Crowdsourcing Boosts Consumer Perceptions of Companies
Companies that crowdsource have been given a huge seal of approval by the general public.
Consumers perceive organisations that incorporate the crowd into new product development have higher innovation abilities than those that do not. And this perception is promoting a higher consumer demand for the products of firms that are actively engaging with the crowd.
A study published in the September 2012 issue of the American Marketing Association’s Journal of Marketing looks at the implications of crowdsourcing by focusing on consumers’ perceptions of companies selling products “designed by users”.
Key Survey Findings
The study found four reasons why being user-driven enhances consumer perceptions:
- Consumers believe the crowd can generate more ideas.
- As the crowd contains a more diverse set of people than a conventional design approach more diverse ideas will follow, consumers suppose.
- Consumers believe that ideas from the crowd are more applicable because ultimately they are the true users of the product.
- Consumers believe that the crowd is less subject to the design constraints that might be set internally by a company, so there is greater freedom to innovate in the design of products.
All of this has positive effects on consumer behavior and attitude in the form of increased intentions to purchase and a willingness to recommend the company to others.
Limited Effects
These effects though only hold true for products that are relatively simple to design, the study authors discovered. Crowd design by a community of users loses its perceived power with the design of more complex item such as robotic toys and consumer electronics.
Reader Comments
While consumer electronics continues in its trend of convergence, combining elements of many products, consumers face different decisions when purchasing. There is an ever increasing need to keep product information updated and comparable, for the consumer to make an informed choice. Style, price, specification and performance are all relevant. There is a gradual shift towards e-commerce web-storefronts.
Posted by Abbie Schoenegge on April 29, 2013
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