Interactive Marketing: Branding & Consideration


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Branding and Consideration, Vorlesung Jürgen Rösger, Universität Mannheim

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Interactive Marketing: Branding & Consideration

  1. 1. page 1 Branding and consideration
  2. 2. page 2 Outline 1. Definition of branding 2. Brands 2.1 Importance 2.2 Classification 2.3 Functions 3. Instruments of the WEB 2.0 4. Brand communities
  3. 3. page 3 “A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well.” Jeff Bezos, founder of
  4. 4. page 4 Branding …  is the entire process involved in creating an unique name and image for a product (good or service) in the consumers' mind through advertising campaigns with a consistent theme.  aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers. Definition of Branding (Source:, 2009)
  5. 5. page 5 Outline 1. Definition of branding 2. Brands 2.1 Importance 2.2 Classification 2.3 Functions 3. Instruments of the WEB 2.0 4. Brand communities
  6. 6. page 6 Top 25 most valuable brands 2009 68,7 60,2 56,6 47,8 34,9 32,9 32 31,3 30,6 28,4 24,1 23,9 22,8 22 21,7 21 19 17,8 17,5 15,4 15,4 15 13,7 13,7 13,3 0 10 20 30 40 50 60 70 C oca C ola IBMM icrosoft G E N okia M cD onaldsG oogle Toyota IntelD isney H ew lett-P ackard M ercedes Benz G ilette C isco BM W Louis V ittonM arlboro H ondaSam sung Apple H &M Am erican Express Pepsi O racleN escafé Bill. US $ Source: Interbrand, September 2009
  7. 7. page 7 The Interactive-Tableau helps to structure communication activities Consideration CRMTransactionBranding PR PP + Progr. Print TV Online DM + Mobile Possiblecrossmediaintegration Outlet Communication cycle
  8. 8. page 8 Product placement / programming
  9. 9. page 9 Product Placement Product Placement is an advertising technique used by companies to subtly promote their products through appearances (integration of products into the plot) in film, television, or other media. Benefit: Product is not perceived within an advertising context, but as part of the plot. Source:, 2009
  10. 10. page 10 Do you imagine a shoe brand when you see these pictures? Examples – Sex and the City
  11. 11. page 11 No classic advertising, but close to 99% aided brand awareness in relevant target group. That’s the result of brilliant strategic and operational PR work. Examples – Sex and the City + Manolo Blahnik
  12. 12. page 12 Movie or advertising? Examples – Sex and the City (The Movie)
  13. 13. page 13 Designers Manolo Blahnik Vivienne Westwood Louis Chanel Dior Ferragamo Adidas Burberry Swarovski Hello Kitty Stores & Services Henri Bendel Scoop Duane Reade Manhattan Mini Storage Bag Borrow or Steal Netflix U-Haul Gadgets Apple iPhone Blackberry Bang & Olufsen Dell Cuisinart Sprint Publications Vogue New York Post Page Six Entertainment Weekly New York magazine Marie Claire The Wall Street Journal Sips and Snacks Starbucks Pellegrino Skyy Vodka VitaminWater Smart Water Pret a Manger Cup of Noodles Roger Vivier Diane von Furstenberg Hermès Christian Louboutin Prada Tiffany and Co. Escada Versace Gucci Vera Wang Oscar de la Renta Carolina Herrera Christian Lacroix Lanvin Nike „Women come to New York for the two L's: Labels and Love“ Examples – Sex and the City (The Movie)
  14. 14. page 14 Programming Programming / Advertiser-founded programming (AFP) is the development, planning and realization of television / movie formats together with a brand. General Motors promoted its new Pontiac GTO in the movie “The last ride” in 2004. (Source: absatzwirtschaft, 2005)
  15. 15. page 15 Outline 1. Definition of branding 2. Brands 2.1 Importance 2.2 Classification 2.3 Functions 3. Instruments of the WEB 2.0 4. Brand communities
  16. 16. page 16 Brand game
  17. 17. page 17 Human personalities and Greek gods (Source: McKinsey & Company, Hajo Riesenbeckund Jesko Perrey, Mega-Macht Marke, p. 189) Well-behaved Rationality Desire Fortitude Intellect Robust Intelligent Reliable Authentic Honest Gentle Charming Bright / Happy Freedom-loving Spirited Impassionate Robin Hood (Prometheus)Nelson Mandela (Hephaistos) J. W. von Goethe (Apollo) Alice Schwarzer (Artemis) Lance Armstrong (Herkules) Bruce Willis (Ares) Mick Jagger (Dionysos) Evita Perón (Helena) James Bond (Zeus) Thomas Gottschalk (Hermes) Julia Roberts (Aphrodite) Brave
