New Product development with facebook fans: Idea Contest Experiment 페이스북 팬과의 신제품 개발 프로세스 - 아이디어 콘테스트를 중심으로

1. New Product development with facebook fans: Idea Contest Experiment 페이스북 팬과의 신제품 개발 프로세스 - 아이디어 콘테스트를 중심으로 12/10/2012 (VERY SHORT VERSION OF MY MASTER’S THESIS) Department of Operations Management, School of Business, Yonsei UniversityAyaka 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). <Open Innovation Intermediaries> <Company Websites> Seeker Companies ↔ Potential Solvers What about conducting an idea contest on Facebook?

3. Why Facebook? Facebook Viral Effect 795 Friends Facebook Fan Page Friends’ News Feed Extending user research is relatively easier on Facebook fan page than firm-based virtual community. AyakaOdaliked Godiva Chocolatier.

4. Research Purposes • To introduce how to design an idea contest on Facebook fan page. • 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. Idea Contest Facebook

5. Design of Facebook Idea Contest

6. Hypothesized Model Motivation for networking is positively associated with the fan’s contribution to the idea contest. MOTIVATIONS Networking H1 Customer-Brand Relationship INTENTIONS Self Presentation H2 Idea Contest Contribution Word of Mouth H6 H3 H7 Enjoyment Willingness to Purchase H4 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 1st floor of the Student Union Building (학생회관). • Sells goods with Yonsei University logos, such as T-shirts and mug cups. • Registered as ‘연세대학교 보람샘 아이디어 콘테스트” (Yonsei University Boramsam Idea Contest) on September 3, 2012 (http://www.facebook.com/boramsamideacontest). • An email with the link was sent to approximately 23,000 undergraduateand 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 FacebookFan 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

10. Categorization of Idea Contest Participants User who submitted idea and helped other ideas to improve. High Competition User who submitted idea and/or only commented on own idea. Low Cooperation High Cooperation User who liked our fan page but did not engage in any action. Uses who only liked or commented on other user’s idea. Low Competition (Reference: Hutter et al., 2011)

11. Survey Respondent Profile (N=101) 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. (Reference: Hutter et al. 2011)

13. Results of the Hypothesized Model (***p < 0.01, **p<0.05, *p<0.1)

14. Post-Hoc Analysis: ANOVA Number of Items (N): Networking (5), Self Presentation (4), Enjoyment (4), Learning (3), Monetary Rewards (4)

15. Comparison of Group Means: Scheffe Test Interestingly, observers had the highest motivation for networking.

16. Thank You! P.S. If you happen to be interested in listening to the whole version of this PPT, please feel free to come to 금호홀 on 12/21(Fri) at 10am.