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„The Internet has fundamentally altered
           the world.“ Krishnamurthy, 2003




                                                                           Andrea Hemetsberger
                                                     Innsbruck University School of Management




A fine picture of the Internet




                                                     Dark blue:    net, ca, us
                                                     Green:        com, org
                                                     Red:          mil, gov, edu
                                                     Yellow:       jp, cn, tw, au, de
                                                     Magenta:      uk, it, pl, fr
                                                     Gold:         br, kr, nl
                                                     White:        unknown




                                                                           Andrea Hemetsberger
                                                     Innsbruck University School of Management




                                                                                                 1
Robert V. Kozinets
                                     Schulich School of Business
                                                 York University
The Wisdom of Consumer Crowds
Collective Innovation in the Age   Andrea Hemetsberger
                                         School of Management
of Networked Marketing                     Innsbruck University


                                           Hope J. Schau
                                    Eller College of Management
                                        The University of Arizona




                                                              Andrea Hemetsberger
                                        Innsbruck University School of Management




                                                              Andrea Hemetsberger
                                        Innsbruck University School of Management




                                                                                    2
Yes You. You Control the Information Age.




                                                                                          Andrea Hemetsberger
                                                                    Innsbruck University School of Management




etribes


   •   Global Consumers have extended themselves through Computer-Mediated
       Communication
        –   84% use newsgroup for info on hobbies or personal interests
        –   52% have contributed content online
        –   40% use chat
        –   6% maintain blogs
            (USA figures)
   •   Interacting in Online Communities has become second nature
        – “virtual” or “real”
   •   Average age of online community contributor is 33
            g g                      y
   •   Pareto no longer rules
        – Content creation pyramid




                                                                                          Andrea Hemetsberger
                                                                    Innsbruck University School of Management




                                                                                                                3
content creation pyramid




     (Bradley Horowitz)




                                                                        Andrea Hemetsberger
                                                  Innsbruck University School of Management




          „Business and society need categories and
          procedures to guide the powerful phenomenon
          of collective consumer innovation.“
          Kozinets, Hemetsberger & Schau, 2008




                                                                        Andrea Hemetsberger
                                                  Innsbruck University School of Management




                                                                                              4
varieties of online community creativity



    •   consumers are writing and sharing their texts,
    •   distributing their various podcasts and vlogs,
    •   programming and d b i software t th
                    i      d debugging ft       together,
    •   posting photographs (e.g., flickr)
    •   commenting and tagging on photos, blogs, vlogs,
    •   creating news, ads
    •   parodies, and satire
    •   refine, alter, and design products
    •   create their own brands
    •   set up their own online businesses




                                                                                  Andrea Hemetsberger
                                                            Innsbruck University School of Management




some key texts




                                                                                  Andrea Hemetsberger
                                                            Innsbruck University School of Management




                                                                                                        5
some key texts




                                                                               Andrea Hemetsberger
                                                         Innsbruck University School of Management




consumer creativity



    • Dimly understood concept (Moreau and Dahl 2005)

    • Innovative consumer behavior is actually an integral part in
      the daily life of every consumer, not a rare activity.

    • General neglect of the collaborative side of creative
      consumer cultures and its implications for marketing (e.g.,
      Burroughs and Mick 2004)




                                                                               Andrea Hemetsberger
                                                         Innsbruck University School of Management




                                                                                                     6
consumer creativity




      • Creativity is generally defined as the production of novel,
        usefull ideas or problem solutions. It refers to both the process
         sef                      sol tions
        of idea generation or problem solving and the actual idea or
        solution (Amabile, 1983; Sternberg, 1988a; Weisberg, 1988,
        Amabile, 2005)

      • The créateur is a person who makes, designs, and/or invents
        things




                                                                                Andrea Hemetsberger
                                                          Innsbruck University School of Management




consumer creativity


    Individual creativity:

    Mozart claimed that pleasant moods were most conducive to his
    creativity: “When I am, as it were, completely myself, entirely
    alone, and of good cheer—say, traveling in a carriage, or walking
    after a good meal, or during the night when I cannot sleep; it is
    on such occasions that my ideas flow best and most abundantly”
    (Vernon, 1970: 55)

    The concept of flow (Czikszentmihaly), total immersion




                                                                                Andrea Hemetsberger
                                                          Innsbruck University School of Management




                                                                                                      7
consumer creativity

   Individual creativity:

   Compare Margaret Wertheim’s (1999) thoughts on the state of
   our psyche on the Internet:
       p y

   “by creating a space that follows the virtual laws of thought rather
   the concrete laws of matter, cyberspace provides a cosmos
   where the psyche can once again live and breathe.”