  18. 18. page 18 Rationality Desire Fortitude Intellect Robust Intelligent Reliable Authentic Honest Gentle Charming Bright / Happy Freedom-loving Spirited Impassionate Brave Well-behaved Robin Hood Nelson Mandela Richard v. Weizäcker Alice Schwarzer Lance Armstrong Bruce Willis Mick Jagger Evita James Bond Thomas Gottschalk Julia Roberts NIVEA L‘Oréal Radeberger Lucky Strike Beck‘s Volksbanken Camel Jever Warsteiner KrombacherGünther Jauch Goethe Robbie Williams Mahatma Gandhi Alfred Biolek The brand personality gameboard (BPG) (Source: McKinsey & Company, Hajo Riesenbeckund Jesko Perrey, Mega-Macht Marke, p. 191)
  19. 19. page 19 Krombacher and Günther Jauch -40 +40 negative positiveO Gentle Charming Successful Intelligent Bright / happy Impassionate Spirited Brave Freedom-loving Reliable Robust Honest Well-behaved Authentic Personality traits Krombacher Günther Jauch Source: Riesenbeck / Perrey (2004), p. 196
  20. 20. page 20 Success factors of brand management Strong brands are…  …continuous.  …sustaining and maintaining its brand name.  …not changing their positioning, target group or public appearance from day-to-day. (Source: Riesenbeck / Perrey (2004), p. 31)
  21. 21. page 21 Persil The brand Persil
  22. 22. page 22 Persil
  23. 23. page 23 Centennial success story of a detergent brand:  Always innovative, without changing personality  "Top-brand 2008”  External appearance almost unchanged  More than 20 variations have been invented  Market share: 37%  1907 „First self-acting detergent“  1959 „First synthetic detergent, non-sensitive concerning water-hardness“  1986 „First phosphate-free detergents“  1994 Persil Megaperls  1998 Persil Tabs  2002 Persil LIQUITS Source: Riesenbeck / Perrey (2004), p. 31 ff., Persil
  24. 24. page 24 The cowboy always works – Camel is searching Year* (Source: Riesenbeck / Perrey (2004), p. 33, * since 1991 incl. East Germany) 0 5 10 15 20 25 30 35 40 1900 1900 1900 1900 1900 1900 1900 1900 1988 2000 200296 97 98 99 0189 93 94 9590 91 92 Market shares of branded cigarettes in percent Smoking cowboy Riding cowboy Smoking cowboy Smoking cowboy Smoking camel-man Camel in front of pyramid Smoking adventurer in the jungle Kangaroo in the desert Funny dromedary character Relaxed young people Marlboro: high advertising consistency Camel: inconsistent advertisement
  25. 25. page 25 Outline 1. Definition of branding 2. Brands 2.1 Importance 2.2 Classification 2.3 Functions 3. Instruments of the WEB 2.0 4. Brand communities
  26. 26. page 26 Typology of brands I Source: Ansätze zur Typologisierung von Marken, Bruhn, Kommunikationspolitik, edition 1997, p. 1447 Typology characteristics Brand types Examples Institutional position Vertical range within the supply- chain Geographical coverage Amount of brand owners Amount of marked goods Producer brand Trade brand Service brand Regional brand National brand International brand Vanishing preliminary product brand Accompanying preliminary product brand Finished product brand Individual brand Collective brand Single brand Product group brand Umbrella brand Global brand Jacobs Krönung Albrecht coffee TUI Südmilch Ernte 23, Mark Astor Opel, EC-card Coca-Cola Duraterm-Chromium-ignition plug Sympatex, Intel Boss-Suit Rosenthal Odol Nivea Siemens Gruppe 21
  27. 27. page 27 Brand types Examples With regards to contents of the brand Market levels Utilization of perceptional instruments Instruments of marking Knowledge of producer Way of marking Secondary brand Tertiary brand Enterprise brand Fantasy brand Acoustic brand Optical brand Olfactory brand (smell) Word brand Tactile brand (touch) Picture brand Company-labeled brand Daimler-Benz Mercedes star Bahlsen Choco Leibniz Nylon 4711 Mohr von Sarotti Underberg (melody) Merci-chocolate Bahlsen cookies Carstens SC Rütgers Club Primary brand Henkel Trocken Third party brand Palazzo (chocolate cookies) Source: Ansätze zur Typologisierung von Marken, Bruhn, Kommunikationspolitik, edition 1997, p. 1447 Typology characteristics Typology of brands I
