A STUDY OF ONLINE IDEA JAMS

A STUDY OF ONLINE IDEA JAMS UNCOVERING MOTIVATIONS - AND INVESTIGATING ONLINE IDEA JAMS CONTRIBUTIONS IN TERMS OF MARKETING CHARLOTTE ESPE NORDLAND CPR: 280386-1822 CAND.MERC. MCM COUNSELOR: TILDE HEDING DEPARTMENT OF MARKETING COPENHAGEN BUSINESS SCHOOL AUGUST 2012 STU: 181.825 PAGES: 78

Executive Summary Today an increasing amount of companies outsource innovation tasks to crowds of consumers via online idea jams. Companies generally use these ideas free of charge for development of new products and services. But why do customers freely reveal ideas for producers? In this Thesis I have uncovered what motivates consumers to participate in the online idea jams Danske Idebank and FDB s Grønne Idepris. As a limited amount of theory exists within this field of research I have investigated how existing theory within the area of crowdsourcing and online innovation communities can be applied to online idea jams. The findings of this research showed that the intrinsic psychological motivations of fun, excitement, curiosity, achieving a rewarding experience and feeling of accomplishment motivated people to participate in online idea jams. Moreover the aspect of learning, and developing one s creative skills motivated participation. Extrinsic motivations such as peer and firm recognition were also found to be important for participation. Thus, it was concluded that these areas of existing theory can be applied to online idea jams. Motivational areas that cannot be applied to online idea jams are self-expressive motivations, winning a monetary reward, as well as collective motivations. These areas help to delimit the research area of online idea jams. Some of the motivations not previously discovered in theory were motivations of an intrinsic psychological character such as wanting to change the world, interest in the innovation subject, giving back to the company, showing societal responsibility, as well as the extrinsic motivation of minimizing the risk of poor solutions from the company. These motivations need special attention in future research as they are found to be unique to online idea jams. Due to the presence of the financial crisis, businesses value strong customer relationships as ever before. As companies use online idea jams to gather ideas and knowhow from consumers in the market, an interesting aspect not previously investigated in scientific research is online idea jams potential to contribute to the branding processes of the initiating companies. Therefore in this Thesis I uncovered the relevance of combining online idea jams with marketing constructs such as brand meaning, attachment, loyalty and psychological sense of brand community. Based on the empirical investigation it was concluded that online idea jams positively contribute to the marketing constructs of brand meaning, attachment, and loyalty in several ways, stressing the relevance of combining online idea jams and marketing theory in these specific areas. Moreover, it was concluded that online idea jams do not generate psychological sense of brand community, implying that participants do not associate online idea jam platforms with community involvement. 1

Content Executive Summary... 1 1 Introduction... 6 1.1 Research Questions... 7 1.2 Interesting Cases of Online Idea Jams... 8 1.3 Case Introductions... 9 1.3.1Danske Bank s Danske Idebank... 9 1.3.2 FDB s Grønne Idepris... 10 1.4 Thesis Outline... 10 1.5 Delimitations... 13 1.6 Secondary Data A Critical Assessment... 15 2 Research Philosophy... 17 2.1Epistemology... 17 3 Research Methodology... 20 3.1 Research Approach... 20 3.2 Research Design... 21 3.2.1 Purpose of the Research... 21 3.2.2 Research strategy... 23 3.3 Research Methods... 23 3.4 Reliability and Validity... 24 4 Theoretical Framework... 26 4.1 Theoretical Definitions... 27 4.2 The Phenomenon of Crowdsourcing... 28 4.3 Crowdsourcing and Online Communities... 30 4.3.1 Social Relationships... 30 4.3.2 Brand Admiration... 31 4.3.3 Online Innovation Community... 31 4.3.4 Interest Community... 31 4.4 Community Attachment... 31 4.5 Different Types of Crowdsourcing... 32 4.6 Involvement and Participation... 33 2

4.6.1 Expected Level of Involvement in Different Types of Crowdsourcing... 34 4.7 Crowdsourcing on Facebook... 34 4.8 Motivations for Contribution in Online Innovation Communities and Crowdsourcing... 35 4.8.1 Extrinsic vs. Intrinsic Motivation... 35 4.8.2 Intrinsic Motivations... 36 4.8.3 Extrinsic Motivations... 38 4.9 Combining Online Idea Jams and Marketing Theory... 39 4.9.1 Brand Relationship Theory... 40 4.9.2 Combining Online Idea Jams and Brand Meaning... 41 4.9.3 Combining Online Idea Jams, Brand Attachment and Loyalty... 42 4.9.4 Combining Online Idea Jams and PSBC... 43 5 Primary Data Collection... 44 5.1 Primary Data: Qualitative Research Interviews... 44 5.1.2 Semi-Structured Interviews... 44 5.2 Selection of Interview Participants... 45 5.3 Data Processing... 47 6 Empirical Findings... 48 6.1 Motivations for Participation in Online Idea Jams... 48 6.1.1 Fun, Joy, Excitement and Curiosity... 48 6.1.2 Interest in Innovation Activity... 48 6.1.3 Rewarding Experience... 49 6.1.4 Development of Creative Skills... 49 6.1.5 Learning... 49 6.1.6 Feeling of Accomplishment... 49 6.1.7 Collective Motivations... 49 6.1.8 Changing the World... 50 6.1.9 Interest in the Innovation Subject... 51 6.1.10 Giving Back to the Company... 51 6.1.11 Societal Responsibility... 51 6.1.12 Positive Reflection of the Company s Additional Activities... 51 6.1.13 Rush of Revealing, Gaining Reputation and Showing Off one s Knowledge (Self Expression)... 51 6.1.14 Unsatisfied Needs and Wants... 52 6.1.15 Peer Recognition... 52 6.1.16 Firm Recognition... 52 6.1.17 Winning the Price... 53 3

