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Exploiting B&O’s innovative resources
        - Analysing the opportunities on Facebook




 A203, Social network and marketing relations – CBS, fall 2011
                 Niels Kornum – STU: 29.493




          Mads Alexander Enghoff, 091286-1627
             Martin Knudsen, 131086-1967
              Rune Sørensen, 040185-1763
Table of content
Introduction .............................................................................................................................. p. 2
Case: B&O and social media .................................................................................................. p. 2
Theory ...................................................................................................................................... p. 3
        Research question .......................................................................................................... p. 4
Structure .................................................................................................................................. p. 5
Survey finding ......................................................................................................................... p. 5
Netnography ............................................................................................................................. p. 8
Discussion and recommendation .............................................................................................. p. 14
Conclusion ................................................................................................................................ p. 16
List of references ...................................................................................................................... p. 17
Appendix 1 – mail requesting users to participate in survey ................................................... p. 18
Appendix 2 – overview of survey results ................................................................................. p. 19
Appendix 3 – Paradox matrix................................................................................................... p. 22
Appendix 4 – full survey findings ............................................................................................ p. 23




                                                                                                                                                     1
Introduction
Whether or not a business is on Facebook, the customers are. This is a fact that can be ignored,
but doing so is a possible risk for any company and it’s products. Social media such as Facebook
is an important communication platform for most people, and if a company does not give its
customers a forum for to talk about the brand, they will just find their own. This can prove to be a
major challenge for any company, since it will not be in charge of or have a say in the debate
forum, and thereby the company cannot respond if online criticism should occur. Furthermore the
company might miss out on great business opportunities and the possibility to follow and adapt.

Facebook is by now a known media, but the use of it is not. Many companies are present on
Facebook without any real strategy; only 33% of companies using Facebook are following a
direct strategy and plan (kalypso.com, 2011). Though many companies use Facebook, very few
have cracked the code for how to utilize social media on order to benefit the company. As a result
of this, customer-driven innovation, one of the most ideal uses of social media, is rarely
practised, since most companies neglect the fact that Facebook and other social media posses a
unique possibility to extract product ideas and innovation from the often big amount of fans and
followers.

In this paper we will look into how Bang & Olufsen is using Facebook as a media. This is done
with special focus on how the company can benefit from its many Facebook fans in regards to
innovation, which we will argue is one of the company’s major challenges.



Case: B&O on Facebook
The Danish electronic company Bang & Olufsen (B&O) was founded in 1925 and quickly
became recognised internationally, especially when they launched a radio that worked on
alternating current without batteries. B&O has been focusing on design from the beginning and
the company’s products are often of different and distinctive design when compared to
mainstream rivals. This strategy positioned the B&O brand as high class, quality minded and
somewhat expensive, and it have experienced high popularity worldwide resulting in company
followers who are often very loyal and committed to the brand.



                                                                                                   2
For a long time B&O was one of the leading companies within its product category and the
company’s design and product innovation resulted in several awards. This, however, has changed
over the last decade and now B&O is a long way from former glory. Instead the company has
been facing decreasing revenue for a long time as Sony and Samsung among others have invaded
their former niche of clean and timeless design on consumer electronics (comon.dk, 2004). After
several unsuccessful product launches and a general change in buying mentality from the
customers due to the financial recession, B&O announced in 2008 that the company would go
back to focus on it’s core competences: high quality audio and video products as well as sound
systems for the automotive industry. This might be the first step to recover the brand, but B&O
still faces significant challenges to renew the brand image and the company in general.

One of the most significant problems for the company is their timing and innovation, which not
at all correlates with their vision: “courage to constantly question the ordinary in search of
surprising, long-lasting experiences” (bang-olufsen.com, 2011). B&O is currently following a
strategy, which doesn’t fit their market position, since they act with a hesitant attitude toward
new products like a market leader, instead of promoting at the front as a niche player, a position
the company must accept. The high product prices, which in the past reflected the high quality
and design, is now a hindrance for many customers, since the technological development has
exploded over the last decade and thereby brought down prices dramatically. B&O is left
providing their customers high quality products at prices many times higher than their
competitors, and the technological innovation is lacking crucially for the company. Thereby the
company must turn to innovation and preferable in combination with their loyal customers, a
challenge where social media including Facebook is a perfect tool for the company. The official
B&O fan page already has more than 52.000 fans, but the company does not use these actively in
any way.



Theory
The three interesting forms of online communities, seen from a company’s point of view; CSR-,
brand- and innovation communities (Kornum, 2007) is an interesting point of departure in
regards to B&O. For B&O we do not see any particular need for stressing corporate social


                                                                                                     3
responsibility and therefore do not focus on CSR in this project. Next is the brand community; it
is no secret that B&O has a declining brand value even though they still have a loyal customer
base. The company enjoys high brand value in the minds of the consumer, but might slowly be
regarded more and more as an old-person product, why brand communities could be interesting
to study. Related to the old-person brand we see the lack of innovation or at least value-
innovation as a major flaw in B&O’s business model, which could help the brand image as well.
The theory of innovation community will be in focus in this project, which we think could help
improve the brand as well, though we won’t look further into branding.

One essential element of making user-driven innovation is getting the users to participate. This is
one of the main concerns in most online communities as Niels Kornum underlines: “3.4% of the
members make 80% of the postings” (Kornum, 2007:14). Another just as important part is to
properly use all the information received from the customers, which currently seems to be miles
away from how B&O is thinking business and innovation today. Getting the users to participate
in this idea generation will be the focus of this paper. In this paper we will only focus on the
participation part of this problem, by analysing a few of the most relevant bullet points found in
the earlier mentioned article by Niels Kornum. Moreover we will only focus on motivation
concerning the experienced users, as these might have the greatest interest and the most insight in
B&O. In regards to these thoughts we have chosen to look into the firm recognition, feedback
and unsatisfied product needs in order to establish long-term value enhancement and innovation
intelligence for B&O. This leads us to the following research question.

Research question
Which elements of the motivation motives should B&O focus on to get their Facebook fans to
participate in creating user-driven innovation and value-creation on the company’s Facebook
page?

   !    How is B&O giving recognition to their users, and how do the customers perceive this?
   !    How is B&O giving feedback to their users, and how do the customers perceive this?
   !    How is B&O responding to unsatisfied product needs from users, and in what way do the
        company involve the customers regarding this?