  28. 28. page 28 ConsumerCompany Intermediary • Differentiation from competition and signaling quality • Building customer preferences and loyalty • Creation of market entry barriers for competitors • Establish a price premium • Creation of a platform for new products (introduction with established brand name) • Reduction of own sales risk • Image transfer (from brand leader towards intermediary) • Limitation of own consulting activities by sales staff • Orientation guide and facilitation for information reception and processing • Signal of quality and reduction of risk • Communication of an experience value • Self-expression (of individual taste, group membership or social status) (Source: Homburg/Krohmer, Marketingmanagement, 2003, p. 517) Brand functions out of different perspectives
  29. 29. page 29 Challenges for brand management Market / Competition  International market  Deregulated national markets  New competitors  Concentration (M&A) Trade  Increasing emancipation and power of the retailer  New management concepts  Increasing importance of retailer brands Product  Product inflation  Reduction of product life cycle  Equality of brands  Increasing flop rates Consumer  Changed consumer needs  Variety seeking  Fragmentation of target groups  Stimulus satiation  Individualization Communication  New information- and communication technologies  Declining efficiency of communication Brand  Increasing costs of brand management  Undifferentiated brand profiles Brand erosion Brand value Business success - - (Source: Esch, F.R. / Wicke, A. (2002): Herausforderungen und Aufgaben des Markenmanagements, in: Esch, F.R. (Ed.): Moderne Markenführung, 3. edition, Wiesbaden, p. 3-60)
  30. 30. page 30 Outline 1. Definition of branding 2. Brands 2.1 Importance 2.2 Classification 2.3 Functions 3. Instruments of the WEB 2.0 4. Brand communities
  31. 31. page 31 Instruments of the Web 2.0 Source: IMG (2006) Blogs Peer-to-Peer Podcasts Avatars IP TV Online advertising Ad games Auctions
  32. 32. page 32 Online advertising has high growth rates 1. Classic online advertising  Branding orientated or transaction orientated  Banner, e-mail advertising, layer ads… 2. Key word advertising  Transaction orientated advertising  Context relevant insertion of advertising links depending on the entered search term (e.g. on Google) 3. Affiliate advertising  Mutual placement of advertising and accordingly advertising links in a partnership of websites Source: OVK (2009) OVK advertising statistic 2007 and 2008 with forecast for 2009 in mill. Euro by segments 2007 2008 Forecast 2009 Affiliate networks Key word advertising Classic online advertising Online advertising is …advertisement, which is communicated in different ways over the medium Internet.
  33. 33. page 33 How key word advertising works Source: Google (2006); IMG (2006) Key word advertising  Enter search term on Google  Display of specific search results  Display of advertising links dependent on entered key word in the beginning (context relevant advertising) Implications  Sales management  Stronger perception of advertisement due to higher relevance Ordinary search results Key word Context relevant advertisement
  34. 34. page 34 Google  Google is No. 1 search engine in Germany with more than 17 mill. users.  Google is the fifth largest homepage worldwide.  In Germany, 87,1% of the Internet traffic, which is generated by search engines, is induced by Google.  Google is provided in 124 languages.  In 2008 Google launched its own Browser (Chrome) and gained a total revenue of 22.5 bill. USD. Search Engines Development of market shares
  35. 35. page 35  Google Maps / Street View: since 2008 Google is taking pictures of German neighborhoods Google tools and services  Google Books: Google’s newest project contains the scanning of about a million non- protected books, in order to provide them online.
  36. 36. page 36 Three ways Google is earning money with 1.) Key word advertising 3.) License model: Like in case of software, buyers of the license are paying Google for the right to merchandise Google’s know how on their own web pages. 2.) Paid placement: The one who pays most, will be listed on top.
