I Didn’t Win! An Overlooked Downside of Crowdsourcing?

This research identifies a surprising downside to using crowdsourcing to generate new product ideas: participants who do not win an idea generation contest temporarily disengage from the contest-hosting brand. When people lose a crowdsourcing contest, the experience of losing negatively affects the participants’ word-of-mouth and short-term purchase behaviors. Reframing the contest as a community activity (e.g., “Join the crowd and help us find a name for our new restaurant”) rather than a competition (e.g., “Compete with the crowd to be the one who names our new restaurant”) is found to positively affect a losing customer's subsequent engagement with the contest-hosting brand. Community framing shifts attention away from losing the contest (i.e., it reduces negative affect) and toward collectively creating a superior outcome (i.e., it increases one's perceived contribution), without changing the nature of the contest itself (i.e., participants continue to submit ideas). Community framing positively affects subsequent participant engagement, but it does not influence the effort the participant invests in the contest or the quality of the idea the participant submits. The evidence consists of lab experiments, field experiments, and a large-scale field study that measured actual purchase behavior.