the wisdom of consumer crowds

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"Business and society need categories andprocedures to guide the powerful phenomenonof collective consumer innovation."Kozinets, Hemetsberger & Schau, 2008

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  • 1. The Internet has fundamentally alteredthe world. Krishnamurthy, 2003Andrea HemetsbergerInnsbruck University School of Management A fine picture of the InternetDark blue:net, ca, usGreen:com, orgRed:mil, gov, eduYellow: jp, cn, tw, au, deMagenta:uk, it, pl, frGold: br, kr, nlWhite:unknownAndrea HemetsbergerInnsbruck University School of Management1

2. Robert V. KozinetsSchulich School of BusinessYork University The Wisdom of Consumer Crowds Collective Innovation in the Age Andrea HemetsbergerSchool of Management of Networked Marketing Innsbruck UniversityHope J. Schau Eller College of Management The University of Arizona Andrea Hemetsberger Innsbruck University School of Management Andrea Hemetsberger Innsbruck University School of Management 2 3. Yes You. You Control the Information Age. Andrea Hemetsberger Innsbruck University School of Management etribes Global Consumers have extended themselves through Computer-MediatedCommunication 84% use newsgroup for info on hobbies or personal interests 52% have contributed content online 40% use chat 6% maintain blogs (USA figures) Interacting in Online Communities has become second nature virtual or real Average age of online community contributor is 33 g gy Pareto no longer rules Content creation pyramid Andrea Hemetsberger Innsbruck University School of Management 3 4. content creation pyramid(Bradley Horowitz) Andrea Hemetsberger Innsbruck University School of Management Business and society need categories and procedures to guide the powerful phenomenon of collective consumer innovation. Kozinets, Hemetsberger & Schau, 2008 Andrea Hemetsberger Innsbruck University School of Management 4 5. varieties of online community creativity consumers are writing and sharing their texts, distributing their various podcasts and vlogs, programming and d b i software t th id debugging ft together, posting photographs (e.g., flickr) commenting and tagging on photos, blogs, vlogs, creating news, ads parodies, and satire refine, alter, and design products create their own brands set up their own online businesses Andrea Hemetsberger Innsbruck University School of Management some key texts Andrea Hemetsberger Innsbruck University School of Management 5 6. some key textsAndrea HemetsbergerInnsbruck University School of Management consumer creativity Dimly understood concept (Moreau and Dahl 2005) Innovative consumer behavior is actually an integral part in the daily life of every consumer, not a rare activity. General neglect of the collaborative side of creative consumer cultures and its implications for marketing (e.g., Burroughs and Mick 2004)Andrea HemetsbergerInnsbruck University School of Management6 7. consumer creativity Creativity is generally defined as the production of novel, usefull ideas or problem solutions. It refers to both the processsefsol tions of idea generation or problem solving and the actual idea or solution (Amabile, 1983; Sternberg, 1988a; Weisberg, 1988, Amabile, 2005) The crateur is a person who makes, designs, and/or invents things Andrea Hemetsberger Innsbruck University School of Management consumer creativity Individual creativity:Mozart claimed that pleasant moods were most conducive to his creativity: When I am, as it were, completely myself, entirely alone, and of good cheersay, traveling in a carriage, or walking after a good meal, or during the night when I cannot sleep; it is on such occasions that my ideas flow best and most abundantly (Vernon, 1970: 55)The concept of flow (Czikszentmihaly), total immersion Andrea Hemetsberger Innsbruck University School of Management 7 8. consumer creativity Individual creativity: Compare Margaret Wertheims (1999) thoughts on the state ofour psyche on the Internet:p y by creating a space that follows the virtual laws of thought ratherthe concrete laws of matter, cyberspace provides a cosmoswhere the psyche can once again live and breathe. Caught in our fragmented, postmodern self that tries to resistmodernist norms and traditions we are in constant search for arenewed, re unifiedrenewed re-unified, and authentic self. Cyberspace becomes theselfsacred place for contemplation and self-construction, and thespace where our digitalized minds freed from our corporealreality, become creative.Andrea HemetsbergerInnsbruck University School of Management consumer creativity Online communities for new product development (Prahalad and Ramaswamy 2004; von Hippel 2005) In recent research, Hargadon and Bechky (2006) emphasize a key point: collective creativity takes on a quality distinct from individual creativity The rise of particular kinds of online creativity reflects an important q p qualitative shift in the nature of the creative pprocessAndrea HemetsbergerInnsbruck University School of Management8 9. consumer creativityCollective