Nama : Hendri Dwi Rusmedia
NPM : 13210214
Kelas : 3EA14
Mata Kuliah : Perilaku Konsumen #
Dosen : AMARILYS ANDARITIDYA
NPM : 13210214
Kelas : 3EA14
Mata Kuliah : Perilaku Konsumen #
Dosen : AMARILYS ANDARITIDYA
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 prioritisation
- 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.
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.
Consumers who are compulsive buyers have an addiction; in some respects, they are out of control and their actions may have damaging consequences to them and to those around them. 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.
Consumers who are compulsive buyers have an addiction; in some respects, they are out of control and their actions may have damaging consequences to them and to those around them. 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).
Consumer ethnocentrism specifically refers to ethnocentric views
held by consumers 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).
- Attributes
Consumer ethnocentrism gives individuals
an understanding of what purchases are acceptable to the in-group, as well as
feelings of identity and belonging. For consumers who are not ethnocentric, or
polycentric consumers, products are evaluated on their merits exclusive of
national origin, or possibly even viewed more positively because they are
foreign (Shimp & Sharma, 1987; Vida & Dmitrovic, 2001).
Brodowsky (1998) studied consumer
ethnocentrism among car buyers in the U.S.
Several antecedents of consumer
ethnocentrism have been identified by various studies. Consumers who tend to be
less ethnocentric are those who are young, those who are male, those who are
better educated, and those with higher income levels (Balabanis et al., 2001;
Good & Huddleston, 1995; Sharma et al., 1995).
Balabanis et al. found that the
determinants of consumer ethnocentrism may vary from country to country and
culture to culture. In Turkey Turkey Czech Republic
- The Cetscale
Shimp and Sharma (1987) developed consumer ethnocentrism into a
measurable construct through the use of the consumer ethnocentric tendencies
scale (CETSCALE). The initial development of the CETSCALE began with 225
different questions, which were narrowed down to 100 before being sent to
a survey group
for the first purification study. Through repeated purification studies, the
number of questions was finally reduced to 17. Repeated studies by Shimp and
Sharma validated the CETSCALE in the U.S.
While the 17-item CETSCALE is the original version developed by
Shimp and Sharma (1987), shortened versions have been used. One, with 10 items,
was developed alongside the full version.
This is probably the most frequently used version of the CETSCALE,
as a result of its relatively few number of questions (Balabanis et al., 2001;
Klein, 2002; Klein et al., 1998; Neese & Hult, 2002; Netemeyer et al.,
1991; Vida & Dmitrovic, 2001). Other versions have been used with success,
including a version used by Klein (2002) with just four items that was found to
have a .96correlation with the 10-item version.
The first major test of the validity of the CETSCALE in countries
other than the U.S. U.S. ,
France , Japan , and West Germany
Both the 17-item version and the 10-item version were tested. It
was found that both versions of the CETSCALE were reliable across the different
cultures where it was tested. The results also helped validate the CETCSCALE as
a measure of consumer ethnocentricity. Since that time, the CETSCALE has been
used in many studies in many different countries and cultures.
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