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Similar to Brand Communities (11)
Brand Communities
- 2. BSI
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MARKETING 2.0 CONFERENCE
Paris, France 28/29 March 2011
www.marketing2conference.com
- 3. Brand Communities
October, 6th, 2005
Word-of-Mouth Conference, Hamburg
Prof. Dr. Paul Dholakia, Rice University, Houston/US
Prof. Dr. René Algesheimer, University of Zurich/CH
© 2005, Algesheimer/Dholakia 1
- 4. 2005-02-04 - 4.200.000
2005-01-27 - 4.100.000
2005-01-19 - 4.000.000
2005-01-14 - 3.900.000
2005-01-08 - 3.800.000
2005-01-03 - 3.700.000
2004-12-28 - 3.600.000
2004-12-21 - 3.500.000
2004-12-01 - 3.000.000
2004-11-26 - 2.900.000
2004-11-17 - 2.800.000
2004-11-13 - 2.700.000
2004-11-12 - 2.600.000
2004-11-04 - 2.500.000
2004-10-31 - 2.400.000
2004-10-23 - 2.300.000
2004-10-12 - 2.200.000
2004-10-03 - 2.100.000
2004-09-25 - 2.000.000
2004-09-20 - 1.900.000
2004-09-14 - 1.800.000
2004-09-07 - 1.700.000
2004-09-02 - 1.600.000
2004-08-28 - 1.500.000
2004-08-17 - 1.400.000
2004-08-08 - 1.300.000
2004-08-04 - 1.200.000
2004-07-27 - 1.100.000
2004-07-22 - 1.000.000
2004-07-16 - 900.000
2004-07-09 - 800.000
2004-07-02 - 700.000
2004-06-24 - 600.000
2004-06-16 - 500.000
2004-05-28 - 400.000
2004-05-08 - 300.000
2004-04-06 - 200.000
2004-02-26 - 100.000
2004-02-07 - 50.000
2004-01-22 - 1.500
© 2005, Algesheimer/Dholakia 2
- 6. Agenda
1. Motivation
2. Introduction
3. Examples
4. Research
5. Implications
6. Contacts
© 2005, Algesheimer/Dholakia 4
- 9. Perspective
Business-to-Consumer (B-C) Business-to-
Consumer-to-Consumer
(B-(C-C))
Transactional- Relational Network-
Perspective Perspective Perspective
1 2 3
C
B C B C B
C
© 2005, Algesheimer/Dholakia 7
- 10. Motivation
• The effectiveness of consumer-to-consumer
influence is greater than that of marketer-to-
consumer influence
– Examples: positive or negative WoM, opinion leadership
• Consumer interactions determine critical
variables like brand decision making process,
willingness to pay, and brand loyalty.
– Examples: K-Swiss sneakers, bottled water during Hurricane Rita
• Over 250 million consumers world-wide
participate in virtual and FtF brand
communities
– Examples: H.O.G.-Community, Linux-Communities
© 2005, Algesheimer/Dholakia 8
- 11. Brand Communities: Definition
Constitutive Elements:
• Social network of individuals
• Organisation => role structures
• Interaction
• Mutual influence
• Sense of belonging, “we-ness“
• Cohesion
• Common language, rituals, traditions
• Common focus: one unique brand
Sources: McAlexander/Schouten/Koenig 2002, Muniz/Guinn 2003,
Algesheimer/Dholakia/Herrmann 2005
© 2005, Algesheimer/Dholakia 9
- 12. Brand Communities: Interest
• Enable consumers to form a strong bond with the brand
(Algesheimer/Dholakia/Herrmann 2005)
• Learn how customers evaluate products in a high-credibility
environment
(Keller 1999)
• Obtain early-warning-signals regarding success/failure
(Muniz/Guinn 2003)
• Influence members‘ intentions and behaviors
(Muniz/Schau 2005)
• Diffusion of relevant information by WoM
(Brown/Kozinets/Sherry 2003)
• Cooperation with highly loyal customers
(Franke/Shah 2003)
© 2005, Algesheimer/Dholakia 10
- 13. “The link is more important
than
the thing!“
B. Cova
© 2005, Algesheimer/Dholakia 11
- 17. Jeep Community
Jeep Fest: Schouten, McAlexander and Koenig 2002, Journal of Marketing
© 2005, Algesheimer/Dholakia 15
- 20. Apple Newton Community
Muniz and Schau, Journal of Consumer Research, 2005
© 2005, Algesheimer/Dholakia 18
- 22. ISSUE 1:
Why do Customers Join and Participate in
Brand Communities?
© 2005, Algesheimer/Dholakia 20
- 23. General motivations for participating in a brand
community
Purposive Value
Self-discovery
Brand Community
Maintaining Interpersonal
Participation
Connectivity
Social Enhancement
Entertainment
Source: Dholakia, Bagozzi and Klein Pearo (2004)
© 2005, Algesheimer/Dholakia 21
- 24. Value perceptions Social influence variables Decision making and participation
Mutual
Purposive
Agreement
Value
Group
Norms
Self-Discovery
Mutual
Maintaining Accommodation
Interpersonal
Interconnectivity We- Participation
Desires intentions Behavior
Social
Enhancement
Social
Entertainment Identity
Value
Cognitive Affective Evaluative
SI SI SI
A social influence model of brand community participation
(Dholakia, Bagozzi, and Klein Pearo 2004)
© 2005, Algesheimer/Dholakia 22
- 25. ISSUE 2:
What are the different types of Brand
Communities?
