Strategies for creating value through individual and collective customer experiences

Despite tremendous interest in how online communities create value, existing research tends to focus on limited means through which such value is generated. In this article, we develop a conceptual model of customer value formation. This model rests on two dimensions, namely whether value is formed in the customer or provider domain and whether the value is individual or collective in nature. This enables value formation to be characterized in four ways and enables a more nuanced view of value formation to emerge. Firms are encouraged to reflect on their efforts to support each of the four value formation types. In particular, our conceptualization challenges companies to consider customer contexts outside of customer-firm interaction as important sources of value creation for customers. Such reflection enables practitioners to develop strategies for supporting individual and collective value creation across both the customer and provider domains.     

Effect of social support on customer satisfaction and citizenship behavior in online brand communities: The moderating role of support source

Customers often join online brand communities to seek support from others when they encounter product problems. Some customers who receive good social support exhibit customer citizenship behavior. This study develops a theoretical model to investigate how social support influences customer citizenship behavior through customer satisfaction with firms in online brand communities. Moreover, the moderating role of support source (i.e., firms vs. other customers) is measured. The research model is tested by using the Partial Least Squares technique. The results show that informational and emotional support significantly affects the customer citizenship behavior of providing feedback to the firm, recommendations, and helping other customers through customer satisfaction in online brand communities. Moreover, informational and emotional support from firms and other customers exert different effects on customer satisfaction.     

New insights into online consumption communities and netnography

This study provides new insights to online consumption communities by questioning the currently dominant view of communities being structured by subcultural capital and meanings pertinent to a specific field of consumption, such as one brand or consumption interest. This study argues for more sensitivity in recognizing increasing delocalization, which manifests itself in significant overlap between communities and consequently freer movement of participants between them. This study draws from a longitudinal and introspective netnographic research project in what was originally an electronic music community to discuss the consequences of this development. The study finds that delocalization manifests itself through situated individualism and delocalized performances within online consumption communities, and offers implications for future netnographic inquiry.     

Influence of community design on user behaviors in online communities

While the question of how community design influences user behavior in online communities has recently attracted considerable research, few studies have empirically evaluated the influencing factors of specific user behavior. Building on a conceptual framework of identity-based vs. bond-based attachment in online communities, this study evaluates the influence of several antecedents on user attachment as well as attachment's mediating role for explaining consumer behavior. Results of a survey reveal that network effects, intergroup comparison, and social categorization have a positive and significant effect on common identity attachment, whereas this is not the case with in-group interdependence. Conversely, collectivism, interpersonal similarity, and social interaction drive common bond attachment, while personal information has no effect. Most importantly, the results show that common identity attachment is the primary driver of user behavior in online communities.     

Effects of customer feedback level and (in)consistency on new product acceptance in the click-and-mortar context

We propose that feedback level and inconsistency jointly affect potential customers' acceptance of new products. We conducted two studies, one with a two-by-two design in which feedback level and inconsistency were constructed as binary categories, and the other with a continuous design of feedback level and inconsistency. We found that (1) higher feedback level and lower inconsistency increase customer acceptance; (2) feedback inconsistency moderates the relationship between feedback level and customer acceptance; and (3) extremely negative feedback has more significant impact than do moderately negative or extremely positive ones.     

Timeliness,transparency, and trust: A framework for managing online customer complaints

This article discusses several practical solutions for dealing with online customer complaints. Online complaints are inevitable; how a firm responds can make the difference. There are techniques that managers can use not only to minimize the detrimental impact of online complaints, but also to produce beneficial outcomes. Herein, we introduce our 3T framework, designed to help managers and support teams respond to online complaints in a thoughtful and measured way. We build on word-of-mouth research and several theories from marketing, service marketing, journalism, and business ethics. With so many reviews posted online every second, firms must employ best practices grounded in empirical research and solid conceptualization to deal with this important component of online customer service.     