  37. 37. page 37 Instruments of the Web 2.0 Source: IMG (2006) Online advertising Blogs Peer-to-peer Podcasts IP TV Avatars Ad games Auctions
  38. 38. page 38 Avatars Avatar describes…  …an artificial person or a graphic representative of a real person in the Internet.  Avatars may be displayed in form of a picture, icon or as 3D figure of a human. Impact of avatars  Avatars possess a higher influence on the user, if the similarity compared to the own character is perceived as higher. Source: Bauer et al. (2005)
  39. 39. page 39 Avatars interact with customers:  adaption to the consumer in appearance and behavior  giving product recommendations  answering questions concerning particular products and utilization Source: IMG (2006) Benefits (1) Generation of user related data (2) Acceptance testing of new products (3) Trend analysis (4) Gaining of new customers (5) Commitment of existing customers Avatars as sales representatives for brands
  40. 40. page 40 Instruments of the Web 2.0 Source: IMG (2006) Online advertising Blogs Peer-to-peer Avatars IP TV Podcasts Ad games Auctions
  41. 41. page 41 Benefits (1) Innovative approach to address special interest consumers and experts (retailer, press, etc.) (2) Gaining of new customers (3) Retention of existing customers Podcasts Podcasts… Source: IMG (2006) upload download • Staff members • Private persons • Press …are available online as video or audio clips …consist of reports of relevant topics in society (e.g. business, lifestyle, entertainment or food) • Staff members • Private persons • Press
  42. 42. page 42 Instruments of the Web 2.0 Source: IMG (2006) Online advertising Peer-to-peer Podcasts Avatars IP TV Blogs Ad games Auctions
  43. 43. page 43 Blogs Blogs are…  … websites, which contain periodically new entries.  Most of them are published by private persons  and serve the exchange of opinions of users among each other. Implications:  Topics primarily discussed in blogs are taken over from the established press in the meantime.  Blogs are accepted as opinion leader.
  44. 44. page 44 Benefits (1) Trend analysis (2) Monitoring of product acceptance (3) Active complaint management (4) Retention of existing customers (5) Gaining of new customers Blogs enhance interaction with the brand Possible areas of application  Managers (executive board, directors, etc.) are telling about job, highlights or private belongings  Feedback and discussions of employees in the management blog Source: IMG (2006)  Public forums about topics like work, living, food or brand relevant areas of life  Assistance from mentor of the enterprise  Blogs for daily exchange of ideas and solutions concerning important topics among brand products (B2B and B2C)  Exchange of tips, tricks and recommendations of utilization between consumers  Individual consulting from experts of the company
  45. 45. page 45 Case study: Dell Computer - Blogging 21thof June  First post from Jeff Jarvis 26th of June  Jarvis considers to switch from Dell to Apple 30th of June – 1st of July  Top blogger Scoble, Calacanis, Rubel and Silverman are following 1st of July  „Blog Business Summit“ concludes, that Dell interpreted the blog entries falsely  Jarvis gets ranked on 5th place at Google for “Dell sucks“ 8th of July  Dell reports troubles with closing down customer forums 17th of August  Jarvis writes an open letter to Michael Dell 23th of August  Dell changes its blog policy “Look & don‘t touch“ – Consumer service is now scanning blogs 25th of August  Jarvis locates his story in BusinessWeek online. He receives emails from Dell’s PR manager 27th of August  Jarvis locates his story in the printed edition of BusinessWeek 29th of August  Jarvis receives a warm but peremptory call of the Dell PR manager
  46. 46. page 46 Case study: Development of Dell‘s stock price First post from Jarvis Top blogger are following Jarvis’ page gets ranked on 5th place for “Dell sucks“ Dell closes down customer forums Dell changes blog policy Jarvis is attacked from PR Last Dell post Story appears in BusinessWeek online Jarvis’ open letter to Michael Dell Dell publishes quarterly figures
  47. 47. page 47 Instruments of the Web 2.0 Source: IMG (2006) Online advertising Blogs Peer-to-peer Podcasts Avatars IP TV Auctions Ad games
