The effects of co-creation* on consumer perceptions *Co-creation between firms and consumers in new product development Joyce van Dijk 841018208030 MSc thesis ECH chairgroup Prof. Dr. G. Antonides The effects of co-creation on perception Content of this presentation 1. What is co-creation and why is it important? 2. Main question and sub questions for the thesis 3. Relevance 4. Main theory 5. Expected outcomes & conceptual model 6. Research method 7. Treatments Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides The effects of co-creation on perception What is co-creation? “Purposive and intentional collaboration between consumers and producers, where they systematically interact, learn, share information and integrate resources with the result of co-creating value” (Van Dijk, 2011) Why is it important? •Changing consumer: empowered, critical, better informed •Web 2.0 and social media: interconnected world •Consumer in search of authenticity •Firms: search for new innovation & marketing strategy •Customer-centricity (from pushing products to cultivating cust. value) Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides The effects of co-creation on perception Example Pickwick Dutch tea blend 25 Hyves members co-created with Pickwick experts, both online and offline, to develop the new tea blend, co-design the package and the marketing campaign. Pickwick referred to the co-creators in the tv commercial and on the tea’s packaging Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides The effects of co-creation on perception Back to the thesis… Main question: (To what extent) are perceptions affected when consumers know that a product is developed in co-creation with consumers? (compared to a product that is exclusively ‘producer’ created?) •Does co-creation enhance ‘authenticity’ and ‘sincerity’ of brands? •Does co-creation affect trust and how consumers relate to a brand? •Does co-creation affect how new products are evaluated? •Does co-creation influence behavioral intentions towards the product/brand? •Does it matter how the co-creation is communicated? Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides The effects of co-creation on perception Relevance Current research focuses on the co-creation process itself: e.g. required management skills, motivations of co-creation participants Studies show effects on consumers who participate in co-creation: •Increased loyalty to the company •Stronger relationship with the company •Increased likelihood to spread positive word-of-mouth •Increased trust in the brand -> But what about consumers who •An increased positive brand image did NOT participate? Studies show that co-creation: •Creates more relevant products •Enhances product performance (sales) Joyce van Dijk 841018208030 -> But can performance be due to perception effects? MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides The effects of co-creation on perception Relevance Just one study about effects of co-creation on perceptions of consumers: More favorable attitude, and consider them more customer-oriented (Fuchs & Schreier, 2011) -> However, Fuchs and Schreier (2011) don’t test brand effects , use fictitious labels, and no FMCG products. Interviews with co-creation practitioners show (Van Dijk, 2011): •Great curiosity to know effects on consumer perceptions •Belief that brand and product perceptions are indeed affected by co-creation •Unsure about what effects exactly will occur and how strong the effects will be Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides The effects of co-creation on perception Theory Brand associations and personality Consumers distinguish between brands based on brand associations (Keller, 1993) • Meanings consumers attach to brands (in their memory) • Partly determined by brand image • Distinguish between brand images by attributes such as brand personality • Brand personality perception: result of brand actions Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides The effects of co-creation on perception Adapted from Keller (1993) Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides The effects of co-creation on perception Theory Sincere brands Research shows consumers now search for sincere and authentic brands (Holt, 2002; Gilmore & Pine, 2007). These are brands that don’t appear commercialized, but are viewed as sincere friends or part of a community (Beverland, 2005). Descriptive measures of ‘sincere’ brand personality (Aaker , 1999): (5-point Likert scale: 1 = "not at all descriptive," 5 =extremely descriptive”) down-to-earth family-oriented small-town honest sincere real Joyce van Dijk 841018208030 wholesome original cheerful sentimental friendly MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides The effects of co-creation on perception Theory Brand relationship strength Better predictor of consumer actions (Aaker et al. 2004) Indicators of consumer-brand relationship strength (Aaker et al. 2004): 1. Commitment: willingness to continue the brand relationship 2. Satisfaction: happiness with brand performance 3. Intimacy: closeness, willingness to share information 4. Self-connection: fit between brand personality and consumer’s personality Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides The effects of co-creation on perception Theory Product evaluation Do consumers evaluate co-created products differently? Measures for new product evaluation (Song & Xie, 2000; Bruner et al., 2005): 1. Overall appeal: Is the product attractive, what appeals the most? 2. Innovativeness: Is the product innovative and different from available products? 3. General product advantage: How superior is the product relative to similar products? 4. Uniqueness: To what extent are product features unique relative to available products? Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides The effects of co-creation on perception Main focus ofexpected this experimental In short: effects study hypotheses Expected outcome Does co-creation affect consumer perceptions? (main question) + Does elaboration of the co-creation message moderate effects? + Does product involvement and brand familiarity moderate effects? + Does co-creation have an effect on how consumers..: • Evaluate ‘Sincerity’ of a brand? (brand personality) + •Relate to brands: commitment, satisfaction, intimacy, self-connection + •Trust brands and view them as a good quality partner? + •Evaluate products? (advantage, uniqueness, innovativeness) + •Intent to behave towards the product/brand? (WOM, trying out) + Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides The effects of co-creation on perception Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides The effects of co-creation on perception Method • Scope: Fast-moving consumer goods sector (FMCG): familiar products, relatively cheap, low effort and risk, rapid consumption In FMCG sector brands are the main differentiation point (Wood, 2000) •Method: Experimental (post-test-only) control group design Manipulated variables: branded product (existing brand X/ fictitious brand Y) and treatment (A/B/C). Between-subjects design: every respondent is randomly exposed to only one product and one treatment •Execution: Online questionnaire, data collection via Insites Consulting consumer panel Joyce van Dijk 841018208030 Brand X Y MSc thesis proposal MME (ECH) Co-creation level (treatment) A B C A B C Prof. Dr. G. Antonides The effects of co-creation on perception The experiment treatments Respondents are part of group X (well-know brand) or group Y (fictitious brand) are exposed to one of the three treatments: • Treatment A: •Treatment B: •Treatment C: (control group) Concept board with a description of the product, presented as producer-created Concept board, description of product, presented as co-created Concept board, description of product presented as co-created + evidence to support this claim Joyce van Dijk 841018208030 MSc thesis proposal MME (ECH) Prof. Dr. G. Antonides What will I find out?! Want to know the results? Keep track of my progress on Joycediscovers.wordpress.com Joyce van Dijk 841018208030 MSc thesis ECH chairgroup Prof. Dr. G. Antonides