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“Assessing the Value of Facebook Fan Pages and its Impact on Facebook Users’ Behaviors toward Movie Consumption”

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Facebook and the Cinema_Full report

  1. 1. Facebook and the Cinema: Lille, France July 4, 2013 Assessing the Value of Facebook Fan Pages and its Impact on Facebook Users' Behaviors toward Movie Consumption ---------------------------------- Master Thesis By Florence Poirel Academic Advisors Dr. Carlos Rodriguez, Delaware State University, USA Dr. Constantinos Coursaris, Michigan State University, USA
  2. 2. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 2 Facebook and the Cinema: Lille, France July 4, 2013 "The characteristics of all successful communities: broadly shared, accessible set of opportunities, a shared sense of responsibility for the success of the common enterprise, and a genuine sense of belonging." Bill Clinton, 2007 Academic Advisors Dr. Carlos Rodriguez, Delaware State University, USA Dr. Constantinos Coursaris, Michigan State University, USA Assessing the Value of Facebook Fan Pages and its Impact on Facebook Users' Behaviors toward Movie Consumption --------------------------- Master Thesis By Florence Poirel
  3. 3. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 3 Acknowledgements First, I sincerely thank my thesis director, Dr. Carlos M. Rodriguez, for his time, great support, and guidance. Professor Rodriguez always pushed me to do my best and carry on with my work. I truly appreciated his supervision, and it was a real honor to work with him. I would also like to thank my co-director, Dr. Constantinos K. Coursaris, for inspiring me and leading me on the subject of Social Media. I am grateful for his time, assistance, and many advices. Then, I wish to express my greatest gratitude to David Schlosser, free-lance writer and friend, for his help, unlimited support, and great suggestions all along the project. I also thank Diane St John, communication strategic and friend, for her kind encouragements. I may not have been able to carry on without their back-up. I am highly thankful for my family and friends' patience and help. They may never look at a Facebook Fan page the same way anymore! And many thanks to my sister who supported me until the last minute. Finally, but not the least, I am more than grateful to the people who participated in the survey and collaborated in the elaboration of my paper. This research would not have been possible without them.
  4. 4. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 4 Abstract Research Title: "Facebook and the Cinema" Research Purpose: "Assessing the Value of Facebook Fan Pages and its Impact on Facebook Users' Behaviors toward Movie Consumption" Research Question: What is the impact of Facebook Fan pages on Facebook users' attitudes and behaviors toward movies and their related consumption? And how can companies drive consumers to legally consume their movies? Research Methodology: Using an inductive approach, constructs were identified from a comprehensive literature review and data was collected from survey questionnaires administrated to students (N=200). A model was proposed from the combination of the Technology Acceptance Model and Theory of Planned Behavior. Research Findings_ Simple regressions showed that all the hypotheses are accepted: the perceived value of the Facebook fan page, the attitude toward behavior, perceived pressure, and perceived risk help explaining the formation of the behavioral intention. However, only the perceived value of the Facebook fan page and the perceived risk actually predict the formation of the users' intention to behave. Research Limitations_ The study evaluated self-reported behavioral intentions and could therefore have introduced inaccuracies. Moreover, the list of proposed solutions is not exhaustive, and further research can be needed. Practical Implications_ Findings will help movie marketers to address the key aspects which influence consumers' behavioral intentions toward movies and their related consumption. Solutions were proposed to increase the value of the Facebook page while reducing 'risk' messages. Originality_ This research is unique in the sense that the theory of Planned Behavior and the Technology Acceptance model have never been tested jointly in the context of Facebook Fan pages as the technology and the cinema industry as the market. Research Author_ Florence Poirel, MSc research student at IESEG, International Business School in Lille, France Research Advisors_ This Research Paper was written in collaboration with Professor Carlos Rodriguez (Associate Professor of Marketing at the Delaware State University, USA) and Doctor Constantinos Coursaris (Assistant Professor at the Michigan State University, USA)1 . Key Words_ Facebook Fan Page, Facebook users, Movie consumption, Cinema industry, behavioral intentions, attitudes toward movie consumption. Paper Type_ Research Paper: Master Thesis 1 Full description Appendices 1 and 2
  5. 5. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 5 Brief Contents Acknowledgements................................................................................................................... 3 Abstract..................................................................................................................................... 4 Brief Contents........................................................................................................................... 5 Table of Contents ..................................................................................................................... 6 1. Introduction..................................................................................................................... 10 1. 1. Research Problem Statement.................................................................................................10 1. 2. Research Purpose ...................................................................................................................12 1. 3. Research Questions ................................................................................................................13 2. Literature Review ........................................................................................................... 14 2. 1. Conceptual Background.........................................................................................................14 2. 3. Theoretical Models ................................................................................................................46 3. Methodology .................................................................................................................... 52 3. 1. Research Design......................................................................................................................52 3. 2. Theoretical Framework .........................................................................................................56 3. 3. Data Collection and Analysis.................................................................................................63 3. 4. Limitations..............................................................................................................................70 4. Findings............................................................................................................................ 72 4. 1. Data Analysis ..........................................................................................................................72 4. 2. Limitations..............................................................................................................................90 5. Discussion and Contribution............................................................................................. 91 5. 1. Discussion................................................................................................................................91 5. 2. Contribution ...........................................................................................................................93 6. Recommendations for further research ........................................................................... 98 7. Conclusion........................................................................................................................... 99 Bibliography ......................................................................................................................... 101 Table of Appendices............................................................................................................. 114 Table of Figures.................................................................................................................... 184 Table of Tables ..................................................................................................................... 185
  6. 6. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 6 Table of Contents Acknowledgements................................................................................................................... 3 Abstract..................................................................................................................................... 4 Brief Contents........................................................................................................................... 5 Table of Contents ..................................................................................................................... 6 1. Introduction..................................................................................................................... 10 1. 1. Research Problem Statement ....................................................................................................10 1. 2. Research Purpose .....................................................................................................................12 1. 3. Research Questions ..................................................................................................................13 1. 3. 1. Research Question ............................................................................................................13 1. 3. 2. Sub-questions ...................................................................................................................13 2. Literature Review ........................................................................................................... 14 2. 1. Conceptual Background ...........................................................................................................14 2. 1. 1. The Cinema Industry and its Challenges ..........................................................................15 2. 1. 1. 1. Definitions ................................................................................................................15 2. 1. 1. 1. 1. The Movie Customer and Consumer ................................................................15 2. 1. 1. 1. 2. The Facebook User and Fan..............................................................................16 2. 1. 1. 1. 3. The Facebook Fan Page and News Feed...........................................................16 2. 1. 1. 2. New Substitutive Options .........................................................................................17 2. 1. 1. 2. 1. Market figures...................................................................................................17 2. 1. 1. 2. 2. Alternative Consumption Means.......................................................................18 2. 1. 1. 2. 3. A so-called 'Good Fight' ...................................................................................18 2. 1. 1. 2. 4. A Strong Industry..............................................................................................19 2. 1. 1. 3. New Consuming Behaviors ......................................................................................20 2. 1. 1. 3. 1. Piracy in Emerging Countries ...........................................................................20 2. 1. 1. 3. 2. Movie-Watcher Attitude ...................................................................................20 2. 1. 2. Social Media: a new marketing environment....................................................................21 2. 1. 2. 1. A Changing Marketing Environment........................................................................22 2. 1. 2. 1. 1. A new experience..............................................................................................22 2. 1. 2. 1. 2. What are Social Media? ....................................................................................22 2. 1. 2. 2. Power to the User .....................................................................................................23 2. 1. 2. 2. 1. From Media to Social Media.............................................................................24