6.1.18 Career Enhancement... 53 6.1.19 Minimizing Risk of Irritation with Company Solution... 53 6.2 Online Idea Jams Influence on Brand Meaning, Attachment, Loyalty, and PSBC... 53 6.2.1 Brand Meaning... 54 6.2.2 Brand Attachment... 54 6.2.3 Brand Loyalty... 55 6.2.4 PSBC... 56 7 Analysis... 57 7.1 Motivations... 57 7.1.2 Motivations Applicable to Online Idea Jams... 57 7.1.3 Motivations Not Applicable to Online Idea Jams... 60 7.1.4 Motivations Unique to Online Idea Jams... 62 7.2 Partial Conclusion... 64 7.3 Combining Online Idea Jams and Marketing Theory... 66 7.3.1 Online Idea Jams and Brand Meaning... 66 7.3.2 Online Idea Jams and Brand Attachment... 67 7.3.3 Online Idea Jams and Brand Loyalty... 68 7.3.4 Online Idea Jams and PSBC... 69 7.4 Partial Conclusion... 70 8 Conclusion... 73 9 Managerial Implications and Recommendations... 76 10 Further Research... 78 References... 79 Appendix 1: Motivations Present in Exiting Theory... 86 Appendix: 2 Keller s Brand Equity Pyramid... 87 Appendix 3: Interview Guide... 88 Appendix 4: Demographic Backgrounds of Interview Respondents... 92 Appendix 5: Transcription - Tommy Sørensen... 94 Appendix 6: Transcription - Claus Lindemann... 105 Appendix 7: Transcription - Jesper Frydenlund... 112 Appendix 8: Transcription - Henrik Klinke... 119 Appendix 9: Transcription - Jan Milanowski... 128 4

Appendix 10: Transcription - Pia Ingelise Brodersen... 137 Appendix 11: Transcription - Caroline Jacobsen... 143 Appendix 12: Transcription - Majken Bløndal... 153 Appendix 13: Tommy Sørensen - Confirmation and Disconfirmation of Motivations... 162 Appendix 14: Claus Lindemann - Confirmation and Disconfirmation of Motivations... 168 Appendix 15: Jesper Frydenlund - Confirmation and Disconfirmation of Motivations... 173 Appendix 16: Henrik Klinke - Confirmation and Disconfirmation of Motivations... 179 Appendix 17: Jan Milanowski- Confirmation and Disconfirmation of Motivations... 185 Appendix 18: Pia Ingelise Brodersen - Confirmation and Disconfirmation of Motivations... 190 Appendix 19: Caroline Jacobsen - Confirmation and Disconfirmation of Motivations... 192 Appendix 20: Majken Bløndal - Confirmation and Disconfirmation of Motivations... 198 Appendix 21: Empirical Findings Illustration of Motivations... 203 Appendix 22: Empirical Findings Illustration of Online Idea Jams Influence on Marketing Constructs. 204 5

1 Introduction The phenomenon of user innovation has gotten increased attention in today s businesses. Von Hippel (2005) mentions the notion of democratizing innovation, meaning a shift from the traditional innovation paradigm, focusing solely on producers as innovators to a more open innovation model where users of products and services engage in highly complex and successful innovations. An interesting aspect in terms of the evolving open innovation movement is the increased communication possibilities, and easy access to information, offered by the internet and the notion of web 2.0. This steady and continuous improvement in technologies and online information-tools will increase the amount of user innovations, and the notion of innovation democratization will develop even further (von Hippel, 2005). According to von Hippel & von Krogh (2006) there is talk about a shift in the current economy, as the model of open innovation offering contributions shared freely among users and producers is thriving in today s businesses, positively affecting all involved players as well as the overall economy (von Hippel & von Krogh, 2006). Further, the notion of open innovation is believed to be applicable to industries beyond those of high technology (Chesbrough & Crowther, 2006). One way for today s businesses to engage in user innovation activities is to invest in crowdsourcing activities. Crowdsourcing is described by Howe (2006a) as; the act of a company or institution taking a function, once performed by employees, and outsourcing it to a generally large network of people in the form of an open call. Today an increasing amount of companies are investing in crowdsourcing initiatives, and crowdsourcing in the form of online idea jams is widely used by both large international brands as well as smaller less recognized Danish companies 1. Starbucks and Dell are recognized as two of the best brands in the world in engaging customers via social media platforms (WARC, 2009). My Starbucks Idea and Dell s Ideastorm are successful examples of how companies can involve a large amount of consumers in idea development for new products and services via social media platforms, and these two cases represent my general interest in the phenomenon of online idea jams. Consumers willingness to freely reveal innovations for producers without charging money or engaging in intellectual property protection (von Hippel, 2011), together with the increase and expansion within the open innovation movements to more traditional industries, (Chesbrough & Crowther, 2006) makes me wonder about the incentives and motivations behind innovation contribution in online idea jams. Hence, this interest and wonder comprise one of the main focuses of this Thesis. The presence of the financial crisis and increased importance of strong customer relationships makes me wonder about online idea jams potential to contribute to other areas than innovation, such as brand relationship building. Keller s (2008) notion of brand equity, or brand relationship, building on the constructs of sense of community, brand attachment and loyalty are originally realized through advertising or other kinds of company initiatives reaching an external audience. In this connection the marketing perspective of dialogical 1 Examples: Dell s Ideastorm, Starbucks My Starbucks Idea, Baresso s Kaffelab, FDB s Grønne Idepris, Danske Bank s Danske Idebank. 6

