SOCIAL CONSUMER BONDING

WHITE PAPER

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DOES SOCIAL MEDIA AFFECT YOUR BRAND VALUE?

“The most successful marketer becomes part of the lives of their followers. They follow back. They wish happy birthday. They grow their businesses and brands by involving themselves in their own communities.” - Marsha Collier, speaker and business author -

Many organizations still struggle with the determination and justification of strategies and objectives with regard to social media. Demonstration of the added value of the time and money invested in the technology remains a challenging assignment. How can social media effectively support marketing communication activities? How to use it purposefully? What are the implications of adopting social websites for brand equity and consumer relations? How to measure the success of social media operations? Just a handful of critical questions

often discouraging corporations to consider its commercial opportunities thoroughly.

BeyenMeyer recognizes this knowledge deficit and decided to co-operate with university in order to conduct scientific research upon this trending topic. The analyses as well as its findings offer valuable insights for those who are looking for suitable recommendations concerning their social media deliberations and development…

Please continue reading and find out what is in it for you in the remainder of this white paper...

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“You can be professional while also ‘keeping it real’ with your customers. By interacting with customers in a less formal way, you’ll build a strong human connection that helps build brand loyalty.” - David Hauser, Entrepreneur -

MOTIVE Social obligation

Nowadays, the ways in which people and organizations become acquainted, connect and interact is heavily changing. Technology-based developments exert a massive impact on our communication landscape. It has forced human beings as well as businesses to hook on to the current opportunities (1). The foremost examples of communication-technology changes are social media. These interactive platforms provide the online tools to converse faster and more closely than ever before.

Well-known social media websites such as Facebook, Twitter, LinkedIn and Hyves are said to offer incredible business opportunities. No other tool is more effective at putting a human face on a firm than social media, and no tool is less expensive (2). Keeping up with the latest developments in this jungle of eternal possibilities is often argued to be the crucial key for

improving business performance. The rise of social media and online video is transforming the way marketers think about online brand building. Two-way pull media forms will rapidly become more important and merge with one-way push media. The new generation has a different set of expectations about the kind of content they will get, where they will get it and who they will get it from. They want to control their media, instead of being controlled by it.

Scientific research

Within many organizations, the prerequisite for social media seems to be organizational presence and progressiveness, though there is limited understanding of how this may affect brand equity.BeyenMeyer permanently searches for legitimate awareness of the effective applicability of social technology. Hence, in cooperation with the University of Groningen, a master’s thesis research project was initiated. Its most important goal was to provide deep understanding of the opportunities to enforce consumer-brand relations. Professionals being active in manifold industries might very well have an interest in its outcomes.

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RESEARCH INCENTIVE AND OBJECTIVES

The importance of understanding the opportunities to enforce consumer-brand relations is in line with a series of historical trends in marketing management literature. Firstly, customer relationships have become more important than transactions. Secondly, shifts from managerial focus on customer attraction towards customer retention. And thirdly, products have become secondary to satisfying customers (3).

In marketing communications theory many studies can be found which aim to describe the consequences of a specific media type choice on brand equity. For utilization of print, broadcasting and the earliest Internet media, research has gathered significant understanding about the implications on marketing concepts such as brand attitude and brand equity. Brand equity is often broadly defined as the added value, which a brand brings to a product (4). As the literature describes, media specific characteristics highly influence its applicability for influencing brand equity. For social media marketing

communication, however, the affects on brand equity development lack in-depth theoretical understanding. This is mostly due to the relatively young and emergent new media research field. Therefore, it was decided to investigate the effect of social media marketing communications employment on the strength of consumer-brand relationships empirically.

Study boundariesThe scope of this research encloses the applicability of so-called marketer-generated brand communities (MGBCs) in social networking sites, such as Facebook, Twitter and Hyves. Within multiple industries in the Netherlands the influence of social media employment for marketing communications on the strength of consumer-brand relationships was empirically researched. Brands participating in this study belonged to either one of the following prominent industries; Telecommunications, E-commerce, Consumer retail, Theatre/culture and Holiday/travel.

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RESEARCH DESIGN

Based on a critical review of theoretical concepts rendering the strength of consumer-brand relationships it was decided to investigate the influence of social media employment on the level of brand attachment. Attachment theory examines humans’ tendency to form, maintain and dissolve affectionate ties with particular others. In a marketing context, brand attachment refers to the strength of the bond connecting the brand with the self. Prominent scientists have proven that brand attachment offers value over similar concepts such as brand attitude (5). Predicting, for example, consumer intentions, actual purchase behaviour and brand purchase share will be more accurate based on brand attachment measurements than comparable brand equity indicators. Strong brand attachments are considered the pinnacle of brand building and are the foundation of a company’s brand equity (6) .

Brand utilities Previous academic studies investigated consumer motivations to engage with brands through marketer-generated brand communities in social networking sites (7).

Four potential drivers of brand attachment within a social media marketing communications context were derived from their findings. These motivations are conceptualized as interpersonal-, information-, entertainment- and incentive- utility.

Interpersonal utility refers to the value consumers receive from initiating and developing social relationships with peer brand users and brand representatives. Information utility defines consumer perceived value of opportunities with regard to getting and sharing brand-related information. Entertainment utility encloses the extent to which consumers perceive the brand to be amusing and value brand-related entertainment such as games, downloads and contests. Incentive utility represents consumer perception of brand value with regard to rewards and incentives. Increased incentive utility arises, for example, from larger possibilities to receive brand-related discounts, promotions and samples. The research model displayed the proposed positive relations between an increase in the levels of these brand utility concepts and brand attachment.

