Virtual Co-Creation with Customers in the Early Stages of New Product Development

45 Pages Posted: 17 Oct 2017

See all articles by Holger Ernst

Holger Ernst

WHU Otto Beisheim School of Management

Wayne Hoyer

Independent

Manfred Krafft

University of Muenster

Jan-Henrik Soll

Independent

Date Written: October 16, 2017

Abstract

Virtual ‘co-creation’ can be a more effective way to integrate customers into the NPD process. In our study, we examine the effectiveness of virtual co-creation in the early stages of new product development (i.e. idea generation). Specifically, we focus on multiple contingent factors that can potentially impact the outcomes of co-creating activities in terms of the quality of submitted ideas by customers. Based on two integrated empirical studies, we analyze whether certain design elements of virtual co-creation activities, specific customer characteristics, brand relationship characteristics and selected interactions between those variables impact the quality of submitted ideas. We find that design aspects of virtual co-creation such as incentives, seed ideas, topic scope and task-related information have no or only little impact on the quality of submitted ideas. Customers who have a high level of latent dissatisfaction with existing products, a high level of creativity, and a strong commitment to the brand produce higher quality new product ideas. The interaction between latent dissatisfaction and intention to recommend is significant which reinforces the notion that dissatisfied customers with high levels of brand loyalty come up with high quality new product ideas.

Keywords: Brand, Co-Creation, Ideas, Internet, New Product Development, Performance

JEL Classification: M31

Suggested Citation

Ernst, Holger and Hoyer, Wayne and Krafft, Manfred and Soll, Jan-Henrik, Virtual Co-Creation with Customers in the Early Stages of New Product Development (October 16, 2017). Available at SSRN: https://ssrn.com/abstract=3053800 or http://dx.doi.org/10.2139/ssrn.3053800

Holger Ernst (Contact Author)

WHU Otto Beisheim School of Management ( email )

Burgplatz 2
Vallendar, 56179
Germany

Wayne Hoyer

Independent ( email )

Manfred Krafft

University of Muenster ( email )

Am Stadtgraben 13-15
Muenster, D-48143
Germany
+49 251 8325025 (Phone)
+49 251 8325025 (Fax)

HOME PAGE: http://www.marketingcenter.de/ifm

Jan-Henrik Soll

Independent ( email )

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