Exploring the Social and Functional Values of Online Communities

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1Prepared by Michael Ling

EXPLORING THE INFORMATIONAL AND SOCIAL VALUES

OF

ONLINE COMMUNITIES

Michael Ling

PhD Candidate at UNSW

8 June 2010


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WHAT WAS YOUR QUESTION?


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Motivation

Frenzy in social media and an escalating interest in creatingbrand communities around websites.

We know little how customers behave in those communities.

Research in online brand communities has been scarce andunder-developed (Bagozzi and Dholakia, 2002).


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Brand Communities

From a customer-brand dyadinto a customer-customer-brand triad (Muniz & OGuinn,2001).

From a customer-customer-brand into a customer-centricview (McAlexander et al, 2002).

"Brand communities aresocial entities

that reflect the situatedembeddedness of brands in the day-to-day lives of consumers andthe ways in which brands connect consumer to brand, andconsumer to consumer.(Muniz & OGuinn, 2001)

FirmBrand

Focal

Customer

Customer Product

the existence and meaningfulness of the community inhere incustomer experience rather than in the brand around which thatexperience revolves. (McAlexander et al, 2002).

Customer-centric Model of Brand Community (McAlexander et al., 2002)


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Prepared by Michael Ling

Research Objectives

The phenomenon under study is the increasing importanceof customer-to-customer interactions on an individualcustomers intentions to participate in an online brand

community.

The unit of analysis is an individual customer who is a

participant of an online brand community.

To develop a customer-to-customer interactions model thatexamines its impact on an individual customers behavior inan online brand community.


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Overview

People participate in online communities because the onlinecommunities provide them with either information or socialneeds (Fischer, Bristor and Gainer, 1996; McLure Wasko and Faraj,2000).

Consumers perceive online communities can offer: (i)functional value such as information and advice; (ii) socialvalue such as self-esteem, friendship and social status; and(iii) entertainment value (Sicilia and Palazon, 2008).

Apart from entertainment value, the view that onlinecommunities provide functional and social benefits is widelysupported (Burnett, 2000; Muniz and OGuinn, 2001).


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C2C Know-how Exchange Model (Gruen et al., 2005)

Ability

C-to-CKnow-howExchangeMotivation

Opportunity

H1a

H1b

H3b

H4

H5

H3a

H1c

H2a,b

H2a,b

LoyaltyIntentions

OverallValue ofthe Firms

Offering

Gruen et al.s model is based on the MOA

model developed by MacInnis and Jaworski(1989).

Explore factors that affect the degree to whichcustomers enter into and engage in know-howexchanges with other customers.

The MOA variables will operate in an additiveor a compensatory manner only if each variablehas achieved its minimum threshold and certain

conditions are met.

Motivation is the primary factor; Opportunity andAbility will influence the effect of motivation.


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Motivation, Opportunity & Ability Constructs - Gruen et al. (2005)

Opportunity Either a positive view of availability, or a negative viewof impediments(MacInnis et al. 1991).

Readiness, willingness, interest, and desire to engage

in information processing(Gruen et al., 2005).

Direct individuals to engage in goal-oriented behaviorsand make decisions(Hoyer and MacInnis, 1997; MacInnisand Jaworski, 1989).

Motivation

May be more a function of the restrictions an individualfaces (e.g. time, connection availability) participating inthe community(Gruen et al. 2005)

Ability The resources of a customer that influence the outcome

of an event(Hoyer and MacInnis, 1997).

The skills or proficiencies in interpreting brandinformation in an advertisement(MacInnis et al. 1991).

Competency in the process driving know-howexchanges, as opposed to competency in the content ofthe know-how that is being exchanged(MacInnis et al.

1991).


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Motivation


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Informational and Social Benefits

Member generatedcontent

Hagel & Armstrong, 1997.

Knowledge &information are avaluable resource

Hiltz & Wellman, 1997; Rheingold, 1993; Sproull& Faraj, 1997.

Furlong, 1981; Wellman et al., 1996; Hagel &Armstrong, 1997.

To access information

Use of weak ties

to informationConstant, Sproull & Kiesler, 1996.

Social Support Thoits, 1982

Sense of belonging& affiliation

Watson & Johnson, 1972.

Self-identity Hogg, 1996, Emotional Support,

sense of belonging,encouragement,companionship,reciprocity

Furlong, 1989; Hiltz, 1984; Hiltz & Wellman, 1997;Korenman & Whatt, 1996; Wellman, 1996; Wellman& Gulia, 1999.

InformationBenefits

SocialBenefits

Enjoyment &entertaining

Holbrook, 2006; Sicilia & Palazon, 2008


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Value Model

Valueis considered as a tradeoff in consumers decision making between the

relevant gives and gets (Bolton and Drew, 1988; Heskett et al, 1990; Zeithaml, 1988).

Sacrifice is a broader construct that includes non-pecuniary costs such as thetime, effort, and risk assumption associated with a particular purchase(Cronin etal., 1997).

Value

Service Quality

Sacrifices

BehaviorIntentions


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Overall Value

Emotional Support

Social Support

Sense of Belonging

Encouragement

Information

Overall Benefits

Sacrifices


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16P d b Mi h l Li

THE END.THANK YOU

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Exploring the Social and Functional Values of Online Communities