Joyce van Dijk MSC Joycediscovers.wordpress.com @joycediscovers

The effect of ‘co-creation’on consumers’ brand & product perceptions

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

Introduction

Joyce van Dijk

• MSc in Management, Economics and Consumer behaviour

• Specialisation: consumer behaviour

• Focus: the connected consumer and co-creation

• MWM2 Dialogue Manager, Frankwatching, workshops

Gerrit Antonides Tom de Ruyck

Behavioural Economist Connected Research Manager

Wageningen University Insites Consulting

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

Presentation set-up

1. The concept of co-creation

2. MSc thesis experiment - Relevance

- Set-up and stimuli

- Focal aspects

- Outcomes and implications

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

1. The concept of co-creation

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

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

Purposive collaboration between

consumers and companies,

where they systematically

interact, learn, share information,

and integrate resources to

develop or improve products

Co-creation is a systematic collaboration

(based on Prahalad & Ramaswamy, 2004)

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

Companies use co-creation to increase success

Companies:

Advertising clutter

RelevancyEffectiveness

Reduces R&D costs

Increase market success

Facilitate dialogue

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

Consumers want to be involved in brand decisions

It’s my brand too!

Consumers:

Empowered Informed

Authentic

Idea source

Brand partner

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

1. What is co-creation?What companies co-create?

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

1. What is co-creation?What companies co-create?

More than 50% of Fortune 500 companies have made

open innovation an integral part of their innovation strategy.

Consumers have become the focus of attention in this arena

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

2. MSc experiment

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

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

Research gap

Research focus: co-creation process and co-creation participants

Effects on non-participants are hardly known

Only 1% of consumer target group participates in co-creation

99% of target group is non-participant in co-creation

Does co-creation affect brand & product perceptions?

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

Does co-creation affect brand & product perceptions?

Consumers who participate in co-creation show:

• Increased loyalty to the company

• Stronger relationship with the company

• Increased likelihood to spread positive word-of-mouth

• Increased trust in the brand

• An increased positive brand image

Studies show that co-creating:

• Creates more relevant products

• Enhances product performance (sales)

-> But what about the large majority of consumers who do NOT participate?

-> But can performance be due to perception effects?

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

Method

Experiment set up as concept test questionnaire

Respondents were asked to evaluate an actual new product concept

2 manipulated variables: Co-creation level (A/B/C) and brand (Honig/Samo)

Test effects on non-co-creators

Brand Co-creation level

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

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

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

Method

Experiment set up as concept test questionnaire

2 manipulated variables: Co-creation level (A/B/C)

and brand (Honig/Samo)

Test effects on non-co-creators

Brand Co-creation level

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

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

Closed consumer panel

Representative of Dutch population

100% awareness 100% distribution

Final sample: 530 respondents

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

• Sincere brand personality: e.g. sincere, honest, real (11 items)

• Brand qualities: e.g. reliable, trustworthy, accessible (5 items)

• Brand relationship: commitment, satisfaction, intimacy, self-

connection (8 items)

Brand constructs

Brand attitude constructs

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

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

• Product evaluation: attractiveness, relevance, innovativeness,

uniqueness, expected success

• Willingness to pay: average between cheap & expensive

• Behavioural intentions: trial, purchase, w-o-m, recommend to others

Product evaluation & claimed behaviour

Product evaluation & claimed behaviour

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

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

Strongest positive effect on brand level

Mean scores of the co-creation groups (B+C) VS. control groups (A)

Brand Relationship

Brand Quality

Sincere Brand Personality

1 2 3 4 5 6 7

3.2

3.5

4

3.8

4.2

4,6

Co-creation No co-creation

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

Product evaluation also affected by positive associations

Mean scores of the co-creation groups (B+C) VS. control groups (A)

Behavioural Intentions

Product Evaluation

1 2 3 4 5 6 7

4

4.4

4.4

4.8

Co-creation No co-creation

‘Willingness to pay’ showed no sign. co-

creation effect (remained around €2,-)

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

product evaluation item

Items of brand construct

Comparing co-creation groups B and C

Co-creation group B versus C (with the additional evidence)

The added proof in group C did not significantly enhance co-creation effects

Only significant results for Honig and only on some construct-items:

Originality

Accesibility

Cheerfulness

Realness/ authenticity

Uniqueness

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

Honig scores higher than Samo on brand aspects

Brand Quality Brand Relationship Sincere Brand Personality

1

2

3

4

5

6

7

3.9 3.84.2

4.54.3

4.7

3.1

2.6

3.83.9

3.3

4.5

Brand scores Honig VS. Samo

Honig Honig co-creation Samo Samo co-creation

Biggest brand score difference here:

medium effect

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

Honig versus Samo

Honig was also considered more suited as a co-creation partner

than Samo (aspects: logical, attractive, suitable, credible )

Co-creation same effect on Honig as it had on unknown brand Samo

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

Additional comments

Please keep in mind…

This experiment is a snapshot of reality

Influences such as W-O-M are not included

Also, overall brand behaviour and

consistency in behaviour will play a huge role

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

Take away message

Co-creation can be…

An effective innovation method

Beneficial as a communication tool:

Enhance ‘sincere’ brand personality

Strengthen brand relations

Both established and new brands

Improve brand quality inferences

Make products more attractive and appealing

Joyce van Dijk, sponsored by Joycediscovers.wordpress.com

Curious about more results?

MSc thesis will be submitted to an academic journal!

Want to know more?

My literature study here

Consumer roles in NPD here

Interviews with practitioners here

Co-creation blogposts here

Dutch FrankWatching articles here

Or follow me on Twitter…