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BSI Brand Communities

Marketing 2.0 Conference, Hamburg 2005
BSI



          Join the conversation
  MARKETING 2.0 CONFERENCE
      Paris, France 28/29 March 2011
         www.market...
Brand Communities
                          October, 6th, 2005
 Word-of-Mouth Conference, Hamburg

                       ...
2005-02-04 - 4.200.000
                               2005-01-27 - 4.100.000
                               2005-01-19 - 4...
© 2005, Algesheimer/Dholakia   3
Agenda

       1.     Motivation
       2.     Introduction
       3.     Examples
       4.     Research
       5.     Im...
Motivation




© 2004, Algesheimer/Dholakia
  2005, Prof. Dr. René Algesheimer                5
Introduction




© 2004, Algesheimer/Dholakia
  2005, Prof. Dr. René Algesheimer                  6
Perspective


                                      Business-to-Consumer (B-C)               Business-to-
                ...
Motivation

       • The effectiveness of consumer-to-consumer
         influence is greater than that of marketer-to-
   ...
Brand Communities: Definition

       Constitutive Elements:
       • Social network of individuals
       • Organisation ...
Brand Communities: Interest

       • Enable consumers to form a strong bond with the brand
            (Algesheimer/Dhola...
“The link is more important
                                           than
                                        the th...
Examples




© 2004, Algesheimer/Dholakia
  2005, Prof. Dr. René Algesheimer              12
© 2005, Algesheimer/Dholakia   13
Brand Communities: H.O.G.




© 2005, Algesheimer/Dholakia       14
Jeep Community




                               Jeep Fest: Schouten, McAlexander and Koenig 2002, Journal of Marketing
©...
Smart Community




© 2005, Algesheimer/Dholakia   16
eBay Community




© 2005, Algesheimer/Dholakia   17
Apple Newton Community




                               Muniz and Schau, Journal of Consumer Research, 2005
© 2005, Alge...
Research




© 2004, Algesheimer/Dholakia
  2005, Prof. Dr. René Algesheimer              19
ISSUE 1:

           Why do Customers Join and Participate in
           Brand Communities?




© 2005, Algesheimer/Dholak...
General motivations for participating in a brand
       community


          Purposive Value


               Self-discov...
Value perceptions                Social influence variables             Decision making and participation




            ...
ISSUE 2:

           What are the different types of Brand
           Communities?

           Small Groups vs. Networks

...
DEFINITION
                                     Small Customer
          Customer Networks             Groups

       • “A...
PRIMARY FOCUS
                                      Small Customer
          Customer Networks              Groups

      ...
Customer                    Small Customer
                       Networks                       Groups
       Primary Man...
Customer                                        Small Customer
            Networks                                       ...
Loyalty-Influence Paradox
          in Brand Communities

                Customers belonging to Small Group Brand
       ...
However, not all the
    news is good...
                                                                               - ...
Attitudes                        Perceived                Intention to                Participation
                      ...
Implications




© 2004, Algesheimer/Dholakia
  2005, Prof. Dr. René Algesheimer                  31
Implications
                                             Social Experience


                                            ...
Freitag

670.384@skim.com

                               381.291@skim.com




                                           ...
History of Gaming




                      t0       t1   t2




© 2005, Algesheimer/Dholakia             34
Sony Playstation




© 2005, Algesheimer/Dholakia   35
Thank you!




© 2005, Algesheimer/Dholakia   36
Contacts




© 2004, Algesheimer/Dholakia
  2005, Prof. Dr. René Algesheimer              37
Contact
        Prof. Dr. Paul Dholakia
        Founder and Principal, Empyrean-Crest Marketing Consultancy and
        As...
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Transcript of "Brand Communities"

