New Trends in Innovation and Customer Relationship Management: A Challenge for Market Researchers

Abstract

For decades, one of the key roles of market research has been to help companies
\nforecast customer acceptance of innovation and of changes to the marketing mix
\n(the 4Ps). However, traditional market research is in danger of being left
\nbehind by new practices in sales, marketing and R&D. Reflecting an increasingly
\nparticipative approach to customer relationships, these disciplines are moving
\ntowards customer involvement and co-creation of value rather than innovation
\nmainly generated by head office and only then tested among customers. Co-
\ncreation involves working participatively with customers to enhance the value
\nthey get when buying and using goods and services. It enables firms to
\nunderstand and respond to deeper and more valuable customer needs, and reduces
\nthe inherent risks of innovation. Nor is this increasing trend towards co-
\ncreation limited to new product introduction. As companies invest in customer
\nrelationship management (CRM) programmes, they need to design new forms of
\nrelationship with those directly affected: their customers. As customers use
\ninternet-related technologies to manage their relationships with suppliers, co-
\ncreation will become a more important component of innovation and growth
\nstrategies. In this context, traditional market research approaches begin to
\nlook outdated. The authors illustrate, with a case study of a dotcom company,
\nhow action research can provide tools and methods by which market researchers
\ncan assist and improve the co-creation process. The implications for market
\nresearchers and research practices are identified.