interaction, expressed by Varey & Ballantyne (2005), where consumers create a voice in co-creation with the brand, with emphasis on learning through networks, calls to my attention. Returning to the current increase in web 2.0 and information technology tools, the potential use of online idea jam platforms in the generation of dialogical interaction with consumers represents a highly interesting and current topic of investigation. Today consumers and producers are learning how to make the best use of the new communication tools and possibilities offered by the internet, however stressing the continuous increase and fast pace of the development within web 2.0, my belief is that future consumers will not only thrive with this kind of online interaction, but naturally expect its presence. Several studies have to this date revealed online brand communities potential to positively affect marketing constructs such as brand attachment, psychological sense of brand community (PSBC), and brand loyalty (Muniz Jr. & O'Guinn, 2001), (Carlson et al., 2008), (de Almeida et al., 2010), (Madsen, 2010). Recognizing the distinctions between the phenomena of crowdsourcing, online idea jams and online brand communities, I find it particularly interesting to uncover if participation in online idea jams call for similar effects in terms of marketing of the initiating brand. Füller et al. (2008) found in a study investigating members as sources of innovation in online brand communities, that innovation contribution was not dependent on brand passion. To continue in the spirit of this research, I find it particularly interesting to uncover the potential outcome of innovation contribution in terms of marketing, hence, to uncover how participation in online idea jams contributes to participants opinions and feelings about the initiating brand. Thus, this exact wonder comprises the second main focus of this Thesis. 1.1 Research Questions As mentioned above, an increased amount of companies take on innovation initiatives in the form of online idea jams. In relation to these initiatives I m particularly curious about what makes ordinary consumers participate in online idea jams, and further how participation contributes to companies in terms of marketing. Following this interest I discovered the limited amount of theory within this particular area of research. This exact lack of theory has helped to develop and refine the research questions of this Thesis, highlighting interesting research possibilities that have previously been overlooked. Hence, I find it relevant, to take a theoretical perspective of knowledge recognition, to investigating the existing area of theory within motivations for innovation contribution, and examine it against an empirical investigation of real life cases of online idea jams. Further, as it to my knowledge has not previously been investigated in scientific research, I wish to uncover how online idea jams can contribute to the constructs of brand meaning, attachment, loyalty, and PSBC, thus making an assessment, by investigating it empirically, of the relevance of combining online idea jams and marketing theory. Based on the above, the research questions and sub questions that lay the foundation for the theoretical and empirical investigations of this Thesis are the following: 7

Research Questions: How can existing theory of motivations within crowdsourcing and online innovation communities be applied to the phenomenon of online idea jams? How can online idea jams contribute to the marketing constructs of brand meaning, attachment, loyalty and psychological sense of brand community? Research Sub Questions: 1) Which motivations, present in existing theory, can be applied to online idea jams? 2) Which motivations, present in existing theory, cannot be applied to online idea jams? 3) Which motivations are unique to online idea jams? 4) Can participation in online idea jams influence the construct of brand meaning? 5) Can participation in online idea jams influence the construct of brand attachment? 6) Can participation in online idea jams influence the construct of brand loyalty, in the form of repeat purchases and word of mouth? 7) Can participation in online idea jams generate psychological sense of brand community? Each sub question represents individual steps of the research process. The aim of the sub questions is to guide the reader through the research process seeking to answer the overall research questions. An illustration of each step of the research process with reference to each sub question is presented in the theoretical framework in Chapter 4. 1.2 Interesting Cases of Online Idea Jams In connection to the introduction and presentation of the research questions above, in order to assess the reader with the background of my interest behind this Thesis, it is relevant to take a closer look at the real life cases of online idea jams; Dell s Ideastorm and Starbuck s My Starbucks Idea. What caught my attention about these cases is their success and capability of reaching and involving a large number of consumers. Dell s Ideastorm Dell launched its online user innovation community platform for costumers in February 2007. The aim of the platform was to generate an online brainstorm about new products and services, where customers can improve existing product offers, and help Dell to become a more innovative corporation, by submitting ideas, voting and commenting on each others ideas. The Ideastorm quickly gained the consumers interests and today the number of ideas reaches 17.529, with 510 ideas implemented (Dell Ideastorm, 2012). Aaker (2011) mentions Dell s Ideastorm as one of his favorite examples of successful social media efforts as it generates useful knowledge, makes people become part of a community with shared interests, and moreover creates social, emotional and self-expressive benefits for consumers. 8