  1. 1. BSI Brand Communities Marketing 2.0 Conference, Hamburg 2005
  2. 2. BSI Join the conversation MARKETING 2.0 CONFERENCE Paris, France 28/29 March 2011 www.marketing2conference.com
  3. 3. Brand Communities October, 6th, 2005 Word-of-Mouth Conference, Hamburg Prof. Dr. Paul Dholakia, Rice University, Houston/US Prof. Dr. René Algesheimer, University of Zurich/CH © 2005, Algesheimer/Dholakia 1
  4. 4. 2005-02-04 - 4.200.000 2005-01-27 - 4.100.000 2005-01-19 - 4.000.000 2005-01-14 - 3.900.000 2005-01-08 - 3.800.000 2005-01-03 - 3.700.000 2004-12-28 - 3.600.000 2004-12-21 - 3.500.000 2004-12-01 - 3.000.000 2004-11-26 - 2.900.000 2004-11-17 - 2.800.000 2004-11-13 - 2.700.000 2004-11-12 - 2.600.000 2004-11-04 - 2.500.000 2004-10-31 - 2.400.000 2004-10-23 - 2.300.000 2004-10-12 - 2.200.000 2004-10-03 - 2.100.000 2004-09-25 - 2.000.000 2004-09-20 - 1.900.000 2004-09-14 - 1.800.000 2004-09-07 - 1.700.000 2004-09-02 - 1.600.000 2004-08-28 - 1.500.000 2004-08-17 - 1.400.000 2004-08-08 - 1.300.000 2004-08-04 - 1.200.000 2004-07-27 - 1.100.000 2004-07-22 - 1.000.000 2004-07-16 - 900.000 2004-07-09 - 800.000 2004-07-02 - 700.000 2004-06-24 - 600.000 2004-06-16 - 500.000 2004-05-28 - 400.000 2004-05-08 - 300.000 2004-04-06 - 200.000 2004-02-26 - 100.000 2004-02-07 - 50.000 2004-01-22 - 1.500 © 2005, Algesheimer/Dholakia 2
  5. 5. © 2005, Algesheimer/Dholakia 3
  6. 6. Agenda 1. Motivation 2. Introduction 3. Examples 4. Research 5. Implications 6. Contacts © 2005, Algesheimer/Dholakia 4
  7. 7. Motivation © 2004, Algesheimer/Dholakia 2005, Prof. Dr. René Algesheimer 5
  8. 8. Introduction © 2004, Algesheimer/Dholakia 2005, Prof. Dr. René Algesheimer 6
  9. 9. Perspective Business-to-Consumer (B-C) Business-to- Consumer-to-Consumer (B-(C-C)) Transactional- Relational Network- Perspective Perspective Perspective 1 2 3 C B C B C B C © 2005, Algesheimer/Dholakia 7
  10. 10. Motivation • The effectiveness of consumer-to-consumer influence is greater than that of marketer-to- consumer influence – Examples: positive or negative WoM, opinion leadership • Consumer interactions determine critical variables like brand decision making process, willingness to pay, and brand loyalty. – Examples: K-Swiss sneakers, bottled water during Hurricane Rita • Over 250 million consumers world-wide participate in virtual and FtF brand communities – Examples: H.O.G.-Community, Linux-Communities © 2005, Algesheimer/Dholakia 8
  11. 11. Brand Communities: Definition Constitutive Elements: • Social network of individuals • Organisation => role structures • Interaction • Mutual influence • Sense of belonging, “we-ness“ • Cohesion • Common language, rituals, traditions • Common focus: one unique brand Sources: McAlexander/Schouten/Koenig 2002, Muniz/Guinn 2003, Algesheimer/Dholakia/Herrmann 2005 © 2005, Algesheimer/Dholakia 9
  12. 12. Brand Communities: Interest • Enable consumers to form a strong bond with the brand (Algesheimer/Dholakia/Herrmann 2005) • Learn how customers evaluate products in a high-credibility environment (Keller 1999) • Obtain early-warning-signals regarding success/failure (Muniz/Guinn 2003) • Influence members‘ intentions and behaviors (Muniz/Schau 2005) • Diffusion of relevant information by WoM (Brown/Kozinets/Sherry 2003) • Cooperation with highly loyal customers (Franke/Shah 2003) © 2005, Algesheimer/Dholakia 10
  13. 13. “The link is more important than the thing!“ B. Cova © 2005, Algesheimer/Dholakia 11
  14. 14. Examples © 2004, Algesheimer/Dholakia 2005, Prof. Dr. René Algesheimer 12
  15. 15. © 2005, Algesheimer/Dholakia 13
  16. 16. Brand Communities: H.O.G. © 2005, Algesheimer/Dholakia 14
  17. 17. Jeep Community Jeep Fest: Schouten, McAlexander and Koenig 2002, Journal of Marketing © 2005, Algesheimer/Dholakia 15
  18. 18. Smart Community © 2005, Algesheimer/Dholakia 16
  19. 19. eBay Community © 2005, Algesheimer/Dholakia 17
  20. 20. Apple Newton Community Muniz and Schau, Journal of Consumer Research, 2005 © 2005, Algesheimer/Dholakia 18
  21. 21. Research © 2004, Algesheimer/Dholakia 2005, Prof. Dr. René Algesheimer 19
  22. 22. ISSUE 1: Why do Customers Join and Participate in Brand Communities? © 2005, Algesheimer/Dholakia 20
  23. 23. General motivations for participating in a brand community Purposive Value Self-discovery Brand Community Maintaining Interpersonal Participation Connectivity Social Enhancement Entertainment Source: Dholakia, Bagozzi and Klein Pearo (2004) © 2005, Algesheimer/Dholakia 21
  24. 24. Value perceptions Social influence variables Decision making and participation Mutual Purposive Agreement Value Group Norms Self-Discovery Mutual Maintaining Accommodation Interpersonal Interconnectivity We- Participation Desires intentions Behavior Social Enhancement Social Entertainment Identity Value Cognitive Affective Evaluative SI SI SI A social influence model of brand community participation (Dholakia, Bagozzi, and Klein Pearo 2004) © 2005, Algesheimer/Dholakia 22
  25. 25. ISSUE 2: What are the different types of Brand Communities? Small Groups vs. Networks © 2005, Algesheimer/Dholakia 23