  7. 7. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 7 2. 1. 2. 2. 2. A Complex Environment ..................................................................................24 2. 1. 2. 2. 3. User-Generated Content....................................................................................24 2. 1. 2. 2. 4. E-Socializing.....................................................................................................25 2. 1. 2. 2. 5. Community Building ........................................................................................25 2. 1. 2. 3. Opportunities for Brands ..........................................................................................26 2. 1. 2. 3. 1. A New 'Business' Definition .............................................................................26 2. 1. 2. 3. 3. Listening, Interacting and Engaging .................................................................27 2. 1. 2. 3. 4. Building strong relationships ............................................................................27 2. 1. 2. 3. 5. Impact on the Purchase Decision Process .........................................................28 2. 1. 2. 3. 6. Opportunities and Risks....................................................................................28 2. 1. 2. 3. 7. Reputational Risk..............................................................................................29 2. 1. 3. Facebook: a new marketing tool.......................................................................................30 2. 1. 3. 1. Facebook as a social vehicle .....................................................................................30 2. 1. 3. 1. 1. What is Facebook?............................................................................................30 2. 1. 3. 1. 2. Why is it pertinent for businesses?....................................................................31 2. 1. 3. 1. 3. Consumer attitude and behavior........................................................................33 2. 1. 3. 2. Facebook as a brand image carrier............................................................................34 2. 1. 3. 2. 1. Facebook Fan Pages..........................................................................................34 2. 1. 3. 2. 2. The Value of Likes ...........................................................................................36 2. 1. 3. 2. 3. Opportunities for Brands...................................................................................37 2. 1. 3. 2. 4. Values and Factors Recap .................................................................................39 2. 1. 4. From Visitors to Customers, a Problem of Conversion ....................................................40 2. 1. 4. 1. Once upon a time on a Facebook Fan Page...............................................................40 2. 1. 4. 2. Conversion Factors ...................................................................................................41 2. 1. 4. 3. New Initiatives..........................................................................................................41 2. 1. 4. 3. 1. Welcoming page and other fast applications.....................................................41 2. 1. 4. 3. 2. Integrated Tweets..............................................................................................42 2. 1. 4. 3. 3. Guest Books......................................................................................................43 2. 1. 4. 3. 4. Soundtrack........................................................................................................43 2. 1. 4. 3. 6. "Win Big" .........................................................................................................43 2. 1. 4. 3. 7. "Buy Now"........................................................................................................44 2. 1. 5. Limitations of the Conceptual Background ......................................................................45 2. 3. Theoretical Models...................................................................................................... 46 2. 3. 1. Technology Acceptance Model ........................................................................................46 2. 3. 1. 1. Perceived Ease of Use and Usefulness......................................................................46
  8. 8. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 8 2. 3. 1. 2. Implications with Social Media ................................................................................47 2. 3. 2. Theory of Planned Behavior.............................................................................................48 2. 3. 2. 1. Attitude Toward Behavior ........................................................................................49 2. 3. 2. 2. Subjective Norms .....................................................................................................49 2. 3. 2. 3. Perceived Behavioral Control ...................................................................................50 2. 3. 2. 4. Intention To Behave .................................................................................................50 2. 3. 2. 5. Behavior ...................................................................................................................50 2. 3. 2. 6. Implications with Social Media ................................................................................50 3. Methodology .................................................................................................................... 52 3. 1. Research Design.......................................................................................................................52 3. 1. 1. Vision...............................................................................................................................52 3. 1. 2. Qualitative Study..............................................................................................................54 3. 1. 2. 1. Nature of Data ..........................................................................................................54 3. 1. 2. 2. Population and Environment.....................................................................................54 3. 1. 2. 3. Initial Interviews.......................................................................................................54 3. 2. Theoretical Framework ............................................................................................................56 3. 2. 1. Conceptual Model ............................................................................................................56 3. 2. 2. Theory of Planned Behavior in the context of Facebook ..................................................61 3. 2. 3. Hypotheses .......................................................................................................................61 3. 3. Data Collection and Analysis ...................................................................................................63 3. 3. 1. Tool..................................................................................................................................63 3. 3. 2. Population.........................................................................................................................63 3. 3. 3. Questions..........................................................................................................................64 3. 3. 4. Decision Rules..................................................................................................................64 3. 4. Limitations ...............................................................................................................................70 3. 4. 1. Time Horizons..................................................................................................................70 3. 4. 2. Reliability and Validity.....................................................................................................70 3. 4. 3. Assumptions .....................................................................................................................71 4. Findings............................................................................................................................ 72 4. 1. Data Analysis ...........................................................................................................................72 4. 1. 1. Descriptive Analysis.........................................................................................................72 4. 1. 2. Statistical Analysis ...........................................................................................................74 4. 2. Limitations ...............................................................................................................................90 5. Discussion and Contribution............................................................................................. 91
  9. 9. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 9 5. 1. Discussion ................................................................................................................................91 5. 2. Contribution .............................................................................................................................93 5. 2. 1. Managerial Implications ...................................................................................................93 5. 2. 1. 1. Back to the beginning ...............................................................................................93 5. 2. 1. 2. New Investments ......................................................................................................93 5. 2. 2. Practical Implications .......................................................................................................94 5. 2. 2. 1. Welcome visitors ......................................................................................................94 5. 2. 2. 2. Re-Create the movie universe...................................................................................95 5. 2. 2. 3. Engage in the conversation .......................................................................................95 5. 2. 2. 4. Get visitors involved.................................................................................................95 5. 2. 2. 5. Awake fans' senses ...................................................................................................95 5. 2. 2. 6. Entertain fans............................................................................................................96 5. 2. 2. 7. Offer fans coupons and discounts .............................................................................96 5. 2. 2. 8. Take advantage of Facebook credits .........................................................................96 5. 2. 2. 9. Be there where and when consumers want it ............................................................97 6. Recommendations for further research ........................................................................... 98 7. Conclusion........................................................................................................................... 99 Bibliography ......................................................................................................................... 101 Table of Appendices............................................................................................................. 114 Appendix 1: Presentation of the thesis director: Dr. Carlos M. Rodriguez ....................................................... 115 Appendix 2: Presentation of the thesis co-director: Dr. Constantinos K. Coursaris .......................................... 117 Appendix 3: Choice of Bill Clinton's quote ..................................................................................................... 119 Appendix 4: Analysis of Overall Model of Standardized Coefficients ............................................................. 120 Appendix 5a: In-depth interview 1: J., 35 year-old male engineer ................................................................... 121 Appendix 5b: In-depth interview 2: A.C., 23 year-old female business student................................................ 125 Appendix 5c: In-depth interview 3: C., 23 year-old nurse................................................................................ 130 Appendix 6a: Pilot questionnaire 1: C., 19 year-old female law student........................................................... 133 Appendix 6b: Pilot questionnaire 2: D., 42-year old male writer...................................................................... 140 Appendix 6c: Pilot questionnaire 3: P.Y., 24 year-old unemployed (new graduate). ........................................ 145 Appendix 6d: Pilot questionnaire 4: H., 19 year-old art student....................................................................... 151 Appendix 6e: Pilot questionnaire 5: T., 29 year-old technician........................................................................ 156 Appendix 7: Internet-based questionnaire: Facebook and Movie Research...................................................... 161 Table of Figures.................................................................................................................... 184 Table of Tables ..................................................................................................................... 185
  10. 10. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 10 1.Introduction (Bill Clinton, TED2007)2 1. 1. Research Problem Statement The Society of Digital Agencies reported in the 2010 Digital Marketing Outlook that "social network-related marketing" is the 2010-2012 first concern amidst senior marketing executives. It is even considered as more important than email and mobile marketing, search optimization and other digital marketing campaigns. Social Media is a very young phenomenon in terms of tools for marketing but it started back in the 80's with the apparition and proliferation of tchats, forums, and blogs3 . People were able to share files, links, but more importantly ideas. Back in the 80's, marketers were not really concerned with social media as generally only technology-oriented people (and accordingly early adopters) were using Social Media. They thought that this population did not represent a big enough target to be considered. Since the early 2000, several social media have emerged and gained popularity, and the traditional mass marketing model is highly challenged. Now that the main social networks (Facebook, Twitter and Linkedin) count more users than the population4 of most countries (Facebook: 800 million active users, Twitter: over 100 million, Linkedin: over 135 million5 ), social media is seen as an entire component of modern society. Not only early adopters utilize these networks but a wide range of the global population: men and women from 18 (legal minimum age for most of social networks) do. Buchwalter (2009) added that social media were flourishing among customer and professional communities and that online access was now a necessity. According to a study by Richard K. Miller & Associates (2011 p. 393), "social networking now accounts for 11% of all time spent online in the U.S". Social Networks are therefore platforms marketers cannot neglect anymore. As Marketing formerly wanted to create trends, they are now forced to follow one. 2 See Appendix 3 3 (Chapman, 2009) 4 Source: http://www.populationdata.net/ 5 Source: http://facebook.com/press/info.php?statistics/, (Kiser, 2010), http://press.linkedin.com/about/ "The characteristics of all successful communities: broadly shared, accessible set of opportunities, a shared sense of responsibility for the success of the common enterprise, and a genuine sense of belonging."
