Are crowdsourcing announcements signals of customer orientation? A comparison of consumer responses to product- versus communication-related campaigns

Abstract

Purpose: This study aims to examine consumers’ responses to crowdsourcing campaigns in the request initiation stage using the signaling theory from economics. The purpose of the research is threefold. First, it provides a comprehensive classification of various task types within crowdsourcing. Second, it conceptualizes crowdsourcing announcements as signals of customer orientation and empirically tests the differential effects of the two most common crowdsourcing task types (product- and communication-related) on customer orientation perceptions. Third, it illuminates the downstream behavioral consequences of crowdsourcing campaign announcements. Design/methodology/approach: The authors conducted secondary data analysis of 883 crowdsourcing campaigns (pilot study) to provide evidence on the differential effects of crowdsourcing task types. In addition, four laboratory experiments were conducted to test the theoretical arguments. To test the main effect of crowdsourcing task types, Study 1A (N = 252 MTurk workers) used a one-factor (product- vs communication-related crowdsourcing vs control) between-subject design, whereas Study 1B (N = 171 undergraduate students) used a 2 (task type: product- vs communication-related) by 2 (product category: restaurant vs fashion) between-subject design. Study 2 (N = 93 MTurk workers) explored the underlying mechanism using a one-factor (product- vs communication-related) between-subject design. Study 3 (N = 375 MTurk workers) investigated the boundary condition for the effect of task type with a 2 (task type: product- vs communication-related) by 3 (company credibility: low vs neutral vs high) between-subject design. Findings: The pilot study provides evidence for the conceptualized typology and the differential effects of crowdsourcing task types. Study 1A reveals that product-related crowdsourcing tends to have a more substantial impact than communication-related crowdsourcing on how customer-oriented consumers perceive a company. Study 1B validates the results of Study 1A in a different product category and population sample. Study 2 shows that the differential customer-orientation effect is mediated by the perceived cost of implementing the crowdsourcing outcome and unravels the differences in consumers’ purchase and campaign participation intentions depending on task type. Study 3 highlights that the customer-orientation effect attenuates as company credibility increases. Research limitations/implications: This research contributes to the crowdsourcing literature by categorizing the various types of crowdsourcing campaigns companies undertake and revealing the differential impact of the different types of crowdsourcing campaigns on consumers’ perceptions and behavioral intentions. In doing so, this research converges two lines of consumer research on crowdsourcing, i.e. product- and communication-related crowdsourcing. The findings add to the debate over the returns from research and development (R&D) versus advertising and extend it from marketing strategy to crowdsourcing literature. Practical implications: The findings highlight the importance of choosing specific task types for crowdsourcing and lead to practical recommendations on designing crowdsourcing campaigns to maximize their benefits to crowdsourcing brands. Originality/value: To the best of the authors’ knowledge, this is the first study that differentiates crowdsourcing task types and compares their effectiveness from a consumer perspective.