                                                                                                      4
Structure
For investigating how to get B&O’s Facebook fans to participate in the debates concerning
product development, we have chosen to make use of both a survey and netnography. The
structural question is then whether to analyse the survey or netnography first. The idea for
working with the netnography first would be that we could use the survey to underline our
findings in the netnography. Though this could be useful, we think it’s better to do it the other
way around and analyse the survey first. In this way the survey can tell us which of the
motivational factors that are of most importance to the users, and which of these factors the
costumers think are not so important, so that we can focus our netnographical analysis to the
most relevant factors. This is important as we are dealing with motivation, which has much more
to do with how the costumer perceives the situation, and not how the situation is seen from
outside. Moreover we are only studying motivational factors concerning the experienced
members and by analysing the survey first, we will have a better chance to separate the
experienced and novice users’ perception of B&O from each other, to tell which answers are
most relevant to this project. Our findings will lead us to conclude which elements of the
motivational factors that should be emphasized by B&O, and if any of our findings in the
netnography are contradicting the responds from our survey. Finally, in the recommendations, we
will give more practical suggestions to guidelines for B&O in dealing with this problem.



Survey findings
We created an online survey and invited fans from the B&O page to participate (the invitation
can be seen on appendix 1). We got 50 responses, but we decided to focus only on the people we
categorize as experienced users. Though we know that this sample might not be 100% exact, we
see this selection as covering the most relevant customer base. For getting the revised sample we
have cut out all the responses from respondents with less than three B&O products and
respondents visiting the site less than once a month. After doing this we ended up with 22 users
whom will be the basis of our analysis (the complete data set can be found in appendix 2 and 4).

The first question shows that 78% of the respondents have three or more B&O products, which
confirms that B&O’s Facebook fans are not only showing interest online, but are also actual


                                                                                                    5
offline users. We have specifically chosen people who are active and not just fans of the B&O
page, and we must therefore assume that the general trend for the fans is that they have less
products in average compared to our sample. We see, in question two, that 40% of our sample
only uses the page less than once a month. The result is a surprise to us, since we had expected
our very specific selection of respondents to be heavy users. This might be due to the lack of
activity or a poorly administered page. Moreover we found that only 3 out of 50 respondents did
not own a B&O product, which means that only 6% of the active users are non-customers.

From our third question we found that more than ! of our respondents thought that B&O did a
really bad job responding to posts, comments and ideas. This is very interesting, as social media
is all about dialogue. If we look at question three and four combined, we see very clearly, that
B&O is ignoring important aspects in regards to their experienced users, namely that the users
think corporate feedback is important, and there is a major lack of such from B&O’s side. This
could indicate that B&O, just like many other companies, only is present on Facebook because
everyone else is. The company is not paying attention to the needs of the specific media and are
ignoring the opportunities.

The feedback the consumers are asking for seems to be very different. Almost half of the
respondents would like short answers or “likes” and the other half wants longer answers. We
assume that those respondents who like short answers and “likes” are looking for firm
recognition, as this is what you can obtain with the likes from a posters point of view. Users who
are posting because they have some unsatisfied product needs want longer and more thorough
answers instead, on whether or not this is an option for B&O. The latter mentioned group must
also be assumed to count for those who would like feedback in the future if or when their product
ideas are being released.

Question six shows that only 14% are using B&O’s Facebook page for discussing unsatisfied
products needs at the moment, but question seven shows that 42% could imaging themself
discussing unsatisfied product needs. This could indicate that the respondents do not believe that
B&O is taking them seriously or gives them decent feedback, and therefore they do not bother to
discuss this topic at a place like Facebook, as there is no benefit in it for themself. This
assessment is reinforced by the answers in question ten, where 74% of the respondents answer


                                                                                                     6
that they do not feel that B&O is taking their comments and ideas seriously. In relation to these
findings we see from question eight that 66% of the experienced users would share their product
ideas with B&O, if they could just get some relevant feedback and additional 16% would if they
were economically compensated for their effort. It is very interesting to see that ! of the
company’s most relevant users, in our opinion, would share their ideas for free if B&O would
show some interest in them. With very little effort B&O could get valuable customer-insights,
which could be used to come up with new innovative products related to customers’ experiences
and needs.

Looking at the general perception and assessments of B&O in the media, it becomes clear that
B&O can’t afford to miss out on such valuable product ideas. An article from business.dk1 shows
that B&O is ranking lower than previously in the survey conducted by ‘IFO - Instituttet for
Opinionsanalyse’, ‘GCI Mannov’ and ‘Berlingske Nyhedsmagasin’. B&O used to have
innovation as one of their unique selling points, but within the last couple of years B&O has lost
market shares to competitors like Apple, Sony and Samsung, who are working more innovatively
with their products. The need for involving new young brains in the product innovation process is
no news for B&O, as they have previously been really good at doing this, for instance by hosting
a product innovation summer camp (elektronikbranchen.dk, 2011). The 40 participants in
Innovation Camp 2010 were carefully selected from universities in Poland, England, Portugal,
the Czech Republic, the Netherlands and from the Engineering College of Aarhus. The summer
camp ended up with B&O taking out a patent on one of the products idea, which was created on
the camp (iha.dk, 2010).

Question nine tells us that the experienced members of B&O’s Facebook page are almost split
50/50 when asked if they feel like being a part of the B&O society by being active on the
Facebook page. This is a high percentage that feels as being a part of the society, when taking
into consideration that the same people do not feel that they are being taken seriously by B&O.
This indicates that it is the connection to the other users, which gives the users the feeling of
being part of the society. This could lead us to believe that these users are more identity based
than bond based to B&O’s Facebook page (Ren et al., 2007), as the feeling of being part of a

1
    http://www.business.dk/bny/innovation-bo-bag-af-dansen

                                                                                                     7
society reflects a common identity with the others in the society. This could be relevant in
regards to how to manage, interact and build the site.

In order to answer the last part of our research question on whether or not recognition is
important for the users, we chose to formulate the question in regards to other users of the forum,
as many people will not admit to their own need to get recognition. By asking “do you think
others would appreciated recognition?” we hoped that we would get a more accurate view of how
important recognition are to the respondents, since it is always easier to project your own need
for recognition onto others. Question eleven show that 58% of the respondents believe that
recognition would be appreciated, if you have posted a new product idea on B&O’s Facebook
page. We had expected this to be much closer to 100%, as we think most people fell good when
being appreciated for their effort, especially when it is done for free. We must admit, that maybe
this mentality is not present on Facebook, or maybe the users of B&O’s page has just been used
to a lack of recognition for so long, that they don’t even care about it anymore. Another
explanation is that when you as a user have to explain to yourself why you see others keep
posting ideas without getting any recognition from B&O, you expect that those people do not
need recognition at all. Of course there is also the straightforward explanation that this might not
be as big a deal as we expect on this Facebook page.



Netnography
We have chosen to use netnography in order to analyse how B&O’s Facebook page is working.
Netnography will give us a window to the cultural realities of consumer groups, and will provide
us with bottom-up information regarding symbolism, meanings, consumption patterns and
statements about how satisfied the consumers are with B&O’s administration of the company and
Facebook page. We also hope that this tool we give us a better understanding of the consumers
and the way they communicate with each other in order to conclude, what the consumers are
missing on the Facebook page. We are aware of the fact that netnography can be very time
consuming while monitoring the community in order to becoming familiar with the users. It can
be hard to assess whether some statements are relevant or irrelevant data, since consumers on




                                                                                                       8
online communities often uses slang and culture codes, which sometimes only makes sense to
hard-core users of the communities.