Dell s Ideastorm has also been said to be part of a strategic response to the bad attention by bloggers, started by Jeff Jarvis, a costumer who had a negative experience with Dell. He posted his negative experience on his blog Buzzmaschine, and within a few days the blog achieved lots of comments, leading to the creation of several other critical blogs and the widely used concept of Dell Hell (Hansen, 2007), (Krarup, 2011). My Starbucks Idea My Starbucks Idea is an online idea jam platform created by Starbucks. The platform promotes consumers to develop ideas to different themes, products, involvements, and experiences. As in the Dell Ideastorm consumers can vote and comment on each others ideas, and moreover Starbucks has created a blog Ideas in Action, that discusses the current implementation of the ideas (Gray, 2009). The My Starbucks Idea platform to this date received the impressive number of 134.116 ideas (Starbucks Corporation, 2012). The general success of My Starbucks Idea can be explained from the idea that consumers feel pleased when they are listened to (Woodward, 2011). Moreover an interesting discussion in the media indicates that the platform also seems to work as a response to the negative attention that Starbucks has received, representing a counterpart to web sites such as I hate Starbucks.com (Bush, 2008), (Gohring, 2008). Sum Up Starbucks and Dell are suggested to be two of the world s best brands in showing high levels of engagement on social media (WARC, 2009). Acknowledging the increased number of companies engaging in online idea jams I believe it is interesting to investigate similar phenomena in smaller and less recognized Danish brands such as FDB and Danske Bank. It seems as if Starbucks and Dell, besides as ways to innovate products and services, use online idea jams as strategic tools to win back and strengthen the trust and loyalty of customers. In this connection I wonder why only a limited amount of academic researchers so far have investigated and paid attention to this specific phenomenon and the combination with marketing. This interest is what drives the motivational force behind this Thesis. 1.3 Case Introductions In order to assess the reader with an understanding of the case companies comprising the empirical foundation of this Thesis I will introduce the two cases of online idea jams, FDB s Grønne Idepris, and Danske Bank s Danske Idebank. These brands are very different from the cases presented above; however I find it particularly interesting to uncover motivations and marketing potential for these less recognized Danish brands. 1.3.1Danske Bank s Danske Idebank Danske Bank is Denmark s largest and most recognized bank with more than 300 departments and 6.000 employees. Danske Bank is a bank in progress, aiming to keep up with new business opportunities and 9

activities (Danske Bank). During the financial crisis the bank faced image problems and has been rather active on its social media platforms ever since. One initiative is the online idea jam on Danske Bank s Facebook Page; Danske Idebank investigated in this Thesis. The platform is for anyone that wants to present their ideas for the bank and other people in terms of improvements of services and products. Danske Idebank investigated in this Thesis dealt with application development for the Ipad. On the platform people could vote on each others ideas and comment on them. There was no monetary price to win from participating in Danske Idebank, rather Danske Bank stressed the privilege in being offered the opportunity to affect the bank in its everyday activities and development of products and services. Currently Danske Idebank for the Ipad session is closed, however until now; the Idea bank has gotten a total of 448 ideas (Danske Bank, 2012). 1.3.2 FDB s Grønne Idepris FDB is an association who own several different affiliates; the largest one being COOP Denmark, the biggest Danish convenience goods store. The association works in the same way as a co-operative association, and is owned by its 1.7 million members. COOP Denmark consists of the convenience stores Kvickly, SuperBrugsen, DagligBrugsen, Irma, Fakta, and COOP.dk. FDB is concerned with environmental issues, and focuses on responsible consuming (FDBb). The online idea jam, FDB s Grønne Idepris represents one initiative that aims at giving back to society and involving consumers. The phenomenon investigated in this study is the Consumers Price which aims at involving consumers in an idea brainstorm concerning sustainability. The focus of the price is for consumers to come up with ideas in relation to how FDB can make their local convenience stores more sustainable. More than 1.700 ideas were collected via the platform at FDB s Facebook Page, where people could vote and comment on each others idea. The winning idea, judged by a team of FDB s specialists won 25.000 DKK (FDBa). FDB s Grønne Idepris dealing with sustainable supermarkets is now closed, however a new initiative has already started, with a focus on developing ideas for how to reuse food that normally go to waste (FDBa). 1.4 Thesis Outline In this section, in order to guide and assess the reader with a preceding understanding of the idea and direction of this Thesis the main findings will be outlined followed by an illustration of the structure of the Thesis. The cases presented above comprise the empirical investigation of this Thesis. Eight qualitative interviews with participants of Danske Idebank and FDB s Grønne Idepris have been conducted based on the theoretical framework presented in Chapter 4. The first part of the Thesis dealing with motivations follows the nature of a deductive approach, as it to some extent involves a test of existing theory closely related to the area of online idea jams, against the empirical findings. This enables me to discover the motivational areas present in theory that can be applied and those that 10