  48. 48. page 48 Online Auctions Auctions Demand  Private persons  Registered retailer  Registered reseller Offerings  Special offers or new developments  Limited products with special design  Private products Source: IMG (2006) Auctions Benefits (1) Gaining new customers (2) Market research instrument for early detection of new trends (3) Testing new products (4) Testing market related willingness to pay
  49. 49. page 49 Instruments of the Web 2.0 Source: IMG (2006) Online advertising Blogs Peer-to-peer Auctions Podcasts Avatars Ad games IP TV
  50. 50. page 50 Ad games… Ad-Games  …are games, which serve advertising in an entertaining way (advertainment / in-game advertising) and contain advertising banner or products.  …are also used by non-commercial enterprises and institutions to communicate their message.  …posses a great significance for young customers, since long-lasting relationships with brands are often initiated under 17 years.  …on gateways are good opportunities to address young and fashion-conscious recipients. iPhone Game Volkswagen Scirocco R 24H Challenge
  51. 51. page 51 Moorhuhn Ad games - Examples Source: Institut für angewandte Kommunikationsforschung (2002) Benefits (1) Consumers are engaged voluntarily and in an active way with brand or product (2) Avoid advertising reactance (3) Brand management (linkage of brand with entertainment) (4) Gaining of new customers (5) Customer retention “While almost 90 percent of all test persons regard TV-spots as disturbing, advertising in ad games is appreciated from more than 50 percent.” Created 1999 by Phenomedia as ad game for the Scottish whiskey brand Johnnie Walker
  52. 52. page 52 Instruments of the Web 2.0 Source: IMG (2006) Online advertising Blogs Peer-to-peer Podcasts Avatars IP TV Ad games Auctions
  53. 53. page 53 Internet Protocol TV (IP TV)…  …describes the digital transmission of television programs and movies.  …is only receivable via broadband connection.  …is used for:  Broadcast TV (reception of multicast video streams, also referred to as live TV).  Video on demand (virtual video shop).  Internet TV (playback of video streams). Source: IMG 2006 IP TV (1) Innovative approach to address special interest consumers and experts (retailer, press, etc.) (2) Increases the significance of brand relevant areas of life by placement of channels or programs about lifestyle topics (3) Customer retention and gaining of new customers Benefits
  54. 54. page 54 Economic significance of IP TV Source: Goldmedia (2006) Study of Goldmedia (2010):  More than 3.8 mill. households will use IPTV in Germany until 2014  Utilization of video on demand enables (via the feedback channel Internet) various interactive services like shopping or online auctions on the TV screen
  55. 55. page 55 Instruments of the Web 2.0 Source: IMG (2006) Online advertising Blogs Podcasts Avatars IP TV Peer-to-peer Ad games Auctions
  56. 56. page 56 Peer-to-peer (P2P) P2P is the decentralized diffusion of all types of files  Describes the communication among equals.  Within a P2P network all computers are equal.  No central database (every peer makes a part of the existing information available).  No peer administrates (or knows) the total stock.  Peers are autonomous.  No central entity, which is navigating or coordinating interactions.  Peers, connections and information are not reliable. Peer Peer Peer Peer Due to the lack of controllability, an implementation of the P2P technology for objects of an enterprise seems not to lead to success. No controlling entity
  57. 57. page 57 Example - simfy Source: (2009) Simfy in facts and figures MEDIA DATAFORMATS & PRICES OFFERING PACKAGES Display, audio, video-ads – right format for everyone Reach exactly your target group Advertising packages – matched with your needs Discover our special forms of advertising Marketing / commercialization options Music creates a lucrative advertising environment and as the number of users increases, advertising gets more and more profitable (see facebook / StudiVZ) What is simfy? • simfy gives you the possibility to share your music with your friends, legally and without having any bad conscience • simfy is your music stored at one place and available from everywhere
  58. 58. page 58 Outline 1. Definition of branding 2. Brands 2.1 Importance 2.2 Classification 2.3 Functions 3. Instruments of the WEB 2.0 4. Brand communities
  59. 59. page 59 What is the difference between these two products? The social cover! quality, technique, design?
