actual	
  customers.	
  Moreover,	
  there	
  is	
  no	
  
guarantee	
   that	
   the	
   submitted	
   ideas	
   are	
   in	
   line	
   with	
   the	
   companies’	
   objectives,	
   so	
   companies	
   should	
  
consider	
  carefully	
  if	
  crowdsourcing	
  activities	
  are	
  strategic	
  for	
  their	
  overall	
  business	
  strategy.	
  Companies	
  
should	
   not	
   rely	
   solely	
   on	
   crowdsourcing	
   as	
   a	
   means	
   to	
   gather	
   information	
   about	
   customer	
   needs,	
   rather	
  
it	
   should	
   complement	
   traditional	
   approaches	
   and	
   when	
   successfully	
   utilized,	
   can	
   foster	
   a	
   stronger	
  
customer	
  orientation.	
  




	
                                                                                                                                                                    10	
  
5	
       Conclusion	
  
This	
  paper	
  examines	
  crowdsourcing	
  from	
  a	
  marketing	
  perspective	
  and	
  looks	
  at	
  its	
  potential	
  for	
  customer	
  
orientation.	
   After	
   outlining	
   the	
   three	
   concepts	
   –	
   Internet	
   marketing,	
   customer	
   orientation	
   and	
  
crowdsourcing	
   –	
   and	
   describing	
   and	
   analysing	
   the	
   online	
   platforms,	
   MyStarbucksIdea.com	
   and	
   Tchibo-­‐
Ideas.de,	
   several	
   things	
   become	
   apparent.	
   First,	
   the	
   concept	
   of	
   crowdsourcing	
   embraces	
   new	
   rules	
   of	
  
Internet	
  Marketing	
  such	
  as	
  interaction,	
  consumer	
  empowerment	
  and	
  transparency.	
  Second,	
  the	
  current	
  
literature	
   does	
   not	
   cover	
   all	
   facets	
   of	
   crowdsourcing	
   that	
   were	
   identified	
   in	
   the	
   case	
   examples	
  
underlining	
   that	
   theory	
   is	
   still	
   lagging	
   behind	
   practice.	
   Third,	
   based	
   on	
   the	
   findings	
   of	
   this	
   paper,	
   the	
  
research	
  question	
  can	
  be	
  validated	
  –	
  by	
  embracing	
  new	
  rules	
  of	
  Internet	
  marketing,	
  crowdsourcing	
  can	
  
be	
   a	
   vehicle	
   for	
   companies	
   to	
   become	
   truly	
   customer	
   oriented.	
   With	
   the	
   help	
   of	
   crowdsourcing,	
   both	
  
companies	
  gathered	
  meaningful	
  information	
  about	
  customer	
  needs	
  which	
  can	
  lead	
  to	
  creating	
  superior	
  
customer	
  value	
  and	
  satisfaction.	
  

There	
  is	
  a	
  lack	
  of	
  academic	
  literature	
  addressing	
  collective	
  approaches,	
  such	
  as	
  crowdsourcing,	
  especially	
  
from	
  a	
  marketing	
  perspective.	
  Therefore,	
  this	
  paper	
  contributes	
  to	
  current	
  literature	
  by	
  taking	
  a	
  step	
  to	
  
fill	
   this	
   gap,	
   relating	
   the	
   new	
   rules	
   of	
   Internet	
   marketing	
   to	
   the	
   concept	
   of	
   crowdsourcing	
   and	
  
investigating	
   whether	
   crowdsourcing	
   facilitates	
   customer	
   orientation.	
   However,	
   limitations	
   did	
   exist	
  
since	
   this	
   paper	
   only	
   analyses	
   two	
   case	
   examples	
   which	
   use	
   crowdsourcing	
   as	
   a	
   tool	
   to	
   understand	
  
customer	
   needs,	
   create	
   superior	
   customer	
   value	
   and	
   enhance	
   customer	
   satisfaction.	
   Future	
   research	
  
needs	
   to	
   be	
   conducted	
   in	
   order	
   to	
   validate	
   the	
   research	
   question	
   beyond	
   the	
   scope	
   of	
   this	
   paper.	
  
Moreover,	
   the	
   correlation	
   between	
   the	
   concepts	
   of	
   crowdsourcing	
   and	
   community	
   building	
   should	
   be	
  
further	
   investigated	
   since	
   a	
   connection	
   was	
   identified	
   in	
   both	
   case	
   examples	
   and	
   is	
   not	
   addressed	
   in-­‐
depth	
  by	
  the	
  literature	
  thus	
  far.	
  

It	
   is	
   clear	
   that	
   crowdsourcing	
   –	
   when	
   integrated	
   properly	
   –	
   is	
   a	
   new	
   and	
   positive	
   way	
   to	
   approach	
  
business	
   and	
   marketing	
   challenges,	
   interact	
   with	
   customers,	
   gain	
   deeper	
   insights	
   and	
   create	
   stronger	
  
bonds	
  by	
  reaching	
  out	
  to	
  customers	
  actively	
  and	
  empowering	
  them	
  to	
  participate	
  in	
  the	
  business.	
  

	
  

	
  

	
  
	
  
	
  
	
  
	
  
	
  
	
  




	
                                                                                                                                                                      11	
  
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  Brand	
  Management,	
  18(9),	
  688–696.	
  	