With this in mind, we have used netnography in the following section, in order to analyse these
follow issues as best possible:

   !   Firm recognition
   !   Feedback in the future
   !   Unsatisfied product related need


B&O has a lot of loyal fans on the Facebook page (almost 50.000), but it is remarkable that
almost 100% of the post done at the site is by B&O them self. The page looks like a one-way
promotion platform for B&O products, and that is by far the most common use of Facebook and
will certainly not support innovation. The reason for this kind of ‘follow-only’ behaviour from
the fans could be due to the lack of feedback from the company on posts, which have resulted in
a total neglecting of fan-posts. It can also be due to the fact that B&O is very strict in the
administration of the page, which we experienced when conducting the survey, even though the
visible involvement level is very low. We posted a message in a gentle tone asking people to fill
out the survey, but within less than an hour the post was removed.
Furthermore the site does not support any fan-activities, only in the debate forum, the rest of the
site is build to promote B&O products and nothing more. In the debate forum the post are also
neglected by B&O, and here it is only customers who runs the dialogue, again B&O misses out
on a obvious opportunity for customer insights by being passive and not engage in the dialogue.
This part of the site is probably where most fans feel like they are a part of a society – a B&O
society – but a society run by fans and not supported by the company.




                                                                                                      9
The only activity relating to B&O on the debate site is from local suppliers, who help unsatisfied
customers with their problems. An example of this is Andrew Widger, who tries to help some
unfortunate customers with their broken products. A way of measuring user satisfaction on
B&O’s postings is to calculate the comment to like ratio (Lemberg, 2011). We will not use this
measurement in this project and do not think it is a useful tool to measure how good a forum is
driven in regards to user innovation. If this score is to be used in an innovation forum the
reciprocal score of the same ratio is a much better tool as a company seeks to get as many
comments and as few likes as possible.
The way the debate site is used underlines the customers’ dissatisfaction of lack of firm
recognition. Instead of using the Facebook site as a tool for dialogue and valuable customer

                                                                                                     10
feedback, which is one of the strength of social media, it seems like B&O has chosen to ignore
this opportunity and instead focus on the old fashioned product promotion (one-way
communication) strategy, which supports the fact that the brand is regarded as old.


Turning towards the main part of the Facebook page, the ‘wall’, we see the same pattern
repeated. B&O is using this part of the site to promote different products, share short videos and
talk about product benefits, all things that are very relevant for the consumers. The problem is,
that even though some of the fans comment on the different posts, they are totally ignored by the
company, and other fans must answer any questions asked here. A clear example is Rick Totty, a
loyal fan of B&O and a perfect representation of the affectionate B&O lovers, who asks for firm
recognition. It is not recognition for his innovation idea, but just recognition for being a loyal
customer through 35 years. We thought that the one like on his comment was from B&O, but it
wasn’t, it was from another fan.




It does not look like B&O is commenting or liking any of the users comments, feedback,
pictures, links or other. B&O is only posting new products, advertising videos and sharing
positive articles from the worldwide press, and that confirms the costumers’ dissatisfaction with
the company’s way of acting on the page. Below is an example of the type of posts, that B&O is
using the page for - all of which is pure promotion:




                                                                                                     11
Looking at the feedback on this post, it becomes clear that B&O is not even letting their
customers know the full potential and new features of the products - they might as well have
posted a printed ad. In the above example, the customers are approving the choice of making the
screen white, but further down in the comments users ask for other colours as well, but again we
see no feedback from B&O. A quick win for the company could be to leave a small comment like
“Thanks for your comments we take your colour wished into consideration when inventing a new
product”, but instead the customers are left with the impression of a promotional site, where the
products are in focus, and not the customers.




Another kind of comments left by the users are the one shown above. Thomas Gb is unsatisfied
with the features on B&O’s new product, a situation which on Facebook can be rewarding for
both user and the company, since they can engage in a dialogue about possible improvements for
the products. Sadly, there is no proof that B&O is reading this comment or taking this comment
serious enough, since instead of engaging in dialogue or give any form of feedback, B&O just
stays anonymous. This can lead to even more frustrated customers, since the company is now not
only providing unsatisfying products, but is also seen as ignorant to their customers wants and


                                                                                                    12
needs. Had B&O just replied that this need would be passed on to the development department
and thereby might or might not be included in future products, then both Thomas and the users
who see this comment would perceive B&O as being much more customer oriented and they
might get a more positive attitude towards the company. This comment is far from he only
appearance of its kind as is seen in the following post.




Here is some very good feedback from B&O users and even from a former B&O salesperson. Ira
is posting what seems to be a popular product improvement for B&O, and is getting recognition
from 2 likes and a comment from Paul Winn who agree. The third comment shown is also
positive towards the new product and colours and shows a direct buying wish from a customer,
which is what every company aims at. The problem here is that the product is not available for
purchase online, a way of shopping that is used by many customers, but again B&O does not feel
the need to answer this criticism. In this case B&O is loosing an actual customer by following



                                                                                                 13
what seems to be a no-response strategy. A simple explanation to why this product could not be
bought online could possibly satisfy Thomas, and make him buy the product in the nearest store
instead.

Sometimes the customers only need a simple reply or a small amount of recognition to change
their attitude or buying behaviour, and we do not see that B&O can ignore their customers in the
way they do, especially not when the interaction is on Facebook. It seems that the company is
ignoring the ‘social’ aspect of the media, and simply uses it as yet another promotional tool.



Discussion and recommendations
Our findings in the survey and the netnography are very similar in all aspects. Activity level is
low from B&O’s side concerning responding to users, and our netnography study also showed
that B&O is controlling the site very strictly. In regards to the Paradox matrix by Hargadon (see
appendix 3) we see that a high level of company interaction has a positive effect on incremental
innovation. We assume, though, that what B&O needs is radical innovations, as this has earlier
been one of their core competencies and incremental innovations are comparable much easier to
spot yourself as a company. Also with the brand image and competition that B&O is facing in the
market, incremental innovation will only have a small effect for the company. Therefore we
believe that B&O has to control their Facebook page much more loosely as this will lead to more
radical innovations in regards to the Paradox matrix. We believe, that the company should use
it’s on responding to users questions and comments and engaging with them in the community,
instead of controlling the page very strictly and ignoring the users. We wanted to compare
B&O’s Facebook page to pages from competitors such as Bowers & Wilkens, Sonon, Loewe, Hi-
Fi Klubben, Sony or Samsung to see how these companies are involved in their pages in regards
to innovation and motivating the users. Unfortunately, after looking at different pages and trying
to draw parallels, we had to admit that this was too specific for us to conclude anything useful
from. Moreover, the sites differ significantly in activity level, fan base and applications.

