Breaking Down the Barriers - A Quantitative Study of Co-Creation under Different Levels of Product Complexity

Abstract: Involving consumers in the new product development process is becoming increasingly common and research has shown several benefits associated with adopting such a strategy. However, recent research, investigating the perception of co-created products among non-participating consumers, indicates that the positive effects of co-creation are absent for complex products. The present study aims to clarify the role of complexity in consumer co-creation. Additionally, based on signaling theory the authors investigate whether using advertising creativity in the communication of the product could circumvent this supposed complexity barrier. A quantitative study does not provide empirical support for the hypothesized complexity barrier. The findings show that the success of co-creation is not determined by the complexity of the product, but rather by the perceived expertise of the developers, which acts as a mediator. Regardless of product complexity, consumer involvement has a significant positive impact on product perception, brand perception and purchase intention, although the effect on product perception is fully mediated by perceived expertise. Meanwhile, advertising creativity increases perceived advertising effort, which in turn positively impacts product perception, brand perception and purchase intention, and moderates the effect of co-creation on brand perception.