NEW PRODUCT DEVELOPMENT WITH FACEBOOK FANS: IDEA CONTEST EXPERIMENT
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1 NEW PRODUCT DEVELOPMENT WITH FACEBOOK FANS: IDEA CONTEST EXPERIMENT 페이스북팬과의신제품개발프로세스 - 아이디어콘테스트를중심으로 12/10/2012 (VERY SHORT VERSION OF MY MASTER S THESIS) Department of Operations Management, School of Business, Yonsei University Ayaka Oda
2 Introduction Users are important sources of innovation (von Hippel, 1988; Nambisan, 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). <Company Websites> <Open Innovation Intermediaries> Seeker Companies Potential Solvers
3 Why Facebook? Facebook Fan Page Friends News Feed Ayaka Oda liked Godiva Chocolatier. Extending user research is relatively easier on Facebook fan page than firm-based virtual community.
4 Research Purposes Idea Contest Facebook 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 resulting marketing implications.
5 Design of Facebook Idea Contest Stage 1 Obtain 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 feedbacks to other users contributions. Stage 4 Evaluate the ideas submitted by the users to select the best idea. Stage 5 Market the new product generated through the contest on Facebook fan page.
6 Hypothesized Model MOTIVATIONS Motivation for networking is positively associated with the fan s contribution to the idea contest. Networking H1 Customer-Brand Relationship INTENTIONS Self Presentation Enjoyment H2 H3 H4 Idea Contest Contribution H6 H7 Word of Mouth Willingness to Purchase Learning H5 Monetary Rewards
7 Research Setting - Boramsam ( 보람샘 ) Boramsam ( 보람샘 ) One of the stores that Yonsei University Co-op Goods manages. Located on the 1 st floor of the Student Union Building ( 학생회관 ). Sells goods with Yonsei University logos, such as T-shirts and mug cups. Registered as 연세대학교보람샘아이디어콘테스트 (Yonsei University Boramsam Idea Contest) on September 3, 2012 ( An 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 Boramsam 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 deadline for the new product ideas.
8 Data Collection and Analysis 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)
9 Key Figures of the Idea Contest Idea Contest Characteristic Specification Duration 9/3/ /17/2012 Number of Total Fans* Idea Presenters 137 (3 organizers + 69 active fans) 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.
10 Categorization of Idea Contest Participants User who submitted idea and/or only commented on own idea. Competitive Fan (27) High Competition Coopetitive Fan (30) User who submitted idea and helped other ideas to improve. Low Cooperation High Cooperation User who liked our fan page but did not engage in any action. Observer (63) Cooperative Fan (12) Uses who only liked or commented on other user s idea. Low Competition (Reference: Hutter et al., 2011)
11 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) min 22 (21.8) Nationality 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) (7.9) Boramsam Familiarity (59.4) Yes 80 (79.2) (27.7) No 21 (20.8) (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) Number of Users Facebook Friends Rough Mean: 345 Friends
12 Measurement Idea Contest Contribution In the idea contests held online, 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 (Reference: Hutter et al. 2011) User ID User Type Like (Own) Comment (Own) Like (Other) Comment (Other) Qualitative Comment Idea Total Contribution Score 71 Coopetitive Fan Competitive Fan Cooperative Fan Competitive Fan Observer 1 Assigned Value (1-28)
13 Results of the Hypothesized Model (***p < 0.01, **p<0.05, *p<0.1)
14 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 a a Cooperator (10) 3.28a,b a,b b Competitor (25) 2.85b a,b b Coopetitor (30) 3.11b b b F-Value *** 6.831*** *** Notes) ***p < 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), Monetary Rewards (4)
15 Comparison of Group Means: Scheffe Test Networking Self Presentation Observer Cooperator Competitor Coopetitor User Type Interestingly, observers had the highest motivation for networking. Observer Cooperator Competitor Coopetitor User Type Enjoyment Observer Cooperator Competitor Coopetitor User Type Learning Monetary Rewards Observer Cooperator Competitor Coopetitor User Type Observer Cooperator Competitor Coopetitor User Type
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