NEW PRODUCT DEVELOPMENT WITH FACEBOOK FANS: IDEA CONTEST EXPERIMENT

페이스북 팬과의 신제품 개발 프로세스 - 아이디어 콘테스트를 중심으로

Department of Operations Management, School of Business, Yonsei University

Ayaka Oda

12/10/2012

(VERY SHORT VERSION OF MY MASTER’S THE-

SIS)

Introduction Users are important sources of innovation (von Hippel, 1988; Nam-

bisan, 2002). Role of the Internet Crowdsourcing: The act of taking a job traditionally performed by

a designed agent (usually an employee) and outsourcing it to an undefined, generally large group of people in the form of an open call (Howe, 2006).

Ideas contests appear to be a promising tool for crowdsourcing and open innovation activities (Leimeister et al., 2009; Bullinger et al., 2010; Fuller et al., 2011).

<Open Innovation Interme-diaries>

<Company Web-sites>

Seeker Companies ↔ Poten-tial Solvers

What about conducting an idea contest on Facebook?

Why Facebook?

Facebook Fan Page

Ayaka Oda liked Godiva Choco-latier.

Friends’ News Feed

795 Friends

Extending user research is rel-atively easier on Facebook fan page than firm-based virtual

community.

Facebook Viral Effect

Research Purposes

1. To introduce how to design an idea contest on Facebook fan page.

2. To find out what motivates users to participate in the idea contest on Facebook fan page and to investigate the effect of participation on re-sulting marketing implications.

Idea Con-test

Face-book

Design of Facebook Idea Contest

Stage 1Obtain user

awareness for the Facebook fan

page through the “Like” button.

Stage 2

Conduct idea contest with the fans to generate

new product ideas.

Stage 3

Have fans to provide feed-backs to other

users’ contribu-tions.

Stage 4

Evaluate the ideas submitted by the users to select the best

idea.

Stage 5Market the new product gener-

ated through the contest on Face-book fan page.

Hypothesized Model

Idea Contest Contribution

Networking

Self Presen-tation Word of

Mouth

Willingness to Purchase

MOTIVA-TIONS

Monetary Rewards

Enjoyment

Learning

Customer-Brand Rela-tionship

INTENTIONS

H1

H2

H3

H4

H5

H6

H7

Motivation for networking is positively associated with the fan’s contribution

to the idea contest.

Research Setting - Boramsam ( 보람샘 )

Registered as ‘ 연세대학교 보람샘 아이디어 콘테스트” (Yonsei University Boramsam Idea Contest) on September 3, 2012 (http://www.facebook.com/boram-samideacontest).

An email with the link was sent to approximately 23,000 undergraduate and graduate students.

Students were asked to come up with their new product ideas for Boram-sam and refine others’ submissions.

The idea contest was held for 43 days, and feedbacks and improvements to the submitted ideas were accepted for two more days after the dead-line for the new product ideas.

Boramsam (보람샘) One of the stores that Yonsei Univer-

sity Co-op Goods manages. Located on the 1st floor of the Stu-

dent Union Building ( 학생회관 ). Sells goods with Yonsei University lo-

gos, such as T-shirts and mug cups.

Data Collection and Analy-sis Data Collection

Content Data of Facebook Fan Page Online Survey

An online survey was conducted using Survey Monkey. 5-point Likert scale from “strongly disagree” to

“strongly agree.” Prepared in Both English and Korean

Data Analysis SPSS 18.0 (Exploratory Factor Analysis) SmartPLS 2.0 (Confirmatory Factor Analysis +

Testing the Hypothesized Model)

Key Figures of the Idea Con-test

Idea Contest Characteristic 　 Specification

Duration 9/3/2012 - 10/17/2012

Number of Total Fans* 137 (3 organizers + 69 active fans)

Idea Presenters 58 (57 fans + 1 non-fan)

Number of Total Ideas** 103

Number of Fans who Liked 49

Number of Total Likes 231

Number of Fans who Commented 38

Number of Total Comments 　 185

*There were 9 dislikes.

** One idea was deleted by the idea submitter.

Categorization of Idea Contest Partici-pants

Competi-tive Fan

(27)

Coopeti-tive Fan

(30)

Observer (63)

Coopera-tive Fan

(12)

Low Coopera-tion

High Cooper-ation

High Compe-tition

Low Competi-tion

User who submitted idea and

helped other ideas to im-

prove.

Uses who only liked or com-mented on other user’s

idea.

User who submitted idea and/or only com-mented on own idea.

