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Brand Communities Brand Communities Presentation Transcript

  • BSI Brand Communities Marketing 2.0 Conference, Hamburg 2005
  • BSI Join the conversation MARKETING 2.0 CONFERENCE Paris, France 28/29 March 2011 www.marketing2conference.com
  • 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
  • 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
  • © 2005, Algesheimer/Dholakia 3
  • Agenda 1. Motivation 2. Introduction 3. Examples 4. Research 5. Implications 6. Contacts © 2005, Algesheimer/Dholakia 4
  • 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- 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
  • 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
  • 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
  • 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
  • “The link is more important than the thing!“ B. Cova © 2005, Algesheimer/Dholakia 11
  • 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 © 2005, Algesheimer/Dholakia 15
  • Smart Community © 2005, Algesheimer/Dholakia 16
  • eBay Community © 2005, Algesheimer/Dholakia 17
  • Apple Newton Community Muniz and Schau, Journal of Consumer Research, 2005 © 2005, Algesheimer/Dholakia 18
  • Research © 2004, Algesheimer/Dholakia 2005, Prof. Dr. René Algesheimer 19
  • ISSUE 1: Why do Customers Join and Participate in Brand Communities? © 2005, Algesheimer/Dholakia 20
  • 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
  • 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
  • ISSUE 2: What are the different types of Brand Communities? Small Groups vs. Networks © 2005, Algesheimer/Dholakia 23
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • Implications © 2004, Algesheimer/Dholakia 2005, Prof. Dr. René Algesheimer 31
  • 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
  • Freitag 670.384@skim.com 381.291@skim.com 670.384@skim.com © 2005, Algesheimer/Dholakia 33
  • 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 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