There is no doubt that B&O is not using the full potential of their Facebook page. There is much
improvement to be done in relation to the three main focus points of this paper - unsatisfied
customer needs, firm recognition and feedback - and in doing so B&O has the opportunity to tap

                                                                                                     14
into a vast amount of valuable customer insights and value-creation innovation. An opportunity
for B&O to approach the users’ unsatisfied product needs could be to involve them in a
competition of some sort. Looking at the experiences from Innovation Camp 2010 it is clear, that
there is potential for idea-generation in a focused forum and providing the huge amount of
Facebook fans with the chance to win an attractive price could create such focus. There is no
doubt that many of the ideas wont work or do not fit the company, but if just a single great idea
comes up once in a while, it is still a cheap and easy way to get a new idea or design.

To improve on firm recognition and feedback B&O must become much more active on the site.
The company has to face the fact, that the site is of little value when overlooking the interaction
with the user and therefore the focus has to be much more customer-oriented instead of only
product-oriented. Asking the users give them a feeling of being taken seriously by the company
and this can enhance the feeling of being part of a society, which in turn might make the users
more willing and comfortable with sharing thoughts and ideas. By interacting with the fans and
give them feedback, B&O can create a more personal face for the company, so that customers
feel they are a part of the company instead of only following it. To succeed in this, B&O must
constantly stay updated with the activity on the Facebook page and they must be allocated the
necessary resources. In return the users might change both their own attitude towards the
company, but can also become brand ambassadors.

Giving firm recognition, much like feedback, is a simple way to keep your Facebook fans happy.
If B&O became more active on the page and gave necessary feedback, the users might feel more
as part of the company. Instead of only posting links to new products and production videos,
B&O could use the Facebook page to update their users about current activities and things
happening within the company. An example could be to involve the customers already in the idea
generation phase for new products and keep them updated throughout the entire process with
simple post like “The design for our new speaker-dock is now in place - next is the choice of
colour”. This could again lead to customer insights, and let the users on the Facebook page feel
special, since they will get the information first. Moreover this could also be beneficial to B&O
in the sense that they had the opportunity to change the products under development to the better
if they at that point had some feedback from the forum.


                                                                                                      15
Conclusion
After having analysed B&O’s Facebook page we can conclude that they have a decent Facebook
page, a nice welcome page, many passionate users and they are doing a good job in regards to
using their Facebook page as a one-way communication platform. When it comes to using the
Facebook page as a two-way communication platform, as Facebook was indented and usually
works the best, it seems like B&O is almost completely ignoring the value that social media can
provide. The activity level for feedback and recognition is extremely low, almost non-existing,
which does not inspire customer-innovation in any way.

Our survey shows that feedback and recognition is important for the users of B&O’s Facebook
page. This fact is not reflected in the strategy, which B&O seems to has applied to the page. It is
actually doubtful whether B&O has or follows a strategy in regards to their Facebook page. If
B&O’s strategy is to be non-responding it is very doubtful that they will be able to extract any
innovative products ideas. Having this non-responding approach has also led to the fact that a lot
of the users do not feel like being a part of the B&O society. In relation to recognition and
feedback we also found that users were unwilling to post unsatisfied product needs compared to a
situation where the these factors were better implemented.

Summing up, all three factors have to be more in focus as none on them live up to the standards,
which the consumer needs to interact in an optimal way for B&O. As feedback improves, firm
recognition will improve as well and through improving these factors consumers will be willing
to post their unsatisfied product needs among other postings. This doesn’t mean that feedback is
the only thing to focus on, but probably the most important, recognition the second most
important and responding to unsatisfied product needs the least important element to improve
consumer participation in the forum.




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List of references
Articles:

Kornum, Niels (2009): “Three types of online communities”, CBS.

Ren, Yuqing, Robert Kraut and Sara Kiesler (2007): “Applying Common Identity and Bond
Theory to Design of Online Communities”, Organization Studies 28(03): 377-408.



Websites:

kalypso.com (2011):
http://www.youtube.com/user/KalypsoLP and https://www.kalypso.com/spike

comon.dk (2004):
http://www.comon.dk/art/147984/b-amp-o-i-boersfremgang-trods-faldende-overskud

bang-olufsen.com, 2011:
http://www.bang-olufsen.com/page.asp?id=600

elektronikbranchen.dk (2011):
http://elektronikbranchen.dk/nyhed/studerende-skal-udvikle-morgendagens-bo-produkter-til-unge

iha.dk (2010):
http://www.iha.dk/Default.aspx?ID=5573&PID=9744&NewsID=611



Course slides:

SM50 Culture, network & communities: “community innovation”, 2010, CBS (slide 37)

Presentation by Facebook analytic Mikael Lemberg, Komfo on experiences from different firms
and cases to use Facebook for creating relations with users, CBS, 12-09-2011.




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Appendix 1
Mail to members of B&O’s Facebook fan page asking them to participate in our survey.

Dear XX
We are 3 students at Copenhagen Business School who at the moment are working on an
assignment about B&O and the use of their Facebook Page. We can see that you have been active
at the site, and therefore we hope that you will use a few moments to answer our questionnaire
regarding the Facebook page?
Thank you very much.

The same request was posted on the wall of B&O’s Facebook page.




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Appendix 2
Results of our survey from Kwik online survey www.kwiksurveys.com.
Numbers in parentheses are the percentage including all 50 respondents.


Question 1
How many B&O products have you owned or own at the moment?
0 " (6%) 0%
1-2 " (16%) 0%
3-5 " (54% ) 69 %
6 or more " (24% ) 31 %


Question 2
How often do you visit B&O's Facebook page?
Every day " (6%) 10%
2-3 times a week " (12%) 20%
Once a week " (20%) 33%
2-3 times a month " (6%) 10%
Once a month " (16%) 27%
Less " (40%) 0%


Question 3
How good do you think B&O is at giving feedback on your's and other's posts, ideas and
comments?
Horrible " 68 %
Acceptable " 28%
Perfect " 4%




                                                                                         19
Question 4
Do you think it is important to get feedback from B&O on your ideas and comments?
Yes " 88%
No " 12%


Question 5
How would you prefer your feedback from B&O?
No feedback " 2%
Likes or short answers " 44 %
Detailed (long answer) "54 %


Question 6
Why are you using B&O´s Facebook page? (several answers allowed)
Because I am passionate about B&O's products " 58%
Because I am unsatisfied with the current products (and want to help B&O to innovate their
products " 14%
Because I like want to entertained and be updated about B&O's new products " 58%
Other reasons " 20%


Question 7
Could you imagine yourself using B&O's facebook page for any of the following? (Several
answers allowed)
Give comments and feedback on products " 88%
Discuss your's and other's unsatisfied product needs " 42%
Engage with B&O to influence future product innovation " 22%
Participating in long term collaboration " 8%




                                                                                             20
Question 8
If you knew that you would get relevant feedback, would you then share your product ideas on
B&O's Facebook page?
Yes " 66%
No " 18%
Yes, (but only if i got economic compensation) " 16%


