Column 6 · Innovation and New Products · Era 6, Engagement and Networks (2010s)
Customer Cocreation
Formulation, process · Landmark · Cluster II, Resources and Orientation
Description
Hoyer et al. conceptualized consumer cocreation in new product development, its degree and scope across development stages, and the stimulators and impediments to it.
Managerial Implications
Customers can contribute to new product development at ideation, development, commercialization, and post-launch stages, raising fit and reducing cost. Cocreation works when the firm lowers customers' cost to participate and raises their benefits, such as recognition or influence. Managers should decide which stages invite cocreation, build the platforms and incentives, and prepare to share control, because cocreation that ignores customer input quickly loses contributors.