   Caught in our fragmented, postmodern self that tries to resist
   modernist norms and traditions we are in constant search for a
   renewed, re unified
   renewed re-unified, and authentic self. Cyberspace becomes the
                                     self
   sacred place for contemplation and self-construction, and the
   space where our digitalized minds freed from our corporeal
   reality, become creative.


                                                                                 Andrea Hemetsberger
                                                           Innsbruck University School of Management




consumer creativity


    • Online communities for new product development (Prahalad
      and Ramaswamy 2004; von Hippel 2005)

    • In recent research, Hargadon and Bechky (2006) emphasize
      a key point: collective creativity takes on a quality distinct
      from individual creativity

    • The rise of particular kinds of online creativity reflects an
      important q
        p       qualitative shift in the nature of the creative pprocess




                                                                                 Andrea Hemetsberger
                                                           Innsbruck University School of Management




                                                                                                       8
consumer creativity


   Collective creativity:

   Occurs when social interaction triggers new interpretations and
   discoveries that consumers thinking alone could not have been
   generated (Hargadon and Bechky, 2006)


   Collective creativity as a process of variation (idea creation) and
   selection (idea usefulness) in evolutionary theory


   The network effect boosts variation, interactivity provides an
   abundance of selection mechanisms (reviews, recommendations,
   votings, et cetera)



                                                                                       Andrea Hemetsberger
                                                                 Innsbruck University School of Management




objective of presentation




  • Assertion: the creativity and productivity of consumers online is
    exceptional and is beginning to offer major managerial challenges
    and opportunities that deserve further theorization


  • Contribution: Begin to offer frameworks for understanding the
    varieties of online consumer creativity




                                                                                       Andrea Hemetsberger
                                                                 Innsbruck University School of Management




                                                                                                             9
dimensions of online community creation


   • Collective Innovation Orientation:
     some of the communities and teams tend to be goal focused
     whereas in other communities, innovation is a byproduct of their
     collective online activities and interests.

   • Collective Innovation Concentration:
     assesses the concentration of innovative contribution among the
     community. In some communities, only a few individual
     consumers contribute the vast majority of the work required to
     realize an innovative accomplishment. In other communities, the
     contribution is spread among a large number of contributors.



                                                                              Andrea Hemetsberger
                                                        Innsbruck University School of Management




types of creative consumer behavior




                                                                              Andrea Hemetsberger
                                                        Innsbruck University School of Management




                                                                                                    10
swarms




  “Swarms” is th moniker we give t th amassed collections of
  “S       ” i the     ik        i to the           d ll ti        f
  often-multitudinous yet individually small individual contributions that
  occur as a part of more natural or free-flowing cultural or communal
  practices. These types of communities and their contributions are
  most strongly associated with activity in the Web 2.0 world.




                                                                                 Andrea Hemetsberger
                                                           Innsbruck University School of Management




swarms




                                                                                 Andrea Hemetsberger
                                                           Innsbruck University School of Management




                                                                                                       11
swarms




                               Andrea Hemetsberger
         Innsbruck University School of Management




swarms




                               Andrea Hemetsberger
         Innsbruck University School of Management




                                                     12
swarms




                                                                              Andrea Hemetsberger
                                                        Innsbruck University School of Management




mobs




  “Mobs” h
  “M b ” have a high concentration of innovation contribution, b t
                  hi h        t ti     fi     ti      t ib ti but
  these contributions are oriented to a communo-ludic spirit of
  communal play and lifestyle exchange. Mobs are often based
  around the contributions of specialists who speak to relatively
  homogenous affinity or interest groups.




                                                                              Andrea Hemetsberger
                                                        Innsbruck University School of Management




                                                                                                    13
mobs




                             Andrea Hemetsberger
       Innsbruck University School of Management




mobs




                             Andrea Hemetsberger
       Innsbruck University School of Management




                                                   14
mobs




                             Andrea Hemetsberger
       Innsbruck University School of Management




mobs




                             Andrea Hemetsberger
       Innsbruck University School of Management




                                                   15
mobs




                                                                                    Andrea Hemetsberger
                                                              Innsbruck University School of Management




crowds




   This is the term we give to large, organized g p who g
                       g          g , g         groups  gather or are
   gathered together specifically to plan, manage, and/or complete
   particular tractable and well defined projects. What differentiates
   “Crowds” is the generally lower concentration of collective
   innovation—it is dispersed among a number of contributors—and
   their intentional collaboration in a particular project.