Small Groups vs. Networks
© 2005, Algesheimer/Dholakia 23
- 26. DEFINITION
Small Customer
Customer Networks Groups
• “A specialized non- • “A group of individuals
geographically bound with a consciously
community, based on shared social identity,
a structured set of whose members act
jointly in group actions
social relationships to accomplish group
among participants goals and/or express
with common interest mutual sentiments and
in a particular brand” commitments”
(Muniz and O’Guinn (Dholakia, Bagozzi, and
2001, JCR) Klein Pearo 2004, IJRM)
© 2005, Algesheimer/Dholakia 24
- 27. PRIMARY FOCUS
Small Customer
Customer Networks Groups
• “Network of • “Virtual
relationships among communications often
consumers organized supplemented by
around a common face-to-face
interactions where
interest and promoted product-related
only via non-face-to- activities intermingle
face means, where with other social
intellectual and activities and
utilitarian support emotional support
are primary, among members is
emotional support central”
is secondary”
• Really “Virtual” (Dholakia, Bagozzi, and Klein Pearo 2004,
IJRM)
© 2005, Algesheimer/Dholakia 25
- 28. Customer Small Customer
Networks Groups
Primary Managerial Objective
• “Matching of • “Matching of
Individual Motives” social
proclivities”
Marketers’ Role
• Active information • Passive and
providers and problem indirect or silent
solvers
Appropriate Application Types
• Applications of • Applications of
purpose (e.g., Archive Process
of solutions, “Ask-an- (e.g., Buddy lists,
expert”) Instant Messaging)
© 2005, Algesheimer/Dholakia
(Dholakia, Bagozzi, and Klein Pearo 2004, IJRM) 26
- 29. Customer Small Customer
Networks Groups
Appropriate Growth Rate
• Balance between • Highest possible
information seekers and growth rate
information providers
Appropriate marketer influence
• Relatively more direct. • Relatively more indirect.
e.g., product related e.g., exposure to non-
conversations intrusive advertisements
How to convey member information to others
• Reciprocal reputation • Mechanisms that
mechanisms communicate personal
history
(Dholakia, Bagozzi, and Klein Pearo 2004, IJRM)
© 2005, Algesheimer/Dholakia 27
- 30. Loyalty-Influence Paradox
in Brand Communities
Customers belonging to Small Group Brand
Communities are less likely to be loyal to a
particular virtual venue than those belonging to
Network Brand Communities
At the same time, Small Group Brand
Community members are more likely to be
influenced by their community than those
belonging to Network Brand Communities
(Dholakia, Bagozzi, and Klein Pearo 2004, IJRM)
© 2005, Algesheimer/Dholakia 28
- 31. However, not all the
news is good...
- Brand
Loyalty
Intentions
+ Reactance
- Membership
Continuance
Normative
Intentions
Community
Pressure
+
- Community
Brand + Relationship
Community
Identification
+ Intentions
+ -
Community
Engagement + Community
Purchase
Intentions
© 2005, Algesheimer/Dholakia
(Algesheimer, Dholakia and Hermann, 2005) 29
- 32. Attitudes Perceived Intention to Participation
Behavioral Participate in BrCO Behavior
Control
+
Positive Face-to-face
Anticipated interactions
Emotions POSITIVE IMPACT FOR
SMALL
with family
Other
GROUPS, NEGATIVE FOR
Types of
NETWORKS DSIs
Face-to-face
Negative interactions
Anticipated Desire with friends
Emotions
Telephone
Use
Subjective
Norms Group
Norms OVERALL NEGATIVE IMPACT
Television
FOR EVERYONE Consump-
Use
Social tion of
Identity Media
Print Media
Use
Cognitive Affective Evaluative
Radio
SI SI SI
Use
© 2005, Algesheimer/Dholakia
(Bagozzi, Dholakia, and Klein Pearo 2006) 30
- 34. Implications
Social Experience
Emotional Experience
Accompanying
Services
Funktional
Product
• Consumption is a social act of symbolic importance
• The consumer has become a marketer of his own self-image
• A product is a bundle of attributes that satisfy functional, emotional and
social needs.
© 2005, Algesheimer/Dholakia 32
- 40. Contact
Prof. Dr. Paul Dholakia
Founder and Principal, Empyrean-Crest Marketing Consultancy and
Assistant Professor of Management
Jones Graduate School of Management
Rice University, Houston, Texas,
USA
Phone: +1 713 348 5376
Email: dholakia@rice.edu
Web: http://www.ruf.rice.edu/~dholakia
…………….
Prof. Dr. René Algesheimer
Assistant Professor of Marketing
Institute for Strategy and Business Economics
University of Zurich
Plattenstrasse 14
CH-8032 Zurich
Switzerland
Phone: +41 44 634 2916
Email: rene.algesheimer@isu.unizh.ch
Web: http://www.isu.unizh.ch/algesheimer
© 2005, Algesheimer/Dholakia 38