Brand communities - functional and social benefits

1Prepared by Michael Ling

Brand communities

Functional and social benefits

Michael Ling

July 2014


WHAT ARE THE RESEARCH QUESTIONS?


Motivation

• Frenzy in social media and an escalating interest in creating

brand communities around websites.

• We know little how customers behave in those communities.

• Research in online brand communities has been scarce and

under-developed (Bagozzi and Dholakia, 2002).




Brand Communities

From a ‘customer-brand’ dyad

into a ‘customer-customer-

brand’ triad (Muniz & O’Guinn,

2001).

From a ‘customer-customer-

brand’ into a ‘customer-centric’

view (McAlexander et al, 2002).

• "Brand communities are social entities that reflect the situated

embeddedness of brands in the day-to-day lives of consumers and

the ways in which brands connect consumer to brand, and

consumer to consumer.” (Muniz & O’Guinn, 2001)

FirmBrand

Focal

Customer

Customer Product

• “the existence and meaningfulness of the community inhere in

customer experience rather than in the brand around which that

experience revolves.” (McAlexander et al, 2002).

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


Overview

• People participate in online communities because the online

communities provide them with either information or social

needs (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) social

value such as self-esteem, friendship and social status; and

(iii) entertainment value (Sicilia and Palazon, 2008).

• Apart from entertainment value, the view that online

communities provide functional and social benefits is widely

supported (Burnett, 2000; Muniz and O’Guinn, 2001).


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

Ability

C-to-C

Know-how

ExchangeMotivation

Opportunity

H1a

H1b

H3b

H4

H5

H3a

H1c

H2a,b

H2a,b

Loyalty

Intentions

Overall

Value of

the Firm’s

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 which

customers enter into and engage in know-how

exchanges with other customers.”

The MOA variables will operate in an additive

or a compensatory manner only if each variable

has achieved its minimum threshold and certain

conditions are met.

Motivation is the primary factor; Opportunity and

Ability will influence the effect of motivation.


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

• Opportunity Either a positive view of availability, or a negative view

of 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 behaviors

and make decisions (Hoyer and MacInnis, 1997; MacInnis

and Jaworski, 1989).

• Motivation

May be more a function of the restrictions an individual

faces (e.g. time, connection availability) participating in

the 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 brand

information in an advertisement (MacInnis et al. 1991).

Competency in the process driving know-how

exchanges, as opposed to competency in the content of

the know-how that is being exchanged (MacInnis et al.

1991).

x


Issues in the MOA C2C model

• (Ability) Customer’s competence in the subject of exchange has no effect on the level of

interactions .

Level of expertise has been cited as a reason not to participate in online communities (McLure Wasko & Faraj, 2000).

High ability implies that prior knowledge necessary to interpret brand information is

present and is accessed (MacInnis et al., 1991)

• Has not addressed the social benefits of ‘customer-to-customer’ interactions, which is an

important value perceived by the customer (Burnett, 2000; Muniz and O’Guinn, 2001).

• Has not addressed the economic or non-economic costs incurred by customers and hence it has

neglected a key variable in the derivation of perceived value (Zeithaml, 1988).

• Has only addressed Loyalty Intentions in regards to repeat purchases of firm’s offerings, rather

than loyalty intentions to a brand community.


Motivation



Informational and Social Benefits

• Member generated

contentHagel & Armstrong, 1997.

• Knowledge &

information are a

valuable 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

& affiliationWatson & 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.

Information

Benefits

Social

Benefits

• Enjoyment &

entertainingHolbrook, 2006; Sicilia & Palazon, 2008


Perceived Community Benefits

A flow of emotional concern, instrumental aid,

information and/or appraisal between people (House,

1981).

Social Support:

The degree to which a person’s basic social needs

are gratified through interaction with others (Thoits,

1982).

Emotional Support

Social Support

Sense of Belonging

Encouragement

Instrumental aid

Community Benefits


Value Model

Value is considered as a tradeoff in consumer’s 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 the

time, effort, and risk assumption associated with a particular purchase” (Cronin et

al., 1997).

Value

Service Quality

Sacrifices

Behavior

Intentions


Perceived Community Value

Emotional Support

Social Support

Sense of Belonging

Encouragement

Instrumental aid

Community Benefits

Sa

cri

fic

es


THE END.

THANK YOU

Marketing

Brand communities - functional and social benefits