Hostname: page-component-586b7cd67f-l7hp2 Total loading time: 0 Render date: 2024-11-25T20:45:39.490Z Has data issue: false hasContentIssue false

THE ROLE OF CONSUMER INFLUENCES IN THE NEW PRODUCT DEVELOPMENT OF PACKAGED FOOD AND BEVERAGE VENTURES

Published online by Cambridge University Press:  27 July 2021

Erika Maria Perttunen*
Affiliation:
Aalto University;
Summer D. Jung
Affiliation:
Stanford University
Senni Kirjavainen
Affiliation:
Aalto University;
Tua A. Bjürklund
Affiliation:
Aalto University;
Sohyeong Kim
Affiliation:
Stanford University
*
Perttunen, Erika Maria, Aalto University Department of Mechanical Engineering Finland, [email protected]

Abstract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

Understanding and applying consumers' needs in product development is key to success across various industries. The failure rate of new products, however, remains high because consumer demands are not adequately addressed. To investigate the role of consumers in the product development processes of small ventures, we conducted in-depth, semi-structured interviews of 40 packaged food and beverage small ventures in California and Finland. Our findings showed that consumers rarely drove the design of new products, but rather functioned as a source of validation or feedback for small improvements of existing products. Consumer feedback was often unstructured and concentrated in the latter stages of the product development process. However, even though customer involvement in the small ventures' product development was more restricted than recommended in cocreation literature their influence still brought meaningful changes to the products. Given the small ventures' lack of resources, future research on creative, low-cost ways to co-create is called for.

Type
Article
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
The Author(s), 2021. Published by Cambridge University Press