Question 9
Do you feel like being a part of a B&O 'society' by being active on the page?
Yes " 48%
No " 52%


Question 10
Do you think that B&O is taking you and your comments/ideas seriously on Facebook?
Yes always " 8%
Sometimes " 18%
No never " 74%


Question 11
Do you think others would appreciate recognition from B&O when posting a new product
idea?
Yes " 58%
No " 20%
I don’t know " 22%




                                                                                               21
Appendix 3
The Paradox matrix.




                      22

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Exploiting B&O's Resources on Facebook

  • 1. Exploiting B&O’s innovative resources - Analysing the opportunities on Facebook A203, Social network and marketing relations – CBS, fall 2011 Niels Kornum – STU: 29.493 Mads Alexander Enghoff, 091286-1627 Martin Knudsen, 131086-1967 Rune Sørensen, 040185-1763
  • 2. Table of content Introduction .............................................................................................................................. p. 2 Case: B&O and social media .................................................................................................. p. 2 Theory ...................................................................................................................................... p. 3 Research question .......................................................................................................... p. 4 Structure .................................................................................................................................. p. 5 Survey finding ......................................................................................................................... p. 5 Netnography ............................................................................................................................. p. 8 Discussion and recommendation .............................................................................................. p. 14 Conclusion ................................................................................................................................ p. 16 List of references ...................................................................................................................... p. 17 Appendix 1 – mail requesting users to participate in survey ................................................... p. 18 Appendix 2 – overview of survey results ................................................................................. p. 19 Appendix 3 – Paradox matrix................................................................................................... p. 22 Appendix 4 – full survey findings ............................................................................................ p. 23 1
  • 3. Introduction Whether or not a business is on Facebook, the customers are. This is a fact that can be ignored, but doing so is a possible risk for any company and it’s products. Social media such as Facebook is an important communication platform for most people, and if a company does not give its customers a forum for to talk about the brand, they will just find their own. This can prove to be a major challenge for any company, since it will not be in charge of or have a say in the debate forum, and thereby the company cannot respond if online criticism should occur. Furthermore the company might miss out on great business opportunities and the possibility to follow and adapt. Facebook is by now a known media, but the use of it is not. Many companies are present on Facebook without any real strategy; only 33% of companies using Facebook are following a direct strategy and plan (kalypso.com, 2011). Though many companies use Facebook, very few have cracked the code for how to utilize social media on order to benefit the company. As a result of this, customer-driven innovation, one of the most ideal uses of social media, is rarely practised, since most companies neglect the fact that Facebook and other social media posses a unique possibility to extract product ideas and innovation from the often big amount of fans and followers. In this paper we will look into how Bang & Olufsen is using Facebook as a media. This is done with special focus on how the company can benefit from its many Facebook fans in regards to innovation, which we will argue is one of the company’s major challenges. Case: B&O on Facebook The Danish electronic company Bang & Olufsen (B&O) was founded in 1925 and quickly became recognised internationally, especially when they launched a radio that worked on alternating current without batteries. B&O has been focusing on design from the beginning and the company’s products are often of different and distinctive design when compared to mainstream rivals. This strategy positioned the B&O brand as high class, quality minded and somewhat expensive, and it have experienced high popularity worldwide resulting in company followers who are often very loyal and committed to the brand. 2
  • 4. For a long time B&O was one of the leading companies within its product category and the company’s design and product innovation resulted in several awards. This, however, has changed over the last decade and now B&O is a long way from former glory. Instead the company has been facing decreasing revenue for a long time as Sony and Samsung among others have invaded their former niche of clean and timeless design on consumer electronics (comon.dk, 2004). After several unsuccessful product launches and a general change in buying mentality from the customers due to the financial recession, B&O announced in 2008 that the company would go back to focus on it’s core competences: high quality audio and video products as well as sound systems for the automotive industry. This might be the first step to recover the brand, but B&O still faces significant challenges to renew the brand image and the company in general. One of the most significant problems for the company is their timing and innovation, which not at all correlates with their vision: “courage to constantly question the ordinary in search of surprising, long-lasting experiences” (bang-olufsen.com, 2011). B&O is currently following a strategy, which doesn’t fit their market position, since they act with a hesitant attitude toward new products like a market leader, instead of promoting at the front as a niche player, a position the company must accept. The high product prices, which in the past reflected the high quality and design, is now a hindrance for many customers, since the technological development has exploded over the last decade and thereby brought down prices dramatically. B&O is left providing their customers high quality products at prices many times higher than their competitors, and the technological innovation is lacking crucially for the company. Thereby the company must turn to innovation and preferable in combination with their loyal customers, a challenge where social media including Facebook is a perfect tool for the company. The official B&O fan page already has more than 52.000 fans, but the company does not use these actively in any way. Theory The three interesting forms of online communities, seen from a company’s point of view; CSR-, brand- and innovation communities (Kornum, 2007) is an interesting point of departure in regards to B&O. For B&O we do not see any particular need for stressing corporate social 3
  • 5. responsibility and therefore do not focus on CSR in this project. Next is the brand community; it is no secret that B&O has a declining brand value even though they still have a loyal customer base. The company enjoys high brand value in the minds of the consumer, but might slowly be regarded more and more as an old-person product, why brand communities could be interesting to study. Related to the old-person brand we see the lack of innovation or at least value- innovation as a major flaw in B&O’s business model, which could help the brand image as well. The theory of innovation community will be in focus in this project, which we think could help improve the brand as well, though we won’t look further into branding. One essential element of making user-driven innovation is getting the users to participate. This is one of the main concerns in most online communities as Niels Kornum underlines: “3.4% of the members make 80% of the postings” (Kornum, 2007:14). Another just as important part is to properly use all the information received from the customers, which currently seems to be miles away from how B&O is thinking business and innovation today. Getting the users to participate in this idea generation will be the focus of this paper. In this paper we will only focus on the participation part of this problem, by analysing a few of the most relevant bullet points found in the earlier mentioned article by Niels Kornum. Moreover we will only focus on motivation concerning the experienced users, as these might have the greatest interest and the most insight in B&O. In regards to these thoughts we have chosen to look into the firm recognition, feedback and unsatisfied product needs in order to establish long-term value enhancement and innovation intelligence for B&O. This leads us to the following research question. Research question Which elements of the motivation motives should B&O focus on to get their Facebook fans to participate in creating user-driven innovation and value-creation on the company’s Facebook page? ! How is B&O giving recognition to their users, and how do the customers perceive this? ! How is B&O giving feedback to their users, and how do the customers perceive this? ! How is B&O responding to unsatisfied product needs from users, and in what way do the company involve the customers regarding this? 4
