IT’S ALL IN THE MIX: HOW USER-DESIGNED PRODUCTS AND COMPANY-DESIGNED PRODUCTS CAN PEACEFULLY COEXIST

Michael Schulz and Franziska Völckner
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Michael Schulz: University of Cologne, Department of Marketing and Brand Management, Albertus-Magnus Platz, 50923 Cologne, Germany
Franziska Völckner: University of Cologne, Department of Marketing and Brand Management, Albertus-Magnus Platz, 50923 Cologne, Germany

International Journal of Innovation Management (ijim), 2020, vol. 24, issue 07, 1-36

Abstract: Across industries, companies operate open innovation platforms that encourage users to share ideas and become product designers. Likewise, companies explicitly promote products based on user ideas as “user-designed” (e.g., McDonald’s MyBurger, LEGO Ideas). This paper introduces and empirically investigates two managerially relevant factors that can influence the effect of user-designed products on consumers’ reactions. Specifically, Studies 1a and 1b reveal an inverted U-shaped relationship between the share of user-designed products in a company’s product portfolio and consumers’ purchase intentions, which is mediated by consumers’ perceptions of the company’s innovation ability. Study 2 examines the role of the market entry strategy for user-designed products. While the inverted U-shaped effect holds for followers, the relationship between the share of user-designed products and consumers’ purchase intentions becomes U-shaped for first movers. These results suggest that user-designed products can have unexpected consequences that managers need to be aware of and consider in their actions.

Keywords: User-designed products; user innovation; open innovation; market entry strategy (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1142/S136391962050067X

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