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Social Media - online communities

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  • 1. EXPLORING THE INFORMATIONAL AND SOCIAL VALUES OF ONLINE COMMUNITIES Michael Ling PhD Candidate at UNSW 8 June 2010 1 Prepared by Michael Ling
  • 2. WHAT WAS YOUR QUESTION? 2 Prepared by Michael Ling
  • 3. 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). 3 Prepared by Michael Ling
  • 4. 4 Prepared by Michael Ling
  • 5. 5 Prepared by Michael Ling
  • 6. Brand Communities • "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)  From a „customer-brand‟ dyad Brand Firm into a „customer-customer- brand‟ triad (Muniz & O’Guinn, Focal 2001). Customer  From a „customer-customer- brand‟ into a „customer-centric’ Customer Product view (McAlexander et al, 2002). Customer-centric Model of Brand Community (McAlexander et al., 2002) • “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). 6 Prepared by Michael Ling
  • 7. Research Objectives • The phenomenon under study is the increasing importance of „customer-to-customer‟ interactions on an individual customer‟s intentions to participate in an online brand community. • The unit of analysis is an individual customer who is a participant of an online brand community. • To develop a „customer-to-customer‟ interactions model that examines its impact on an individual customer‟s behavior in an online brand community. 7 Prepared by Michael Ling
  • 8. 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). 8 Prepared by Michael Ling
  • 9. C2C Know-how Exchange Model (Gruen et al., 2005)  Gruen et al.‟s model is based on the MOA model developed by MacInnis and Jaworski (1989). Ability H1c  Explore factors that affect “the degree to which H2a,b C-to-C Loyalty H1a Know-how H4 Intentions customers enter into and engage in know-how Motivation H2a,b Exchange exchanges with other customers.” H1b Opportunity H3a  The MOA variables will operate in an additive or a compensatory manner only if each variable has achieved its minimum threshold and certain H3b Overall Value of H5 conditions are met. the Firm‟s Offering  Motivation is the primary factor; Opportunity and Ability will influence the effect of motivation. 9 Prepared by Michael Ling
  • 10. 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). • 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) • 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). 10 Prepared by Michael Ling
  • 11. Motivation 11 Prepared by Michael Ling
  • 12. 12 Prepared by Michael Ling
  • 13. Informational and Social Benefits • To access information Furlong, 1981; Wellman et al., 1996; Hagel & Armstrong, 1997. • Member generated Hagel & Armstrong, 1997. content Information Benefits • Knowledge & Hiltz & Wellman, 1997; Rheingold, 1993; Sproull information are a & Faraj, 1997. valuable resource • Use of “weak ties” Constant, Sproull & Kiesler, 1996. to information • Social Support Thoits, 1982 • Sense of belonging Watson & Johnson, 1972. & affiliation • Self-identity Hogg, 1996, Social Benefits • Emotional Support, Furlong, 1989; Hiltz, 1984; Hiltz & Wellman, 1997; sense of belonging, Korenman & Whatt, 1996; Wellman, 1996; Wellman encouragement, & Gulia, 1999. companionship, reciprocity • Enjoyment & Holbrook, 2006; Sicilia & Palazon, 2008 entertaining 13 Prepared by Michael Ling
  • 14. 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). 14 Prepared by Michael Ling
  • 15. Overall Value  Emotional Support Overall Benefits  Social Support  Sense of Belonging  Encouragement  Information Sacrifices 15 Prepared by Michael Ling
  • 16. THE END. THANK YOU 16 Prepared by Michael Ling