Psychological Ownership can be from the point of view of the employees as well as from the consumers point of view. It simply means a ‘feeling’ of having a stake in the company which comes with a sense of commitment and contribution from both sides. It is in human nature to have a desire to belong somewhere and the people like to identify themselves through the things over which they would feel a sense of ownership. It can be derived in several ways and the main ones include learning about an organization Custom Collaborative in this case and devoting time and effort in it. Another way to adopt Psychological Ownership in the company is ‘by enabling employees to contribute to their work creatively, learning about it, and contributing to decisions’ (Pickford, Joy & Roll, 2016). A consumer may feel a sense of both personal ownership (e.g. Custom Collaborative designer designs my clothes) and collective ownership (e.g. Custom Collaborative is ours). ‘These complex feelings of ownership are pleasure producing and object-specific’ (Pickford, Joy & Roll, 2016).
As we are aware being consumers ourselves the we as customers develop feelings of ‘ownership for a variety of objects, material and immaterial in nature’. Recognizing the psychology of ownership, Etzioni (1991) writes that ownership is a “dual creation, part attitude, part object, part in the mind, part ‘real’ and Heider (1958) observes that ‘attitudes of ownership’ are common among people (Pierce, Kostova & Dirks, 2002).
In today’s era the most principal factor for the growth of an organization is building a long-term relationship with its customers. It has become increasingly important as the effects of this long – term customer relationships on the success of businesses have been quite notable. Hence, Custom Collaborative can attempt to make this as one of their objectives. This is not easy and is rather challenging in the market place but considering the competitive advantage of helping the women in need can be a driving force for the company. Psychological Ownership can be boosted by bringing in the form of relationship marketing. If Custom Collaborative would focus on relationship marketing then with the increase in their target market they would also incur ‘low marketing as well as the transaction cost, increased sales volume per customer, loyalty, better financial performance hence, relationship marketing, customer retention and customer commitment are important goals’ for Custom Collaborative (Asatryan, 2006).
The engagement of customers is a long – term process as well as a process that seems intimate which is built through ‘cognition – emotion – behavior. If customers go through a psychological cognitive and emotional experience process that is by understanding the stories of the employees of Custom Collaborative, the way they are doing work, the help they are getting from this organization, customized clothes with superior quality. This will reach their hearts and not just their minds. When something touches a person’s heart it has more effect than just the mind (Guo, Zhang, & Wang, 2016).
Psychological Ownership is different from legal ownership. There are approximately three main differences between the two: first the ‘legal ownership is recognized by the society and is protected by a legal system’ on the other the Psychological Ownership is recognized by a person or a group of people when they possess a ‘feeling towards the target’. Second, one may exist without the other and third, ‘legal ownership of an object may not evoke feelings of Psychological Ownership as they find insignificant personal meaning in the target’ (Asatryan, 2006).
Positive Impacts: Psychological Ownership is said to bring in positive impact within as well as outside the organization. Some of them are – Increase in motivation, company stewardship, loyalty, reciprocity between an organization and employee, (Pickford, Joy & Roll, 2016).
Negative Impacts: Some of the potential negative impacts include ‘Reluctance to share ideas with co-workers, Reluctance to share knowledge, Rejection of new knowledge, Resistance to change’ (Pickford, Joy & Roll, 2016).
The era of social networks has brought about a revolution in the way people perceive things and the interaction of consumers with the organization’s. These networks ‘promotes a shift of the consumer’s role from traditional passive information receiver to information cocreator’ hence, if the consumer will start liking the products of Custom Collaborative they will start to create a way in which it’s brand name will increase with their help. This customer engagement can enhance the organization’s performance. ‘Customers who are highly engaged on social platforms play a significant role in activities such as cocreating customer experience and value as well as recommending products, services, or brands to others’ (Guo, Zhang, & Wang, 2016).