Value co-creation is known to increase innovation, but it can backfire under certain conditions. The purpose of this study is to investigate co-creation activities for their effects on consumer perceptions of symbolic designs and to investigate the mediation effect of psychological distance and the moderation effect of peer feedback.
Three studies were designed by using a survey (Study 1) and two controlled laboratory experiments (Study 2 and 3). Study 1 had a sample size of 160 respondents and examined whether innovative ideas and behavior intensity had different impact on symbolic design. Study 2 had a sample size of 204 respondents and verified the interaction effect between innovativeness and intensity and to show that psychological distance is the underlying internal mechanism. Study 3 examined peer feedback as a critical moderator by using a sample of 235 participants.
Results show that idea innovativeness positively influences perceptions of symbolic design, while behavior intensity has a negative influence. The studies verify that innovativeness interacts with intensity to affect perceptions of symbolic design. Psychological distance explains why it is difficult to co-create luxury goods. Peer feedback is revealed to be a new moderator.
This research uniquely develops an extensive theory-based conceptual model and highlights two dimensions of value co-creation that interact with product design. The article emphasizes the theoretical and practical importance of studying both direct and indirect moderating effects.
