No abstract

Understanding and applying consumers' needs in product development is key to success across various industries. The failure rate of new products, however, remains high because consumer demands are not adequately addressed. To investigate the role of consumers in the product development processes of small ventures, we conducted in-depth, semi-structured interviews of 40 packaged food and beverage small ventures in California and Finland. Our findings showed that consumers rarely drove the design of new products, but rather functioned as a source of validation or feedback for small improvements of existing products. Consumer feedback was often unstructured and concentrated in the latter stages of the product development process. However, even though customer involvement in the small ventures' product development was more restricted than recommended in cocreation literature their influence still brought meaningful changes to the products. Given the small ventures' lack of resources, future research on creative, low-cost ways to co-create is called for.

As design research expands its horizon, there has been a recent rise in studies on nontraditional designers. Previous studies have noted the positive effect of diversity in generating ideas. Among different sources of influence, peers outside the design team have been noted for their positive impact on the design process, yet the research on this topic is still in its early stages. Using qualitative data from 40 small and medium-sized enterprises (SMEs) in the American and Finnish food and beverage industries, the current study examines their interactions with other SMEs, shedding light on the influence of peers on creating new design solutions. The findings suggest that peer companies can act as a frequent and impactful source of inspiration for product design ideas. The most prevalent forms of interaction were co-creating products, sharing information, and sharing ingredients. Furthermore, the interactions were voluntary, organic, and improvisational in nature, and physical proximity or previous connections often initiated the interactions. Taken together, a great number of peer influences contributed towards creative new solutions.