  11. 11. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 11 Social networking is one of the largest actual trends and Facebook is one of its stages. 'Brands can take directions in social media today that would have been unlikely if not impossible five years ago' (Mignon, et al., 2011 p. 21). Before Facebook, consumers had an indirect relationship with brands: they bought products from retailers and saw advertisement on billboards or television. Earlier in Marketing via Facebook, companies did not have a big presence on the platform. Most of the time, firms' pages displayed basic information, but nothing more sophisticated. Today's Marketing is much more elaborated. Facebook is now a platform to promote the product (or service), connect with fans, and propose deeper interaction with the targeted audience. The relationship with consumers/fans is direct and more and more firms use Social Media specific messages to get their clients involved online: "Like us on Facebook", "Follow us on Twitter", "Subscribe on YouTube", or "Connect with us on LinkedIn". Companies interact with their audience on this interface and engage fans in the discussion. Interaction and Engagement are two very important dimensions but they are not sufficient to fulfill firms' sales objectives. People are more and more willing to support the brands they respect and like; Facebook users "like" firms and brands' pages, whether they consume it or not, whether they buy it or not. For instance, 4,889,2876 people like the Facebook page of Dior, but not all of these 4,889,287 individuals actually purchase Dior products. Some of them may like the page because they like the brand even though they cannot afford to consume it. Interested in the Cinema industry, I decided to link the two topics: Facebook as a social networking platform and marketing tool, and movies as the products. The first difference between movies and Dior products is that people can afford theater tickets or DVDs when they may never afford Dior bags or perfumes. But the Cinema industry suffers from a structural transformation into the so-called Video-on-Demand industry, or VOD market, with the increase of movie streaming and downloading. Some firms found the door to enter that market while providing charged services. Netflix, for instance, a movie rental service, is the largest legal online films provider in the world with more than 6.3 million subscribers and a compilation of over 75,000 movies (Chiu, et al., 2007). But Video Streaming is most often an illegal activity facilitated by the numerous new tools available online. Both Facebook and Video Streaming are online tools and activities. I am now interested in exploring how Facebook can help movie producers and marketers to survive within this growing fierce market. 6 Statistics on Dior's Facebook page, 6th September 2011.
  12. 12. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 12 1. 2. Research Purpose Facebook is a platform 'to promote the product (or service), connect with fans, and propose deeper interaction with the targeted audience'7 . Getting fans is already part of the brands goals: they want ‘more’ fans now. Getting them engaged is already one of their realizations: customers comment, respond, ask questions, etc. Social networks are useful tools for brands to connect with customers, interact with them and engage them into discussions. Followers, fans and contacts can be great ambassadors of brands as long as the firms are willing to build relationships based on transparency and trust. Today's Marketing is much more elaborated. The literature lacks of information regarding Facebook users' attitudes and behaviors toward movies. This paper studies the behavior of Facebook users toward movies. The advantage of this product selection is that I consider movies as being “affordable” and “easily accessible” goods. Moreover, the Facebook Fan pages of movies are studied as the marketing tool as they are an interface between the Facebook user (and potential customer) and the movie. Therefore, the study concentrates on the Facebook Fan Page as the technology, the Facebook users as the population, the movies as the products, the movie consumption as the behavior, and the visit on the Fan page as the situation. The 'brands' refers to the Movie agencies, Movie studios and producers, and movie marketing companies or any firm that works on behalf of these movies. The ultimate purpose of my research is to assess the impact of the Facebook Movie Fan Page in influencing Facebook users' attitudes and behaviors toward movie consumption. It is also to understand the users' decision making process that takes place from the movie awareness on the Facebook page to the movie consumption, and how the behavior of the Facebook users toward a movie can be influenced by marketers via the related Facebook Movie Fan Page. The final goal, and contribution for marketers, is to determine how to drive Facebook users into legally consuming the movies by delivering a non-exhaustive list of solutions for firms to transform these "virtual consumers" into actually legal consumers and customers of the movies. This legal consumption includes going to the theater, buying or renting the DVD, and legally downloading or streaming the movie. 7 Source: http://www.Facebook.com/
  13. 13. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 13 1. 3. Research Questions 1. 3. 1. Research Question As my goal is to assess the value of the Facebook Fan Page to change Facebook users' behaviors toward movies and their related consuming behavior, the main research question is: what is the impact of Facebook Fan Pages on Facebook users’ attitudes and behaviors toward movies and their related consumption? 1. 3. 2. Sub-questions The sub-questions are as follow: o Do Facebook users visit Facebook movie Fan Pages?  Do Facebook users find Facebook Fan Pages useful?  How do they engage with the movie on Facebook?  How this technology platform and its social richness impacts on their decision making process regarding the movie legal consumption? o How do they form their attitudes toward the movies?  Do Facebook users process information as other consumers?  What options do they consider when they intend to consume a movie? o How are their intentions [to consume the movie] influenced?  How are their intentions influenced by their Facebook personal networks?  How are their intentions influenced by the different types of content that the Facebook Fan Page provides? o How can companies drive Facebook users toward legal movie consumption?
  14. 14. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 14 2.Literature Review The literature review is divided in two main sections. The first section is the conceptual background. It details key facts about the cinema industry and its challenges, the arousal of social media as a new marketing environment, the arousal of Facebook as a new marketing tool, and finally, the problem of conversion from fans to customers that firms are dealing with. Finally, I will highlight the limitations of the conceptual background, and how the literature does not provide any element regarding this conversion issue. The second part points out two models that were applied before to the context of social media. These models are the Technology Acceptance Model and the Theory of Planned Behavior. It will finally explain the limitations of the theoretical background, and how the two models were never applied to the case of Facebook Fan pages with movies as products. 2. 1. Conceptual Background The literature background section is divided in four parts. First, the cinema industry- related part will provide key definitions of what movies customers and consumers are, what Facebook users and fans are, and what Facebook Fan pages and News Feed are. Then, I will detail the new substitutive ways of consuming movies and how it impacts the cinema industry. Finally, I will explain the new movie consuming behaviors, and movie-watchers' attitudes toward the new consumption means Then, the social media-related part will explain how the social networking sites are changing the marketing environment by explaining what social media are and how they are creating new consumer's experiences. Afterward, I will explain the power switch from marketers to users and how users are now content generators focusing on e-socializing and community building. I will also enlighten the new opportunities for brands to listen, interact and engage with their consumers, to build strong relationship, and impact on consumers' purchase decision process. I will also warn brands against the risks created by this open communication stage, and more precisely the risk for brands' reputation. After that, the Facebook-related part will reveal the power of Facebook as a new marketing tool and how Facebook is both a social vehicle impacting on consumers' attitudes and behaviors toward products, but also a brand image carrier and the opportunities it offers to brands. I will explicate what Facebook Fan pages are and the value of their 'likes'. Finally, the conversion problem-related part will highlight the difficulty for brands to transform page visitors, and potentially fans, into movie customers. I will clarify what happen
  15. 15. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 15 on the page, what the existing conversion metrics are, and what new initiatives can already be used by brands on their Facebook Movie Fan pages. 2. 1. 1. The Cinema Industry and its Challenges I will describe here the industry of the cinema nowadays with key market figures and the description of alternative movie consumption means. Then, I will explain how the behavior of movie-watchers changed this past decade. But first, here are some definitions that are necessary for a good understanding of the subject. Further details will be provided in the literature review. 2. 1. 1. 1. Definitions 2. 1. 1. 1. 1. The Movie Customer and Consumer The dictionary8 definition of a customer is "a person who purchases goods or services from another". The definition of customer implies the notion of monetary value. According to Chris Partridge (2002 p. 2), "it looks as if a customer is a person who transacts a transaction for an asset". The customer can be related to as a person (the individual purchaser), a role (the punctual purchasing action) or the relation. "The customer-supplier transactions are the basis for a customer relation – without the transaction there is no (actual) relation" (Partridge, 2002, p. 7). The customer will therefore be understood as an individual who purchases or acquires, from a direct seller or a distributor, a good or service within a customer-supplier transactions relationship. The movie customer will be defined as any individual who purchases or acquires the movie, from a direct seller or a distributor, within that customer- supplier transactions relationship, i.e. someone who acquires a DVD (buy or rent) or a Theater ticket from a store (B-to-C), another individual (C-to-C, such as on Amazon.com), or a theater facility in exchange of a pecuniary compensation. The movie customer, also referred as the Movie Purchaser, is someone who pays a theater ticket to watch the movie in a cinema, who buys the DVD from another entity (store or individual), who rents the movie from a renting firm such as Netflix, or who pays for streaming movies (i.e. Netflix9 ). Further possibilities will be detailed in this literature review. The dictionary10 definition of a consumer is "a person […] that consumes". From an economical point of view, a consumer is "a person or organization that uses a commodity or service". The definition of a consumer does not imply the notion of monetary value and 8 Source: http://www.dictionary.reference.com/ 9 Source: http://www.netflix.com/ 10 Source: http://www.dictionary.reference.com/
  16. 16. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 16 pecuniary compensation. The consumer is not involved in the financial acquisition of the good or service, but only in the utilization, or consumption of that good or service. The movie consumer can therefore be simply referred to as the Movie Watcher: watching the movie in a cinema, or on a personal TV or computer (DVD or streaming). I will refer to the 'consumer' when the movie is consumed both legally and illegally. 2. 1. 1. 1. 2. The Facebook User and Fan The Facebook user can be defined as being any individual (physical person) who owns a personal account on the social vehicle called Facebook. The characteristics of a Facebook user, according to Lee Dong Hun (October 2010) are: - the willingness to be part of a network of people who are similar to him/her: to be part of a familiar audience made of family, relatives, and friends, the wish to be connected to other users, - the strengths of relationships with him/her network, the ability to share personal pictures, videos, and news, the capacity to stay in touch with friends' lives, habits, and tastes, - the enjoyment of rapidity of information collection thanks to Facebook News Feed and its instant status update, - the enjoyment of the low cost of viewing and sharing information with friends (and brands), Facebook is indeed a free-of-charge service, - the facility, or the possibility, to keep in touch with friends "from far away" thanks to that News Feed page. People don't have to send personal emails anymore, they can just check out their friends' personal pages, or "walls", "like" a picture or a comment from times to times. The Facebook Fan is the Facebook user who 'likes' the Facebook Fan page of the movie. 2. 1. 1. 1. 3. The Facebook Fan Page and News Feed The Facebook Fan Page is a page on Facebook, built up on the same model as an individual's profile page but which is related to a cause, a brand, or a product such as a movie. The properties of the page are the same. Both movie and profile pages have a wall tab where are displayed their own news, comments from fans or friends, etc. Both pages have an info tab where relevant personal or product information is revealed. Both pages have a photo tab where pictures are exposed. Finally, both pages can add applications to complement their capabilities.
