As I was reading the articles, the blog and the information that search engines provide on consumer behavior, mass customization and crowdsourcing I came across many reasons for and benefits of putting the consumer in charge of the decision-making-process. We learn how crowdsourcing reduces risk of failure, boosts brand resonance and even creates word-of-mouth. What an amazingly happy world from the firm’s point of view.
And consumers, they are at least just as satisfied. Now they actually get the chance to design what they want, earn money with their hobbies and feel the fulfillment of consuming their own creations.
Just look at this video of Zazzle. Look at the happy faces.
When I almost started believing that everybody in this world is pleased with the hype of crowd sourcing, I came across the following text. I find it very nice to see more than just one angle of the story.
Continue reading Crowdsourcing, sleazy new word for sleazy old scam.
More and more brands are assigning for brand communities like Facebook, Ning, Twitter etc. but what are the results? If the results of brand communities aren’t that effective for your brand maybe you should consider reading this article. How can I commit more customers to my brand and provide more brand loyalty? Based on the following article;
The Influence of On-Line Brand Community Characteristics on Community Commitment and Brand Loyalty, Heehyoung Jang, Lorne Olfman, Ilsang Ko, Joon Koh, and Kyungtae Kim
The Influence of On-line Brand Community Characteristics
Recently I bumped onto a very interesting article relative to the mass customization, seen from the perspective of housing. More specifically Noguchi & Hernandes-Velasco (2005) referring to the housing needs in Mexico, they distinguish three categories of homebuilders in Mexico: production, semi-custom and custom homebuilders.
The production homebuilders are organized for high volume production and they produce the ready built homes. They provide a number of standard designs/models and the customers can compare the attributes of each model in order to choose. In this case the high volume work results in low price.
The semi-custom builders combine characteristics of ready built and custom built homes, working, as the previous, on predesigned plans. In this case there is the option based on the pre-existing model to extend it in order to cover the needs of the prospect buyer. But, due to this fact, the high volume work is lost, and as a result the price is higher.
Continue reading Mass customization: luxury in lower price?
Since the period of Henry Ford’s car industry until late 90’s, product efficiency requires mass production. Companies were using labor divisions, standarisation and automated processes to create products in large quantities. Economies of scale insists emphasising on mass production since it reduces cost massively. Industries rely on mass production to minimise costs. One example of mass production in car industry is Ford model T.
Ford model T – The first car that was mass produced.
However, new technologies such as CAD (Computer Aided Design) and CAM (Computer Aided Manufacturing) are damaging the economy of mass production. Since both allow mass customisation towards the needs of customer. Mass customisation includes flexible production process to create goods and services that are intertwined with each customer. The future of manufacturing was actually started with mass customisation.
Mass customisation offers advantages for both customers and factories. Customers can get the product they want, based with their tastes and needs. For the factory, they create more customer satisfaction, at the same time, improve production efficiency. In some industries, mass customisation method may result in little or no inventory of finished goods or semi-finished, no expired products are full of dust on a shelf or showroom; and require less working capital.
However, there are several weaknesses of mass customisation that I found:
Continue reading Mass customization, is it an effective production method?
During the last class (Monday January 16th in the morning class) we discussed about the open innovation after the Lays ‘Maak je Smaak’ case. Open innovation has some pitfalls. In the article below you can read about these pitfalls.
I found this article on a Dutch website, so I translated into English. It is about crowdcasting: “Crowdcasting is a problem-solving and idea-generating tactic in which a corporation disseminates details of a specific problem or situation to a carefully chosen group of people for possible solutions. The process is often conducted as a contest. The results may be used to resolve difficult or complex development and marketing issues.”( http://searchcrm.techtarget.com/definition/crowdcasting)
(Translation of ‘De Valkuilen van Crowdcasting’, http://www.frankwatching.com)
Innovation is for many organisation the keyword of success. The definition is used a lot, but most of the times people do not understand it. Research showed that the biggest successes can be achieved when using open innovation with the help of consumers and other companies. Sometimes it does succeed, sometimes it does not. How is this possible? Below the three most common pitfalls of crowdcasting will be dealt with, crowdcasting is a very popular way of open innovation.