  
Zheng,	
  H.	
  Li,	
  D.,	
  Hou,	
  W.	
  (2011).	
  Task	
  Design,	
  Motivation,	
  and	
  Participation	
  In	
  Crowdsourcing	
  Contests.	
  
International	
  Journal	
  of	
  Electronic	
  Commerce,	
  15(4),	
  57–88.	
  	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  




	
                                                                                                                                                       14	
  

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Internet marketing piafaulseit_final

  • 1.           By  embracing  new  rules  of  (Internet)  marketing  and   utilizing  crowdsourcing  a  firm  can  become  truly   customer  oriented       BUSN32  Internet  Marketing,  Branding,  Consumers   2012-­‐02-­‐29     Individual  Assignment   Written  by     Pia  Faulseit  (840125-­‐T247)
  • 2. Table  of  Content   1   INTRODUCTION.............................................................................................................................. 2   2   THEORETICAL  FRAMEWORK ........................................................................................................... 3   2.1   NEW  RULES  OF  INTERNET  MARKETING .....................................................................................................3   2.2   CUSTOMER  ORIENTATION ......................................................................................................................3   2.3   CROWDSOURCING................................................................................................................................4   3   CASE  EXAMPLES ............................................................................................................................. 6   3.1   MY  STARBUCKS  IDEA ............................................................................................................................6   3.2   TCHIBO  IDEAS......................................................................................................................................7   4   DISCUSSION ................................................................................................................................... 9   5   CONCLUSION ................................................................................................................................11   6   BIBLIOGRAPHY ..............................................................................................................................12         1  
  • 3. 1   Introduction     The   rapid   development   and   use   of   Information   and   Communication   Technology   within   recent   decades   has  brought  about  several  changes  for  the  business  and  marketing  environments  (Wind  2008,  p.  23;  Lutz,   2011,   p.   225).   The   Internet   has   created   new   rules   and   possibilities   for   companies   and   their   marketing   operations  as  well  as  the  potential  to  enhance  customer  orientation.  Marketing  is  now  characterized  by   a   high   degree   of   interaction   and   collaboration   between   companies   and   their   customers   and   this   relationship  shift  has  created  a  customer  that  is  increasingly  empowered.  (Winer,  2009,  p.  109f.;  Wind   2008,  p.  21;  Pires  et  al.,  2006,  p.  939)   As   empowered   customers   becoming   co-­‐inventors,   co-­‐creators   and   co-­‐marketers,   the   strict   borders   between  companies  and  customers  dilute  (Wind  2008,  p.  22)  and  some  companies  even  seek  to  leverage   this  by  deliberately  ceding  “…power  to  the  collective  for  specific  brand  decisions  and  tasks.”  (Fournier,   Avery,   2011,   p.   196)   One   way   in   which   companies   are   tapping   into   the   collective   for   idea   generation,   advertising  or  to  inform  the  product  pipeline  is  crowdsourcing  (Fournier,  Avery,  2011,  p.  196).   The   implementation   of   collaborative   approaches   like   crowdsourcing   within   business   and   marketing   practice  is  a  growing  trend.  However,  there  is  a  lack  of  academic  contribution,  especially  from  marketing   research,  to  this  growing  field.  (Lutz,  2011,  p.  225;  Bonabeau,  2009,  p.  46,  50;  Zheng  et  al.,  2011,  p.  58)   According   to   Lutz   (2011,   p.   233),   academic   research   in   marketing   tends   to   follow   rather   than   lead   marketing  practice  with  regards  to  collaborative  approaches.  Therefore,  the  purpose  of  this  paper  is  to   address  this  gap  by  exploring  crowdsourcing  from  a  marketing  perspective  and  investigating  its  potential   as  a  vehicle  for  companies  to  become  truly  customer  oriented.    To  explore  this,  three  concepts  –  Internet   marketing,   customer   orientation   and   crowdsourcing   –   are   outlined   based   on   a   literature   review.   With   the   lack   of   academic   literature   on   crowdsourcing   from   a   marketing   perspective,   journal   articles   from   the   adjacent   fields   of   Research   and   Development   (R&D),   Innovation   Management   and   Design   are   consulted.   Two  case  examples  are  provided  that  show  how  crowdsourcing  can  be  used  by  companies  for  customer   orientation.  Finally,  a  conclusion  is  drawn  and  suggestions  for  future  research  are  given.         2  