  17. 17. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 17 The Facebook News Feed is "the center column of the [Facebook] home page; it is a constantly updating list of stories from people and Pages that the user follows on Facebook.11 " These stories are in fact anything from posts from friends and fan pages the user follows to photos and photo tags, new friendships, events, videos… The News Feed page is constituted of two tabs: the Top News and the Most Recent streams. The content that is shared in the News Feed is selected by an algorithm "based on a few factors: how many friends are commenting on a certain piece of content, who posted the content, and what type of content it is (e.g. photo, video, or status update)"12 . 2. 1. 1. 2. New Substitutive Options IFTA President Jean Prewitt (Block, 2011, online) 2. 1. 1. 2. 1. Market figures According to Ty Ahmad-Taylor (2010, p. 41), "if you make […] films, your business is actually the audience business—the art of getting as many people as possible to watch the content provided". An article in the Advertising Age (Johnson, 2009), declared that the annual revenues in 2008, for the film and television productions reached $27B. In 2010, French theaters’ revenues reached 1.3 billion Euros13 and American overall gross reached $10.567 billion14 (compared to $10.619 billion in 2009, and $8.571 billion recorded for the period January-November 2011). An article from the White Hutchinson (2011, online) declared that the “average North American went to 3.92 movies at the cinema in 2010, a decrease from 2009. This was a 14% decrease from the average 4.28 movies seen in 2000 and almost one- quarter less (-22%) than the peak of 5.02 movies in 2002. During the same time, the average cinema ticket increased in cost by 15% to $7.85 in 2010 compared to $6.84 in 2000 (in 2010 dollars)”. These numbers pushed me to invest the alternative ways of consuming a movie. 11 Source: http://www.Facebook.com/ 12 Source: http://www.facebook.com/help?page=408 13 (Nord Eclair, 2011) 14 Source: http://boxofficemojo.com/studio/ “The illegal streaming of motion pictures and television programming is as financially devastating for our industry as is illegal downloading".
  18. 18. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 18 2. 1. 1. 2. 2. Alternative Consumption Means Alternatives appeared since 2000 in the way movies are consumed: home entertainment centers, Blu-Ray DVDs, RedBox and Internet streaming15 on Netflix and other downloading and streaming Websites such as Amazon.com, Apple iTunes have highly diversified opportunities for movie watchers. The cinema and film industries have tried to win back their moviegoers by enhancing the loyalty link between consumers and their cinemas by enhancing their movie-going experience with digital projection, 3-D and Imax movies, upscale bars and lounges and in-theatre dining (mostly in the USA). Some chains of cinema are expanding their entertaining services by offering family attractions, bowling… The White Hutchinson added that “the 2010 data indicates that despite these nascent efforts, cinemas are still losing entertainment market share”. Indeed, electronic games, social networks and other digital media are seducing part of the same audience. But other electronic entertaining sources are not the only reasons for the decline. Verrier & Fritz (2011) agreed that the ‘low quality of recent movies’ was also partly responsible for a 20% decline between 2010 and 2011 in North America (USA and Canada). Ty, Ahmad-Taylor (2010) added that, for content creator such as movie producers, the customer experience starts with the content that they are watching, and not the way they access to that content. But "this year we just haven't had those kinds of movies that cut across all quadrants of age, race and income” declared Gerry Lopez16 , chief executive of AMC Entertainment Inc., the nation's second-largest theatre chain to the Los Angeles Times. We can then wonder how and what exactly movie studios have been confronted to then. 2. 1. 1. 2. 3. A so-called 'Good Fight' Film Companies have been fighting, in a so-called 'good' fight, to defend their copyrights, especially since the Napster scandal which revealed the new P2P (Peer-to-Peer) file sharing phenomenon (Cimpanu, 2009). Catalin Cimpanu affirmed that "for a couple of years now, studios are accusing piracy and file sharing of destroying the movie and music industry. They're stating that the increase in file sharing and P2P usage seen in the rising traffic toward torrent trackers, studio revenue is constantly going down" (online). However, some journalists and analysts affirm that Hollywood studios may simply be 'exaggerating'. Indeed, I discovered that the industry was known for its 'Hollywood accounting', or 'Hollywood bookkeeping'. It refers to methods of opaque accounting used by the film, video and television industry. Practices included inflating expenditures in order to reduce or eliminate the profits of a film by reducing the royalties that the firm should pay based on net profit (Picker, et al., 1995). Moreover, copyright holders commissioned a new report that defended that the industry was in fact doing pretty well and that these "consistently positive 15 "Streaming video is content sent in compressed form over the Internet and displayed by the viewer in real time" (Streaming Video_ Definition, 2000) 16 Source: http://articles.latimes.com/2011/mar/30/business/la-fi-ct-cinemacon-20110330
  19. 19. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 19 trends solidify the status of the copyright industries as a key engine of growth for the US economy as a whole" (Anderson, 2011, online). This report also revealed that the International Intellectual Property Alliance does not try to calculate losses to piracy anymore. They consider that these evaluations are not reliable and consistent with the whole distribution process. It advanced that record foreign revenue is still generated as a result of strong copyright protections and that this is enough to hold stable employment and pay within the industry. They concluded that the industry of the cinema is still a viable industry. 2. 1. 1. 2. 4. A Strong Industry The cinema industry is in fact far from bankruptcy because of alternatives consuming behaviors. The main impact of such behavior is more likely the decrease in number of movies to be produced. This could lead the industry to produce fewer but higher quality movies. Catalin Cimpanu wrote that "nothing can be gained from watching a cam-ripped movie at an infernally low quality with noisy sound […]. Movie fans will always be in a theater, still contributing to MPAA's (Motion Picture Association of America) record breaking years in gross income and attendances. Maybe the real big threat for Hollywood is the DVD sales sector, where pirates are not only ripping movies, but are making huge sums of money from it". With movies such as Avatar, Sherlock Holmes, or Twilight worldwide, the cinema industry still has long and happy days ahead. The cinema industry is doing well, but there are still major issues within the related market. Ernesto (2010) repeated that "at the box-office the major movie studios are raking in record profits, but their continuing refusal to widely adopt online business opportunities are hindering progress" (online). Paul Uniacke, head of the Video Ezy and Blockbuster video rental chains, insisted that the movie industry’s insatiability is responsible for holding back innovation (2010). The segment of the market that is the most engendered is video rental outlets, not because of piracy, but because studios refuse to adopt new technologies such as video-on-demand, "ignoring all market signals". Comparing the music and movie industries, the "only thing that’s protecting the movie studios (from more widespread illegal downloading) now is file size". Movie studios are, nevertheless, heading in the opposite direction, trying to keep their monopolies. For instance, some studios in the USA decided to not deliver their movies through Netflix for a few weeks after the DVD release in order to increase DVD sales during that period. Unfortunately, consumers who were willing to watch the movie, through Netflix for example, but who did not want to buy the DVD had to consume the movie illegally from P2P and torrent sources instead of renting it or streaming it legally through Netflix.