Continue reading Pitfalls of crowdcasting
In the world where we live everything must be faster, better and newer. Companies have to innovate and develop products/services faster then ever. With this challenge companies need to think different.
Open innovation is a new way of integrating customers during the research and design period of the firm. This picture below is a simple example of how open innovation works. Because of the new method, firms can choice between the traditional approaches or the new open approaches. The differences between these methods are showed in the table below.
Continue reading Open innovation
So while I was researching for both the presentation on Thursday on the UnMe Jeans, and research for my thesis topic, I came across this blog and article about how Luxury Brands adopt and integrate Social Media into their marketing strategies. http://luxurysocialmedia.wordpress.com/2010/05/26/louis-vuitton-or-how-to-master-the-art-of-social-media/
I thought it was a nice example to complement the topic for the UnMe Jeans and the Web 2.0, and also just and interesting article to see how luxury brands are integrating social media and engaging with customers. and especially how the traditional definition of luxury had to radically change in the last couple of years.
Hope you all have a nice evening
I found this article about mass customization and though it might be interesting and helpful. Please click on the link to read it. http://blogs.forrester.com/jp_gownder/11-04-15-mass_customization_is_finally_the_future_of_products
It’s also nice to read what other people though of this article.
The most important thing about this article is that mass customization has always been under construction. Since 1977 it has been an idea but many companies failed to succeed in the strategy of mass customization, or implemented it all wrong.
In my opinion this is the time that mass custimization really comes through and companies have the knowledge to implement this strategy right so it will succeed. Examples of companies that have implemented the strategy just right are: Nike, Spreadshirt, Ponoko and Zazzle.
Also check this link for another interesting opinion. http://m.readwriteweb.com/biz/2011/04/user-customized-products-future-of-business.php
Robin van Zeijl
There are two sources of information. On one side, consumers possess information regarding their needs, preferences, tastes. On the other side, companies have information about their targets, capabilities, budget restrictions. Companies are trying to get access to consumers’ information. they want to know what they want, what they need, in order to offer the best match possible. Although advances in modeling allow for more accurate predictions of consumer choice behavior, there is still a lot left unknown. A lot is remained probabilistic. Continue reading Open Innovation & Lead Users
We have extensively talked about the advantages of offering personalized product recommendations to consumers. These recommendations increase consumers’ decision quality and save them a lot of effort. There are various approaches in personalized recommendation systems either based on past behavior or based on collaborative filtering techniques (see this article on different approaches of recommendation engines).
However, we have to take into account that sometimes personalized recommendations (especially when we passively receive them) feel quite invasive and consumers at some point ignore or even react. Think about the following situation: you visit a website X and look at a specific red t-shirt. You don’t buy it, yet you move continue your browsing. You send a couple of e-mails, you read the news and finally you log in to facebook. On the right banner, you see an ad with this red t-shirt you inspected 1 hour ago. Next morning, you open your computer, you search information about something you saw n TV last night. Google gives you 1million results in less than a second…plus, a red t-shirt on the right banner of Google ads.
Continue reading Dark Side of Personalization
I found this really interesting post and thought that it would be a great idea to share it with you since it is so in line with the content of the “Consumer Channel Dynamics” Seminar. I hope you will also find it interesting and enjoy! It shows that customer co-creation is important not only during the product’s designing but mostly during the every day life, when the product is actually used by consumers. It is during the every-day life that customer co-creation gives value to the customer himself!
One rich source of information on recent and upcoming trends, trendwatching.com , already in 2004 spotted a substantial rising trend regarding the phenomenon of companies working closely with consumers in order to create design, produce, develop or promote their products (Customer Made).
Shifting to the latest consumer trend report of January 2012, we can see that consumers’ active involvement in the value creation process is still thriving. Crowd-based problem solving is expected to be the core source of ideas, especially given that contributing will be more effortless than ever before (Idle Sourcing). One of the facilitating drivers is the increasing capabilities of the available interfaces. Screens are expected to be more interactive and consistently on (and online within “the cloud”) (Screen Culture). Even in situations that were considered difficult to “intrude”, consumers are becoming increasingly active and powerful. Health related mobile applications and online interfaces, gives the opportunity to consumers (patients) to satisfy their implicit desire for control by discreetly tracking and managing their health on their own (DIY Health).