Nama : Maya Nurlita
Kelas : 3EA14
NPM : 14210291
CONSUMER INNOVATIVENESS
Defining Customer
Innovation
I often get asked what I
mean when I use the phrase "Customer Innovation". Here's my
explanation:
Customer innovation
incorporates a number of emerging concepts and practices that help
organisations address the challenge of growth in the age of the empowered and
active customer (both business and consumer). It demands new approaches to
innovation and strategy-making that emphasise rapid capability development,
fast learning, ongoing experimentation and greater levels of collaboration in
value-creation. Customer innovation impacts upon all the following activities,
functions and disciplines:
Marketing strategy and
management
Brand strategy and
management
Communications strategy
Customer experience
design and delivery
Customer relationship
management
Customer service design
and quality management
Market-sensing and
customer learning
Market and customer segmentation
Creativity and knowledge
management including market research
Partner and customer
collaboration
Organisational alignment
and purpose (values, behaviour and beliefs)
Innovation strategy and
management
Innovation valuation,
measurement and prioritization
Strategy-making
For me customer
innovation is not only an important perspective on value-creation but a whole
new strategy discipline that organisations must embrace if they are to pursue
growth successfully in the future. Put another way, customer innovation impacts
the fundamental means by which value is created and growth sustained.
One of the difficulties
I encounter when explaining the concept is that the "Innovation" word
is traditionally associated with products and technology. There is a section in
The
Only Sustainable Edge by
Hagel and Seely Brown that eloquently defines Innovation from a much broader
organisational and strategic perspective:
We underscore the
importance of innovation but we use the term more broadly than do most
executives. Executives usually think in terms of product innovation as in
generating the next wave of products that will strengthen market position. But
product-related change is only one part of the innovation challenge. Innovation
must involve capabilities; while it can occur at the product and service level,
it can also involve process innovation and even business model innovation, such
as uniquely recombining resources, practices and processes to generate new
revenue streams. For example, Wal-Mart reinvented the retail business model by
deploying a big-box retail format using a sophisticated logistics network so
that it could deliver goods to rural areas at lower prices.
Innovation can also vary
in scope, ranging from reactive improvements to more fundamental
breakthroughs... One of the biggest challenges executives face is to know when
and how to leap in capability innovation and when to move rapidly along a more
incremental path. Innovation, as we broadly construe it, will reshape the very
nature of the firm and relationships across firms, leading to a very different
business landscape.
Although Hagel and Seely
Brown's book provides a great analysis of capability-building and new
innovation mechanisms at the edge of organisations (through new dynamic forms
of firm-firm collaboration) and specialisation, their discussion largely omits
the customer-firm colloboration, open innovation perspective. But, from Hagel's
most
recent post and article
in the Mckinsey Quarterly,
this seems like it could be the subject of their next book! Here is a quote
from the article:
Cocreation is a powerful
engine for innovation: instead of limiting it to what companies can devise
within their own borders, pull systems throw the process open to many diverse
participants, whose input can take product and service offerings in unexpected
directions that serve a much broader range of needs. Instant-messaging
networks, for instance, were initially marketed to teens as a way to
communicate more rapidly, but financial traders, among many other people, now
use them to gain an edge in rapidly moving financial markets.
Example for consumer innovativenss
For example, based on
this research, Tellis, who has experience launching new products via his past service
as a sales development manager at Johnson & Johnson, recommended that
businesses employ a “waterfall strategy” (i.e., a country-to-country tiered
release) versus a “sprinkler strategy” (all at one time) for new products,
making sure to vary their approach depending on the country and product
category. Governments can apply this research when introducing new
products, such as fuel-efficient cars, and services to their citizens. “This
study tells them whom to target first in which regions,” Tellis said.
Management consultant firm A. T. Kearney funded the study’s data collection, while Don Murray, executive chairman of Resources Global Professionals, provided the annual grant to the USC Marshall Center for Global Innovation, which paid for the data analysis.
Management consultant firm A. T. Kearney funded the study’s data collection, while Don Murray, executive chairman of Resources Global Professionals, provided the annual grant to the USC Marshall Center for Global Innovation, which paid for the data analysis.