                                                                                    Andrea Hemetsberger
                                                              Innsbruck University School of Management




                                                                                                          16
crowds




                               Andrea Hemetsberger
         Innsbruck University School of Management




crowds




                               Andrea Hemetsberger
         Innsbruck University School of Management




                                                     17
crowds




                               Andrea Hemetsberger
         Innsbruck University School of Management




crowds




                               Andrea Hemetsberger
         Innsbruck University School of Management




                                                     18
crowds




                                                                               Andrea Hemetsberger
                                                         Innsbruck University School of Management




hives




   At the furthest level of creativity contribution are consumers who
                                     y
   gather into organized semi-permanent collectives, which we term
   “Hives”. These “consumers” are industrious, diligent, and regular, and
   would include groups such as ongoing Open Source software
   communities, local Star Trek episode production groups, vlog and
   podcast production teams, and so on.




                                                                               Andrea Hemetsberger
                                                         Innsbruck University School of Management




                                                                                                     19
virtual space design by hives




                                                      Andrea Hemetsberger
                                Innsbruck University School of Management




film productions by hives




                                                      Andrea Hemetsberger
                                Innsbruck University School of Management




                                                                            20
product design by hives




                                                Andrea Hemetsberger
                          Innsbruck University School of Management




product design by hives




                                                Andrea Hemetsberger
                          Innsbruck University School of Management




                                                                      21
Andrea Hemetsberger
                                                          Innsbruck University School of Management




                                                                                Andrea Hemetsberger
Benjamin Grycams "Beck's Experience". Foto: Lars Cramer   Innsbruck University School of Management




                                                                                                      22
Andrea Hemetsberger
            Codename: Alexis   Innsbruck University School of Management




software production by hives




                                                     Andrea Hemetsberger
                               Innsbruck University School of Management




                                                                           23
Conclusion



   What are the implications of these altered understandings for our theories of
   consumers, communities, and creativity?

       – Our framework considers different forms of consumer creativity which
         imply different ways to address them
       – Individual creativity versus collaborative creativity
       – Individualistic, content-oriented, highly collaborative and innovative

       – Companies’ role ?




                                                                                        Andrea Hemetsberger
                                                                  Innsbruck University School of Management




Implications


      Different ways of thinking:
      – Re-aesthetization and re-enchantment of creative, voluntary “work”
      – Forms and amount of relationships are open
      – Rules are framing adequate social action: helping and sharing, collective
        reflection (reviews, critique, recommendations), and reinforcing behavior

      Different enabling technologies for mobs, sources, hives, and sources:
      – Toolkits for ind. contributions, immersive technology, visibility, support,
        opportunities for contribution, information sharing with individual
        consumers
      – Enabling technology (Web 2 0) social platforms interactivity is key
                                      2.0),      platforms,                 key,
        contributing instead of ‘managing’




                                                                                        Andrea Hemetsberger
                                                                  Innsbruck University School of Management




                                                                                                              24
Thank you for your attention!
            Questions and comments are very welcome

Kozinets, Robert, Andrea Hemetsberger and Hope Jensen Schau (2008), “The
    Wisdom of Consumer Crowds: Collective Innovation in the Age of Networked
    Marketing,” Journal of Macromarketing, Vol. 28 (4), 339-354.




                                                                                      Andrea Hemetsberger
                                                                Innsbruck University School of Management




                                                                                                            25

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The Wisdom of Consumer Crowds