cannot be applied to online idea jams. However in relation to uncovering new motivations, the approach is more open than traditional deduction aiming at sheeting new light to this particular area of research. Through the analysis sub questions one to three have been answered and it is concluded that several areas of existing theory can be applied to the area of online idea jams. These motivations are found to be; intrinsic psychological and emotional motivations, as well as extrinsic motivations in the form of gaining recognition, and fulfilling unsatisfied needs and wants. Moreover it is found that the area of collective motivations, monetary rewards, as well as self-expressive motivations, cannot be applied to online idea jams, distinguishing them from general crowdsourcing and online innovation communities. The empirical investigation moreover uncovers several interesting motivations purely unique for online idea jams, among others, an intrinsic emotional wish to change the world, giving back to the company, and the extrinsic motivation of minimizing the risk of irritation with the company s own innovation solution. These motivations contribute to the research area of online idea jams and deserve attention by future researchers. As the second part of the investigation, to my knowledge, has not previously been scientifically investigated, the research approach differs from the deductive approach in the way that the theory used to generate the theoretical framework doesn t directly match the phenomenon of online idea jams. Thus, as it is simply impossible to test theory that do not yet exist the approach used to answer the second part of the research question shows closer assemblance with induction, however not directly building theory based on the empirical data, rather generating a valid and reliable assessment of the relevance of combining online idea jams and marketing theory, on the basis of the empirical investigation. In relation to the second part of the investigation dealing with how online idea jams can contribute to the constructs of brand meaning, attachment, loyalty, and PSBC, the analysis, answering sub question four to seven, suggests that participation in online idea jams contributes positively to all of the marketing constructs investigated, except PSBC. Hence, it is found that the combination of online idea jams and marketing theory makes sense in the areas of brand meaning, attachment, and loyalty. Below an illustration of the structure of the Thesis is presented, outlining the logical coherence of the different chapters. 11

Chapter 1 INTRODUCTION This section presents the main area of research as well as the main interest behind the research. Moreover an introduction to the case companies is presented. Next I shortly outline the main research findings and the structure of of this Thesis. Finally the methodological and theoretical delimitations are presented, followed by a critical assessment of the secondary litterature used in this Thesis. Chapter 2 RESEARCH PHILOSOPHY This chapter deals with the philosophical considerations of the research Chapter 3 RESEARCH METHODOLOGY This section presents the general methodological considerations Chapter 4 THEORETICAL FRAMEWORK This chapter presents an illustration of the theoretical framework as well as the theory comprising this framework Chapter 5 EMPERICAL DATA COLLECTION This chapter presents the main methodological considerations behind the empirical data collection Chapter 6 EMPERICAL FINDINGS This section presents the findings of the empirical investigation Chapter 7 DATA ANALYSIS This chapter presents the analysis of the data collected Chapter 8 CONCLUSION This section presents the conclusions of this Thesis Chapter 9 MANAGERIAL IMPLICATIONS & RECCOMENDATIONS This chapter discusses the managerial implications of this Thesis and suggests reccomendations for online idea jam management. Chapter 10 FUTURE RESEARCH This Chapter proposes ideas for further research Table 1 2 2 Source: The author 12

1.5 Delimitations Due to the scope of this Thesis, several areas of interest have been excluded. At this point it is therefore relevant to assess the reader with a table presenting a clear overview of the methodological and theoretical delimitations made in this study. Methodological delimitations Organizational perspective: Demographic background of interview respondents: Triangulation: Cases: As mentioned above this Thesis empirically investigates the online idea jams of the case companies FDB and Danske Bank. However in this connection it is relevant to note that I delimit myself from taking an organizational perspective in terms of uncovering the case companies objectives, aims and goals of the respective online idea jam strategies. Hence, apart from the managerial implications section, no company recommendations will be made. As I m not interesting in investigating and comparing motivations in and opinions about online idea jams across different demographic and sociodemographic groups, I delimit myself from addressing the interview respondents demographic and socio-demographic backgrounds. In relation to triangulation of data collection methods a quantitative evaluation of the respondents answers in terms of the degree of motivation and the influence of participation on the different marketing constructs would have been interesting. However as the small amount of participants making up this target audience would not generate reliable statistical results a quantitative evaluation has not been included. In relation to the different types of products offered by the case companies used in this investigation I delimit myself from commenting on the different levels of consumer involvement. Moreover the two cases will comprise a joint empirical data set upon which I draw conclusions, despite the difference in regards to the presence of a monetary reward as well as the different innovation subjects. Theoretical Delimitations General theory: Several other theoretical angles could have been included in this study. The theoretical area of crowdsourcing touches upon several different and interesting theoretical areas, such as co-creation, consumer involvement, 13