  • 4. 2   Theoretical  framework   The   following   theoretical   framework   outlines   and   defines   the   three   concepts   –   Internet   marketing,   customer  orientation  and  crowdsourcing.   2.1   New  rules  of  Internet  marketing   With  the  advent  of  the  Internet,  a  new  digital  medium  arose  which  has  significantly  changed  marketing   operations   (Wind   2008,   p.   23;   Lutz,   2011,   p.   225)   from   a   linear,   one-­‐way   flow   of   information   from   organizations  to  customers  to  instead,  an  exchange  of  information  which  increasingly  takes  place  in  the   form   of   a   dialogue   on   a   one-­‐to-­‐one,   many-­‐to-­‐many   or   multi-­‐modal   level   (Rowley,   2004,   p.   26;   Winer,   2009,  p.  108;  Muñiz,  Schau,  2011,  p.  209).  Through  this  new  communication  model  that  enables  users  to   generate   and   continuously   modify   content   (User   Generated   Content)   (Kaplan,   Haenlein,   2010,   p.   61),   organizations  now  have  the  possibility  to  interact  with  customers  and  engage  them  in  a  collaborative  and   participatory   way   (Winer,   2009,   p.   108f.;   Kaplan,   Haenlein,   2010,   p.   61)   facilitating   new   customer   relationships  and  mutual  value  creation  (Rowley,  2004,  p.  24;  Fournier,  Avery,  2011,  p.  195).  Additionally,   the   Internet   marketing   environment   has   hailed   new   rules   of   authenticity   and   transparency,   which   organizations   need   to   keep   in   mind   when   operating   online   (Fournier,   Avery,   2011,   p.   198;   Weinberg,   Pehlivan,  2011,  p.  276).  Internet  marketing  can  be  defined  as  “Applying  digital  technologies  which  form   online   channels   to   market   […]   to   contribute   to   marketing   activities   aimed   at   achieving   profitable   acquisition   and   retention   of   customers   […]   to   improve   customer   knowledge   […],   then   delivering   integrated   targeted   communications   and   online   services   that   match   their   individual   needs.”   (IDM   in   Chaffey,  2008,  p.  19)  Social  Media  sites  are  increasingly  where  this  new  Internet  marketing  takes  place   and   it   is   crucial   to   remember,   “it’s   all   about   participation,   sharing,   and   collaboration,   rather   than   straightforward  advertising  and  selling.”  (Kaplan,  Haenlein,  2010,  p.  65)     The  above  discussion  outlines  how  the  digital  era  has  changed  the  rules  of  marketing  but   it  is  important   to   note   that   the   role   of   customers   has   also   changed.   Customers   are   no   longer   passive   recipients   of   marketing   messages   but   rather,   they   take   an   active   role   by   developing   and   disseminating   marketing   messages,   co-­‐creating   marketing   content,   and   becoming   increasingly   in   control   of   what   is   said   about   brands   or   products.   This   power   shift   has   fundamentally   changed   the   relationship   between   companies   and  customers.  (Wind  2008,  p.  21f.;  Winer,  2009,  p.  112;  Rowley,  2004,  p.  26f.;  Muñiz,  Schau,  2011,  p.   210)   The   concept   of   ‘consumer   empowerment’   is   widely   discussed   in   the   literature   (e.g.   Fournier,   Avery,   2011,  p.  193;  Pires  et  al.,  2006,  938  f.;  Muñiz,  Schau,  2011,  p.  210;  Wind,  2008,  p.  21).     2.2   Customer  orientation   The   concept   of   customer   orientation   is   part   of   the   theory   of   market   orientation,   which   is   primarily   addressed  by  two  major  groups  of  authors  within  academic  literature.     Slater   and   Narver   (1990,   p.   21;   1994,   p.   22)   conceptualize   customer   orientation   as   one   of   three   major   components   of   market   orientation   and   state   that,   “A   business   is   market-­‐oriented   when   its   culture   is   systematically  and  entirely  committed  to  the  continuous  creation  of  superior  customer  value.  Specifically,   this   entails   collecting   and   coordinating   information   on   customers,   competitors,   and   other   significant   market  influencers  […]  to  use  in  building  that  value.”  (Slater,  Narver,  1994,  p.  22)  While  Narver  and  Slater   incorporate  customer  orientation  as  one  component  within  their  theory  of  market  orientation,   Kohli  and   Jaworski   (the   second   group   of   authors)   conceptualize   market   orientation   differently   and   refer   to   customer   orientation   in   connection   with   the   broader   concept   of   market   intelligence   (Kohli,   Jaworski,   1990,   p.   3f.;   Jaworski,   Kohli,   1993,   p.   54).   “Market   orientation   is   the   organization-­‐wide   generation   of     3  