  • 1. „The Internet has fundamentally altered the world.“ Krishnamurthy, 2003 Andrea Hemetsberger Innsbruck University School of Management A fine picture of the Internet Dark blue: net, ca, us Green: com, org Red: mil, gov, edu Yellow: jp, cn, tw, au, de Magenta: uk, it, pl, fr Gold: br, kr, nl White: unknown Andrea Hemetsberger Innsbruck University School of Management 1
  • 2. Robert V. Kozinets Schulich School of Business York University The Wisdom of Consumer Crowds Collective Innovation in the Age Andrea Hemetsberger School of Management of Networked Marketing Innsbruck University Hope J. Schau Eller College of Management The University of Arizona Andrea Hemetsberger Innsbruck University School of Management Andrea Hemetsberger Innsbruck University School of Management 2
  • 3. Yes You. You Control the Information Age. Andrea Hemetsberger Innsbruck University School of Management etribes • Global Consumers have extended themselves through Computer-Mediated Communication – 84% use newsgroup for info on hobbies or personal interests – 52% have contributed content online – 40% use chat – 6% maintain blogs (USA figures) • Interacting in Online Communities has become second nature – “virtual” or “real” • Average age of online community contributor is 33 g g y • Pareto no longer rules – Content creation pyramid Andrea Hemetsberger Innsbruck University School of Management 3
  • 4. content creation pyramid (Bradley Horowitz) Andrea Hemetsberger Innsbruck University School of Management „Business and society need categories and procedures to guide the powerful phenomenon of collective consumer innovation.“ Kozinets, Hemetsberger & Schau, 2008 Andrea Hemetsberger Innsbruck University School of Management 4
  • 5. varieties of online community creativity • consumers are writing and sharing their texts, • distributing their various podcasts and vlogs, • programming and d b i software t th i d debugging ft together, • posting photographs (e.g., flickr) • commenting and tagging on photos, blogs, vlogs, • creating news, ads • parodies, and satire • refine, alter, and design products • create their own brands • set up their own online businesses Andrea Hemetsberger Innsbruck University School of Management some key texts Andrea Hemetsberger Innsbruck University School of Management 5
  • 6. some key texts Andrea Hemetsberger Innsbruck University School of Management consumer creativity • Dimly understood concept (Moreau and Dahl 2005) • Innovative consumer behavior is actually an integral part in the daily life of every consumer, not a rare activity. • General neglect of the collaborative side of creative consumer cultures and its implications for marketing (e.g., Burroughs and Mick 2004) Andrea Hemetsberger Innsbruck University School of Management 6
  • 7. consumer creativity • Creativity is generally defined as the production of novel, usefull ideas or problem solutions. It refers to both the process sef sol tions of idea generation or problem solving and the actual idea or solution (Amabile, 1983; Sternberg, 1988a; Weisberg, 1988, Amabile, 2005) • The créateur is a person who makes, designs, and/or invents things Andrea Hemetsberger Innsbruck University School of Management consumer creativity Individual creativity: Mozart claimed that pleasant moods were most conducive to his creativity: “When I am, as it were, completely myself, entirely alone, and of good cheer—say, traveling in a carriage, or walking after a good meal, or during the night when I cannot sleep; it is on such occasions that my ideas flow best and most abundantly” (Vernon, 1970: 55) The concept of flow (Czikszentmihaly), total immersion Andrea Hemetsberger Innsbruck University School of Management 7
  • 8. consumer creativity Individual creativity: Compare Margaret Wertheim’s (1999) thoughts on the state of our psyche on the Internet: p y “by creating a space that follows the virtual laws of thought rather the concrete laws of matter, cyberspace provides a cosmos where the psyche can once again live and breathe.” Caught in our fragmented, postmodern self that tries to resist modernist norms and traditions we are in constant search for a renewed, re unified renewed re-unified, and authentic self. Cyberspace becomes the self sacred place for contemplation and self-construction, and the space where our digitalized minds freed from our corporeal reality, become creative. Andrea Hemetsberger Innsbruck University School of Management consumer creativity • Online communities for new product development (Prahalad and Ramaswamy 2004; von Hippel 2005) • In recent research, Hargadon and Bechky (2006) emphasize a key point: collective creativity takes on a quality distinct from individual creativity • The rise of particular kinds of online creativity reflects an important q p qualitative shift in the nature of the creative pprocess Andrea Hemetsberger Innsbruck University School of Management 8
  • 9. consumer creativity Collective creativity: Occurs when social interaction triggers new interpretations and discoveries that consumers thinking alone could not have been generated (Hargadon and Bechky, 2006) Collective creativity as a process of variation (idea creation) and selection (idea usefulness) in evolutionary theory The network effect boosts variation, interactivity provides an abundance of selection mechanisms (reviews, recommendations, votings, et cetera) Andrea Hemetsberger Innsbruck University School of Management objective of presentation • Assertion: the creativity and productivity of consumers online is exceptional and is beginning to offer major managerial challenges and opportunities that deserve further theorization • Contribution: Begin to offer frameworks for understanding the varieties of online consumer creativity Andrea Hemetsberger Innsbruck University School of Management 9