community development, and online consumer behavior, however relating to all of these theoretical areas of interest, is without the scope of this Thesis. Critique of Keller s (2008) Costumer Based Brand Equity model: Leveraging crowdsourcing: Motivational theory: As online idea jams and marketing theory to my knowledge has not previously been combined in academic research, the main focus is on the phenomenon of online idea jams rather than the different marketing constructs. Hence, in relation to the use of theory it shall be noted that I work with theory on two different levels, meaning that theory used in the motivations part of the research question is more carefully selected and evaluated than theory used in the second part. Thus, due to the limited scope of this Thesis I delimit myself from criticizing Keller s (2008) marketing constructs. Thus, the marketing constructs in this study shall roughly be considered as supporting constructs representing the notion of brand relationships, with the main purpose of helping to assess the relevance of combining online idea jams and marketing theory. Additionally it shall be noted that due to the focus on online idea jams I delimit myself from empirically investigating the individual marketing constructs interrelationships. As this Thesis focuses on uncovering motivations behind participation, and further on investigating online idea jams in the combination with marketing, the aspects most often found to characterize existing crowdsourcing investigations; how companies most effectively foster the benefits of crowdsourcing, how to design and implement crowdsourcing strategies, as well as how to achieve the highest level of creativity and quality of innovations, will not be included. Keeping a focus on online idea jams as a way for companies to create innovations, attention has been limited to motivational theory within the area of crowdsourcing, innovation contribution in online brand communities, and user innovation literature. Thus general motivational theory such as Maslow s needs hierarchy has not been included in this study. Table 2.1 3 In order to provide the best possible flow of reading, I find it natural to present further delimitations in regards to theory and methods as I go along. 3 Source: The author 14

1.6 Secondary Data A Critical Assessment As the area of crowdsourcing is rather new, first mentioned by Howe (2006b) in 2006, and therefore has been subject of a limited amount of academic research, a critical review of the existing literature within the area is crucial. The purpose of the critical review is to provide the reader with an understanding of my ideas against existing theory, as the exact lack of academic research within the area of crowdsourcing; online idea jams is what makes up the theoretical phrasing and perspective of this Thesis. Generally the theories used in this Thesis are academic research articles from the scholarly business database Business Source Complete, downloaded through CBS s online library data source service e-resources. Published academic articles from the data base; Business Source Complete, can be argued to be of high validity and reliability and creates a reasonable foundation for the generation of the necessary background knowledge, and the generation of the theoretical framework of this Thesis. In terms of providing the reader with a thorough understanding of the phenomenon of crowdsourcing, online idea jams in particular, it has been necessary to include several journalistic materials, published by Jeff Howe, a contributing editor at WIRED Magazine, that are not academic in nature 4. Recognizing the consequences in terms of the degree of validity and reliability I find Howe s work essential and highly relevant to include as he is the official founder of the concept of crowdsourcing (Howe, 2006c). Moreover Howe s work does not stand in isolation, and is supported by additional academic studies available in the area of crowdsourcing. In relation to the first part of the research question dealing with motivations for participation I have used academic articles in the area of crowdsourcing 5, however as explained above, as the amount of scientific research is scarce, in order to generate a reasonable theoretical framework I have included theory from academic papers within the area of user innovation, new product development, and innovation contribution in online brand communities 6. In relation to the second part of the research question, as mentioned above the combination of online idea jams and marketing theory has not previously been made in academic literature. Consequently studies investigating the combination of online brand communities and marketing have been included 7. The marketing theory used in this Thesis is agued to have a high level of validity and reliability, as it stem from recognized textbooks used throughout the MCM study, however at the same time it shall be noted that this might imply that they may be rather outdated. 4 (Howe, 2009), (Howe, 2006b), (Howe, 2006c), (Howe, 2006a), 5 (Brabham, 2010), (Brabham, 2008b), (Haichao Zheng, Dahui Li, & Wenhua Hou, 2011) 6 (Antorini, 2007), (Füller, Jawecki, & Mühlbacher, 2007), (Füller, Matzler, & Hoppe, 2008), (L. B. Jeppesen, 2005), (von Hippel, 2011), (von Hippel, 2005), (von Hippel & von Krogh, 2006), (Muniz Jr. & O'Guinn, 2001), (Muhdi & Boutellier, 2011) 7 (Muniz Jr. & O'Guinn, 2001), (Carlson, Suter, & Brown, 2008), (de Almeida, Dholakia, Mazzon, & Neto, 2010), (Madsen, 2010) 15

Several non-academic up to date internet sources such as web pages, online periodical articles, and blogs, have been used as a supplement to the academic research papers and books described above. This enables me to create the best possible mix of academic research papers and books, naturally holding less current dates of issue, and current internet news within the field of research. It shall be noted that throughout this Thesis the literature used to generate the theoretical framework will be referred to as existing theory, despite the source of origin. 16

2 Research Philosophy This chapter seeks to explain the philosophical considerations behind this research, and will lay the foundation for the choices of methods as well as how academic scientific knowledge is understood throughout this Thesis. 2.1Epistemology Epistemology refers to what constitutes acceptable knowledge in a field of study. The epistemological considerations depend on what I as a researcher find important when conducting the research. The clearest distinction within epistemology consists in whether I chose to look at data collection and analysis of facts, like a natural scientist, or if I find feelings and attitudes more important. Thus the epistemological considerations affect the understanding of the world from a research point of view (Saunders et al., 2007). Figure 2 8 The Research Onion by Saunders et al. (2007) presented above offers a fine illustration of how all of the choices and decisions made throughout this Thesis are somehow interrelated. As the aim is to investigate the phenomenon of online idea jams, that has been object to so far a limited amount of scientific investigations, it is not my intention to generate statistical generalizable knowledge. Moreover as I believe that consumer behavior is unique and complex, this Thesis takes its point of reference in the research philosophy of interpretivism. Hence, this philosophical research paradigm has implications for the choices of research approach, strategy, methods, analysis and the conclusions of this Thesis (Saunders et al., 2007). Following the interpretivist research paradigm I perceive human beings as social actors, acknowledging that we as human beings interpret our social roles on the background of the meaning we give to them 8 Source: (Saunders, Lewis, & Thornhill, 2007) 17

