CASE CHAPTER 6: THEORETICAL FRAMEWORK AND HYPOTHESIS

CASE CHAPTER 6: 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.

QUESTIONS A good theoretical framework identifies and defines the important variables in the situation that are relevant to the problem and subsequently describes and explains the interconnections among these variables. 1. There are three basic features that should be present in any theoretical framework. Discuss

these features. Jesse has undertaken a literature review to develop his conceptual model. 2a. Is there or are there any alternative approaches that would allow Jesse to develop a

conceptual model? 2b. Describe the advantages and disadvantages of undertaking a literature review to develop a

model. 2c. Describe the advantages and disadvantages of the alternative approach that you have come

up with.

Self-discovery value

Social interactivity value

Social enhancement value

Entertainment value

Reward value

Member’s satisfaction Loyalty toward online brand community

intention to participate

Informational value

3a. Label the variables of Jesse’s conceptual model in terms of independent, dependent, moderating, and/or mediating variables.

3b. Explain the general difference(s) between moderating and mediating variables. 4. Develop the relevant hypotheses based on Jesse’s model (use directional hypotheses). Jesse explains the relationship between entertainment value, satisfaction, and member’s future intention to participate as follows. ENTERTAINMENT VALUE Several people participate in online communities to be entertained, to play, or to relax (Armstrong and Hagel, 1996, Dholakia, Bagozzi, and Pearo, 2004, Ridings and Gefen, 2004). Entertainment value can be derived from fun and relaxation trough playing games or interacting with others (Dholakia, Bagozzi, and Pearo 2004). Many people get fun through encountering and solving online challenges or contests (McKenna and Bargh 1999). In addition, specific and challenging goals may provide an online community entertainment value (Beenen et al. 2004). Providing entertainment within a company-initiated online brand community is therefore expected to affect the perceived value of the online brand community. Providing sufficient entertainment value with an online brand community of a food brand of Foodprints, including photos, videos, contests or games, might attract members. 5a. Provide a thorough evaluation of Jesse’s arguments. 5b. Provide a better explanation of why we would expect this relationship to exist. 6a. Try to come up with a variable that moderates the relationship between one of the

independent variables and ‘member’s satisfaction’. 6b. Provide an explanation of why and how you would expect that this variable affects the

relationship between the independent variable of your choice and ‘member’s satisfaction’. 6c. Provide the relevant hypothesis.