Friday, November 16, 2012

Customer Involvement - Participation in New Product Development, Design and Innovation




Recent Research paper


Creating Major Innovations with Customers: Insights from Small and Young Technology Firms
Nicole E. Coviello & Richard M. Joseph
Journal of Marketing, November 2012

Summary - AMA site

The relevant focus involves collectively learning with customers through early engagement and conversation. In addition, mindful trial-and-error and a simple, experiential process of sense-making seem is more relevant. Successful innovators cultivate an agile approach to learning.


The Innovation Effect of User Design: Exploring Consumers' Innovation Perceptions of Firms Selling Products Designed by Users
Martin Schreier, Christoph Fuchs, & Darren W. Dahl
Journal of Marketing, September 2012

Summary - AMA Site

A counterintuitive finding:


The study finds evidence that common design by users (use of customers' designs by the firm) enhances consumer perceptions of the firm’s innovation ability–a counterintuitive effect given that consumers tend to associate less expertise to users vs. company designers. This innovation effect of user design is identified across several product categories can be understood or explained by four distinct consumer inferences.

(1) a numbers argument (more people involved leads to more ideas) - more choice,
(2) a diversity argument (more diverse people involved leads to more diverse ideas) - differences or alternatives which are really different,
(3) a user argument (actual users leads to more applicable ideas)  - utility is more,
(4) a constraints argument (people who are less constrained leads to more freedom in ideas) - consumer not constrained by business compulsions to start with.

The authors find that this perceived innovation ability has effect on important marketing  variables related to consumers, like intention to recommend the firm to others, purchase intentions, and willingness to pay.



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