All posts by 402446ta

The social buying website

Ever had the experience that you spotted something cool on a social website such as Instagram and Pinterest and you wanted to get it, but more often than not you could not find a shop to buy it from? As a consumption economy we always want new and fancy things in our lives and online shopping has made this much easier.

The website solves this problem by allowing the direct connection between seller and buyer in a social environment. Fancy is the place that allows you to discover and buy amazing things curated by the global community. So how does this business model work?


The website can be compared to many different websites, it allows you to buy high-end things on a website as as good looking as Tumblr/ Pinterst and most importantly as money-driven as Amazon. It is based on a new retail model that allows you to shop by accidentally discover new items instead of you deliberately searching for them. In fact it works much the same way as Pinterest, only the website has a direct purchase button at every product displayed.

It works as followed, you spot something on the internet and save the image because you like it. After that you go to the website and upload the photo of the product including a title, you add a link to the companiy and set it under the correct category. The image is than posted on you Fancy feed and is indexed by the Fancy database. The company is then notified that the product is on the Fancy website and the company can then ad a direct buy link. After this my image, that I uploaded, is visible on my news feed and all my friends are able to buy the product directly on the Fancy website. Fancy business model is taking a 10% commission on each of the products sold,


This business model is such an success that even Pinterest is planning to introduce a “buy” button that would let users purchase some items from inside the online scrapbooking service. This would mean direct competition with a website that already controls a 23% of traffic to e-commerce sites (Business insider, 2015). Furthermore, the approach used by Fancy can create problems in the institutional arrangements, the user generated content has a lingering problem with liability. Especially copyright infringement is a constant threat for the Fancy website, the wrong content can result in a law suit against the website itself.

However, it can be concluded that this new social buying trend is potentially changing the way we shop, this also means that websites such as Amazon need to compete with a new kind of buying behaviour. After all, for most consumers this trend is a welcoming site, it creates new value in the online shopping experience.


Business insider:

Is crowdfunding changing the way we donate?

It is a recurring sight, collectors that ask for donations for one of the many charities in the streets or at your home. This traditional collecting technique has worked for many years and has proven itself as an effective strategy. However, small charities that are focussed on a niche have often trouble gathering sufficient funds. Their campaigns are also focussed on one of the many problems in the world, but don’t get the attention that they deserve.

The up rise of crowdfunding has created new possibilities for these charities, donating your money directly to a project off your choices has never been easier than with the many available crowdfunding platforms. Kickstarter and Indiegogo already had successful donation based crowdfunding campaigns such as “The Ocean CleanUp”, but more often than not, these platforms offer reward based campaigns that give you a varying reward for your pledge (1).

The success on these platforms created a whole new category of crowdfunding platforms that is solely based on the principle of donating your money to a project of your choice. One of these platforms is Razoo, which offers you the possibility to make a difference (2). The platform brings together charities or organizations that need funds for their projects (these projects can be focussed on Human Aid, Animals, Sport, Education, Etc.) and the donators.

Basically this means it is a two sided market, the difference however is that the donators are not motivated by money or rewards, they are often driven by philanthropic reasoning (3; 5). The CEO Lesley Mansford said that: “Razoo wanted to empower everyday philanthropists to show they care and provide tools to … help anybody who needs it, regardless of the cause – because not all needs are tied to a charitable organization.” The aim of these platforms is to provide peer-to peer benevolence for non-profit fundraising and become a significant category of giving in the future,” (4)

Since the beginning in 2007, the platform received a total of 870,000 donations which supported over 31.000 causes (4). This all leads to the fact that one crowdfunding platform was able to raise over $270 million for charity proves that they are becoming a significant player in donations (2). From this we can concluded that donation based crowdfunding is changing the way we donate, it has become easier to find projects or goals and support them compared to the tradition channels. However, from all the money that is donated a large amount stays within such a platform. For example: the website Razoo charges 4.9% of donations for non-profit causes and 7.9% of donations on personal fundraiser (6). This backs the question if using such a platform really favours the charity projects in the long-run or that these kind of platforms are a temporary trend for all involved.




3: Tsekouras, D. (2015) Consumer-Centric Digitial Commerce, “Why Funders do this”, slides session 4 (8-04-15)


5: Eisenmann, T., Parker, G., & M. W. Van Alstyne (2006). Strategies for two-sided markets. Harvard Business School Publishing Corporation.


Can co-creation help in service recovery?

This post is about understanding the co-creation effect: when does collaborating with customers provide a lift to service recovery? By Roggeveen, A., Tsiros, M. and Grewal, D. (2011) 

Co-creation is the process of jointly producing a mutually valued outcome. This means that consumers can help shape or personalize the content of their experience, in other words, it can affect satisfaction of a recovery. A recovery is required when equity of a customer-company relationship is damaged. The research investigates the impact on equity for service delays outside the company’s control in the airline industry.

Study 1:

The first study demonstrates that using co-creation during severe and less severe delays yields different results. When consumers face a sever delay, co-creation improves the evaluation of the company, whereas less severe delay evaluations are not affected. Furthermore, the study demonstrates that co-creation works as good as compensating customers for severe delays. When faced with less severe delays, co-creation performs just as well or even better than compensating a customer.

Study 2:

The second study expands on the first study by expanding the knowledge on repurchase intentions, after co-creation recovery. The study demonstrates that recovery extends beyond the increased evaluations, it increases consumers repurchase intentions as well. This relationship is however mediated by equity, which is the difference between what consumers have received and what they expected to receive.

Study 3:

The third study looks at the perception of consumers of the recovery task. When consumers view the recovery strategy negatively, hence if the view it as akin to work, co-creation can harm evaluation. This is especially the case when consumers are asked to co-create during less severe delays.

Study 4:

The fourth and final study is the most interesting. The researches explore what happens when a company does not meet or exceeds the customers’ expectations after a recovery or compensation. As expected, companies that do not meet a customer request achieve lower evaluations. However, when a company exceeds customer expectations, the customer does not evaluate the company higher than when meeting customer requirements.

Especially the last study has large managerial implications. Consumers evaluate a business the same as when a company meets or exceeds the requirements set by the customer, which means that it is far more economical to only meet the necessary requirements. From this study we can therefore learn that using a co-created recovery for severe problems achieves good results for both customer evaluations and repurchase intentions. As noted by a manager: “if a guest perceives a failure to be just horrible, then they want to be more involved in rectifying the problem. If they perceive that it’s a minor inconvenience, then they don’t want so much input on it.”


Roggeveen, A., Tsiros, M. and Grewal, D. (2011). Understanding the co-creation effect: when does collaborating with customers provide a lift to service recovery?. Journal of the Academy of Marketing Science, 40(6), pp.771-790.


Heading picture: [Accessed on 02-04-15]