creativity: Occurs when social interaction triggers new interpretations anddiscoveries that consumers thinking alone could not have beengenerated (Hargadon and Bechky, 2006)Collective creativity as a process of variation (idea creation) andselection (idea usefulness) in evolutionary theoryThe network effect boosts variation, interactivity provides anabundance of selection mechanisms (reviews, recommendations,votings, et cetera) Andrea HemetsbergerInnsbruck University School of Management objective of presentation Assertion: the creativity and productivity of consumers online is exceptional and is beginning to offer major managerial challenges and opportunities that deserve further theorization Contribution: Begin to offer frameworks for understanding the varieties of online consumer creativityAndrea HemetsbergerInnsbruck University School of Management9 10. dimensions of online community creation Collective Innovation Orientation:some of the communities and teams tend to be goal focusedwhereas in other communities, innovation is a byproduct of theircollective online activities and interests. Collective Innovation Concentration:assesses the concentration of innovative contribution among thecommunity. In some communities, only a few individualconsumers contribute the vast majority of the work required torealize an innovative accomplishment. In other communities, thecontribution is spread among a large number of contributors.Andrea Hemetsberger Innsbruck University School of Management types of creative consumer behavior Andrea Hemetsberger Innsbruck University School of Management 10 11. swarms Swarms is th moniker we give t th amassed collections of S i the iki to the d ll tif often-multitudinous yet individually small individual contributions that occur as a part of more natural or free-flowing cultural or communal practices. These types of communities and their contributions are most strongly associated with activity in the Web 2.0 world.Andrea HemetsbergerInnsbruck University School of Management swarmsAndrea HemetsbergerInnsbruck University School of Management11 12. swarmsAndrea HemetsbergerInnsbruck University School of Management swarmsAndrea HemetsbergerInnsbruck University School of Management12 13. swarms Andrea Hemetsberger Innsbruck University School of Management mobs Mobs h M b have a high concentration of innovation contribution, b t hi ht ti fi tit ib ti but these contributions are oriented to a communo-ludic spirit of communal play and lifestyle exchange. Mobs are often based around the contributions of specialists who speak to relatively homogenous affinity or interest groups. Andrea Hemetsberger Innsbruck University School of Management 13 14. mobsAndrea HemetsbergerInnsbruck University School of Management mobsAndrea HemetsbergerInnsbruck University School of Management14 15. mobsAndrea HemetsbergerInnsbruck University School of Management mobsAndrea HemetsbergerInnsbruck University School of Management15 16. mobs Andrea Hemetsberger Innsbruck University School of Management crowdsThis is the term we give to large, organized g p who ggg , g groupsgather or aregathered together specifically to plan, manage, and/or completeparticular tractable and well defined projects. What differentiatesCrowds is the generally lower concentration of collectiveinnovationit is dispersed among a number of contributorsandtheir intentional collaboration in a particular project. Andrea Hemetsberger Innsbruck University School of Management 16 17. crowdsAndrea HemetsbergerInnsbruck University School of Management crowdsAndrea HemetsbergerInnsbruck University School of Management17 18. crowdsAndrea HemetsbergerInnsbruck University School of Management crowdsAndrea HemetsbergerInnsbruck University School of Management18 19. crowdsAndrea HemetsbergerInnsbruck University School of Management hivesAt the furthest level of creativity contribution are consumers whoygather into organized semi-permanent collectives, which we termHives. These consumers are industrious, diligent, and regular, andwould include groups such as ongoing Open Source softwarecommunities, local Star Trek episode production groups, vlog andpodcast production teams, and so on.Andrea HemetsbergerInnsbruck University School of Management19 20. virtual space design by hives Andrea Hemetsberger Innsbruck University School of Management film productions by hives Andrea Hemetsberger Innsbruck University School of Management 20 21. product design by hives Andrea Hemetsberger Innsbruck University School of Management product design by hives Andrea Hemetsberger Innsbruck University School of Management 21 22. Andrea Hemetsberger Innsbruck University School of Management Andrea Hemetsberger Benjamin Grycams "Beck's Experience". Foto: Lars Cramer Innsbruck University School of Management 22 23. Andrea Hemetsberger Codename: Alexis Innsbruck University School of Management software production by hivesAndrea HemetsbergerInnsbruck University School of Management23 24. Conclusion What are the implications

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