  20. 20. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 20 2. 1. 1. 3. New Consuming Behaviors I will first explain the implications of country development in the consumption of movies, and then detail which parameters constitute the attitude of movie-watchers. 2. 1. 1. 3. 1. Piracy in Emerging Countries The consumption of movies through illegitimate sources cannot be solely explained on the argument that antipiracy education had failed (Doctorow, 2011). The Media Piracy in Emerging Economies report(2011) about the social attitudes toward copying, enforcement differences and predictors of a country copyright infringement advanced that poor countries are more susceptible to host piracy than richer countries because the cost of media is too high compared to people' revenue. It was implied that inflating piracy rates depend on whether the "IP address is in a rich or poor country"; what is called the "Consumer's Dilemma license". Doctorow explained that the main reasons for global media piracy were the elevated prices for media goods, low regional (or national) and available digital technologies. "Relative to local incomes in Brazil, Russia, or South Africa, the retail price of a CD, DVD, or copy of MS Office is five to ten times higher than in the US or Europe. Legal media markets are correspondingly tiny and underdeveloped". (Social Science Research Council, 2011, p. 9). 2. 1. 1. 3. 2. Movie-Watcher Attitude Movie-watchers behaviors and attitudes have quite changed these past twenty years. Whichever the industry, consumers claim for convenience, availability, fair prices and high quality(Ernesto, 2010). Consumers are not becoming greedier or less sensitive to theft. They are just more demanding regarding firm services and their own well-being. Movie-watchers seek for on-demand access and the "flexibility to choose the option they want for their video consumption". The Bureau of Labor Statistics (2008) stated that an increasing audience would move from tradition film consumption means to "media that don't offer the same opportunities". If they want to stay home to watch a movie, but do not own it on DVD, they want to be able to watch it online. If the movie is not available online legally, then they are going to turn toward other sources. Another article commented that the construction of DVDs also made them quite inconvenient and unpleasant to use. Indeed, when the movie starts automatically when the file was downloading or during streaming, DVDs contain several unskippable steps that can be highly time-consuming (Doctorow, 2011). The cinema industry does not have the control anymore; consumers have. The matter is that the cinema industry is globally not meeting its consumers' needs, which means providing the movie when consumers want it, where they want it, i.e. on their personal computers. Meeting consumers where they actually are is the new motto of Social Media
  21. 21. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 21 Marketers. The next section will detail how social media redesigned the marketing environment and now represent a full marketing tool. 2. 1. 2. Social Media: a new marketing environment People are exposed "to an astounding number of advertising messages every day" (Wright, Khanfar, Harrington, & Kizer, 2010, p. 73), making them more and more resistant to conventional forms of advertising. As a result of consumer behavior changes, the former aggressive selling method, which consisted into constantly pushing potential customers to buy products, is not applicable anymore. Advertisers evolved from selling their products to marketing them in a holistic vision. This new vision understands the need for consumer engagement. "Internet-based multimedia technologies enable firms to employ a variety of formats to present and promote their products" in a more innovative way (Jiang & Benbasat, 2007, p. 454). In 2008, a Forrester research projected the social media market to reach $3.9 billion”, by the end of 2011, with an estimated annual growth of about 43% (Petouhoff, 2008). However, a lot of executives still believed that social media are just ‘social’ and aimed at entertaining customers instead of creating real business opportunities. They even referred to social media as ‘recreational time waster’ (Technology Management, 2011, p. 64). These firms might have lost a real opportunity to reach out customers. Indeed, it was reported17 that $2.1 billion were spent on social media advertising in 2010 with a projected growth to nearly $8 billion in 2015 (Manjoo, 2011). I will first explain how social media are changing the marketing environment, then, how social media give the power to the users, and finally, I will describe the different opportunities that social media offer to organizations. 17 Report from BIA/Kelsey, a media consulting firm
  22. 22. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 22 2. 1. 2. 1. A Changing Marketing Environment 2. 1. 2. 1. 1. A new experience LEE Dong-Hun (October 2010, p. 115) affirmed that "social media is broadly used by 79% of the Fortune 100 Best Companies". It is indeed understood by modern organizations that Social Media is a major concern in nowadays economy. A very large part of the world population, from the older Boomers to Generation Y 18 , is now connecting on social networking websites, and marketers understand the importance of reaching these people where they gather: online. This new economy is driven by quality and pressure-free 'experiences'. Firms are no more pushing their brands into consumers' life, but are rather seeking for customers' contribution and engagement in order to develop interactive communication and agreeable brand experience. Firms no longer advertise their brands massively, but carefully establish audience differentiation. They now deliver more creative and valuable propositions and create a real interaction or exchange with its targeted and willing customers (Forrester, 2011). 2. 1. 2. 1. 2. What are Social Media? The internet is a wide community providing several very different areas. It is important to identify the social media and clearly understand their capabilities and options. Among them are websites, blogs, micro-blogs, social network sites, photography and video sharing websites. The first step, for the brand, is to assess the relevance of each tool for their marketing strategy, "to have a good idea of what is being said about these brands in social media, how frequently it is being said, and in what particular media it is being said" (Mignon, et al., 2011 p. 24). Social networking sites (SNS) are gatherings of social identities (people) connected to each other and communicating between one another. Social Media encounters social networking websites, blogs, micro-blogs, and any other kind of user-created content sharing platform. Among these platforms are the following:  Blogs_ (abbreviation for weblog) personal journal displaying personal (or professional) content online.  Corporate Blogs_ corporation-related blogs talking about products and services, companies' external activities and market-related updates.  Microblogs_ internet platforms that allow users to post short statements or sentences, usually limited to a specific amount of characters that can include links, pictures and videos on a central site. 18 Boomers: born between 1943 and 1964 (sometimes 1964 included)(Deloitte Consulting, 2007), Generation y: born between 1982 and 2000 (Deloitte Consulting, 2005)
  23. 23. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 23  Twitter_ "social networking and microblogging service utilizing instant messaging"19 , limited to 140- character messages including links.  Facebook_ social networking website that allows registered users to create profiles, upload photos and videos, send messages and keep in touch with family, friends and colleagues.  YouTube_ video-sharing website on which users can upload and share personal videos and comments.  Linkedin_ professional networking website that displays career paths, education and professional expectations, and allows users to connect with colleagues and business partners. According to a study of the Pew Research Center’s Global Attitudes Project (2010), the engagement in social networking is globally about the same between men and women. The exception is in the USA where women (52%) tend to use social networking more than men (41%) (Violin, 2011). And the diversity among these people is large: from the USA to India, from top managers to first-level employees, from grand-parents to teenagers. Nearly every part of the global population is represented on the net. It is critical for any brand to determine which tool is more appropriate to the overall corporate strategy. In comparison, Twitter is a micro-blogging website that only allows brands to publish 140-character messages into a large stream of information and news. No strong customization is possible. Engagement capabilities are restricted to the willingness of Twitterers to "re-tweet" or respond to the firms' tweets. Facebook enables numerous content sharing capabilities from brand description to video clips, from journal articles to polls. Linkedin is a professional networking website where only personal profiles can be created. Companies cannot create a "profile" but a "group", or community, people can join. Engagement capabilities are restricted to discussions. YouTube is a video-sharing platform allowing brands to publish videos with a rapid description. Engagement capabilities are restricted to viewers' comments and likes; engagement success is therefore depending on users. 2. 1. 2. 2. Power to the User (Qualman, 2010 p. 21) I will detail the growing phenomenon of social media, and how social networks are drawing a complex environment. Then, I will explain how social media are led by user- generated content, the willingness to socialize and to build communities. 19 Official definition from http://www.twitter.com/ "Revolution is driven by people and enabled by social media".
  24. 24. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 24 2. 1. 2. 2. 1. From Media to Social Media As Schneckenberg (2009, p. 512) said, it is a "reaction to the inherent human need to build and sustain relationships in disperse social communities, to create and extend networks, and to produce synergy effects through aggregated interaction”. In line with Schneckenberg's definition, social media can be seen as way to propagate information through "social interaction between individuals and other entities such as organizations" (Mignon, Leyland, & Berthon, 2010, p. 22). Instead of being broadcasted through monologues (one-to- many), it is now conveyed via dialogues (many- to- many). This is how we evolved from unilateral to multi-directional communication, from media to social media. 2. 1. 2. 2. 2. A Complex Environment The main characteristics of social media can be compared to the main characteristics of other Internet services in the sense that they enable easy and rapid search, open and free participation, minimum publishing entrance, dialogue creation, community building, and networking activities (Eccless, et al., 2007). Additionally, they facilitate large and quick information spread, linkage and feedbacks. "The nature of social media is such that their content evolves continuously" (Mignon, et al., 2010 p. 31). It is a highly accessible, innovative and proactive environment. This user-generated content is gold to brands as it gives companies the opportunity to know what is thought and said about them. Sharing knowledge is the very first element in knowledge management (Alavi, et al., 2001). The action to create and broadcast knowledge at every minute of every day is the very expression of a social dynamic (Erickson, et al., 2003). According to Dickey, et al. (2010), this almost continuous connectivity is clearly where the opportunity lies for marketers. 2. 1. 2. 2. 3. User-Generated Content The case of Social Media has been widely studied over these past 5 years and multiple definitions were created. Lee Dong-Hun (p.112) claimed that "unlike the one-way production and transfer of news, information, and entertainment from main media outlets via the mass media, social media allows anybody to become a producer of such content, and deliver it through interactive communication in the form of a pyramid, based on relationships". As he said, social media is an “open media for interactive communication led by normal people” instead of mass media led by marketers only.
