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SME competitiveness through online brand communities: exploration of brand loyalty

This slides was presented at ISBE 2014 conference.

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SME competitiveness through online brand communities: exploration of brand loyalty

  1. 1. SME competitiveness through online brand communities: exploration of brand loyalty Mojtaba Poorrezaei Dr. Aleksej Heinze
  2. 2. I am going to talk about… O A Brief Introduction O Why Engagement is Important? O Brand Loyalty Definition O Engagement in Online Brand Community O Motivations of Engagement O Research Model O Implications
  3. 3. Challenge WEB 2.0 Online Brand Community Engagement Brand Loyalty
  4. 4. Online Brand Community “a specialised, non-geographically bound, online community, based on social communications and relationships among a brand’s consumers” (De Valck, 2009)  Over the past decade, managers and researchers have taken great interest in how online communities can galvanize Internet users to engage in more collaboration, promotion, and purchases.  Central to discussion about OBC is the use of the terms “engage” and engagement to describe the nature of participants’ interactions experiences
  5. 5. Why Engagement is Important? O Academic Perspective: AMA (2013) & MSI (2012) research priorities / ISR (2014) & JSR (2012) special issues O Business Perspective: Engagement as  A vehicle for creating, building and enhancing consumer relationships  A strategic imperative for establishing and sustaining a competitive advantage  A valuable predictor of future business performance  A primary driver of sales growth Consumer engagement enhances profitability
  6. 6. Online Engagement
  7. 7. Brand Loyalty Brand Loyalty Behavioral Preferential Attitudinal “the preferential, attitudinal and behavioral response toward one or more brands in a product category expressed over a period of time by a consumer” (Engel, 1981)
  8. 8. Engagement in OBC Socialising Engagement Sharing Co-developing Learning Advocating Visit Duration & Frequenc y of visit Poster& Lurker
  9. 9. Components of Engagement O Socialising: Two-way, non-functional interaction through which consumers acquire and develop attitudes and community language. O Sharing: when consumers share personal relevant information, knowledge and experiences. O Advocating: When consumers actively encourage other members to buy a specific brand. O Learning: finding the information that consumers need to purchase and consumption decision-making O Co-developing: consumers contribute to organisations and organisational performance by assisting in the development of new products, services.
  10. 10. Motivations for Engagement Engagement Information Quality Community Identification Brand Identification Group Norm
  11. 11. Constructs Operational Definition Number of Measures Source of Measurement Items Information Quality The degree to which the provided information is perceived as being accurate, up to date and complete 4 Zhou (2012), Lin (2008) and Dholakia et al. (2009). Group Norm The commitment of community members to the shared goals and values. 2 Dholakia et al. (2004), Shen et al. (2009) and (Zhou, 2011). Brand Identification The degree to which individuals see themselves as being attached to the brand. 5 Bagozzi and Dholakia (2006), Lam et al. (2010), Hughes, Ahearne (2010) and Carlson et al. (2008). Community Identification The degree to which individuals see themselves as being attached to the community. 5 Shen et al. (2009), Carlson et al. (2008) and Lam et al. (2010). Consumer Engagement The degree to which one engages in community regarding sharing, advocating, co-developing, socialising and learning. 5 De Valck et al. (2009) and Brodie et al. (2013) and the Authors. Brand Loyalty The degree to which one tends to continue purchasing the brand and recommends it to others. 4 Hollebeek (2011), Gummerus et al. (2012) and Nam et al. (2011).
  12. 12. Research Model Brand Loyalty Consumer Engagement Community Identification Brand Identification Information Quality Group Norm
  13. 13. Research Approach O Literature review of 43 articles from top journals addressing engagement in OBC O Adapt netnography method to study an OBC O Conducting online survey in order to collect data from members of OBC
  14. 14. Data Analysis
  15. 15. Implications O When small firms are considering their online strategies, they need to address the following issues:  Quality of information shared in online brand community  Closeness of online brand community members  Sustainable long-term community engagement strategy