  • 10. dimensions of online community creation • Collective Innovation Orientation: some of the communities and teams tend to be goal focused whereas in other communities, innovation is a byproduct of their collective online activities and interests. • Collective Innovation Concentration: assesses the concentration of innovative contribution among the community. In some communities, only a few individual consumers contribute the vast majority of the work required to realize an innovative accomplishment. In other communities, the contribution is spread among a large number of contributors. Andrea Hemetsberger Innsbruck University School of Management types of creative consumer behavior Andrea Hemetsberger Innsbruck University School of Management 10
  • 11. swarms “Swarms” is th moniker we give t th amassed collections of “S ” i the ik i to the d ll ti f often-multitudinous yet individually small individual contributions that occur as a part of more natural or free-flowing cultural or communal practices. These types of communities and their contributions are most strongly associated with activity in the Web 2.0 world. Andrea Hemetsberger Innsbruck University School of Management swarms Andrea Hemetsberger Innsbruck University School of Management 11
  • 12. swarms Andrea Hemetsberger Innsbruck University School of Management swarms Andrea Hemetsberger Innsbruck University School of Management 12
  • 13. swarms Andrea Hemetsberger Innsbruck University School of Management mobs “Mobs” h “M b ” have a high concentration of innovation contribution, b t hi h t ti fi ti t ib ti but these contributions are oriented to a communo-ludic spirit of communal play and lifestyle exchange. Mobs are often based around the contributions of specialists who speak to relatively homogenous affinity or interest groups. Andrea Hemetsberger Innsbruck University School of Management 13
  • 14. mobs Andrea Hemetsberger Innsbruck University School of Management mobs Andrea Hemetsberger Innsbruck University School of Management 14
  • 15. mobs Andrea Hemetsberger Innsbruck University School of Management mobs Andrea Hemetsberger Innsbruck University School of Management 15
  • 16. mobs Andrea Hemetsberger Innsbruck University School of Management crowds This is the term we give to large, organized g p who g g g , g groups gather or are gathered together specifically to plan, manage, and/or complete particular tractable and well defined projects. What differentiates “Crowds” is the generally lower concentration of collective innovation—it is dispersed among a number of contributors—and their intentional collaboration in a particular project. Andrea Hemetsberger Innsbruck University School of Management 16
  • 17. crowds Andrea Hemetsberger Innsbruck University School of Management crowds Andrea Hemetsberger Innsbruck University School of Management 17
  • 18. crowds Andrea Hemetsberger Innsbruck University School of Management crowds Andrea Hemetsberger Innsbruck University School of Management 18
  • 19. crowds Andrea Hemetsberger Innsbruck University School of Management hives At the furthest level of creativity contribution are consumers who y gather into organized semi-permanent collectives, which we term “Hives”. These “consumers” are industrious, diligent, and regular, and would include groups such as ongoing Open Source software communities, local Star Trek episode production groups, vlog and podcast production teams, and so on. Andrea Hemetsberger Innsbruck University School of Management 19
  • 20. virtual space design by hives Andrea Hemetsberger Innsbruck University School of Management film productions by hives Andrea Hemetsberger Innsbruck University School of Management 20
  • 21. product design by hives Andrea Hemetsberger Innsbruck University School of Management product design by hives Andrea Hemetsberger Innsbruck University School of Management 21
  • 22. Andrea Hemetsberger Innsbruck University School of Management Andrea Hemetsberger Benjamin Grycams "Beck's Experience". Foto: Lars Cramer Innsbruck University School of Management 22
  • 23. Andrea Hemetsberger Codename: Alexis Innsbruck University School of Management software production by hives Andrea Hemetsberger Innsbruck University School of Management 23
  • 24. Conclusion What are the implications of these altered understandings for our theories of consumers, communities, and creativity? – Our framework considers different forms of consumer creativity which imply different ways to address them – Individual creativity versus collaborative creativity – Individualistic, content-oriented, highly collaborative and innovative – Companies’ role ? Andrea Hemetsberger Innsbruck University School of Management Implications Different ways of thinking: – Re-aesthetization and re-enchantment of creative, voluntary “work” – Forms and amount of relationships are open – Rules are framing adequate social action: helping and sharing, collective reflection (reviews, critique, recommendations), and reinforcing behavior Different enabling technologies for mobs, sources, hives, and sources: – Toolkits for ind. contributions, immersive technology, visibility, support, opportunities for contribution, information sharing with individual consumers – Enabling technology (Web 2 0) social platforms interactivity is key 2.0), platforms, key, contributing instead of ‘managing’ Andrea Hemetsberger Innsbruck University School of Management 24
  • 25. Thank you for your attention! Questions and comments are very welcome Kozinets, Robert, Andrea Hemetsberger and Hope Jensen Schau (2008), “The Wisdom of Consumer Crowds: Collective Innovation in the Age of Networked Marketing,” Journal of Macromarketing, Vol. 28 (4), 339-354. Andrea Hemetsberger Innsbruck University School of Management 25