Marketing: Principles and Methods by Charles F. Phillips, Delbert J. Duncan

By Charles F. Phillips, Delbert J. Duncan

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By Charles F. Phillips, Delbert J. Duncan

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Brand communities enable the permanent installation of a place where customer-firm interaction can take place in real time and at low costs. This increased involvement of firm-established brand community members in turn increases the involvement of the members with the brand, the product and the brand community and hence their brand loyalty and word-of-mouth communication. 30 Literature Review Company Perspective Brand Loyalty: Customer Integration: Transaction Cost Theory Transaction Cost Theory Value Creation: Transaction Cost Theory Customer Perspective Value Creation: Interaction Theories Figure 9: Theoretical Framework for Brand Community Analysis In order to investigate the benefit for firms arising from a brand community engagement, the implications of brand communities for firms are described more thoroughly in the following sections.

In that way they accommodate to the increasing involvement of firms in the phenomenon of brand communities. Thereby especially the dynamic perspective on brandfests and their implications prove to be valuable. g. Kozinets 2002b; Belk & Tumbat 2005; Verona et al. 2006; von Loewenfeld 2006). Here, the majority of studies focused on emotional and cult brands where consumers have to make significant investments in time or money such as Ducati, Apple, Star Wars, and BMW. 24Their study is therefore the first to cover brand communities for convenience products and tries to enhance the brand community phenomenon to mass-market convenience products (see figure 7).

110). The brand loyalty effects of brand communities are thereby mainly due to the fast diffusion of knowledge about, and experience with, products and brands. These exchanges of opinions then influence the product and brand selection of other members (McAlexander et al. 2002, S. ). This fast diffusion of experience and knowledge enables passionate customers to exchange product-related information as well as to assist each other in problem-solving processes. The shared passion of certain consumers for a cult brand translates via various collective learning systems into expertise and competencies, thereby imbuing online tribes with increasing amounts of production and marketing legitimacy (Muniz & Schau 2007; O’Guinn & Muniz 2005).

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