(Saunders et al., 2007). This particular philosophical paradigm is appropriate as I wish to shed new light to the emotional research areas of motivations for online idea jam participation and uncovering opinions and attitudes about the respective brands resulting from this participation (Saunders et al., 2007). Seeking to understand the motivations and opinions of the research participants I will focus on the interpretation of meaning. Hence I recognize that the research participants of this study each carry meaning which must be interpreted in order to understand their behaviors and opinions (L. Fuglsang & Olsen, 2003). Taking a point of reference in the philosophy of interpretivism during the knowledge production of this Thesis I seek to interpret and understand the interview respondents answers, recognizing their role as social actors (Saunders et al., 2007). Thus, in terms of conducting this research my interest lies in examining the phenomenon of online idea jams, by investigating individual participants experiences form their point of view (2008). Ontological considerations are concerned with the nature of reality, and my assumptions about the way the world functions (Saunders et al., 2007). This Thesis takes its point of reference in the ontological position of subjectivism closely associated with the concept of social constructivism, as I acknowledge that the world is socially constructed, that individuals understand the world differently, and in order to understand the respondents motives and opinions I seek to understand their individual subjective realities (Saunders et al., 2007). My Role as a Researcher Referring to the above, with point of reference in the interpretive research paradigm, and understanding the nature of reality from a subjective, socially constructed perspective, I acknowledge my own presence as a researcher and the consequences this presence has in regards to the presentation and interpretation of the empirical findings, the analysis, and conclusions of this Thesis. Thus my social position has an impact on the way I understand and interpret theory and the overall findings of this study. An example is my position as a woman born and raised in a time defined by the rise of the internet. Moreover my educational background as a student at Copenhagen Business School influences my choices as a researcher as well as my social background (L. Fuglsang & Bitsch, 2004). Hence, following the interpretive research philosophy a logical consequence of this choice of paradigm is the presence of my own pre-assumptions about the empirical findings of this Thesis. Thus, as these presumptions might have implications for the findings of this Thesis they are presented below. Considering the low level of involvement and resources required to generate an idea in an online idea jam I believed that people were motivated mainly by extrinsic motivations, such as winning monetary rewards. Moreover due to the similar reasons I didn t believe that people were motivated by collective and community oriented motivations and neither by learning and interest in the innovation process. In terms of combining online idea jams and 18

marketing I thought it might have a positive influence on the construct of brand meaning and attachment, however in regards to PSBC and Loyalty I believed that the level of involvement required to participate was simply too small. Recognizing the logical presence of the presumptions described above it shall be noted that I try to remain as unbiased as possible throughout the conduction of this research. 19

3 Research Methodology This chapter aims at presenting the reader with an understanding of the general methodological considerations behind the research questions of this Thesis. The methodology will be split in two parts. The first part presents the general methodological considerations as well as an assessment of the validity and reliability of the research conducted. In order to make the best flow of reading, the methodological section dealing with the specific data collection methods used in this study is presented in chapter five, just before the presentation of the empirical data. 3.1 Research Approach This section seeks to explain and discuss how theory will be used throughout this Thesis. Thus it discusses the role of theory and investigates the concepts of deduction and induction and the implications of the use of these different approaches. Both induction and deduction enables researchers to draw scientifically persuasive conclusions; however the two approaches involves different use of theory. Where traditional deduction seeks to explain and test casual relationships developed from theory, induction takes its departure in building theory from a comprehensible empirical data set (Saunders et al., 2007). The Approach of this Thesis With reference to section 1.4, the approach of this Thesis is rather twofold. In relation to the first part of the research question, taking a starting point in theory, I initially delimit my research. Hence, the deductive approach is present in the way that it to some extent involves a test of existing theory within or related to the area of online idea jams, against the empirical findings. However, with reference to Saunders et al. (2007) Research Onion presented above, the approach of this Thesis reflects the interpretive paradigm in the way that it is much more open than traditional deduction, seeking to uncover new motivations. In terms of the second part of the research question, investigating how online idea jams can contribute to the different marketing constructs, as the combination of online idea jams and marketing theory to my knowledge remains scientifically uninvestigated, it doesn t have the purpose of testing existing theory. Rather the approach involves elements of induction using empirical data to assess the relevance of this combination. Throughout the process of writing this Thesis I will use existing theory and results from prior studies within or closely related to the phenomenon in question and discuss the findings of my empirical investigation up against that. This way the reader as well as I eventually will be able to conclude if the empirical investigation has added new scientific knowledge to the specific field of research (Kvale & Brinkman, 2008). 20