User who liked our fan page but did not engage in any action.

(Reference: Hutter et al., 2011)

Survey Respondent Profile (N=101)

Characteristics # (%) 　 Characteristics # (%)

Gender Facebook Use Intensity Per Day

Male 54 (53.5) Less than 10 min 6 (5.9)

Female 47 (46.5) 10-30 min 22 (21.8)

Nationality 31-60 min 34 (33.7)

Korean 75 (74.3) 1-2 hours 20 (19.8)

Others 26 (25.7) 2-3 hours 5 (5.0)

Age More than 3 hours 14 (13.9)

15-19 8 (7.9) Boramsam Familiarity

20-24 60 (59.4) Yes 80 (79.2)

25-29 28 (27.7) No 21 (20.8)

30-34 3 (3.0) Fan Page Visit Frequency

35 or above 2 (2.0) Once a month 20 (19.8)

Occupation Twice a month 24 (23.8)

Undergraduate Student 74 (73.3) Once a week 37 (36.6)

Graduate Student 13 (12.9) Twice a week 18 (17.8)

Exchange Student 9 (9.0) Every day 2 (2.0)

MBA Student 1 (1.0)

Employed 4 (4.0)　 　 　

1-10

0

101-

200

201-

300

301-

400

401-

500

501-

600

601-

700

701 o

r mor

e0

5

10

15

20

25

Facebook Friends

Number of Users

Rough Mean: 345 Friends

Measurement – Idea Contest Contribution

In the idea contests held on-line, people not only compete for the rewards but also seem to collaborate with each other by providing feedbacks.

Activity Value

Liking the Fan Page 1

Liking Own Idea 2

Commenting on Own Idea 3

Liking Other's Idea 4

Commenting on Other's Idea 5

Making Qualitative Comment on Other's Idea 6

Submitting Idea 7

User ID User Type Like (Own) Comment (Own) Like (Other) Comment

(Other)Qualitative Comment Idea 　 Total Contribution

Score

71 Coopetitive Fan 1 1 3 14

72 Competitive Fan 5 3 1 13

73 Cooperative Fan 6 3 2 16

74 Competitive Fan 1 8

75 Observer 1

Assigned Value 1 2 3 4 5 6 7 　 (1-28)

(Reference: Hutter et al. 2011)

Results of the Hypothesized Model

(***p < 0.01, **p<0.05, *p<0.1)

Post-Hoc Analysis: ANOVA

User Type (N)Networking 　 Self Presentation 　 Enjoyment 　 Learning 　 Monetary Rewards

　 Mean SD 　 Mean SD 　 Mean SD 　 Mean SD 　 Mean SD

Observer (36) 3.47a 0.924 3.08a 0.905 3.96 0.59 3.51 0.859 2.71a 1.023

Cooperator (10) 3.28a,b 0.948 3.48a,b 1.219 4.13 0.563 3.33 1.061 3.40b 1.411

Competitor (25) 2.85b 0.951 3.42a,b 1.065 3.88 0.935 3.07 0.991 3.86b 0.964

Coopetitor (30) 　 3.11b 1.106 　 3.67b 1.169 　 4.16 0.953 　 3.37 1.222 　 3.84b 1.145

F-Value 10.334*** 6.831*** 2.719 2.753 31.822***

Notes) ***p < 0.001

Post-Hoc Scheffé Test: Subscribts a,b show the result of significant test. (p < 0.05)

Number of Items (N): Networking (5), Self Presentation (4), Enjoyment (4), Learning (3), Mon-etary Rewards (4)

Comparison of Group Means: Scheffe Test

Observer CooperatorCompetitorCoopetitor 2.7

2.9

3.1

3.3

3.5

3.7

3.9

4.1

User Type

Networking

Observ

er

Coope

rator

Compe

titor

Coope

titor

2.7

3.1

3.5

3.9

User Type

Self Presenta-tion

Observ

er

Coope

rator

Compe

titor

Coope

titor

2.7

3.1

3.5

3.9

User Type

Enjoyment

Observer Cooperator Competitor Coopetitor 2.7

2.9

3.1

3.3

3.5

3.7

3.9

4.1

User Type

Learning

Observer CooperatorCompetitorCoopetitor 2.72.9

3.1

3.33.5

3.7

3.94.1

User Type

Monetary Rewards

Interestingly, observers had the highest motiva-tion for networking.

Thank You!

P.S. If you happen to be interested in listening to the whole version of this PPT, please feel free to come to 금호홀 on 12/21(Fri) at 10am.