  • 5. market   intelligence   pertaining   to   current   and   future   customer   needs,   dissemination   of   the   intelligence   across  departments,  and  organization  wide  responsiveness  to  it.”  (Kohli,  Jaworski,  1990,  p.  6)   While   both   groups   of   authors   conceptualize   customer   orientation   differently   within   their   theories   of   market  orientation,  the  understanding  of  customer  orientation  as  such  is  overlapping  (Nwankwo,  1995,  p.   6).  They  commonly  state  that  customer  orientation  is  a  central  element  of  market  orientation  and  that  it   entails   acquisition,   assessment   and   superior   understanding   of   information   about   customers’   current   and   future   needs,   expectations   and   preferences   (Narver,   Slater,   1990,   p.   21;   Kohli,   Jaworski,   1990,   p.   3f.).   This   model   of   information   gathering   goes   beyond   traditional   customer   research   to   identify   not   only   expressed   but   also   latent   customer   needs   (Slater,   Narver,   1998,   p.   1002;   Kohli,   Jaworski,   1990,   p.   4).   Through  an  understanding  of  and  responsiveness  to  customer  needs,  organizations  can  create  superior   customer  value  and  enhance  customer  satisfaction  and  relationships  (Narver,  Slater,  1990,  p.  21;  Slater,   Narver,   1994,   p.   22f.;  Jaworski,   Kohli,   1993,   p.   53;   Kohli,   Jaworski,   1990,   p.   6;   Aziz,   Yasin,   2004,   p.   5f.).   Moreover,   by   embedding   market   orientation   into   their   business   cultures,   organizations   can   gain   sustainable   competitive   advantages   and   are   likely   to   increase   business   performance   and   profitability   (Kohli,  Jaworski,  1990,  p.  13,  Jaworski,  Kohli,  1993,  p.  64;  Narver,  Slater  1990,  p.  21f.;  Slater,  Narver,  1994,   p.  26).     The  theory  of  market  orientation  has  since  been  refined  and  built  upon  (Slater,  Narver,  1998,  p.  1001)   with   the   terms   ‘market   orientation’   and   ‘customer   orientation’   now   used   almost   interchangeably   and   associated   with   terms   like   ‘marketing   concept’   and   ‘customer   first’   (Nwankwo,   1995,   p.   6).   However,   most  authors  addressing  this  topic  still  refer  back  to  the  initial  theories  of  market  orientation  by  Kohli  &   Jaworski  and  Slater  &  Narver  (e.g.  Nwankwo,  1995;  Yan,  2011;  Aziz,  Yasin,  2004,  Luo,  Seyedian,  2004).   2.3   Crowdsourcing   The  term  crowdsourcing  initially  appeared  in  a  2006  article,  “The  rise  of  crowdsourcing,”  written  by  Jeff   Howe  and  published  in  the  online  magazine,  Wired  (Busarovs,  2011,  p.  54;  Howe,  2006a,  p.  1).  According   to  Howe  (2006b),  crowdsourcing  can  be  defined  as  “…the  act  of  taking  a  job  traditionally  performed  by  a   designated   agent   (usually   an   employee)   and   outsourcing   it   to   an   undefined,   generally   large   group   of   people  in  the  form  of  an  open  call.”  Although  the  concept  as  such  existed  before  2006  (Busarovs,  2011,  p.   54),  Howe’s  definition  of  crowdsourcing  is  generally  accepted  and  commonly  used  in  current  literature   by  authors  such  as  Miziolek  (2011,  p.  16),  Lutz  (2011,  p.  225)  or  Poetz  and  Schreier  (2012,  p.  246).  With   the   advancement   of   the   Internet   to   Web   2.0,   companies   are   now   able   to   “…tap   into   ‘the   collective’   on   a   greater  scale  than  ever  before”  (Bonabeau,  2009,  p.  46).  The  concept  of  crowdsourcing  leverages  these   new  possibilities  and  strives  to  solve  problems  with  the  help  of  the  masses  (Busarovs,  2011,  p.  54;  Zheng   et   al.,   2011,   p.   57).   This   can   take   place   on   companies’   websites,   social   networks   or   on   special   crowdsourcing   platforms   (e.g.   InnoCentive)   which   all   connect   companies   with   individuals   (Busarovs,   2011,  p.  57;  Zheng  et  al.,  2011,  p.  59;  Doan  et  al.,  2011,  p.  88).     Since   the   concept   of   crowdsourcing   is   relatively   new,   there   is   limited   literature   available,   especially   from   a  marketing  perspective.  Therefore  the  consulted  academic  literature  originates  from  adjacent  fields  and   approaches   crowdsourcing   in   terms   of   different   areas   of   application,   such   as   user-­‐driven   innovation   (Busarovs,  2011),  new  product  development  (Poetz,  Schreier,  2012),  decision-­‐making  (Bonabeau,  2009),   or   packaging   and   design   (Miziolek,   2011).   Crowdsourcing   has   its   roots   in   the   idea   of   open   source   solutions  (OSS)  but  is  applied  outside  the  field  of  software  development  (Howe,  2006b;  Poetz,  Schreier,   2012,   p.   246).   The   concept   of   crowdsourcing   was   initially   implemented   in   the   field   of   R&D   projects,   such   as   Innovation   Management   and   New   Product   Development   (Miziolek,   2011,   p.   16;   Albors   et   al.,   2007,   p.     4  
  • 6. 197).   Traditionally,   these   projects   were   solely   performed   company-­‐internal   by   the   responsible   departments  (e.g.  R&D,  Marketing,  Engineering),  but  with  the  growing  need  to  be  innovative  in  today’s   business   landscape,   there   is   an   increasing   tendency   to   look   for   innovation   and   ideas   to   emerge   from   outside   of   the   company.   (Busarovs,   2011,   p.   53;   Poetz,   Schreier,   2012,   p.   245;   Ebner   et   al.,   2009,   p.   243)   Based   on   this,   Busarovs   (2011,   p.   53)   refers   to   crowdsourcing   as   a   business   philosophy   for   user-­‐driven   innovation  oriented  towards  true  customer  needs.     Crowdsourcing’s   collaborative   model   is   a   growing   trend   and   besides   R&D   projects,   it   is   increasingly   used   to   address   business   problems   and   challenges   in   marketing   and   its   adjacent   fields   such   as   branding,   advertising,   market   research   and   design   (Fournier,   Avery,   2011,   p.   196;   Miziolek,   2011,   p.   16;   Lutz,   2011,   p.   225;   Bonabeau,   2009,   p.   50f.).   