3.2 Research Design In this section I present the plan of how I will go about answering my research questions. The research design involves considerations about the purpose of the research and the research strategy chosen. 3.2.1 Purpose of the Research In order to provide the reader with a clear overview of the individual purpose of each sub question as well as the overall purposes of this research the following models have been developed. The purpose of the first part of the research is described in Figure 3. Sub Questions 1-3: Research Purpose: Overall Research Purpose: Which motivations, present To determine what motivates participation in existing theory, can be and to uncover which motivational areas of applied to online idea jams? existing theory that can be used to describe To contribute to participation in online idea jams. the research area of online idea To uncover areas of distinction from general Which motivations, present jams. Moreover crowdsourcing and online innovation in existing theory, cannot be to point out communities helping to delimit the research applied to online idea jams? interesting areas area of online idea jams. of further Which motivations are To uncover new motivations purely unique to research. unique to online idea jams? online idea jams and to highlight areas in need of further research. Figure 3 9 The purpose of the second part of the research question is described in Figure 3.1. Referring to Table 2.1, as my purpose is not to test casual relationships between the marketing constructs, the empirical investigation will be limited to the focus of combining online idea jams and the marketing constructs, thus keeping the focus and attention on the phenomenon of online idea jams in a new theoretical context. 9 Source: The author 21

Sub Questions 4-7: Research Purpose: Overall Research Purpose: Can participation in online To uncover the relevance of combining idea jams influence the online idea jams and the marketing construct of brand meaning? construct of brand meaning. To place online idea jams in a new theoretical context, Can participation in online To uncover the relevance of combining thus assessing the idea jams influence the online idea jams and the marketing relevance of construct of brand construct of brand attachment. combining online idea attachment? jams and marketing theory. Moreover to Can participation in online To uncover the relevance of combining generate attention idea jams influence the online idea jams and the marketing around this specific construct of brand loyalty, construct of loyalty in terms of repeat combination and in the form of repeat purchases and WOM. encourage further purchases and WOM? research within the To uncover the relevance of combining area. Can participation in online online idea jams and the marketing idea jams generate PSBC? construct of PSBC. Figure 3.1 10 The first part of the research question dealing with motivations can be considered to be of an exploratory nature, as I seek to uncover new insights while simultaneously keeping an open mind towards new themes of interest emerging throughout the empirical investigation (Saunders et al., 2007). However in addition to uncovering new insights, this part will also take on a more closed approach, as it aims at comparing existing theory with the empirical findings in order to uncover if existing theory can be applied to the phenomenon of online idea jams. The second part of the research question also seeks to find new insights and generate new knowledge in the area of online idea jams. The investigation seems to be exploratory in nature, however it also entails elements of an explanatory study as it aims at generating new knowledge about pre-assumed relationships, investigating the potential links between online idea jams and the different marketing constructs (Saunders et al., 2007). 10 Source: the author 22

3.2.2 Research strategy Following an interpretivist research paradigm, and considering the additional methodological choices described above the research strategy believed to offer the best foundation to answer the research questions of this Thesis is closely related to the strategy of a multiple case study. This strategy enables me to investigate a phenomenon that only few have previously considered. The multiple case study uses more than one case to generate an empirical investigation of a phenomenon, within a real life context (Saunders et al., 2007). The two cases of FDB s Grønne Idepris and Danske Idebank, presented in section 1.3, that seem to require a similar level of involvement comprise an exciting and unique foundation for an empirical investigation of online idea jam platforms. As FDB s Grønne Idepris is focused around a monetary reward, in terms of uncovering motivations, it is essential to include the initiative by Danske Bank, that doesn t involve a monetary reward. This way I m able to avoid the risk of people only being motivated by winning the reward, and further it creates a more broad empirical foundation. The chosen research strategy differs from the survey strategy in that the ability of exploration and understanding is not limited by a number of variables as in a quantitative survey research. Rather this Thesis, as explained above, seeks to have an open approach towards uncovering new knowledge beyond the theoretical framework set out. 3.3 Research Methods This section touches upon the different methods to data collection and outlines the method used in this Thesis. The choice of data collection method reflects the research philosophy of interpretivism as well as all the previous methodological choices made throughout the Thesis. Moreover the data collection method reflects the specific techniques used to analyze the data described in chapter 5 (Saunders et al., 2007). Approach of this Thesis Several methods exist for collecting primary data. Quantitative research is usually known to generate or use numerical data and is often used to answer very specific and well defined research questions. The primary goal and strength of this type of research is to generate scientific knowledge by making precise predictions about causal relationships between a limited set of variables, and to statistically test hypothesis (McCracken, 1996). As the aim of this research is not to make law like generalizations, following the research philosophy of interpretivism, the quantitative standardized way of gathering information and knowledge allowing the researcher to achieve a high level of reliability, is less valuable for the type of research conducted in this Thesis. Moreover the limited personal contact with research participants makes the quantitative method more relevant when dealing with less personal and sensitive subjects than those touched upon in this Thesis (Hair, Bush, & David, 2009). What does however generate value in this research is the ability to gather information about relatively difficult and emotional subjects such as revealing costumer attitudes, motivations, beliefs, and perceptions offered by the qualitative method. Using a qualitative method of data collection allows me to gather rich data, at a low 23