Transforming visitors into members in online brand communities: Evidence from China

Using observational learning theory, this study investigates how simply viewing posts can affect visitors' intentions to join an online brand community. The study finds that the viewing of posts leads to informational value and perceived social value, which in turn increases visitors' intentions to participate in the community. For visitors with brand ownership, both informational value and perceived social value play full mediating roles; for visitors without brand ownership, both values play partial mediating roles. In addition, for visitors with brand ownership, informational value is just as important as perceived social value in shaping their participation intentions; for those without brand ownership, perceived social value is more important than informational value. The findings enrich the brand community literature and provide implications for brand community development.     

Managing customer loyalty through the mediating role of satisfaction in the DIY retail loyalty program

The focus of this study is the determinants of customer loyalty among members of retail loyalty programs. With data collected from a DIY loyalty program in a Central European country (a preliminary sample of 116 club members and a representative sample of 416 members), the study empirically tests the nature of the effect of the quality of personal interactions and perceptions of the quality of the loyalty program on customer loyalty through the mediating variable of customer satisfaction. Although the findings suggest that the quality of personal interactions bears no direct influence on members’ loyalty, it has a stronger influence on members’ satisfaction than the perceived quality of the loyalty program does. Influence on members’ loyalty is stronger from the mediating variable of customer satisfaction than from perceived quality of the loyalty program. This finding confirms the role of customer satisfaction as an important determinant of customer loyalty in the DIY setting. Offering a diagnostic tool in terms of selected direct and indirect determinants influencing customers’ loyalty, the paper also contributes to comprehension of loyalty programs’ effectiveness and members’ responses to the quality of loyalty programs, which contribution provides important implications for management and development of retail loyalty programs.     

Investigating the roles of online buzz for new product diffusion and its cross-country dynamics

This research investigates the roles of online buzz activities in influencing the speed and scope of new product diffusion and also the interactive dynamics of online buzz activities within and across countries. This study applies a diffusion model with two latent adopters and a log linear model to monthly sales and online messages collected from major online communication sites in five different countries. The empirical study evaluates two different roles of online buzz: (1) accelerating the new product diffusion process by influencing imitation tendency; and (2) expanding potential market size. In addition, the empirical study shows the interactive dynamics of online buzz activities within and across countries, and provides some information on what encourages online buzz activities, and how they interact with each other within a country and across countries.     

Three dimensional product presentation quality antecedents and their consequences for online retailers: The moderating role of virtual product experience

This study investigates the impact of three-dimensional (3D) product presentation quality (3D-Q) on attitude toward presented product and attitude toward website, which in turn affect users’ satisfaction. Therefore, this research developed a hypothetical online retailer website, which presents a variety of 3D laptops that allows users to control the content and form of the 3D flashes. We measured 3D-quality based on a multi-dimensional construct. In other words, we define and operationalize 3D-quality based on information quality, system quality, authenticity, and enjoyment (second-order). We employed a non-student sample (n=410) to collect the data. We find that 3D-quality determines perceptions of attitude toward presented product and attitude toward website, which in turn influence users’ satisfaction. Furthermore, we find that virtual product experience moderates the relationships between attitude toward presented product, attitude toward website and users’ satisfaction. Our study provides important implications for e-tailers.     

Delivering a superior customer experience in solutions delivery processes: Seven factors for success

In marketing complex solutions to customers, business-to-business firms face significant challenges in managing the customer experience effectively in solutions delivery processes—due primarily to the use of ad hoc teams. To learn more about these challenges, we interviewed executives from a Fortune 100 high-technology company. We identify seven factors ad hoc teams can employ to address this problem, focusing on delivery team composition, delivery processes, and organization-level changes that can be made to optimize the success of the team. In solutions selling, the delivery phase is particularly critical to success. The factors identified enable firms to better manage the customer experience and enhance performance.     

Influence of virtual communities in purchasing decisions: The participants' perspective

This study intended to fill some gaps in knowledge about virtual communities and their influence on consumers' purchasing decisions. A Brazilian Orkut community, whose central theme is preparing for wedding ceremonies, was investigated to reveal relationships among members and group influences on purchasing decisions. Twenty-one interviews were conducted by telephone. Results unveil a basic code of conduct, suggesting that the community can also act as a normative reference group, with strong identification among participants. Although the central interest – the wedding ceremony and party – could be considered as episodic, many members actively stay in the community after being married, just to help others. Group leaders seemed to be active participants, those with more experience with products related to the group's interests, or those perceived as having refined tastes. There was evidence that purchasing intentions and behavior can be altered as a result of interactions among members.     

