LECTURE 9 - Case Study 2 (1)

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CASE: THEORETICAL FRAMEWORK AND HYPOTHESIS DEVELOPMENT

THE SOCIAL NETWORK

The growing use of social network sites (such as Facebook) and online communities (such as
for instance the Apple Computer community, the community of Harley-Davidson riders, and
the community of Starbucks customers) provides exciting opportunities for organizations.
Online brand communities allow organizations to engage and interact with customers, obtain
market information, sell and advertise products, rapidly disseminate information, develop long-
term relationships with the community, and eventually to influence consumers’ preferences
and behavior (Dholakia and Bagozzi, 2001, Dholakia, Bagozzi, and Pearo, 2004, Franke and
Shah, 2003, Muniz and Schau, 2005, Tedjamulia, Olsen, Dean, and Albrecht, 2005). “Brand
community” is a term that is used to describe like-minded consumers who identify with a
particular brand and share significant traits, such as for instance “a shared consciousness,
rituals, traditions, and a sense of moral responsibility” (Muniz and O’Guinn, 2001, p. 412).
Online brand communities are based on their core value - the brand- and grow by building
relationships with and among members interested in the brand (Jang et al. 2008).

There are several possible categorizations of online brand communities, but they are generally
grouped into two categories based on who initiates and manages the community; (1) company-
initiated communities, built by the company that owns the brand and (2) user-initiated
communities, voluntarily built by their members (that is, the consumer) (e.g., Armstrong and
Hagel 1996; Kozinets 1999). These two types of brand communities provide different
opportunities for marketers. For instance, a brand community on a company website is one of
the key determinants of attracting consumers to and retaining customers on the website
(Nysveen and Pedersen, 2004). Consumer-initiated online brand communities may provide
consumers with useful information about other consumers’ experiences with the product or
service and the strengths and weaknesses of products or services (Jang et al. 2008).

The success of online brand communities is heavily dependent on consumer participation in


the online brand community. To determine why consumers participate in online brand
communities business student Jesse Eisenberg has developed a model based on extant service
marketing literature. The main idea in this literature is that perceived value and satisfaction are
antecedents of the intention to use a product or service (Anderson, Fornell, and Lehmann 1994;
Bolton and Drew 1991; Grönroos 1990; Hocutt 1998; Kang, Lee, and Choi 2007; Ravald and
Grönroos 1996). Jesse wants to apply this idea to consumer participation in online brand
communities. According to Jesse, “members will probably be satisfied with an online brand
community and have the intention to participate in the community when they derive value from
the community. Therefore it is important to know which values members may derive from
participating in an online brand community.” A thorough review of the literature has convinced
Jesse that participation in online brand communities depends on the communities’ perceived
informational value, self-discovery value, social interactivity value, social enhancement value,
entertainment value, and reward value (e.g., Dholakia, Bagazzi, and Pearo 2004; Flanagin and
Metzger 2001).

Figure 1 provides a graphical representation of Jesse’s ideas.

Informational value

Self-discovery value

Social interactivity value


Member’s satisfaction Loyalty toward online
brand community
Social enhancement
intention to participate
value

Entertainment value

Reward value

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