Compulsive Consumption
O'Guinn & Faber
(1989:148) defined compulsive consumption as “a response to an uncontrollable
drive or desire to obtain, use or experience a feeling, substance or activity
that leads an individual to repetitively engage in a behaviour that will
ultimately cause harm to the individual and/or others.” Research has been
carried out to provide a phenomenological description to determine whether
compulsive buying is a part of compulsive consumption or not. The conclusion
reached after analysing both qualitative and quantitative data stated that
compulsive buying resembles many other compulsive consumption behaviours like
compulsive gambling, kleptomania and eating disorders (O' Guinn & Faber,
1989:147). Hassay & Smith (1996) hold a similar view and refer to
compulsive buying as a form of compulsive consumption as well. Besides
personality traits, motivational factors also play a significant role in
determining the similarities between compulsive buyers and normal consumers.
According to O'Guinn & Faber (1989:150), if compulsive buying is similar to
other compulsive behaviours it should be motivated by “alleviation of anxiety
or tension through changes in arousal level or enhanced self-esteem, rather
than the desire for material acquisition.” Hassay & Smith (1996) also agree
with the above inference and concluded from their research that “compulsive
buying is motivated by acquisition rather than accumulation.”
Example Compulsive
Consumption Consumer
Examples include uncontrollable shopping, gambling, drug addition, alcoholism and various food and eating disorders. It is distinctively different from impulsive buying which is a temporary phase and centers on a specific product at a particular moment. In contrast compulsive buying is enduring behaviour that centers on the process of buying, not the purchases themselves.
Consumer ethnocentrism
is derived from the more general psychological concept of ethnocentrism.
Basically, ethnocentric individuals tend to view their group as superior to others. As such, they view other groups from the perspective of their own, and reject those that are different and accept those that are similar (Netemeyer et al., 1991; Shimp & Sharma, 1987). This, in turn, derives from earlier sociological theories of in-groups and out-groups (Shimp & Sharma, 1987). Ethnocentrism, it is consistently found, is normal for an in-group to an out-group (Jones, 1997;Ryan & Bogart, 1997).
Basically, ethnocentric individuals tend to view their group as superior to others. As such, they view other groups from the perspective of their own, and reject those that are different and accept those that are similar (Netemeyer et al., 1991; Shimp & Sharma, 1987). This, in turn, derives from earlier sociological theories of in-groups and out-groups (Shimp & Sharma, 1987). Ethnocentrism, it is consistently found, is normal for an in-group to an out-group (Jones, 1997;Ryan & Bogart, 1997).
Consumer ethnocentrism specifically
refers to ethnocentric views held by consumer in one country, the in-group,
towards products from another country, the out-group (Shimp & Sharma,
1987). Consumers may believe that it is not appropriate, and possibly even
immoral, to buy products from other countries.
Purchasing foreign products may be
viewed as improper because it costs domestic jobs and hurts the economy. The
purchase of foreign products may even be seen as simply unpatriotic (Klein,
2002; Netemeyer et al., 1991; Sharma, Shimp, & Shin, 1995; Shimp &
Sharma, 1987).
Example for consumer ethnocentrism
Example for consumer ethnocentrism
For example, according to Burton
(2002) and Quellet (2007), consumers are concerned with their cultural,
national and ethnic identities increasingly in more interconnected world. Some
consumer researches determined that people make their purchasing decisions on
information cues. Information cues can be intrinsic (e.g., product design) and
extrinsic (e.g.,brand name, price)(Olson, 1977; Jacoby ,1972). But extrinsic
cues are likely to be used in the absence of intrinsic cues or when their
assessment is not possible(Jacoby, Olson and Haddock, 1971 ; Olson, 1977;
Jacoby, 1972 ; Jacoby, Szybillo and Busato-Schach, 1977 ; Gerstner, 1985).
Also, according to some researches,
it was thought that there is a relationship between attitudes toward foreign
retailers’ products and some demographics characteristics such as gender,
education, income and age.
When doing this research, it was
aimed at determining consumer attitudes towards foreign retailers’ products.
The research starts with a literature review which includes international
retailing in Turkey, attitudes towards purchasing foreign retailers’ products
(general review), effects of age and education level on attitudes, influence of
consumer ethnocentrism on attitudes towards foreign retailers’ products
respectively. Secondly, methodology part that has explanations about how this
research was conducted, was presented. Then, findings which derived from
questionnaire results and its SPSS analyses, are presented. At the last stage
of the research, discussion, limitations and future researches are discussed.
Narasumber
http://insciences.org/article.php?article_id=6602
http://www.businessteacher.org.uk/free-marketing-essays/compulsive-buying/
http://www.businessteacher.org.uk/free-marketing-essays/compulsive-buying/
