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Prepared by Michael Ling
Brand communities
Functional and social benefits
Michael Ling
July 2014

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WHAT ARE THE RESEARCH QUESTIONS?

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Motivation
• Frenzy in social media and an escalating interest in creating
brand communities around websites.
• We know little how customers behave in those communities.
• Research in online brand communities has been scarce and
under-developed (Bagozzi and Dholakia, 2002).

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Brand Communities
 From a ‘customer-brand’ dyad
into a ‘customer-customer-
brand’ triad (Muniz & O’Guinn,
2001).
 From a ‘customer-customer-
brand’ into a ‘customer-centric’
view (McAlexander et al, 2002).
• "Brand communities are social entities that reflect the situated
embeddedness of brands in the day-to-day lives of consumers and
the ways in which brands connect consumer to brand, and
consumer to consumer.” (Muniz & O’Guinn, 2001)
FirmBrand
Focal
Customer
Customer Product
• “the existence and meaningfulness of the community inhere in
customer experience rather than in the brand around which that
experience revolves.” (McAlexander et al, 2002).
Customer-centric Model of Brand Community (McAlexander et al., 2002)

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Overview
• People participate in online communities because the online
communities provide them with either information or social
needs (Fischer, Bristor and Gainer, 1996; McLure Wasko and Faraj,
2000).
• Consumers perceive online communities can offer: (i)
functional value such as information and advice; (ii) social
value such as self-esteem, friendship and social status; and
(iii) entertainment value (Sicilia and Palazon, 2008).
• Apart from entertainment value, the view that online
communities provide functional and social benefits is widely
supported (Burnett, 2000; Muniz and O’Guinn, 2001).

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C2C Know-how Exchange Model (Gruen et al., 2005)
Ability
C-to-C
Know-how
ExchangeMotivation
Opportunity
H1a
H1b
H3b
H4
H5
H3a
H1c
H2a,b
H2a,b
Loyalty
Intentions
Overall
Value of
the Firm’s
Offering
 Gruen et al.’s model is based on the MOA
model developed by MacInnis and Jaworski
(1989).
 Explore factors that affect “the degree to which
customers enter into and engage in know-how
exchanges with other customers.”
 The MOA variables will operate in an additive
or a compensatory manner only if each variable
has achieved its minimum threshold and certain
conditions are met.
 Motivation is the primary factor; Opportunity and
Ability will influence the effect of motivation.

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Motivation, Opportunity & Ability Constructs - Gruen et al. (2005)
• Opportunity Either a positive view of availability, or a negative view
of impediments (MacInnis et al. 1991).
Readiness, willingness, interest, and desire to engage
in information processing (Gruen et al., 2005).
Direct individuals to engage in goal-oriented behaviors
and make decisions (Hoyer and MacInnis, 1997; MacInnis
and Jaworski, 1989).
• Motivation
May be more a function of the restrictions an individual
faces (e.g. time, connection availability) participating in
the community (Gruen et al. 2005)
• Ability The resources of a customer that influence the outcome
of an event (Hoyer and MacInnis, 1997).
The skills or proficiencies in interpreting brand
information in an advertisement (MacInnis et al. 1991).
Competency in the process driving know-how
exchanges, as opposed to competency in the content of
the know-how that is being exchanged (MacInnis et al.
1991).
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Issues in the MOA C2C model
• (Ability) Customer’s competence in the subject of exchange has no effect on the level of
interactions .
 Level of expertise has been cited as a reason not to participate in online communities
(McLure Wasko & Faraj, 2000).
 High ability implies that prior knowledge necessary to interpret brand information is
present and is accessed (MacInnis et al., 1991)
• Has not addressed the social benefits of ‘customer-to-customer’ interactions, which is an
important value perceived by the customer (Burnett, 2000; Muniz and O’Guinn, 2001).
• Has not addressed the economic or non-economic costs incurred by customers and hence it has
neglected a key variable in the derivation of perceived value (Zeithaml, 1988).
• Has only addressed Loyalty Intentions in regards to repeat purchases of firm’s offerings, rather
than loyalty intentions to a brand community.

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Motivation

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Informational and Social Benefits
• Member generated
content
Hagel & Armstrong, 1997.
• Knowledge &
information are a
valuable resource
Hiltz & Wellman, 1997; Rheingold, 1993; Sproull
& Faraj, 1997.
Furlong, 1981; Wellman et al., 1996; Hagel &
Armstrong, 1997.
• To access information
• Use of “weak ties”
to information
Constant, Sproull & Kiesler, 1996.
• Social Support Thoits, 1982
• Sense of belonging
& affiliation
Watson & Johnson, 1972.
• Self-identity Hogg, 1996,
• Emotional Support,
sense of belonging,
encouragement,
companionship,
reciprocity
Furlong, 1989; Hiltz, 1984; Hiltz & Wellman, 1997;
Korenman & Whatt, 1996; Wellman, 1996; Wellman
& Gulia, 1999.
Information
Benefits
Social
Benefits
• Enjoyment &
entertaining
Holbrook, 2006; Sicilia & Palazon, 2008

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Perceived Community Benefits
A flow of emotional concern, instrumental aid,
information and/or appraisal between people (House,
1981).
Social Support:
The degree to which a person’s basic social needs
are gratified through interaction with others (Thoits,
1982).
 Emotional Support
 Social Support
 Sense of Belonging
 Encouragement
 Instrumental aid
Community Benefits

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Value Model
Value is considered as a tradeoff in consumer’s decision making between the
relevant ‘gives’ and ‘gets’ (Bolton and Drew, 1988; Heskett et al, 1990; Zeithaml, 1988).
Sacrifice is a broader construct that includes “non-pecuniary costs such as the
time, effort, and risk assumption associated with a particular purchase” (Cronin et
al., 1997).
Value
Service Quality
Sacrifices
Behavior
Intentions

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Perceived Community Value
 Emotional Support
 Social Support
 Sense of Belonging
 Encouragement
 Instrumental aid
Community Benefits
Sacrifices

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THE END.
THANK YOU