Dahl, D.W., Fuchs, C., & Schreier, M. (2015). Why and when consumers prefer
products of user- driven firms: a social identification account. Management Science,
61, 1978-1988.
Introduction
User-driven design: an innovation approach whereby organizations draw on their user communities
(versus their own in-house designers/employees) to generate ideas for new products.
• User-driven firms can gain a competitive advantage in the market because they may be able
to generate better new products that offer a closer fit to what consumers really need.
• Participating users feel they have a personal and direct impact on the company’s product
offerings, resulting in positive outcomes for participating users’ demand for products of the
user-driven firm.
• “Observing” consumers also might more strongly demand products of user- versus designer-
driven firms: they associate user-driven firms with higher innovation abilities; and they see
user-driven firms as more customer-oriented (that such firms “put the customer’s interests
first”).
→ We explore why a firm’s market philosophy (being user-driven vs. designer-driven) can influence
how a consumer identifies with an institution and assess how this identification changes consumer
preferences. The consumers we analyse did not interact with the firm themselves. Our contributions:
1. We identify a “user-driven philosophy effect”; i.e., we demonstrate that consumers prefer to buy
from user- rather than designer-driven firms because of an increased identification on the part of the
consumer with the firm.
2. Why: observing consumers feel psychologically empowered themselves when they see users
participating in design; i.e., they feel vicariously involved in shaping the firm’s product offerings.
3. When not: if consumers feel dissimilar to participating users and if the user-driven firm is selective
rather than fully open to participation from all users, the effects are attenuated.
Hypotheses development
Social identity: “the shared social categorical self”: “the social categorizations of self and others, self-
categories that define the individual in terms of his or her shared similarities with members of certain
social categories in contrast with other social categories”: we also perceive ourselves a ‘I’ and ‘we’
and on the basis of relevant others. Any accomplishments by our relevant others might affect the
perception of our own identity. For consumers, getting the power to participate can feel like you
actually participate yourself. Empowering users to have more influence in a company’s actions
corrects the potential power imbalance consumers might perceive in the marketplace. Through the
empowerment of like-minded others, observing consumers will feel vicariously empowered
themselves. What follows is a stronger identification with the underlying firm.
H1A: Observing consumers’ preference for products of user-driven firms (vs. designer-driven firms) is
driven by higher levels of consumer identification with the firm.
H1B: Observing consumers’ feelings of vicarious empowerment underlie higher levels of consumer
identification with user-driven firms (vs. designer-driven firms).
Observing consumers feel that they “belong” to the firm’s participating user community. This feeling
of belongingness is determined by the extent to which one feels similar to other members of the
group. The perceived similarity between observing consumers and participating users will be an
important moderating factor in defining a user-driven effect. Such a moderation effect would provide
convergent evidence for the overarching social identification mechanism underlying H1A and H1B:
comparing the user-designer community with the broader potential customer base could guide firms
products of user- driven firms: a social identification account. Management Science,
61, 1978-1988.
Introduction
User-driven design: an innovation approach whereby organizations draw on their user communities
(versus their own in-house designers/employees) to generate ideas for new products.
• User-driven firms can gain a competitive advantage in the market because they may be able
to generate better new products that offer a closer fit to what consumers really need.
• Participating users feel they have a personal and direct impact on the company’s product
offerings, resulting in positive outcomes for participating users’ demand for products of the
user-driven firm.
• “Observing” consumers also might more strongly demand products of user- versus designer-
driven firms: they associate user-driven firms with higher innovation abilities; and they see
user-driven firms as more customer-oriented (that such firms “put the customer’s interests
first”).
→ We explore why a firm’s market philosophy (being user-driven vs. designer-driven) can influence
how a consumer identifies with an institution and assess how this identification changes consumer
preferences. The consumers we analyse did not interact with the firm themselves. Our contributions:
1. We identify a “user-driven philosophy effect”; i.e., we demonstrate that consumers prefer to buy
from user- rather than designer-driven firms because of an increased identification on the part of the
consumer with the firm.
2. Why: observing consumers feel psychologically empowered themselves when they see users
participating in design; i.e., they feel vicariously involved in shaping the firm’s product offerings.
3. When not: if consumers feel dissimilar to participating users and if the user-driven firm is selective
rather than fully open to participation from all users, the effects are attenuated.
Hypotheses development
Social identity: “the shared social categorical self”: “the social categorizations of self and others, self-
categories that define the individual in terms of his or her shared similarities with members of certain
social categories in contrast with other social categories”: we also perceive ourselves a ‘I’ and ‘we’
and on the basis of relevant others. Any accomplishments by our relevant others might affect the
perception of our own identity. For consumers, getting the power to participate can feel like you
actually participate yourself. Empowering users to have more influence in a company’s actions
corrects the potential power imbalance consumers might perceive in the marketplace. Through the
empowerment of like-minded others, observing consumers will feel vicariously empowered
themselves. What follows is a stronger identification with the underlying firm.
H1A: Observing consumers’ preference for products of user-driven firms (vs. designer-driven firms) is
driven by higher levels of consumer identification with the firm.
H1B: Observing consumers’ feelings of vicarious empowerment underlie higher levels of consumer
identification with user-driven firms (vs. designer-driven firms).
Observing consumers feel that they “belong” to the firm’s participating user community. This feeling
of belongingness is determined by the extent to which one feels similar to other members of the
group. The perceived similarity between observing consumers and participating users will be an
important moderating factor in defining a user-driven effect. Such a moderation effect would provide
convergent evidence for the overarching social identification mechanism underlying H1A and H1B:
comparing the user-designer community with the broader potential customer base could guide firms