  25. 25. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 25 According to Berners-Lee, Hendler and Lassila (2006), social media are a compilation of tools allowing people to share information, create, collaborate, and cultivate communities. Remarkable changes appeared in the share, creation and co-creation of knowledge. This definition was completed by Kaplan and Haenlein (2010 p. 61) who portrayed them as “a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user- generated content”. The content online is increasingly consumer driven (Smith, 2010). Habin, et al. (2009) reinforced the idea by saying that the role of the internet users evolved from content receivers to content creators, a role requiring pro-active user-behavior, and eluding general brand information web sites in front of user-created content (UCC) web sites such as YouTube, Facebook, Twitter, etc. Isuru Fernando (2010 p. 504) also defined social media as "a concept that encompasses the dissemination of information via highly accessible publishing systems by means of social interaction". The core nature of these new technologies is the "extension of the human faculty to exchange knowledge and to collaborate" (Isuru, 2010 p. 511). Participating in social media gives users a sense of meaning in the sense that they seek for or create information that is truly meaningful to them. 2. 1. 2. 2. 4. E-Socializing Virtual socialization is democratizing and networks of influence are growing. "Our networks are becoming more dominated by strangers in digital spaces such as Facebook and Twitter, exposing us constantly to a huge volume of consumer influence." (Smith, 2010 p. 559). Organizations need to understand that they are now dealing with E-people and that their socializing, interacting and consuming behaviors are therefore very different. 2. 1. 2. 2. 5. Community Building But not only: consistent with their definition of social media, Mignon, Leyland and Berthon defended that "it is much more to do with what people are doing with the technology than the technology itself" (p.23). Social Media platforms respond to an intrinsic human call for building and maintaining "relationships in disperse social communities, creating and extending networks, and producing synergy effects through aggregated interaction” (Schneckenberg, 2009 p. 511). Jenny Kidd (2011) added that an amplified use of the social networks aimed at building and sustaining communities of interest around an organization. This notion is very important as "the quality of the relationship between the firm and the consumer" is brand success (Booth, et al., 2010 p. 2).
  26. 26. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 26 2. 1. 2. 3. Opportunities for Brands Mignon, Leyland and Berthon stated that social media is not only a new way to interact between people, between customers and firms; it is also a new way to do business and why companies use social media in the first place. "Brands are attempting to utilize social media to reach existing customers, gain new ones, and build or maintain credibility and reputation" (p.23). First, I will give the new definition of 'business'. Then, I will resume with the multiple implications of social media for brands such as interacting, engaging with consumers, and building strong relationships. Finally, I will describe the impact of social media on the purchase decision making process before presenting some of the risks of communicating through social media. 2. 1. 2. 3. 1. A New 'Business' Definition The new definition of 'Business Marketing' (Razorfish, Vice-President Shiv Singh) clearly includes social media as a key to leading a Business to success. "The purpose of a Business is to create a customer…who creates customers" (Singh, 2010, online). And this is exactly what social networks are all about. It creates independent marketers spreading out the word to their friends, their contacts or their future contacts. This is what is called "Viral Online Marketing", or the creation of a "Buzz" that enhances brand awareness: spark off an explosion. Melissa Landau Steinman and Mikhia Hawkins (2010 p. 1) added that "the viral quality of social media makes it an appealing way for businesses to market products and services, and marketers have recognized and tapped the potential of social media outlets". They also said that consumers creating content related to a marketing campaign may commence "a strong connection with the promoted brand" (p.3). (Williamson, 2010, online) 2. 1. 2. 3. 2. Brand Visibility and Credibility According to Tom Smith (2010 p. 560), "social media is reorientating the economy". When feedbacks and comments were nearly impossible to communicate before, they are now the core of company-customer relationships. Tom Smith declared that "every consumer online is a commentator, reviewer and publisher; all organizations have to stop talking and start listening to how they are perceived" (p.560). He also implied that this new "online engagement" is essential to building long-term spokespersons for the brand buying the “Those who still think that social network users are too busy engaging with friends to notice marketers must change their viewpoint.”
  27. 27. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 27 products but also endorsing them online and offline. Kyle Hensel and Michael H. Deis (2010 p. 2 online) reiterated that "the purpose of social media should be to enhance a business’ branding and permit their biggest fans (i.e., super fans) to just talk about them". Having people talking about the brand on social media has two impacts. First, it means that the content creator is aware of the brand and already appreciative of it (if the message is positive, of course). Then, it increases brand visibility and awareness to this individual's personal and professional networks (depending on the social vehicle used). The advantage of this promotion type is that it relies on friend/family recommendation instead of impersonal advertisement. Therefore, the message comes with a higher level of credibility to the eyes of potential customers. Lee Dong-Hun (October 2010) affirmed that "the world is entering a new era of World of Mouth (global) from Word of Mouth (local)". According to Kyle Hensel and Michael H. Deis, "social media also appears to be a driving force in the Attention Age, which appears to have gained steam after the Information Age (also known as the Computer Age or Information Era). The Attention Age, which began in the first years of the 21st century, is relevant because it has given individuals the ability to create and consume information immediately and distribute it on the Internet" (p. 1 online). 2. 1. 2. 3. 3. Listening, Interacting and Engaging A lot of companies enter the Social Media world to listen to what is say about their firm and their brands in order to monitor their online, and general, reputation. They remain in a passive behavior. But listening is not enough. Only some of them adopt a pro-active behavior. Matt Ramsay (2010 p. 257) insisted that "if companies don’t take control or engage with their audiences to discuss how their brand is perceived and talked about, the conversations will continue to go on without them and they will be powerless to try and change opinion or resolve customer service issues". Companies have to determine specific strategies. Listening is the first step. Engaging and interacting are the following ones. 2. 1. 2. 3. 4. Building strong relationships Kent Bottles, M.D. and Tom Sherlock (2011 p. 70) defined Social Media Strategy as "simply social. It is about establishing and nurturing authentic relationships in ways that will build loyalty to your institution". Passive listening does not help building relationships, but engaging does. However, online engagement does not only refer to written messages on Facebook or Twitter. It can also refer to posting videos on YouTube for instance. Jose Castillo (2011 p. 109) suggested that "the most important tools in the marketing kit are the people who are viewing, responding to, and interacting with your videos. People have become jaded after years of being advertised and marketed to death. Great responses and interaction with even a handful of viewers can generate wonderful results". Tom Smith remarked that new multimedia platforms are developing such as video sharing "with 83% watching video
  28. 28. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 28 clips online, up from 32% in 2006, making it the quickest growing platform in history"(p. 559). Whichever the platform used, the most important is and will stay to share meaningful content to customers in order to complete the 'information seeking' phase of their potential purchase decision making process. 2. 1. 2. 3. 5. Impact on the Purchase Decision Process According to DEI World Wide (2008 p. 6), “companies who integrate elements of social media into their marketing mix will have a greater opportunity to influence consumers’ buying choices”. Their study showed that 70% of consumers visited social media websites such as “message boards, social networking sites, and blogs” to gather information on products, services and brands in 2008. Two-third affirmed that they valued other people’s recommendations and that it could impact their perceptions of the brand and their purchase decision. And from the 70 initial percent, nearly 49% actually formed a purchase decision. 2. 1. 2. 3. 6. Opportunities and Risks In 2009, Andrew Weissman, founder and COO of New York technology incubator Betaworks, wrote that even though he does not consider that content should be free, he believes that distribution should be ‘friction-free’, meaning that information should be available where people really spend time and not where brands want people to consume it. “Doing otherwise is to court irrelevance and long-term business failure”(Ahmad-Taylor, 2010 p. 45). The bright side for companies is that technologies are getting cheaper; storage, processing power and bandwidth are more accessible, and more can be distributed electronically. The idea of Weissman still applies: “make the material available where customers are” and make it “easy to deliver and easy to monetize” (Ahmad-Taylor, 2010 p. 45). However, social media adoption has more to do with the strategies than with the tools because people’s attitudes and community are driving it, not computers. Fernando Isuru proposed four steps to safely adopt social media. First, firms need to ‘understand the end goals’ of their usage and decide which community they want to nurture. Then, executives needs to ‘formulate a strategy’, and develop action steps and lifecycle projects. Organizations should also ‘calibrate appropriate tools to match the strategy’ (p. 509) and achieve several functions. Finally, they have to ‘assemble a team for involvement and knowledge contribution’ (p. 510). This team has to be aware of social media codes and committed (both time and vision) to the overall mission. Maria Azua added that firms should focus on the social factor and deliver innovative content that catch up attention and stand out of the social cloud.