  • 6. Structure For investigating how to get B&O’s Facebook fans to participate in the debates concerning product development, we have chosen to make use of both a survey and netnography. The structural question is then whether to analyse the survey or netnography first. The idea for working with the netnography first would be that we could use the survey to underline our findings in the netnography. Though this could be useful, we think it’s better to do it the other way around and analyse the survey first. In this way the survey can tell us which of the motivational factors that are of most importance to the users, and which of these factors the costumers think are not so important, so that we can focus our netnographical analysis to the most relevant factors. This is important as we are dealing with motivation, which has much more to do with how the costumer perceives the situation, and not how the situation is seen from outside. Moreover we are only studying motivational factors concerning the experienced members and by analysing the survey first, we will have a better chance to separate the experienced and novice users’ perception of B&O from each other, to tell which answers are most relevant to this project. Our findings will lead us to conclude which elements of the motivational factors that should be emphasized by B&O, and if any of our findings in the netnography are contradicting the responds from our survey. Finally, in the recommendations, we will give more practical suggestions to guidelines for B&O in dealing with this problem. Survey findings We created an online survey and invited fans from the B&O page to participate (the invitation can be seen on appendix 1). We got 50 responses, but we decided to focus only on the people we categorize as experienced users. Though we know that this sample might not be 100% exact, we see this selection as covering the most relevant customer base. For getting the revised sample we have cut out all the responses from respondents with less than three B&O products and respondents visiting the site less than once a month. After doing this we ended up with 22 users whom will be the basis of our analysis (the complete data set can be found in appendix 2 and 4). The first question shows that 78% of the respondents have three or more B&O products, which confirms that B&O’s Facebook fans are not only showing interest online, but are also actual 5
  • 7. offline users. We have specifically chosen people who are active and not just fans of the B&O page, and we must therefore assume that the general trend for the fans is that they have less products in average compared to our sample. We see, in question two, that 40% of our sample only uses the page less than once a month. The result is a surprise to us, since we had expected our very specific selection of respondents to be heavy users. This might be due to the lack of activity or a poorly administered page. Moreover we found that only 3 out of 50 respondents did not own a B&O product, which means that only 6% of the active users are non-customers. From our third question we found that more than ! of our respondents thought that B&O did a really bad job responding to posts, comments and ideas. This is very interesting, as social media is all about dialogue. If we look at question three and four combined, we see very clearly, that B&O is ignoring important aspects in regards to their experienced users, namely that the users think corporate feedback is important, and there is a major lack of such from B&O’s side. This could indicate that B&O, just like many other companies, only is present on Facebook because everyone else is. The company is not paying attention to the needs of the specific media and are ignoring the opportunities. The feedback the consumers are asking for seems to be very different. Almost half of the respondents would like short answers or “likes” and the other half wants longer answers. We assume that those respondents who like short answers and “likes” are looking for firm recognition, as this is what you can obtain with the likes from a posters point of view. Users who are posting because they have some unsatisfied product needs want longer and more thorough answers instead, on whether or not this is an option for B&O. The latter mentioned group must also be assumed to count for those who would like feedback in the future if or when their product ideas are being released. Question six shows that only 14% are using B&O’s Facebook page for discussing unsatisfied products needs at the moment, but question seven shows that 42% could imaging themself discussing unsatisfied product needs. This could indicate that the respondents do not believe that B&O is taking them seriously or gives them decent feedback, and therefore they do not bother to discuss this topic at a place like Facebook, as there is no benefit in it for themself. This assessment is reinforced by the answers in question ten, where 74% of the respondents answer 6
  • 8. that they do not feel that B&O is taking their comments and ideas seriously. In relation to these findings we see from question eight that 66% of the experienced users would share their product ideas with B&O, if they could just get some relevant feedback and additional 16% would if they were economically compensated for their effort. It is very interesting to see that ! of the company’s most relevant users, in our opinion, would share their ideas for free if B&O would show some interest in them. With very little effort B&O could get valuable customer-insights, which could be used to come up with new innovative products related to customers’ experiences and needs. Looking at the general perception and assessments of B&O in the media, it becomes clear that B&O can’t afford to miss out on such valuable product ideas. An article from business.dk1 shows that B&O is ranking lower than previously in the survey conducted by ‘IFO - Instituttet for Opinionsanalyse’, ‘GCI Mannov’ and ‘Berlingske Nyhedsmagasin’. B&O used to have innovation as one of their unique selling points, but within the last couple of years B&O has lost market shares to competitors like Apple, Sony and Samsung, who are working more innovatively with their products. The need for involving new young brains in the product innovation process is no news for B&O, as they have previously been really good at doing this, for instance by hosting a product innovation summer camp (elektronikbranchen.dk, 2011). The 40 participants in Innovation Camp 2010 were carefully selected from universities in Poland, England, Portugal, the Czech Republic, the Netherlands and from the Engineering College of Aarhus. The summer camp ended up with B&O taking out a patent on one of the products idea, which was created on the camp (iha.dk, 2010). Question nine tells us that the experienced members of B&O’s Facebook page are almost split 50/50 when asked if they feel like being a part of the B&O society by being active on the Facebook page. This is a high percentage that feels as being a part of the society, when taking into consideration that the same people do not feel that they are being taken seriously by B&O. This indicates that it is the connection to the other users, which gives the users the feeling of being part of the society. This could lead us to believe that these users are more identity based than bond based to B&O’s Facebook page (Ren et al., 2007), as the feeling of being part of a 1 http://www.business.dk/bny/innovation-bo-bag-af-dansen 7