  60. 60. page 60 History of communities Source: University of St. Gallen (2006) Functionalization “society" Individualization "Cocooning" Traditional communities New forms of communities e.g. family, clans, village communities, cliques, churchly communities  Common origin (geographic or relatedness)  Strong relationship  Shared identity  Reciprocity  Trust  Community as value e.g. contract orientated groups, transaction communities  Weak relationships  Functional interests  Commercialization  Transaction orientation  Information procurement e.g. singles, dropouts, big city residents  Release of the ties of traditional communities  Individual freedom  Self-actualization  Search for identity  Enjoyment orientation and hedonism e.g. virtual communities, consumption communities, Brand Communities  Physical adjacency no longer required (“global village“)  Identification via shared interests, values or ideals Values decisive Functional needs decisive Individual needs decisive Symbolic consumption decisive
  61. 61. page 61 From core product towards social experience (1/2) Source: University of St. Gallen (2006) Social interaction Emotional experience Added value Core product Needs Control conception Individual as part of a social network (e.g. brand community) Social orientation Art, lifestyle Brand orientation Hotline, 24-hours service Consumer orientation Attractive, quality products for affordable prices Product orientation  Consumption became a social act of symbolic self-expression  The brand is the connector of social interactions in this process
  62. 62. page 62 Core product Added value Emotional experience Social experience I revive your spirits! I am practical! I make you stylish! We are friends! From core product towards social experience (2/2)  Social reasons for buying: The brand creates a new social standing / contacts for the consumer  Customer value: Contribution to shaping of identity, group experiences and encounter platform  Consequence: Affective brand loyalty (emotions, love relationship)
  63. 63. page 63  Uniting fans, admirers and customers with basic interest of the brand  Members represent strong market for license products and brand extensions  Members are also willing to invest in shares of the enterprise Compare & compete:  Save your runs and plot your results  Discuss new tips and training tools  Share your playlists & powersongs  Join events like city marathons  Music & Entertainment  Online Games  Events  Social interaction  Based on interests  Not bound to time and place  Allow consumers a bigger influence on brand design Brand communities and their characteristics (1/3)
  64. 64. page 64  “We” feeling & social identity  Environment with high identification potential  Presence of shared rituals and traditions (allow to continue certain history or culture)  Members operate as “brand missionaries”, who carry brand message to other communities Members are motivated to give feedback to company  Online and / or offline Brand communities and their characteristics (2/3)  Hosting or joining a home party  Join an online party
  65. 65. page 65  Members are more likely to forgive product imperfection or a lack of service quality  Members are less willed to switch brand, even if products of competitive brands provide better performance characteristics Providing: blogs, forums, events, downloads, network gaming, etc. Sony‘s Playstation / Nintendo‘s Wii  A sense of moral responsibility (towards community and other members)  Members represent a valuable source of information for brand relevant topics Brand communities and their characteristics (3/3) MTV community contains areas like: multiplayer games, blogs, contests, events or activism
  66. 66. page 66 AttractionValidationDeepeningIntegrationAttraction Pleasant anticipationAffirmationChallengeExcitementWord of mouth  Chapter information  Direct mailing  Word of mouth  Arrival in groups  Welcome event  Passports  T-shirts  Story nights  Daily challenges  Oath  Certificates  Honors  Farewell event  Chapter activities  Story telling Meet & Greet in Paris  Community formation process: The aim of these activities is to develop long-term relationships between the customers and towards the brand.  Role of the company: Enabler, not in the centre of interest (fascination), concentration on customer interaction, detailed planning of the event.  Problem: Relationships are breaking after an event Example: Harley Davidson Relevance of events for community building: European Posse Ride
  67. 67. page 67 Brands will clearly benefit from brand communities Source: University of St. Gallen & University of Mannheim (2006) 2. Exchange of ideas and information with other consumers (via brand communities) is leading to higher brand attraction. 4. The communication between consumers in brand communities has a significant impact on brand choice. 1. The brand is benefiting from the interaction with consumers. 3. Consumers are voluntarily engaged with brands and are thereby encouraging the exchange of information between company and consumers. 0% 100% 0% 100% 0% 100% 0% 100% 100% 90.9% 87% 81.8% Affirmation from marketing experts (in %)Thesis concerning brand communities Delphi study „Interactive Marketing 2020“
  68. 68. page 68 Economic relevance of community marketing Brand loyalty has a rational and a social component  Functional and social aspects are in principle equally weighted components  Only community marketing not enough!  Social aspects of consumption (customer involvement) have the biggest impact on the willingness of recommendation for a brand Community marketing is cash-relevant:  The combination of product quality and social cover is encouraging the frequency of purchase and is resulting in a higher willingness to pay Building up differentiation potentials via community value:  Social criteria are less replaceable than service components 0,39 0,19 0,17 0,59 0,69 0,610,61 Brand Loyalty (Word of Mouth) Product Quality Community Quality Customer Involvement Trust Satisfaction Social arguments for purchasing Functional arguments for purchasing Source: Herrmann / Löwenfeld, 2004 Customer involvement Trust Satisfaction Community quality Product quality Brand loyalty (WoM) Bottom line: Social arguments for purchasing (via brand community) have same impact as functional arguments, for creation of brand loyalty