  29. 29. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 29 2. 1. 2. 3. 7. Reputational Risk Unfortunately, even the best strategy cannot delete risks. Pekka Aula (2010 p. 45) advocated that "social media expands the spectrum of reputation risks and boosts risk dynamics". This open and viral communication can represent great risks for any organization that does not know how to control its online presence and that does not hire the right communicator. One of the main risks is reputational. She added that ‘‘reputation risk can result from an organization’s own communication activities, including their reaction to claims presented in the social media" (p. 45). She explained that "conventional reputation management" is challenged in three ways. First, "social media is an arena for participation in which organizations interact with the public". Firms should not underestimate the social factor and the strength of social media networks; any piece of information can spread out worldwide within an hour. Second, "strategic reputation management should concentrate on ethics rather than pursuing short-term interests". A firm cannot hide unethical activities behind a curtain of nice words because nothing stays secret online. Internet users have a lot of resources in order to get information and anything becomes easily verifiable. Third, "social media has the effect of presenting a collective truth" (p. 46). Internet-users can be the ones building up (or destroying) an organization's reputation. They now have that power in the sense that once they have published information about a firm, it cannot be removed. It can just be corrected. The subjective picture built will be shared with others and "turned into a collective truth" and will be very difficult to adjust. Aula (p. 48) concluded that "because of social media, everything an organization does is now profoundly public" and this can affect both company’s reputation and business. In this wide open communication area, moderation is the key (Buddy Media, 2011). It is advised to react and respond to complaints judiciously, spread positivity, answer request, give guidance and advice, temper and manage threads of conversation, "keep profanity and negativity at bay" (Buddy Media, 2011 p. 13).
  30. 30. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 30 2. 1. 3. Facebook: a new marketing tool “Brands can take directions in social media today that would have been unlikely if not impossible five years ago” (Mignon, et al., 2010 p. 21). An A.C. Nielson research showed that, in February 2010, 154 million people used Google in an hour when 118 million people were on Facebook for 6.5 hours each. Facebook is described as a much “stickier”20 website than Google. This shows the influence of social media against ‘conventional media’. The use of Facebook constantly increased within businesses from 77% of firms using Facebook in 2009, 87% in 2010 (against 88% for Twitter) and 92% in 2011 (against 84% with Twitter) (Stelzner, 2011). (Daniasa, Tomita, Stuparu, & Stanciu, 2010, p. 279) This third section is dedicated to Facebook, first, Facebook as a social vehicle, and second, Facebook as a brand image carrier. 2. 1. 3. 1. Facebook as a social vehicle First, we will see what Facebook is and why it can be consider as a social vehicle. Then, we will see how it can be pertinent for businesses within the cinema industry. Finally, we will see which parameters can compose the consumer's attitude and behavior. 2. 1. 3. 1. 1. What is Facebook? (Neff, 2010, online) Facebook is a "communication platform designed to help people (and brands) to connect and share" (Buddy Media, 2010 p. 2). Its mission is "to give people the power to share and make the world more open and connected"21 , as stated its founder. Facebook was founded by Mark Zuckerberg, a Harvard student, in February 2004. It is a social networking 20 Where people spend the more time 21 Source: http://www.facebook.com/ "Facebook is defining an age of non-intrusive marketing". “For many marketers, their Facebook fan bases have become their largest web presence, outstripping brand sites or email programs either because a brand’s traditional web-based owned media is atrophying or because more consumers are migrating to social media.”
  31. 31. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 31 community originally created for college students and available to everyone in the world since September 2006 (Naslund, 2010). Facebook is now the first social networking website with more than 800 million active users. If Facebook was a nation, it would be the third most populated after China and India. A report confirmed that users post “over 55 million updates a day and share more than 3.5 billion pieces of content” in a week (The Economist, 2010). It is interesting to note that Facebook is now considered as a day-to-day life object, such as Google is since a few years. It is now common to refer to Facebook such as the obvious place to connect online. Actors visit their Facebook page in movies, and you can tell people 'Facebook me', if you want them to connect with you on the website. (Mark Zuckerberg, 2004)22 Facebook provides a lot of content sharing opportunities both for individual users and brand marketers. It is important to understand that I do not refer to Facebook ads when I talk about brand’s presence on Facebook. The platform offers a lot more communicating opportunities that just ads. And brands are now more willing to focus on communicating than marketing (Hardey, 2010). Brands can share company and products’ information, photos, videos, and web links toward journal articles or researches. Facebook pages can also be linked to Twitter accounts, for instance, and display the Twitter spread within the Facebook page. Moreover, a lot of applications are available to brands to customize their pages and deliver the right content to their specific audience. One great example of what is possible to do on Facebook page for films are the pages of the Twilight Movies23 : "the Twilight Saga", and "Batman24 : The Dark Knight". Mary J. Culnan, Patrick J. McHugh and Jesus I. Zubillaga (2010 p. 1) added that "social media platforms such as Twitter and Facebook enable the creation of virtual customer environments (VCEs) where online communities of interest form around specific firms, brands, or products." This is why Facebook can be considered as a social vehicle. 2. 1. 3. 1. 2. Why is it pertinent for businesses? Most specialists affirm that “the greater the site’s ability to nurture desired relationships among participants, the greater the potential is to build a strong and significant community" (Dickey, et al. p. 141).The strength of Facebook is that it proposes numerous applications to display users’ preferences, tastes, favorite brands and purchases. Burson- Marsteller stated that only 18 % of traditional TV campaigns actually generated positive return on investment in 2010 when some 1.5 million pieces of content (news stories, blog 22 Source: http://facebook.com/about/ 23 Source: http://www.facebook.com/twilight/ 24 Source: http://www.facebook.com/darkknight/ "Giving the people the power to share and make the world more open and connected".
  32. 32. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 32 posts, web links, comments, pictures…) were shared on Facebook every day. It is a growing challenge to keep pace with both traditional marketing methods and new technologies powered by Internet. The real challenge comes from the nature of the content creator, from marketers to consumers. The key is to be effective at writing the messages so that it does not look like advertising to the potential customer, but instead like building a relationship with the consumer. The goal is to establish trust within the community (Wright, et al., 2010). Building a community does not only refer to gathering members in a Facebook group or fans on a Facebook page. Building community means “providing constant surveys and message boards”, constantly listening to what is being said and shared in the group, on the page, and elsewhere on Facebook, and keep a multi-directional communication by “sharing results back with them” (Smith, 2010 p. 561). Facebook is an inclusive platform. Lee Dong-Hun identified four key values of social media as a marketing tool: time, audience, cost and relations that clearly apply to the case of Facebook:  A wide audience according to the size of users' networks (number of friends) and the diversity (peers, family, vacations' friends…). Everybody is connected to everybody. Reaching one Facebook user means potentially reaching hundreds of other users.  The strengths of the relationships, the trust they give to their family and friends. People are willing to trust friends' recommendations. If someone "likes" a brand on Facebook, its friends will be more likely to look at it and to consider it for future purchases.  The speed of information transmission thanks to Facebook News Feed25 . Friends and friends of friends can have access to activities and likes of one another on a constant base thanks to a thread of instant users' news. If a user "likes" a brand, its friends will know it nearly instantly as they check their News Feed page.  The low cost of being on Facebook. Any firm or organization can create a Facebook page to respond to its need for free. It can be a local firm, a brand or an event page. Any brand can therefore share its description, location, website address, products (or services) descriptions and pictures, videos and articles. Any user can then "like" the page, share consumption experiences, consuming advices… "Time is Money" and Social Media Marketing strategies benefit from speed of information circulation and durability as online files have not expiration limits. Any piece of content shared by any Facebook user, and brand, is automatically displayed on the Home Page of its own account. The audience showcases plurality and diversity as information can be transmitted to very different and numerous networks. The piece of content will be displayed among the network of the user but also within the networks of its friends according to the privacy set up that was installed. Social Media strategies are cost-saving and most often 25 The News Feed is "the center column of the home page, which is a constantly updating list of stories from people and Pages that the user follows on Facebook." Source: http://www.Facebook.com/