References

Abras, C., Maloney-Krichmar, D., Preece, J. (2004). “User-centered design.” Bainbridge, W. Encyclopedia of Human-Computer Interaction. Thousand Oaks: Sage Publications, 37(4), 445456. http://aim.johnkeston.com/wp-content/uploads/2012/01/User-centered_design_encyclopedia_chapter.pdfGoogle Scholar
Biernacki, P., Waldorf, D. (1981). “Snowball sampling: Problems and techniques of chain referral sampling.” Sociological methods & research, 10(2), 141163. https://doi.org/10.1177/004912418101000205CrossRefGoogle Scholar
Braun, V., Clarke, V. (2006). “Using thematic analysis in psychology.” Qualitative research in psychology, 3(2), 77101. https://doi.org/10.1191/1478088706qp063oaCrossRefGoogle Scholar
Bigliardi, B., Galati, F. (2013). “Models of adoption of open innovation within the food industry.” Trends in Food Science & Technology, 30(1), 1626. https://doi.org/10.1016/j.tifs.2012.11.001CrossRefGoogle Scholar
Buculescu, M.M. (2013). “Harmonization process in defining small and medium-sized enterprises. Arguments for a quantitative definition versus a qualitative one.” Theoretical and Applied Economics, 9(586), 103114. http://store.ectap.ro/articole/905.pdfGoogle Scholar
Capitanio, F., Coppola, A., Pascucci, S. (2010). “Product and process innovation in the Italian food industry.” Agribusiness, 26(4), 503518. https://doi.org/10.1002/agr.20239CrossRefGoogle Scholar
Castellion, G., Markham, S. K.. (2013). “Perspective: New Product Failure Rates: Influence of Argumentum ad Populum and Self-Interest.” Journal of Product Innovation Management, 30(5), 976979. https://doi.org/10.1111/j.1540-5885.2012.01009.xCrossRefGoogle Scholar
Chell, E. (2004). “Critical incident technique.” In Cassell, C. Symon, G. (ed.) Essential guide to qualitative methods in organizational research. Gateshead: SAGE Publications. p.4560. https://doi.org/10.4135/9781446280119.n5CrossRefGoogle Scholar
Costa, A. I., Jongen, W. M. F. (2006). “New insights into consumer-led food product development.” Trends in Food Science & Technology, 17(8), 457465. https://doi.org/10.1016/j.tifs.2006.02.003CrossRefGoogle Scholar
Cui, A. S., Wu, F. (2016). “Utilizing customer knowledge in innovation: antecedents and impact of customer involvement on new product performance.” Journal of the academy of marketing science, 44(4), 516538. https://doi.org/10.1007/s11747-015-0433-xCrossRefGoogle Scholar
Flanagan, J.C. (1954). “The critical incident technique.” Psychological Bulletin, 51(4), p. 327358. https://doi.org/10.1037/h0061470CrossRefGoogle ScholarPubMed
Gassmann, O., Enkel, E., Chesbrough, H. (2010). “The future of open innovation.” R&D Management, 40(3), 213221. https://doi.org/10.1111/j.1467-9310.2010.00605.xGoogle Scholar
Gilmore, A., Carson, D., Grant, K. (2001). “SME marketing in practice.” Marketing intelligence & planning. https://doi.org/10.1108/02634500110363583CrossRefGoogle Scholar
Gruner, K. E., Homburg, C. (2000). “Does customer interaction enhance new product success?”. Journal of business research, 49(1), 114. https://doi.org/10.1016/s0148-2963(99)00013-2CrossRefGoogle Scholar
Grunert, K. G., Valli, C. (2001). “Designer-made meat and dairy products: consumer-led product development.” Livestock Production Science, 72(1-2), 8398. https://doi.org/10.1016/s0301-6226(01)00269-xCrossRefGoogle Scholar
Grunert, K. G., van Trijp, H. C. (2014). “Consumer-oriented new product development.” Encyclopedia of agriculture and food systems, 2, 375386. https://doi.org/10.1016/b978-0-444-52512-3.00062-0CrossRefGoogle Scholar
Hoyer, W. D., Chandy, R., Dorotic, M., Krafft, M., Singh, S. S. (2010). “Consumer cocreation in new product development.” Journal of service research, 13(3), 283296. https://doi.org/10.1177/1094670510375604CrossRefGoogle Scholar
Hörte, S. Å., Barth, H., Chibba, A., Florén, H., Frishammar, J., Halila, F., Tell, , J. (2008). “Product development in SMEs: a literature review.” International Journal of Technology Intelligence and Planning (IJTIP), 4(3), 299325. https://doi.org/10.1504/ijtip.2008.020099CrossRefGoogle Scholar
Ind, N., Coates, N. (2013). “The meanings of co-creation.” European Business Review. https://doi.org/10.1108/09555341311287754CrossRefGoogle Scholar
Jaeger, S. R., Rossiter, K. L., Wismer, W. V., Harker, F. R. (2003). “Consumer-driven product development in the kiwifruit industry.” Food quality and preference, 14(3), 187198. https://doi.org/10.1016/s0950-3293(02)00053-8CrossRefGoogle Scholar
Kristensson, P. Magnusson, P.R. (2010). “Tuning users' innovativeness during ideation.” Creativity and Innovation Management, 19(2), pp. 147159. https://doi.org/10.1111/j.1467-8691.2010.00552.xCrossRefGoogle Scholar
Lagrosen, S. (2005). “Customer involvement in new product development.” European Journal of Innovation Management. https://doi.org/10.1108/14601060510627803CrossRefGoogle Scholar
Linnemann, A. R., Benner, M., Verkerk, R., van Boekel, M. A. (2006). “Consumer-driven food product development.” Trends in Food Science & Technology, 17(4), 184190. https://doi.org/10.1016/j.tifs.2005.11.015CrossRefGoogle Scholar
Mikkola, M. (2008). “Coordinative structures and development of food supply chains.” British Food Journal. https://doi.org/10.1108/00070700810849907CrossRefGoogle Scholar
Ngugi, I. K., Johnsen, R. E., Erdélyi, P. (2010). “Relational capabilities for value co-creation and innovation in SMEs.” Journal of small business and enterprise development. https://doi.org/10.1108/14626001011041256CrossRefGoogle Scholar
Nicholas, J., Ledwith, A., Perks, H. (2011). “New product development best practice in SME and large organisations: theory vs practice.” European Journal of Innovation Management. https://doi.org/10.1108/14601061111124902CrossRefGoogle Scholar
O'Hern, M. S., Rindfleisch, A. (2010). “Customer co-creation: a typology and research agenda.” Review of marketing research, 6(1), 84106. https://doi.org/10.4324/9781315088754-4CrossRefGoogle Scholar
Ryynänen, T., Hakatie, A. (2014). “We must have the wrong consumers”–a case study on new food product development failure.” British Food Journal. https://doi.org/10.1108/bfj-08-2012-0215CrossRefGoogle Scholar
Sanders, E.B.N., Stappers, P.J. (2008). “Co-creation and the new landscapes of design.” Co-design, 4(1), 518. https://doi.org/10.1080/15710880701875068Google Scholar
Tardivo, G., Thrassou, A., Viassone, M., and Serravalle, F. (2017). “Value co-creation in the beverage and food industry.” British Food Journal. https://doi.org/10.1108/bfj-02-2017-0119CrossRefGoogle Scholar
Thomke, S., Von Hippel, E. (2002). “Customers as innovators: a new way to create value.” Harvard business review, 80(4), 7485. https://doi.org/10.1080/08956308.2020.1733887Google Scholar
Ulrich, P.V., Anderson-Connell, L.J., Wu, W. (2003). “Consumer co-design of apparel for mass customization.” Journal of Fashion Marketing and Management: An International Journal. https://doi.org/10.1108/13612020310496985CrossRefGoogle Scholar
Vivek, S. D., Beatty, S. E., Morgan, R. M. (2012). “Customer engagement: Exploring customer relationships beyond purchase.” Journal of marketing theory and practice, 20(2), 122146. https://doi.org/10.2753/mtp1069-6679200201CrossRefGoogle Scholar
Yu, U.J., Park, J. (2014). “Consumers' Virtual Product Experiences and Risk Perceptions of Product Performance in the Online Co-Design Practice: A Case of NIKEiD.” Family and Consumer Sciences Research Journal, 43(1), 2946. https://doi.org/10.1111/fcsr.12079CrossRefGoogle Scholar
Von Hippel, E. (1986). “Lead users: a source of novel product concepts.” Management science, 32(7), 791805. https://doi.org/10.1016/0737-6782(87)90069-5CrossRefGoogle Scholar