  • 9. society reflects a common identity with the others in the society. This could be relevant in regards to how to manage, interact and build the site. In order to answer the last part of our research question on whether or not recognition is important for the users, we chose to formulate the question in regards to other users of the forum, as many people will not admit to their own need to get recognition. By asking “do you think others would appreciated recognition?” we hoped that we would get a more accurate view of how important recognition are to the respondents, since it is always easier to project your own need for recognition onto others. Question eleven show that 58% of the respondents believe that recognition would be appreciated, if you have posted a new product idea on B&O’s Facebook page. We had expected this to be much closer to 100%, as we think most people fell good when being appreciated for their effort, especially when it is done for free. We must admit, that maybe this mentality is not present on Facebook, or maybe the users of B&O’s page has just been used to a lack of recognition for so long, that they don’t even care about it anymore. Another explanation is that when you as a user have to explain to yourself why you see others keep posting ideas without getting any recognition from B&O, you expect that those people do not need recognition at all. Of course there is also the straightforward explanation that this might not be as big a deal as we expect on this Facebook page. Netnography We have chosen to use netnography in order to analyse how B&O’s Facebook page is working. Netnography will give us a window to the cultural realities of consumer groups, and will provide us with bottom-up information regarding symbolism, meanings, consumption patterns and statements about how satisfied the consumers are with B&O’s administration of the company and Facebook page. We also hope that this tool we give us a better understanding of the consumers and the way they communicate with each other in order to conclude, what the consumers are missing on the Facebook page. We are aware of the fact that netnography can be very time consuming while monitoring the community in order to becoming familiar with the users. It can be hard to assess whether some statements are relevant or irrelevant data, since consumers on 8
  • 10. online communities often uses slang and culture codes, which sometimes only makes sense to hard-core users of the communities. With this in mind, we have used netnography in the following section, in order to analyse these follow issues as best possible: ! Firm recognition ! Feedback in the future ! Unsatisfied product related need B&O has a lot of loyal fans on the Facebook page (almost 50.000), but it is remarkable that almost 100% of the post done at the site is by B&O them self. The page looks like a one-way promotion platform for B&O products, and that is by far the most common use of Facebook and will certainly not support innovation. The reason for this kind of ‘follow-only’ behaviour from the fans could be due to the lack of feedback from the company on posts, which have resulted in a total neglecting of fan-posts. It can also be due to the fact that B&O is very strict in the administration of the page, which we experienced when conducting the survey, even though the visible involvement level is very low. We posted a message in a gentle tone asking people to fill out the survey, but within less than an hour the post was removed. Furthermore the site does not support any fan-activities, only in the debate forum, the rest of the site is build to promote B&O products and nothing more. In the debate forum the post are also neglected by B&O, and here it is only customers who runs the dialogue, again B&O misses out on a obvious opportunity for customer insights by being passive and not engage in the dialogue. This part of the site is probably where most fans feel like they are a part of a society – a B&O society – but a society run by fans and not supported by the company. 9
  • 11. The only activity relating to B&O on the debate site is from local suppliers, who help unsatisfied customers with their problems. An example of this is Andrew Widger, who tries to help some unfortunate customers with their broken products. A way of measuring user satisfaction on B&O’s postings is to calculate the comment to like ratio (Lemberg, 2011). We will not use this measurement in this project and do not think it is a useful tool to measure how good a forum is driven in regards to user innovation. If this score is to be used in an innovation forum the reciprocal score of the same ratio is a much better tool as a company seeks to get as many comments and as few likes as possible. The way the debate site is used underlines the customers’ dissatisfaction of lack of firm recognition. Instead of using the Facebook site as a tool for dialogue and valuable customer 10
  • 12. feedback, which is one of the strength of social media, it seems like B&O has chosen to ignore this opportunity and instead focus on the old fashioned product promotion (one-way communication) strategy, which supports the fact that the brand is regarded as old. Turning towards the main part of the Facebook page, the ‘wall’, we see the same pattern repeated. B&O is using this part of the site to promote different products, share short videos and talk about product benefits, all things that are very relevant for the consumers. The problem is, that even though some of the fans comment on the different posts, they are totally ignored by the company, and other fans must answer any questions asked here. A clear example is Rick Totty, a loyal fan of B&O and a perfect representation of the affectionate B&O lovers, who asks for firm recognition. It is not recognition for his innovation idea, but just recognition for being a loyal customer through 35 years. We thought that the one like on his comment was from B&O, but it wasn’t, it was from another fan. It does not look like B&O is commenting or liking any of the users comments, feedback, pictures, links or other. B&O is only posting new products, advertising videos and sharing positive articles from the worldwide press, and that confirms the costumers’ dissatisfaction with the company’s way of acting on the page. Below is an example of the type of posts, that B&O is using the page for - all of which is pure promotion: 11
  • 13. Looking at the feedback on this post, it becomes clear that B&O is not even letting their customers know the full potential and new features of the products - they might as well have posted a printed ad. In the above example, the customers are approving the choice of making the screen white, but further down in the comments users ask for other colours as well, but again we see no feedback from B&O. A quick win for the company could be to leave a small comment like “Thanks for your comments we take your colour wished into consideration when inventing a new product”, but instead the customers are left with the impression of a promotional site, where the products are in focus, and not the customers. Another kind of comments left by the users are the one shown above. Thomas Gb is unsatisfied with the features on B&O’s new product, a situation which on Facebook can be rewarding for both user and the company, since they can engage in a dialogue about possible improvements for the products. Sadly, there is no proof that B&O is reading this comment or taking this comment serious enough, since instead of engaging in dialogue or give any form of feedback, B&O just stays anonymous. This can lead to even more frustrated customers, since the company is now not only providing unsatisfying products, but is also seen as ignorant to their customers wants and 12
  • 14. needs. Had B&O just replied that this need would be passed on to the development department and thereby might or might not be included in future products, then both Thomas and the users who see this comment would perceive B&O as being much more customer oriented and they might get a more positive attitude towards the company. This comment is far from he only appearance of its kind as is seen in the following post. Here is some very good feedback from B&O users and even from a former B&O salesperson. Ira is posting what seems to be a popular product improvement for B&O, and is getting recognition from 2 likes and a comment from Paul Winn who agree. The third comment shown is also positive towards the new product and colours and shows a direct buying wish from a customer, which is what every company aims at. The problem here is that the product is not available for purchase online, a way of shopping that is used by many customers, but again B&O does not feel the need to answer this criticism. In this case B&O is loosing an actual customer by following 13
  • 15. what seems to be a no-response strategy. A simple explanation to why this product could not be bought online could possibly satisfy Thomas, and make him buy the product in the nearest store instead. Sometimes the customers only need a simple reply or a small amount of recognition to change their attitude or buying behaviour, and we do not see that B&O can ignore their customers in the way they do, especially not when the interaction is on Facebook. It seems that the company is ignoring the ‘social’ aspect of the media, and simply uses it as yet another promotional tool. Discussion and recommendations Our findings in the survey and the netnography are very similar in all aspects. Activity level is low from B&O’s side concerning responding to users, and our netnography study also showed that B&O is controlling the site very strictly. In regards to the Paradox matrix by Hargadon (see appendix 3) we see that a high level of company interaction has a positive effect on incremental innovation. We assume, though, that what B&O needs is radical innovations, as this has earlier been one of their core competencies and incremental innovations are comparable much easier to spot yourself as a company. Also with the brand image and competition that B&O is facing in the market, incremental innovation will only have a small effect for the company. Therefore we believe that B&O has to control their Facebook page much more loosely as this will lead to more radical innovations in regards to the Paradox matrix. We believe, that the company should use it’s on responding to users questions and comments and engaging with them in the community, instead of controlling the page very strictly and ignoring the users. We wanted to compare B&O’s Facebook page to pages from competitors such as Bowers & Wilkens, Sonon, Loewe, Hi- Fi Klubben, Sony or Samsung to see how these companies are involved in their pages in regards to innovation and motivating the users. Unfortunately, after looking at different pages and trying to draw parallels, we had to admit that this was too specific for us to conclude anything useful from. Moreover, the sites differ significantly in activity level, fan base and applications. There is no doubt that B&O is not using the full potential of their Facebook page. There is much improvement to be done in relation to the three main focus points of this paper - unsatisfied customer needs, firm recognition and feedback - and in doing so B&O has the opportunity to tap 14
