Abstract
Practical examples as well as research highlight the potential of virtual worlds for new product development especially for utilizing the innovative capabilities and knowledge of consumers and consumer communities. However, most of the observed and often cited virtual new product development examples failed or could have done better. One of the main challenges of virtual product development projects in virtual worlds such as Second Life (SL) face, is to attract participants and to motivate them to actively contribute to the project and share their ideas and knowledge with the company. Therefore, one of the most important research questions is to explore how avatar-based innovation projects should be designed in order to motivate consumers to engage in avatar-based innovation projects and actively contribute to the solution of the stated innovation quest. Based on a quantitative survey with avatars that participated in virtual co-creation projects, the article provides insights regarding compelling co-creation experiences in virtual worlds. This research presents empirically grounded insights regarding compelling co-creation experiences in virtual worlds. It extends theory about virtual new product development in virtual worlds and provides practical guidelines on how to successfully design virtual co-creation projects in virtual worlds.