  33. 33. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 33 profitable as thousands of people can be reached without huge monetary investment (compared to paper promotion, for instance). Finally, companies can build stronger relations with customers based on friendliness and credibility. The true value of Facebook for the film industry is not that information can be distributed fast and allow for a speedy distribution; it is that the content can be highly customized and may ultimately push users to consume the movie. 2. 1. 3. 1. 3. Consumer attitude and behavior DEI Worldwide (2008) studied the impact of social media on customer behavior and reported that 60% of the interviewed individuals affirmed they were likely to use social networking sites to forward information to other people online when only 36% sought for information out from company or news websites. 45% of users who utilized social media were engaged in word of mouth. According to Kevin Ertell study (2010 p. 1), Facebook is, by far, “the best place to reach shoppers” because it is where they like to spend their time and where they are willing to hear from brands. “56% of shoppers to top e-retail websites who interact with social media websites have elected to ‘friend’, ‘follow’, or ‘subscribe’ to a retailer on a social media site like Facebook, Twitter, and YouTube”. And of the 69% of online shoppers who used social networking sites, 56% actively interacted with the brands. “The relative ‘openness’ of Web 2.0 encourages transparency, social participation and interoperability”. This is this ‘wisdom of crowds’, or ‘collective intelligence’ that seduce nowadays’ consumers. We are evolving toward a ‘participatory culture’ (Hardey, 2010 p. 563). Samuel Greengard (2011, online) added that Facebook is an environment that supports a "recognition system including rewards for participation and feedbacks". Seeking for participation is not enough; Facebook users are 'social actors' looking for acknowledgement and gratification (Blumler J.G. & Katz, 1974). Ertell highlighted the ‘chicken-egg phenomenon’. Even though the users are seeking for information themselves, it does not mean marketers should not get involved. Consumers are likely to reach out for brands on Facebook, but this is the way firms interact with them on the page that will create loyalty and likelihood to purchase. Indeed, 49% of Ertell’s survey respondents answered that they visited and ‘liked’ the brand pages in order to learn about special deals or discounts. 45% responded that they were looking for brand information and only 5% for customer support. It is interesting to look at what motivates users in their use of Facebook. Blumler and Katz’s uses and gratification theory (1974) proposes that social media users are pro-active in their choice and usage of their social networking platform. It states that users are active in the communication process and keep in mind their final goal while selecting which medium to use. The user looks out for the medium that will best fulfill its
  34. 34. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 34 needs, whether the need is to ask for support, collect brand information or purchase the product. Some marketers declare that the only source of information and purchasing opportunities should come from their official websites. It may have been true twenty years ago but the consumers’ attitude toward content has changed. Consumers now tend to be more trustful with other user-generated content, such as other consumers’ messages, reviews or recommendations (Chung, et al., 2010). Facebook is a great source of consumers-created content and may even host large negative or positive brand buzz, from which users are very sensitive to. Chung and Austria’s study showed a significant correlation between the entertainment, interaction and information gratifications on the social media use. This is the mission of the marketers to each all these gratifications as the interaction and information gratifications affect the attitude of the user toward the social marketing messages, and ultimately significantly influence online shopping values. The study (Chung, et al., 2010 p. 581) affirmed that “active interaction and useful information on social media create positive perceptions toward social media marketing messages”, and “positive social media marketing messages increase online shoppers’ hedonic value”26 . When marketers were focusing on the consumer and customer experiences, they now have to create a unique and enjoyable user experience. In the case of the Film industry, the film is already an experience, the way the film is presented (in theater or on DVD, for instance) is very important and is already considered by marketers and providers: cinemas are well equipped; DVDs present more bonuses, games, etc. Film marketers now need to create the same kind of experience on their Facebook Fan Page. 2. 1. 3. 2. Facebook as a brand image carrier I will explain what the Facebook Fan pages are and why they are relevant in the case of movie marketing. I will also try to explain the value of 'likes' of the Facebook pages and show which opportunities firms can find in these pages. 2. 1. 3. 2. 1. Facebook Fan Pages Facebook pages "allow entities such as public figures and organizations to broadcast information to their fans" (O'Neill, 2010, online). There are more than three million active pages on Facebook. Some brands have so many pages that it becomes difficult to know which one is official, or brand-created, and which one is unofficial, or fan-create(Phan, 2011). It is very important for companies to be the first one to create their brand page and to display the ‘official’ word somewhere on the page. Phan added that Film producers that create a page for 26 Appendix 4: AMOS Graph_ Analysis of the Overall Model of Standardized coefficients. Source: (Chung, et al., 2010)
  35. 35. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 35 each new product and that link product page to their official company profile, or page add credibility to their pages. For example, The Twilight Saga page displays the following message: "Welcome to the OFFICIAL Twilight Saga Fan Page here on Facebook! Stay tuned for the latest book, movie and merchandise news". Moreover, the 'Batman: the Dark Knight' page is directly linked to the 'Warner Bros.' Facebook page. Compared to other social networking platforms, several tools were developed by Facebook in order to deliver richer content. Companies can therefore ‘widgetise’ their page, like they could widgetise their official website or blog. “Widgets, or mini applications, allow you to place content in an external web environment, such as a social network page. These offer a new way of building and maintaining research communities” as declared Tom Smith (2010 p. 561). Moreover, it is important to decide upfront how interactive the page should and will be. Pages' administrators can set up whether visitors are allowed to post on the page's wall or not. According to Burson-Marsteller, around 74% of pages allow for these posts. American firms are among the most interactive on Facebook with "89% of pages allowing posts from fans, and 72% of pages responding to likers’ wall posts" (p. 26). The advantage of Facebook over other social networking websites is that it provides so many different ways to display information, communicate, and interact. Facebook Fan Pages are among the best options to promote a brand, product or service, such as movies. The level of potential interactivity with visitors is one of the highest among networks. The other great advantage of Facebook pages is that they are indexed by search engines, and are viewable to non-Facebook users or even when the user is not connected to its Facebook account. Pages' owner can also decide who posts are aimed to with the 'targeted stream posts'. Each post can be customized and aim at a specific audience (i.e. 'fans from France', or 'fans speaking English', or even 'fans from the USA speaking Spanish'). It considerably increases the potential of marketing in the sense that local promotions can be displayed on the Facebook page to local fans only; no need to create a specific page for local communities (i.e. 'Batman France'). Then, pages support a lot more applications than Facebook groups for instance enabling pages' administrators for great page customization. Moreover, there is a feature called 'page insight' that provide the administrators with demographic break down of their fan base, as well as user interactions and engagement data. The final feature allowed to Facebook pages is the 'vanity URLs' or the ability to customize the page URL and create a unique, official URL that will redirect the user toward the page (O'Neill, 2010).
  36. 36. Florence Poirel - Facebook and the Cinema thesis – All right reserved – 21 Nov 2011 36 2. 1. 3. 2. 2. The Value of Likes The difference between a Facebook profile and a Facebook page is not in what can be shared but in how users and brands can be connected. In order to be connected to a Facebook profile, and therefore to access some information of the profile, you have two solutions. You can either send a ‘friend request’ to the profile user, or more recently ‘subscribe’ to the profile. These two actions will give you access to different information according to the privacy settings the user chose. In order to be connected to a Facebook page, you just have to ‘like’ the page. Liking the page will add you to the fan database of the firm, brand, or here movie. But there is no obligation of ‘liking’ the page to access the information unless the page is closed. If the page is closed, it means that the page creator requires a ‘like’ to give access to the page information. It is more common among pages for restricted networks. If the page is open, you can access the information without becoming a fan of the page. You can then get all the information you need without interacting with the page. The advantage of ‘liking’ the page is that the page news will appear in your News Feed and therefore keep you updated on the brand, or movie actuality. It improves the ‘connected experience’. The Facebook News Feed is the aggregation, in the homepage, of updates on the friends' activities of the user. EdgeRank is the Facebook algorithm that determines which content is posted on any user News Feed at any given time. It is linked to the level of interactivity of users with the page within the different users' networks. The more the activity and interactions on the page, the more likely the apparition on users' News Feed, as explained Vahl. It is interesting to know that even if the user has to 'like the page' to access its information, pages are always public as there is no way to restrict their access and make them private. Moreover, the Facebook Like button is becoming “a requirement for all Web sites” (Ente, et al., 2011 p. 3). “Likes are gaining momentum on traditional link-back algorithms as a search ranking currency. Still, the business value of a Like usually comes out ahead when compared to a Tweet. Facebook users who utilize a Like button visit 5.3x more Web urls to engage with content and on average have 2.4x more Friends; providing the Like button on a website gives content creators access to these more socially engaged consumers and their networks” (p. 4). According to Vahl (2011), 56% of users who become 'fan' of a Facebook Fan page are likely to recommend the page to their friends and 51% of users are more likely to purchase the good if they 'like' it on Facebook. Investing in Facebook is primarily investing in people and time (Ente, et al., 2011). Indeed, maintaining a proactive and entertaining page requires a large time involvement and the formation of a multi-task team with social media communicators and technicians to take care of both the nature of messages and the design of the platform, maintenance, etc. Marketing directors like to see numbers and like to evaluate the return on their investment.

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