  • 16. into a vast amount of valuable customer insights and value-creation innovation. An opportunity for B&O to approach the users’ unsatisfied product needs could be to involve them in a competition of some sort. Looking at the experiences from Innovation Camp 2010 it is clear, that there is potential for idea-generation in a focused forum and providing the huge amount of Facebook fans with the chance to win an attractive price could create such focus. There is no doubt that many of the ideas wont work or do not fit the company, but if just a single great idea comes up once in a while, it is still a cheap and easy way to get a new idea or design. To improve on firm recognition and feedback B&O must become much more active on the site. The company has to face the fact, that the site is of little value when overlooking the interaction with the user and therefore the focus has to be much more customer-oriented instead of only product-oriented. Asking the users give them a feeling of being taken seriously by the company and this can enhance the feeling of being part of a society, which in turn might make the users more willing and comfortable with sharing thoughts and ideas. By interacting with the fans and give them feedback, B&O can create a more personal face for the company, so that customers feel they are a part of the company instead of only following it. To succeed in this, B&O must constantly stay updated with the activity on the Facebook page and they must be allocated the necessary resources. In return the users might change both their own attitude towards the company, but can also become brand ambassadors. Giving firm recognition, much like feedback, is a simple way to keep your Facebook fans happy. If B&O became more active on the page and gave necessary feedback, the users might feel more as part of the company. Instead of only posting links to new products and production videos, B&O could use the Facebook page to update their users about current activities and things happening within the company. An example could be to involve the customers already in the idea generation phase for new products and keep them updated throughout the entire process with simple post like “The design for our new speaker-dock is now in place - next is the choice of colour”. This could again lead to customer insights, and let the users on the Facebook page feel special, since they will get the information first. Moreover this could also be beneficial to B&O in the sense that they had the opportunity to change the products under development to the better if they at that point had some feedback from the forum. 15
  • 17. Conclusion After having analysed B&O’s Facebook page we can conclude that they have a decent Facebook page, a nice welcome page, many passionate users and they are doing a good job in regards to using their Facebook page as a one-way communication platform. When it comes to using the Facebook page as a two-way communication platform, as Facebook was indented and usually works the best, it seems like B&O is almost completely ignoring the value that social media can provide. The activity level for feedback and recognition is extremely low, almost non-existing, which does not inspire customer-innovation in any way. Our survey shows that feedback and recognition is important for the users of B&O’s Facebook page. This fact is not reflected in the strategy, which B&O seems to has applied to the page. It is actually doubtful whether B&O has or follows a strategy in regards to their Facebook page. If B&O’s strategy is to be non-responding it is very doubtful that they will be able to extract any innovative products ideas. Having this non-responding approach has also led to the fact that a lot of the users do not feel like being a part of the B&O society. In relation to recognition and feedback we also found that users were unwilling to post unsatisfied product needs compared to a situation where the these factors were better implemented. Summing up, all three factors have to be more in focus as none on them live up to the standards, which the consumer needs to interact in an optimal way for B&O. As feedback improves, firm recognition will improve as well and through improving these factors consumers will be willing to post their unsatisfied product needs among other postings. This doesn’t mean that feedback is the only thing to focus on, but probably the most important, recognition the second most important and responding to unsatisfied product needs the least important element to improve consumer participation in the forum. 16
  • 18. List of references Articles: Kornum, Niels (2009): “Three types of online communities”, CBS. Ren, Yuqing, Robert Kraut and Sara Kiesler (2007): “Applying Common Identity and Bond Theory to Design of Online Communities”, Organization Studies 28(03): 377-408. Websites: kalypso.com (2011): http://www.youtube.com/user/KalypsoLP and https://www.kalypso.com/spike comon.dk (2004): http://www.comon.dk/art/147984/b-amp-o-i-boersfremgang-trods-faldende-overskud bang-olufsen.com, 2011: http://www.bang-olufsen.com/page.asp?id=600 elektronikbranchen.dk (2011): http://elektronikbranchen.dk/nyhed/studerende-skal-udvikle-morgendagens-bo-produkter-til-unge iha.dk (2010): http://www.iha.dk/Default.aspx?ID=5573&PID=9744&NewsID=611 Course slides: SM50 Culture, network & communities: “community innovation”, 2010, CBS (slide 37) Presentation by Facebook analytic Mikael Lemberg, Komfo on experiences from different firms and cases to use Facebook for creating relations with users, CBS, 12-09-2011. 17
  • 19. Appendix 1 Mail to members of B&O’s Facebook fan page asking them to participate in our survey. Dear XX We are 3 students at Copenhagen Business School who at the moment are working on an assignment about B&O and the use of their Facebook Page. We can see that you have been active at the site, and therefore we hope that you will use a few moments to answer our questionnaire regarding the Facebook page? Thank you very much. The same request was posted on the wall of B&O’s Facebook page. 18
  • 20. Appendix 2 Results of our survey from Kwik online survey www.kwiksurveys.com. Numbers in parentheses are the percentage including all 50 respondents. Question 1 How many B&O products have you owned or own at the moment? 0 " (6%) 0% 1-2 " (16%) 0% 3-5 " (54% ) 69 % 6 or more " (24% ) 31 % Question 2 How often do you visit B&O's Facebook page? Every day " (6%) 10% 2-3 times a week " (12%) 20% Once a week " (20%) 33% 2-3 times a month " (6%) 10% Once a month " (16%) 27% Less " (40%) 0% Question 3 How good do you think B&O is at giving feedback on your's and other's posts, ideas and comments? Horrible " 68 % Acceptable " 28% Perfect " 4% 19
  • 21. Question 4 Do you think it is important to get feedback from B&O on your ideas and comments? Yes " 88% No " 12% Question 5 How would you prefer your feedback from B&O? No feedback " 2% Likes or short answers " 44 % Detailed (long answer) "54 % Question 6 Why are you using B&O´s Facebook page? (several answers allowed) Because I am passionate about B&O's products " 58% Because I am unsatisfied with the current products (and want to help B&O to innovate their products " 14% Because I like want to entertained and be updated about B&O's new products " 58% Other reasons " 20% Question 7 Could you imagine yourself using B&O's facebook page for any of the following? (Several answers allowed) Give comments and feedback on products " 88% Discuss your's and other's unsatisfied product needs " 42% Engage with B&O to influence future product innovation " 22% Participating in long term collaboration " 8% 20
  • 22. Question 8 If you knew that you would get relevant feedback, would you then share your product ideas on B&O's Facebook page? Yes " 66% No " 18% Yes, (but only if i got economic compensation) " 16% Question 9 Do you feel like being a part of a B&O 'society' by being active on the page? Yes " 48% No " 52% Question 10 Do you think that B&O is taking you and your comments/ideas seriously on Facebook? Yes always " 8% Sometimes " 18% No never " 74% Question 11 Do you think others would appreciate recognition from B&O when posting a new product idea? Yes " 58% No " 20% I don’t know " 22% 21