Identifying opportunities for improvement in online shopping sites

The aim of this study is to show how different methods may provide online shopping managers with information regarding which attributes affect customer satisfaction, and how to identify what to improve or offer in the market. For this purpose, 409 Brazilian users of online shopping answered questionnaires, evaluating 26 attributes. These attributes are grouped on five dimensions: Accessibility, Fault recovery, Security, Flexibility, and Interaction/feedback. The present study evaluates different actions suggested by Importance Performance Analysis (Martilla and James, 1977; Slack, 1994) and Improvement Gap Analysis (Tontini and Picolo, 2010), exploring the limitations and strengths of each method. The results show that Improvement Gap Analysis overcomes the limitations of Importance Performance Analysis, related to the nonlinear relationship between attribute performance and customer satisfaction.     

Environmental dialogue in online communities: negotiating ecological citizenship among global travellers

The aim of this paper is to investigate how web‐based online communities bring about new forms of environmental dialogue. We suggest that these online sites play an important role in setting the stage for new forms of cultural production, dissemination of environmental knowledge and environmental dialogue, through which particular forms of ecological citizenship and consumer culture are being created and sustained. Based on an empirical study of an online community of ‘global travelers’ carried out using netnographic methods, the study shows how environmental knowledge is being disseminated, negotiated and made sense of in the online environments of the global marketplace. Our findings illustrate, in particular, how online communities may work out an agenda for sustainable consumption practices and lifestyles, and create new forms of consumer citizenship. Regarding the environmental policy implications of our study, we argue that there is a need to facilitate the creation of online environments where consumers can participate in the construction of active consumer citizenship.     

Customers' judgment of the customer service in appliance sales departments in an emerging economy

Evidence that consumers in emerging economies are more tolerant of ineffective customer service (CS), instigated an investigation into controllable elements of the service offering in a specific context in South Africa, namely, appliances sales departments in retail stores. The research aimed to identify possible shortcomings in CS amidst evidence that consumers are exposed to sophisticated merchandise that they have limited experience and understanding of. The intention was to suggest initiatives to augment the service offering so that it becomes more conducive for informed, responsible buying decisions. Household appliances represent a category of complex, durable and expensive merchandise that require more extensive information search before concluding buying decisions. A survey was done in 2007 through a pre‐tested structured questionnaire. Several branches of five prominent department stores were involved through liaison with industry. A store intercept method was used to recruit respondents: 296 questionnaires were filled in on the spot under supervision. Three sections of the questionnaire are relevant for this report: (1) consumers' satisfaction with CS; (2) a product knowledge test; and (3) demographic information. Factor analysis revealed a reduction of the original five elements of CS in the scale to three distinct elements that were labelled Personnel, Processes and Value for Money, and Product Presentation. The simpler scale suggests a less intricate judgment of CS in the context of this research. Means indicated that consumers were generally satisfied with all elements of CS, i.e. the service offering coincided with their expectations. Analysis of variance indicated no significant differences in the interpretation of any of the elements of CS by gender. A significant inverse relationship between satisfaction with CS and years of experience occurred for respondents with more than 25 years of experience in terms of Personnel (Element 1) and Processes and Value for Money (Element 2). Findings of the product knowledge tests were meant to verify consumers' CS judgments. However, scores were disappointingly low for all appliances across all respondent categories. Consumers' product knowledge could therefore not have supported informed buying decisions, despite prior experience and the opportunity to acquire additional product information during the in‐store encounter. Consumers' positive CS judgments suggest that they not necessarily realize their lack of crucial product knowledge. In the interest of informed and responsible buying decisions that have consequences for proper use and maintenance of appliances in the long term, retail stores that serve a broad customer base are encouraged to attend to in‐store customer assistance during the pre‐purchase phase, notwithstanding positive CS judgments. Non‐formal consumer education by competent, well‐trained salespeople is recommended to encourage evaluative rational product judgments. It is also suggested that store displays are designed to encourage consumers to be more inquisitive during store visits.