  26. 26. DEFINITION Small Customer Customer Networks Groups • “A specialized non- • “A group of individuals geographically bound with a consciously community, based on shared social identity, a structured set of whose members act jointly in group actions social relationships to accomplish group among participants goals and/or express with common interest mutual sentiments and in a particular brand” commitments” (Muniz and O’Guinn (Dholakia, Bagozzi, and 2001, JCR) Klein Pearo 2004, IJRM) © 2005, Algesheimer/Dholakia 24
  27. 27. PRIMARY FOCUS Small Customer Customer Networks Groups • “Network of • “Virtual relationships among communications often consumers organized supplemented by around a common face-to-face interactions where interest and promoted product-related only via non-face-to- activities intermingle face means, where with other social intellectual and activities and utilitarian support emotional support are primary, among members is emotional support central” is secondary” • Really “Virtual” (Dholakia, Bagozzi, and Klein Pearo 2004, IJRM) © 2005, Algesheimer/Dholakia 25
  28. 28. Customer Small Customer Networks Groups Primary Managerial Objective • “Matching of • “Matching of Individual Motives” social proclivities” Marketers’ Role • Active information • Passive and providers and problem indirect or silent solvers Appropriate Application Types • Applications of • Applications of purpose (e.g., Archive Process of solutions, “Ask-an- (e.g., Buddy lists, expert”) Instant Messaging) © 2005, Algesheimer/Dholakia (Dholakia, Bagozzi, and Klein Pearo 2004, IJRM) 26
  29. 29. Customer Small Customer Networks Groups Appropriate Growth Rate • Balance between • Highest possible information seekers and growth rate information providers Appropriate marketer influence • Relatively more direct. • Relatively more indirect. e.g., product related e.g., exposure to non- conversations intrusive advertisements How to convey member information to others • Reciprocal reputation • Mechanisms that mechanisms communicate personal history (Dholakia, Bagozzi, and Klein Pearo 2004, IJRM) © 2005, Algesheimer/Dholakia 27
  30. 30. Loyalty-Influence Paradox in Brand Communities Customers belonging to Small Group Brand Communities are less likely to be loyal to a particular virtual venue than those belonging to Network Brand Communities At the same time, Small Group Brand Community members are more likely to be influenced by their community than those belonging to Network Brand Communities (Dholakia, Bagozzi, and Klein Pearo 2004, IJRM) © 2005, Algesheimer/Dholakia 28
  31. 31. However, not all the news is good... - Brand Loyalty Intentions + Reactance - Membership Continuance Normative Intentions Community Pressure + - Community Brand + Relationship Community Identification + Intentions + - Community Engagement + Community Purchase Intentions © 2005, Algesheimer/Dholakia (Algesheimer, Dholakia and Hermann, 2005) 29
  32. 32. Attitudes Perceived Intention to Participation Behavioral Participate in BrCO Behavior Control + Positive Face-to-face Anticipated interactions Emotions POSITIVE IMPACT FOR SMALL with family Other GROUPS, NEGATIVE FOR Types of NETWORKS DSIs Face-to-face Negative interactions Anticipated Desire with friends Emotions Telephone Use Subjective Norms Group Norms OVERALL NEGATIVE IMPACT Television FOR EVERYONE Consump- Use Social tion of Identity Media Print Media Use Cognitive Affective Evaluative Radio SI SI SI Use © 2005, Algesheimer/Dholakia (Bagozzi, Dholakia, and Klein Pearo 2006) 30
  33. 33. Implications © 2004, Algesheimer/Dholakia 2005, Prof. Dr. René Algesheimer 31
  34. 34. Implications Social Experience Emotional Experience Accompanying Services Funktional Product • Consumption is a social act of symbolic importance • The consumer has become a marketer of his own self-image • A product is a bundle of attributes that satisfy functional, emotional and social needs. © 2005, Algesheimer/Dholakia 32
  35. 35. Freitag 670.384@skim.com 381.291@skim.com 670.384@skim.com © 2005, Algesheimer/Dholakia 33
  36. 36. History of Gaming t0 t1 t2 © 2005, Algesheimer/Dholakia 34
  37. 37. Sony Playstation © 2005, Algesheimer/Dholakia 35
  38. 38. Thank you! © 2005, Algesheimer/Dholakia 36
  39. 39. Contacts © 2004, Algesheimer/Dholakia 2005, Prof. Dr. René Algesheimer 37
  40. 40. Contact Prof. Dr. Paul Dholakia Founder and Principal, Empyrean-Crest Marketing Consultancy and Assistant Professor of Management Jones Graduate School of Management Rice University, Houston, Texas, USA Phone: +1 713 348 5376 Email: dholakia@rice.edu Web: http://www.ruf.rice.edu/~dholakia ……………. Prof. Dr. René Algesheimer Assistant Professor of Marketing Institute for Strategy and Business Economics University of Zurich Plattenstrasse 14 CH-8032 Zurich Switzerland Phone: +41 44 634 2916 Email: rene.algesheimer@isu.unizh.ch Web: http://www.isu.unizh.ch/algesheimer © 2005, Algesheimer/Dholakia 38

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