Customers' participation in product development through crowdsourcing: Issues and implications

• Crowdsourcing practices challenge the marketing function.
• Crowdsourcing practices affect the components of a business model.
• Crowdsourcing is a source of value for companies and consumers.
• Crowdsourcing may generate negative reactions among consumers and apprehension from companies.
• We suggest a modeling of an open business model based on crowdsourcing.

This paper focuses on customers' participation in a product development process through crowdsourcing practices. Results from five case studies of consumer goods companies suggest that the implementation of crowdsourcing operations affects the components of an existing business model and requires rethinking the marketing function. Moreover, despite some organizational constraints and fears, crowdsourcing generates a win–win relationship, creating value for both firms and customers. However, the findings reveal two negative consumer reactions to crowdsourcing practices, i.e., feelings of exploitation and being cheated, that may jeopardize their success. The results suggest the need to establish an open business model based on crowdsourcing.