Regardless   of   the   area   of   application,   the   concept   of   crowdsourcing   directs   a   task   towards   a   large,   undefined   group   of   people   via   the   Internet   to   make   use   of   collective   intelligence   (Fournier,   Avery,   2011,   p.   196;   Busarovs,   2011,   p.   54;   Bonabeau,   2009,   p.   46).   The   mechanism  relies  on  a  self-­‐selection  process  among  participants  who  are  willing  and  able  to  respond  to   the   given   task   (Poetz,   Schreier,   2012,   p.   246),   which   can   range   from   routine   to   complex   to   creative   (Busarovs,   2011,   p.   54).   According   to   Zheng   et   al.   (2011,   p.   59),   crowdsourcing   can   implicate   a   contest   where   tasks,   requirements,   duration   and   rewards   are   defined   by   a   company   who   then   evaluates   the   participants’   proposed   solutions.   However,   the   motivation   to   participate   in   crowdsourcing   does   not   necessarily   need   to   be   based   on   monetary   rewards,   it   can   also   be   based   on   other   intrinsic   or   extrinsic   factors  such  as  value  driven  incentives,  recognition  or  the  pleasure  of  solving  a  task  (Zheng  et  al.,  2011,  p.   76f.;  Bonabeau,  2009,  p.  49).  Besides  solution  generation,  crowdsourcing  is  increasingly  used  to  evaluate   proposed  ideas  and  is  often  implemented  for  both  reasons  in  successive  steps  so  that  idea  creation  and   voting  for  selection  are  part  of  the  process  (Bonabeau,  2009,  p.  47;  Fournier,  Avery,  2011,  p.  196).   There  are  a  number  of  advantages  and  risks  of  using  crowdsourcing,  but  for  the  purpose  of  this  paper,   only   certain   aspects   are   relevant   and   will   be   discussed.   Crowdsourcing   can   be   an   alternative   to   or   complement   traditional,   internal   problem-­‐solving   approaches   by   generating   more   ideas   from   a   diverse   and   impartial   crowd   instead   of   relying   solely   on   internal   expertise   (Poetz,   Schreier,   2012,   p.   248;   Busarovs,   2011,   p.   59;   Miziolek,   2011,   p.   17;   Ebner   et   al.,   2009,   p.   243).   It   can   be   used   to   overcome   a   divergence  between  an  expert’s  attempt  to  find  a  solution  and  real  customer  needs  (Busarovs,  2011,  p.   53)  or  to  identify  valuable  consumer  insights  (Miziolek,  2011,  p.  17).  Concurrently,  there  exists  the  threat   of   not   reaching   a   critical   mass   of   participants   or   engaging   a   group   that   does   not   represent   the   target   group   or   consumer   base   and   therewith,   their   real   needs   (Miziolek,   2011,   p.   17,   Busarovs,   2011,   p.   57;   Poetz,  Schreier,  2012,  p.  255).  Moreover,  quantity  does  not  necessarily  equal  quality,  thus,  the  generated   ideas  may  not  be  appropriate  for  the  problem  or  may  lead  to  undesirable  outcomes  (Miziolek,  2011,  p.   17;  Bonabeau,  2009,  p.  48;  Poetz,  Schreier,  2012,  p.  245;  Fournier,  Avery,  2011,  p.  202).     There  are  a  number  of  key  issues  to  remember  when  considering  crowdsourcing.    Control  is  one  crucial   factor  –  finding  the  right  balance  between  ceding  control  to  the  crowd  and  keeping  the  management  and   overall   strategic   direction   in   the   hands   of   the   company   (Miziolek,   2011,   p.   17;   Bonabeau,   2009,   p.   48;   Poetz,   Schreier,   2012,   p.   248).   Furthermore,   companies   need   to   balance   the   need   for   a   diversity   of   ideas   with   the   level   of   expertise   to   ensure   quality   (Bonabeau,   2009,   p.   48).   Turning   to   the   crowd   can   reveal   contrary  interests,  misbehaviour  and  critiques  which  would  then  need  to  be  addressed  (Bonabeau,  2009,   p.   48).   Every   case   should   be   carefully   considered,   weighing   the   potential   benefits   and   downfalls   of   crowdsourcing   with   the   particular   task/problem   in   mind   (Busarovs,   2011,   p.   58;   Miziolek,   2011,   p.   17).     5  
  • 7. 3   Case  examples   There   are   a   number   of   companies   and   brands   that   implement   crowdsourcing   as   a   tool   to   generate   ideas   or  solutions  for  a  given  problem  (Lutz,  2011,  p.  225).  MyStarbucksIdeas.com  and  Tchibo-­‐Ideas.de  are  two   interactive   platforms   that   are   examples   of   crowdsourcing   being   used   for   customer   orientation   from   a   marketing   angle.   Due   to   limited   academic   literature   dealing   with   the   selected   cases,   the   descriptive   outlines  below  are  based  mainly  on  an  analysis  of  the  platforms.   3.1   My  Starbucks  Idea   One  mentioned  crowdsourcing  platform  in  the  marketing  literature  is  MyStarbucksIdea.com  by  the  U.S.   coffee   chain   Starbucks   (Fournier,   Avery,   2011,   p.   196;   Kaplan,   Haenlein,   2010,   p.   66).   The   company   describes   MyStarbucksIdea.com   as   “…an   online   community   dedicated   to   sharing   and   discussing   ideas   and  allowing  you  to  see  how  Starbucks  is  putting  top  ideas  into  action.”  (Starbucks  Corporations,  2010a)   MyStarbucksIdea.com   invites   individuals   to   share   ideas   on   how   Starbucks   can   create   better   customer   experiences   in   order   to   improve   its   business   (Kaplan,   Haenlein,   2010,   p.   66;   Starbucks   Corporation,   2010a).   Users   register   online   and   upload   ideas   into   three   main   categories   –   products,   experiences   and   involvement  –  which  are  then  divided  into  sub-­‐categories  with  ideas  ranging  from  small  improvements   to  revolutionary  changes  (Starbucks  Corporation,  2010a;  Starbucks  Corporations,  2010b).     Figure  1:  MyStarbucksIdea.com   The  uploaded  ideas  can  be  discussed  and  voted  on  by  other  users  and  they  can  also  be  posted  to  other   social  media  sites,  like  Facebook.  The  most  popular  or  innovative  ideas  and  suggestions  are  subsequently   considered  by  Starbucks  for  implementation  (independent  of  the  voting  process)  (Kaplan,  Haenlein,  2010,   p.  66;  Starbucks  Corporations,  2010a).  The  company  appoints  employees  from  different  departments  as   ‘idea  partners’  to  join  and  host  the  on-­‐going  discussions  and  advocate  ideas  and  suggestions  within  the     6  
  • 8. company   (Jarvis,   2008;   Starbucks   Corporations,   2010a).   In   the   Idea   partners’   blog,   ‘Ideas   in   Action’,   customers   receive   information   about   the   status   of   the   ideas   –   under   review,   reviewed,   in   the   works,   launched   –   and   are   able   to   comment   on   the   process   (Starbucks   Corporations,   2010a;   Starbucks   Corporations,   2010b;   Starbucks   Corporations,   2010c).   Overall,   the   mechanism   of   Starbucks’   crowdsourcing  platform  does  not  involve  any  monetary  or  tangible  rewards  for  the  proposed  customer   ideas  regardless  of  whether  they  are  implemented  or  not.  Customers  are  engaging  just  for  the  purpose   of  participating  (Starbucks  Corporations,  2010a;  Jarvis,  2008).     MyStarbucksIdea.com   is   a   good   example   of   crowdsourcing   as   a   tool   to   engage   consumers   in   a   well-­‐ structured  process,  while  sending  them  the  message  that  their  input  matters  and  is  taken  seriously.   3.2   Tchibo  Ideas   The   German   coffee   company,   Tchibo,   successfully   expanded   their   business   beyond   coffee   sales   by   developing   a   weekly,   rotating   product   range   that   is   theme-­‐based   (e.g.   household   goods,   sports   equipment)   and   sold   at   shops   or   online   (Tchibo,   2012a;   Tchibo,   2012b).   To   interact   with   its   customers   and   generate   ideas   for   their   product   ranges,   Tchibo   implemented   a   crowdsourcing   platform   called   Tchibo-­‐Ideas.de  (Tchibo  Ideas,  2012a;  Schögel,  Mrkwicka,  2011,  p.  9;  Evans,  McKee,  2010,  p.  335).   Users   register,   create   a   profile   and   interact   on   the   platform   in   three   ways.   First,   they   can   submit   their   own   everyday   problems   in   the   form   of   tasks   which   are   then   directed   toward   other   users   for   input.   Second,   users   can   propose   solutions   in   the   form   of   concrete,   tangible   products   to   the   uploaded   tasks   submitted  by  other  users  or  themselves.  (Tchibo  Ideas,  2012b;  Tchibo  Ideas,  2012c;  Tchibo  Ideas,  2012d)   The   different   tasks   and   proposed   solutions   are   divided   into   categories   (e.g.   kitchen,   health)   and   correlated  with  other,  similar  tasks  or  solutions.  The  platform  allows  interaction  in  the  form  of  task  and   solution   generation,   comments   and   discussion   but   users   are   not   able   to   vote   for   proposed   solutions.   (Tchibo  Ideas,  2012e;  Tchibo  Ideas,  2012f)   The   final   way   in   which   users   can   use   the   platform   is   to   propose   an   innovative,   market-­‐ready   product   design  for  cooperation  in  producing  and  selling  with  Tchibo.  The  product  design  must  fit  Tchibo’s  product   line,  be  new,  legally  defendable  and  producible.  If  a  cooperation  is  achieved,  the  resulting  product  will  be   produced  and  marketed  by  Tchibo  with  the  trademark  rights  remaining  with  the  user  who  also  receives   part   of   the   profit.   (Tchibo   Ideas,   2012g)   However,   Tchibo   reserves   the   right   to   utilize   proposed   tasks   and/or   generated   solutions   from   the   first   two   interaction   categories   without   involving   users   in   the   realization  of  the  idea  and  the  profit  (Tchibo  Ideas,  2012h).       7  
  • 9.   Figure  2:  Tchibo-­‐Ideas.de   Tchibo   does   not   offer   monetary   rewards   for   proposed   tasks   and   solutions,   but,   tasks   and   solutions   submitted   by   participants   can   be   selected   as   ‘tasks   of   the   month’,   ‘solution   of   the   month’   or   ‘solution   of   the   year’,   winning   between   €1.200   and   €10.000   for   the   accolade   (Tchibo   Ideas,   2012i,   Tchibo   Ideas,   2012j).   Like   Starbucks,   Tchibo   classifies   their   crowdsourcing   platform   as   a   form   of   a   community   where   users   can   interact   not   only   with   Tchibo,   but   with  each  others’  problems   and   ideas   taking   customer   orientation   and   engagement  to  a  whole  new  level  (Tchibo  Ideas,  2012a).  So  far,  the  platform  has  10.305  registered  users,   1.191   proposed   tasks,   718   submitted   solutions,   8.576   comments,   177   winners   and  19   resulting   products   (Tchibo   Ideas,   2012k).   Tchibo-­‐Ideas.de   illustrates   the   different   possibilities   of   using   crowdsourcing   as   a   tool  to  identify  customer  needs,  generate  solutions  and  new  product  ideas,  and  engage  the  customer  on   an  entirely  new  level.         8  
  • 10. 4   Discussion   As   outlined   above,   the   Internet’s   impact   on   marketing   operations   has   changed   the   relationship   between   companies   and   customers   resulting   in   more   reciprocal   interaction   and   increased   collaboration.   This   discussion  addresses  the  question  –  can  companies  use  a  crowdsourcing  platform  as  a  vehicle  to  become   truly  customer  oriented?   Crowdsourcing   embraces   the   new   rules   of   Internet   marketing,   enabling   companies   to   interact   with   their   customers   and   engage   them   in   the   generation   and   evaluation   of   ideas   and   solutions   for   improved   customer   experiences   and   more   innovative   products.   This   concept   embraces   consumer   empowerment   and  deliberately  cedes  power  and  control  from  the  company  to  the  customer.  Crowdsourcing  is  based  on   Web   2.0   technologies   and   like   other   Social   Media   platforms,   amplifies   a   dialogue   between   companies   and   customers.   Both   case   examples   use   their   crowdsourcing   platforms   to   foster   an   ongoing   dialogue   between   customers   and   employees   initiated   by   the   idea   contributions   and   maintained   through   discussions/comments.  These  platforms  provide  a  high  degree  of  transparency  since  all  suggestions  and   discussions  are  disclosed  and  in  the  case  of  MyStarbucksIdea.com,  transparency  is  reinforced  by  posting   the   ‘implementation   status’   of   each   idea   on   the   company’s   blog.   The   fact   that   the   ideas   and   solutions   generated   have   the   potential   to   be   realized   in   the   form   of   new   or   improved   products,   gives   these   crowdsourcing  platforms  a  high  degree  of  authenticity.     By   relating   the   case   examples   to   the   theoretical   discussion   of   crowdsourcing,   it   is   apparent   that   the   consulted  literature  does  not  cover  all  facets  of  crowdsourcing,  especially  with  reference  to  marketing.     For  example,  neither  case  uses  crowdsourcing  to  address  specific,  pre-­‐defined  tasks  with  a  time  limit  as   described  in  the  literature.  Rather,  the  open  call  for  idea  generation  takes  place  continuously  and  invites   customers  to  submit  ideas  and  suggestions  based  on  their  own  interests  and  needs.  The  main  purpose  of   both   platforms   is   to   leverage   collective   intelligence   in   order   to   address   business   challenges   and   to   improve   products   and   services.   MyStarbucksIdea.com   works   without   monetary   rewards   while   Tchibo-­‐ Ideas.de  offers  no  fixed  rewards  for  submitted  tasks  and  solutions  but  rewards  outstanding  ideas  on  a   monthly   or   annual   basis.   Furthermore,   there   is   the   possibility   to   enter   into   a   cooperation   with   Tchibo   which  could  result  in  profitable  earnings.  Both  companies  utilize  the  platform  to  crowdsource  ideas  and   generate   solutions   while   Starbucks   extends   this   to   evaluate   the   ideas   generated.   In   both   cases,   the   companies  have  the  ultimate  decision  on  whether  an  idea  will  be  incorporated  into  the  business  or  not.       The   analysis   of   MyStarbucksIdea.com   and   Tchibo-­‐Ideas.de   reveals   that   the   companies   have   taken   the   concept  of  crowdsourcing  one  step  further  by  including  not  only  idea  generation  and  evaluation  features,   but   also   aspects   of   brand-­‐communities   by   empowering   customers   with   a   shared   interest   to   create   profiles  and  interact.  Only  a  few  authors,  such  as  Ebner  et  al.  (2009)  and  Zheng  et  al.  (2011),  address  this   integration   of   crowdsourcing   and   community   building   in   academic   literature.   With   regards   to   the   identified   rules   of   Internet   marketing,   the   chosen   examples   of   crowdsourcing   incorporate   key   characteristics  such  as  interaction,  dialogue  and  transparency  to  an  even  larger  extent  than  the  literature   describes.     The   crowdsourcing   platforms   enable   Starbucks   and   Tchibo   to   capture   valuable   information   about   customer   needs   through   the   direct   evaluation   of   ideas   and   tasks   uploaded   by   the   consumers   and   through  engaging  in  and  monitoring  on-­‐going  conversations,  demonstrating  the  powerful  link  between   crowdsourcing   and   customer   orientation.   Customer   orientation   strategically   focuses   on   customers   and   their   current   and   future   needs   in   order   to   offer   superior   value   and   enhance   satisfaction.   Besides   gathering  information  about  customers  and  their  needs,  Starbucks  and  Tchibo  engage  in  a  discourse  with     9  
