Sabtu, 12 Januari 2013


Nama : Melati Puji Lestari 

NPM :14210336 

Kelas : 3ea18 

tugas softskill consumer innovativeness 

v Defining Customer Innovation

Custumer 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
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.

  v  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.”

Example Compulsive Consumption Consumer

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 with high ethnocentrism are likely to have feelings of guilt when eating products from abroad because it adversely affects the economy of the nation itself. As for consumers with low ethnocentrism did not feel it. The implication for marketers is the use of an emphasis on the aspect of nationality in the use of domestic products for consumers with a high level of ethnocentrism. Consumer ethnocentrism comes from a more general psychological concept of ethnocentrism. Basically, ethnocentric people tend to view their group as superior to others. Thus, they view other groups from their own perspective, and reject those who are different and accept people who are similar (Netemeyer et al, 1991. Shimp & Sharma, 1987). This, in turn, derived from earlier sociological theories in-group and out-group (Shimp & Sharma, 1987). Ethnocentrism, then consistently found, it is normal for the group-to-out group (Jones, 1997, Ryan & Bogart, 1997). Consumer ethnocentrism specifically refers to ethnocentric views held by consumers in one country, in groups, to products from other countries, out-group (Shimp & Sharma, 1987). Consumers may believe that it is not appropriate, and perhaps even immoral, to buy products from other countries. The purchase of foreign products can be viewed as not feasible because the cost of domestic jobs and hurt the economy. The purchase of foreign products can even be seen as merely patriotic (Klein, 2002; Netemeyer et al, 1991. Sharma, Shimp, & Shin, 1995; Shimp & Sharma, 1987).


Individual consumer ethnocentrism gives an understanding of what the purchase-received by the group, as well as the sense of identity and belonging. For consumers who do not ethnocentric or polycentric consumers, products are evaluated based on their merits exclusive national origin, or even likely to be seen more positively because they were foreigners (Shimp & Sharma, 1987; Vida & Dmitrovic, 2001). Brodowsky (1998) study of consumer ethnocentrism among car buyers in the United States and found a strong positive relationship between high ethnocentrism and country-based bias in the evaluation of the car. Consumers with low ethnocentrism appears to evaluate cars based more on the benefits of the car is not really a country of origin. Brodowsky showed that consumer ethnocentrism understanding is very important in understanding the effects of country of origin. Some antecedents of consumer ethnocentrism has been identified by various studies. Which tend to be less ethnocentric consumers are those who are young, those men, those who were 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, patriotism found the most important motive for consumer ethnocentrism. This, it is theorized, is because the collectivist culture of Turkey, with patriotism becomes an important expression of loyalty to the group. In the Czech Republic more individualistic, feelings of nationalism based on a sense of superiority and dominance appear to give the most important contribution to consumer ethnocentrism.


Easy when me and Metta was having lunch with ketchup, in which the Indonesian people like ketchup, some attention to our Taiwanese friends, and some say, weird. I was silent, and the conclusions which I took only one, "orang2 Taiwan do not eat with soy sauce, or ketchup are not commonly eaten with rice." I did not have the heart to tell the Taiwan weird because we eat with ketchup, what's the difference anyway because I was with them on the end? Same with the habit of morning showers that rarely do people of Taiwan. Initially I was shocked, but with that I learned going forward, simply because I shower every morning shower does not mean it's weird. Because if I told you it was weird, especially if his name is not exalt yourself and not assume everything is lower?

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