Brand communities Functional and social benefits

Michael Ling

July 2014

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WHAT ARE THE RESEARCH QUESTIONS?

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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).

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Brand Communities
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"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)

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Brand Focal Customer Customer Product Firm

From a ‘customer-brand’ dyad into a ‘customer-customerbrand’ triad (Muniz & O’Guinn,
2001).

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From a ‘customer-customerbrand’ into a ‘customer-centric’ view (McAlexander et al, 2002).

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

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“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).
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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).

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

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Ability H1c H2a,b C-to-C Know-how Exchange Loyalty Intentions

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

H1a H2a,b

H4

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H3a

Opportunity

H1b

H3b

Overall Value of the Firm’s Offering

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H5

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

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

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• Opportunity

Either a positive view of availability, or a negative view of impediments (MacInnis et al. 1991). May be more a function of the restrictions an individual faces (e.g. time, connection availability) participating in the community (Gruen et al. 2005)

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• 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).
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Issues in the MOA C2C model
• (Ability) Customer’s competence in the subject of exchange has no effect on the level of interactions .
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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.

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Motivation

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Informational and Social Benefits
• To access information
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Information Benefits

Furlong, 1981; Wellman et al., 1996; Hagel & Armstrong, 1997. Hagel & Armstrong, 1997. Hiltz & Wellman, 1997; Rheingold, 1993; Sproull & Faraj, 1997.

Member generated content Knowledge & information are a valuable resource Use of “weak ties” to information Social Support Sense of belonging & affiliation Self-identity Emotional Support, sense of belonging, encouragement, companionship, reciprocity Enjoyment & entertaining
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Constant, Sproull & Kiesler, 1996.

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Social Benefits

Thoits, 1982 Watson & Johnson, 1972. Hogg, 1996, Furlong, 1989; Hiltz, 1984; Hiltz & Wellman, 1997; Korenman & Whatt, 1996; Wellman, 1996; Wellman & Gulia, 1999.

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Holbrook, 2006; Sicilia & Palazon, 2008

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Perceived Community Benefits

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Community Benefits

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Emotional Support Social Support Sense of Belonging Encouragement Instrumental aid

Social Support: The degree to which a person’s basic social needs are gratified through interaction with others (Thoits,
1982).

A flow of emotional concern, instrumental aid, information and/or appraisal between people (House,
1981).

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Value Model
Service Quality Value Behavior Intentions

Sacrifices

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).

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Perceived Community Value

Community Benefits

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Emotional Support Social Support Sense of Belonging Encouragement Instrumental aid

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Sacrifices

THE END. THANK YOU

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