  • 11. customers  and  collaborate  with  them  to  implement  ideas  that  are  based  on  true  customer  demands.  As   a   response   to   the   generated   ideas   and   suggestions,   new   products  developed   are   more   likely   to   fulfil   real   customer  needs  and  create  superior  customer  value.  Another  requirement  of  customer  orientation  is  the   dissemination  of  customer  needs  throughout  the  organization.  The  Starbucks  example  demonstrates  this   cross-­‐functional   coordination   as   the   ‘Idea   Partners’   who   interact   with,   monitor,   and   guide   ideas   and   discussions   represent   different   departments.   Tchibo’s   crowdsourcing   platform   goes   one   step   further   than  Starbucks’  as  it  invites  customers  not  only  to  submit  ideas  relating  to  the  company,  but  also  offers   them   a   platform   for   finding   solutions   to   their   own,   everyday   problems.   With   this   move,   the   company   places   its   customers   and   their   needs   as   a   main   focus   of   their   crowdsourcing   platform.   Through   crowdsourcing,   both   companies   give   their   customers   the   feeling   that   their   input   matters,   is   taken   seriously   and   that   they   are   part   of   the   organization.   Being   truly   customer   oriented   fosters   customer   satisfaction   and   customer   relationships   and   as   Yan   (2011,   p.   692)   addressed   in   the   concept   of   market   orientation  with  relation  to  Internet  and  Social  Media,  these  emerging  channels  enable  organizations  to   be  more  responsive  to  customers  and  their  demands  and  grasp  their  prevailing  mood.  (Yan,  2011,  p.  692)   The  outlined  case  examples  support  this  with  regards  to  crowdsourcing.   There  are  also  possible  downsides  to  crowdsourcing  with  regards  to  customer  orientation  as  it  is  difficult   to  know  if  the  participants  represent  the  actual  customer  base.  This  implies  that  gathered  information   and  generated  ideas  could  not  necessarily  mirror  the  needs  of  actual  customers.  Moreover,  there  is  no   guarantee   that   the   submitted   ideas   are   in   line   with   the   companies’   objectives,   so   companies   should   consider  carefully  if  crowdsourcing  activities  are  strategic  for  their  overall  business  strategy.  Companies   should   not   rely   solely   on   crowdsourcing   as   a   means   to   gather   information   about   customer   needs,   rather   it   should   complement   traditional   approaches   and   when   successfully   utilized,   can   foster   a   stronger   customer  orientation.     10  
  • 12. 5   Conclusion   This  paper  examines  crowdsourcing  from  a  marketing  perspective  and  looks  at  its  potential  for  customer   orientation.   After   outlining   the   three   concepts   –   Internet   marketing,   customer   orientation   and   crowdsourcing   –   and   describing   and   analysing   the   online   platforms,   MyStarbucksIdea.com   and   Tchibo-­‐ Ideas.de,   several   things   become   apparent.   First,   the   concept   of   crowdsourcing   embraces   new   rules   of   Internet  Marketing  such  as  interaction,  consumer  empowerment  and  transparency.  Second,  the  current   literature   does   not   cover   all   facets   of   crowdsourcing   that   were   identified   in   the   case   examples   underlining   that   theory   is   still   lagging   behind   practice.   Third,   based   on   the   findings   of   this   paper,   the   research  question  can  be  validated  –  by  embracing  new  rules  of  Internet  marketing,  crowdsourcing  can   be   a   vehicle   for   companies   to   become   truly   customer   oriented.   With   the   help   of   crowdsourcing,   both   companies  gathered  meaningful  information  about  customer  needs  which  can  lead  to  creating  superior   customer  value  and  satisfaction.   There  is  a  lack  of  academic  literature  addressing  collective  approaches,  such  as  crowdsourcing,  especially   from  a  marketing  perspective.  Therefore,  this  paper  contributes  to  current  literature  by  taking  a  step  to   fill   this   gap,   relating   the   new   rules   of   Internet   marketing   to   the   concept   of   crowdsourcing   and   investigating   whether   crowdsourcing   facilitates   customer   orientation.   However,   limitations   did   exist   since   this   paper   only   analyses   two   case   examples   which   use   crowdsourcing   as   a   tool   to   understand   customer   needs,   create   superior   customer   value   and   enhance   customer   satisfaction.   Future   research   needs   to   be   conducted   in   order   to   validate   the   research   question   beyond   the   scope   of   this   paper.   Moreover,   the   correlation   between   the   concepts   of   crowdsourcing   and   community   building   should   be   further   investigated   since   a   connection   was   identified   in   both   case   examples   and   is   not   addressed   in-­‐ depth  by  the  literature  thus  far.   It   is   clear   that   crowdsourcing   –   when   integrated   properly   –   is   a   new   and   positive   way   to   approach   business   and   marketing   challenges,   interact   with   customers,   gain   deeper   insights   and   create   stronger   bonds  by  reaching  out  to  customers  actively  and  empowering  them  to  participate  in  the  business.                       11  
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