Kleemann, Günter and Rieder (2008) have organised the pragmatic phenomena of Crowdsourcing typologically, which shall be used for this study. They classified Crowdsourcing into seven models, as listed below:

  1. Participation of consumers in product development and configuration
  2. Product design:
  3. Competitive bids on specifically defined task or problem.
  4. Permanent open call
  5. Community reporting
  6. Product rating by consumer and consumers profiling
  7. Customer to customer support

In the following sections of this chapter these above mentioned seven models of Crowdsourcing will be explained in details with the help of examples. Once these models are understood in detail it will be easy to analyse the models and the motives of advertisers to use these models for their sole purpose.

The motives of the advertisers to use these Crowdsourcing models will be discussed & analysed in the later chapter.

The examples used to explain these models may not necessarily be that of advertising campaigns or advertising companies. The explanation of each model will be followed by the analysis pointing out what motive is achieved by the crowdsourcer by the use of the specific model and also what kind of compensation works best for the respective model. This summary of analysis will help this study to link the motives of the advertisers, which will be analysed in the later chapter, with the appropriate

Crowdsourcing models.

Crowdsourcing Model 1: Participation of consumers in product development and configuration

This form of Crowdsourcing is one of the most ubiquitous types. In this type of Crowdsourcing the crowd is invited to participate in the creation or designing of a completely new product. The crowd do not create or design the product at whole, but only submit suggestions and inputs. It is the brand who creates the final
product.

This model of Crowdsourcing usually executed by the already established brands (Kleemann, Günter and Rieder, 2008), however there are some exceptions like Quirky (discussed later in this section).

1.1. Example 1 : Fiat Mio

Fiat launched the world‟s first crowdsourced car, in October 2010 and an auto show at Sao Paulo. This concept car, named Fiat Mio, is based on ideas submitted by thousands of people, from all over the globe (Fiat-mio).

Fiat invited crowd to design a car for the future. An interactive website named www.fiatmio.cc was used as a platform to facilitate this project. The brief made sure that the participants are aware that this project aims to design a car for the future and they can, hence, get as creative as they can and don‟t have to be realistic (Fiat-mio).

This project fetched entries, suggesting solution, from over 17,634 people worldwide and consequently Fiat had more than 45,008 comments and 10,666 ideas to choose from. The crowd created designs, not only, for things as detailed as like exhaust pipe, bumpers, over 1,000 accessories, but also, created a mascot for Mio (Mio-cs website).

Mio’s final design and specification were submitted under Creative Commons License (CCL), which means that it is available for everyone to use, including other car companies (Mio-cs website).

1.2. Example 2: Vores Øl

Another product with CCL is a Danish beer named „Vores Øl‟, which means „Our beer‟. Not just the recipe of this beer, but the entire brand is published under CCL, which means that anyone can brew and sell this beer and even create a derivative, however, the brewer will have to publish the new recipe also under the same licence. With this, everyone have access to the recipe of the beer and they re-design to better it (Howe, 2008).

1.3. Example 3: Amarok

Not all brands run their projects under CCL. Amarok, a superbike manufacturing company needed its triple clamp to be re-designed for North America‟s National Championship. It organised a Crowdsourcing campaign with assistance of GrabCAD, which is an online services marketplace, headquartered in Boston, MA – USA, that connects manufacturing and product development companies with CAD engineers around the world (GrabCAD website).

This online event, based on the brief that Amarok provided, fetched over 150 complete designs from 65 engineers in 2 weeks. These participants were given access to the designs of others, hence they were able to comment, alter and improve each other‟s designs, thus raising the quality of the final product (GrabCAD – Amarok). The final design which was chosen and used was bought from the participating engineer who designed it.

1.4. Example 4: Codechef

This concept of improve the existing design is also used be some software companies. Codechef, an initiative by a software giant Direct-i, hosts contests and events for programmers worldwide providing them a platform to better the software codes which the company have written. (Codechef – about us). Again, the programmer who submits the best code is rewarded.

1.5. Example 5: Frekenburger

Austrian manufacturer Frekenburger moved a level up when it comes to rewarding the crowd. They recently asked the crowd to submit a flavour for it all natural hemp milk drink named Trinkhanf. Based on their input, suggestion and ideas the winner will be rewarded with a share in profits of the drink (Maher, Paulini and Murty, 2010).

1.6. Example 6: Quirky

As mentioned earlier, Quirky is one of the examples of a new brand which have adopted this type of Crowdsourcing. Ben Kaufman, the founder and CEO of Quirky (Quirky – About) started his entrepreneurial career by starting a company called Mophie that manufactured custom designed line of headphones for Apple iPod, a portable music player.

The products by Mophie won the ‘Best of show’ award at the MacWorld Show in 2006, which motivated them to try something new when they were invited again at the next year’s MacWorld show. They launched a crowdsourced campaign at the show by putting few booths and distributed flyers to 30,000 people, inviting them to design the 2007’s product line for Mophie. The entries were accepted in the form of sketches and were delivered in 72 hours. These sketches were also put online and were open to be voted by people. A bottle opener shaped iPodShuffle was the most liked designed and the design was further modified to be error free by 30,000 people globally. This product was manufactured and was shipped to 28 countries and made Mophie a brand, something that people were a part of (Quirky – About).

Ben Kaufman was inspired by the process that created the best-selling product and so sold Mophie and started another company called Kluster, to make the process of Mophie, their business (Quirky – About). Kluster provided a platform that allowed them to take any problem and apply the collaborative brain power of the online population to get to a solution quickly (Quirky – About). The participants only submits the idea, however the products are manufactured and distributed for sale by Quirky. The participants are however compensated financially (Quirky – About).

Ben Kaufman explains that Mophie helped him convert his dream product into a reality however Kluster, which is now called Quirky, converts the dream product of thousands of people worldwide, a reality” (Quirky – About). From the above examples it can be seen that this model demands more than a single computer click from the crowd, hence the campaign that uses this model are said to be ‘high involvement’ campaigns.

What are the crowdsourcers motives to adopt this form of Crowdsourcing: To get intellectual inputs in the process of product creation.

What do they offer to the crowd to encourage participation? : Financial rewards, recognition.

Continue on page 2 for model 2: Product design: