To tell or not to tell? The impact of communicating consumer participation in new product development

Abstract

Purpose This paper aims to analyze the implications of communicating customer involvement in the ideation and concept stage of new product development (NPD). This paper assesses the extent to which the awareness that a product was co-created jointly by company professional designers and consumers affects observer consumers’ attitudes toward the product and the company. While earlier research has mainly emphasized the positive and desirable consequences of consumer participation in NPD, the present set of studies shows that labeling products as having been co-created is not always valuable; rather, it is dependent on the level of perceived complexity of the products. Design/methodology/approach The hypotheses are tested in four experimental studies using several categories of product complexity (low, medium and high). The data have been collected on young adult samples, measuring the participants’ perceptions of a firm’s innovation ability and product purchase intentions. Findings The results suggest that there are benefits at the corporate level (higher perceptions of innovation ability) to inform the market about consumer involvement, particularly when consumers and company professionals work together. The findings also indicate that product complexity plays a critical role in translating the perceptions of greater corporate abilities (innovation) in purchase intention, and it is particularly beneficial for low-complexity products. Originality/value The previous research has mainly focused on the impact of involving consumers in firms and participating consumers; however, it has neglected the role of observer consumers. This study adds to the innovation literature by showing that the value of learning about other consumers’ involvement in firm NPD is not universally beneficial and that product complexity is a critical boundary condition.

The effect of “co‐creation with consumers” claims on purchase intention: The moderating role of product category performance information

“…Those authors showed that the complexity of the product category moderates the co‐creation claim effect on observers' responses. Confirming the importance of the product complexity identified by Schreier et al (2012), Fuchs et al (2013), and Thompson and Malaviya (2013), Costa and Coelho do Vale (2018) confirmed the moderation of product complexity and concluded that co‐creation claims are particularly beneficial for low‐complexity products. In contrast to the typically positive effect of co‐creation claims in the literature, Kristal et al (2016) found that the effect on brand evaluations is weak and only marginal.…”

“…Schreier et al (2012),Fuchs et al (2013), andThompson and Malaviya (2013),Costa and Coelho do Vale (2018) confirmed the moderation of product complexity and concluded that co-creation claims are particularly beneficial for low-complexity products. In contrast to the typically positive effect of co-creation claims in the literature,Kristal et al (2016) found that the effect on brand evaluations is weak and only marginal.…”

“…Despite the view that observers can perceive benefits from a product claiming co‐creation, there is little evidence explaining this effect (Kristal et al, 2016) in comparison with the amount of studies explaining the benefits (Echeverri & Skålén, 2011) and risks (e.g., Echeverri & Skålén, 2011; Gebauer, Füller, & Pezzei, 2013) of co‐creation as a product development strategy. There are few experimental studies on the effect of claiming consumers' participation in the product development process on observers' responses (e.g., Costa & Coelho do Vale, 2018; Fuchs & Schreier, 2011; Fuchs et al, 2013; Kennedy, 2017; Kristal et al, 2016; Kristal, Baumgarth, & Henseler, 2018; Schreier et al, 2012; Thompson & Malaviya, 2013; Van Dijk, Antonides, & Schillewaert, 2014). In those studies, synthesized in Table 1 and discussed in the next paragraphs, some mediating and moderating factors have been tested to produce better explanations of how consumers' participation claim influences observers' evaluations of the announced product.…”

“…Product categories with high involvement were required because, following C‐I theory (Meyers‐Levy & Tybout, 1997), participants in the subsequent studies would have to be predisposed to engage in effortful thought about the context information (negative product category performance) and perceive it as appropriate. Product categories with low‐complexity co‐creation were required because communicating consumer co‐creation is mainly influential for low‐complexity product categories (Costa & Coelho do Vale, 2018). Product categories with low and high levels of perceived consumer satisfaction were necessary to test the proposed moderator effect.…”

Smart Consumers: A New Segment for Sustainable Digital Retailing in Korea

“…Without looking to a fashion leader in a peer group, anyone can tell what is fashionable this season, since consumers have a fair chance to acquire information. New business models such as social network services, crowdsourcing, and open innovation platforms (e.g., Lego Ideas and MADE TalentLab) have helped individual consumers to be networked and engage in co-creation [16][17][18][19]. Smart devices and technologies have enabled consumers to display their shopping power 24/7/365 from everywhere, at their convenience.…”