“The most successful marketer becomes part of the lives of their followers. They follow back. They wish happy birthday. They handle problems their customers have with products or service. They grow their businesses and brands by involving themselves in their own communities.” - Marsha Collier, speaker and business author -

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CONSUMER SURVEY

In order to investigate if engaging with brands over social media influences the levels of the aforementioned brand utilities and brand attachment accordingly, a quantitative empirical analysis was conducted.

Three different consumer types, participating in the research, were defined. The first group referred to consumers who are engaged with a brand through a marketer-generated brand community in a social networking site. Put differently, these consumers are connected to a brand through ‘liking’ or ‘following’ a brand via social media. The second group consisted of consumers who use social media but who are not engaged with the brand through any social website. The third group represented those consumers who are not (yet) using social media technology.

Through an online consumer survey, a large amount of data was gathered, with regard to the different consumer types. It included input concerning various brands belonging to the industries of interest.Using SPSS statistics several tests were conducted in order to measure the utility scores for the different consumer types as well as to examine the hypothesized interrelations.

“New marketing is about the relationships, not the medium.” - Ben Grossman, oprichter van BiGMarK -

1: CONSUMERS WHO LIKE/FOLLOW THE BRAND VIA SOCIAL MEDIA

2: CONSUMERS WHO USE SOCIAL MEDIA BUT DO NOT LIKE/FOLLOW THE BRAND

3: CONSUMERS WHO DO NOT USE SOCIAL MEDIA

WCK

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RESEARCH FINDINGS AND IMPLICATIONS The results of this master thesis project reveal interesting insights upon how social media influences relationships between consumers and brands. It is among the first scientific studies to provide conclusive evidence about the effective applicability of social media for marketing communications purposes.

The findings are translated into clear and practically useful recommendations for brands belonging to different branches.

It adds to a solid foundation for advising professionals guessing the added value of social media for their organization. It shows very interesting insights for those willing to build and strengthen consumer relations. Whatever your product or service, the more you can build (personal) connections between consumers and the brand, the more invested your customers will be and the longer they will stay with you. Based on the results of this project, social media can definitely be worthwhile.

INTERNETADVERTISINGBRANDINGRESEARCHPRODUCTSTRATEGY +MARKETING

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FURTHER INFORMATION

If you became interested in the outcomes of this research project or started wondering about the opportunities it might offer you or your organization, do not hesitate to contact us without commitment. BeyenMeyer gladly elaborates on company specific consequences of the research findings. Besides this specific research project BeyenMeyer has developed strong competencies in online and social media marketing through experience in various projects.

BeyenMeyer gladly meets you in person on location, to elaborate on the research findings and to become acquainted with the way in which your organization deals with social media. Based on instruments used in the research project BeyenMeyer can execute a quick-scan in order to analyse current effectiveness of social media operations and uncover potential opportunities.

For getting in touch with BeyenMeyer please use the contact details below.

BEYENMEYER Robert VoogelE: robert@beyenmeyer.nl

Peter HoitingaE: peter@beyenmeyer.nl

T: +31 (0)20 707 3225Weteringschans 981017 XS Amsterdamwww.beyenmeyer.nl

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ABOUT THE AUTHOR

During his internship at BeyenMeyer, Tom Kelder accomplished this research project. The thesis assignment was the final part of the Master’s degree programme Small Business & Entrepreneurship at the University of Groningen, from which he recently graduated. This thesis was awarded with an excellent assessment (grade A), by the University of Groningen, which emphasized its theoretical as well as managerial value.

ABOUT BEYENMEYER

BeyenMeyer is a creative advertising company, situated in Amsterdam. BeyenMeyer has been instigated in 2005 and grew to a full-service office, currently employing twenty men and woman. BeyenMeyer is often recognized for its remarkable expressions. At all times, the operations are result-driven.

Through research and experience BeyenMeyer has developed itself as a very competent and credible partner within the online and social media marketing communications industry.

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REFERENCES

1. Users of the world, unite! The challenges and opportunities of Social Media. Kaplan, Andreas M. and Haenlein, Micheal. 2010, Business Horizons (53), pp. 59-68.

2. Building a brand on budget. Ankeny, Jason. Entrepreneur. 2010 may, pp. 48-51.

3. A company’s current customers provide the most reliale source of future revenues and profits. Lemon, Katherine M., Rust, Roland T. and Zeithaml, Valeria A. 2001, Marketing Management, pp. 20-25.

4. Conceptualizing, measuring and managing customer-based brand equity. Keller, K.L. Journal of Marketing : s.n., 1993, Journal of Marketing (57) 1, pp. 1-22.

5. Brand Attachment and Brand Attitude Strength: Conceptual and Empirical Differentiation of Two Critical Brand Equity Drivers. Park, C. Whan, et al. 2010, Journal of Marketing (74), pp. 1-17.

6. The Role of Service Quality in Influencing Brand Attachments at Winery Visitor Centers. Thach, Elizabeth Z. and Olsen, Janeen. 2006, Journal of Quality Assurance in Hospitality & Tourism (7) 3, pp. 55-77.

7. An Explorative Study of Korean Consumer Participation in Virtual Brand Communities in Social Network Sites. Sung, Yongyun, et al. 2010, Journal of Global Marketing (23), pp. 430-445.

DEFINITIONS

Brand attachment - The strength of the bond connecting the brand with the self.

Brand-self connection - The cognitive and emotional connection between the brand and the self.

Brand prominence - The extent to which the brand is part of one’s memory and to which it evokes frequent and consistent thoughts and feelings.

Marketing Communications - Organizational messages or media used to communicate with a market.

Marketer-Generated Brand Community - Brand communities in social networking sites which are initiated and funded by marketers in order to build relationships with current and potential consumers

Brand equity - Customers’ subjective and intangible assessment of the brand, above and beyond its objectively perceived value. Three key drivers of brand equity are customer brand awareness, customer brand attitudes, and customer perception of brand ethics.

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.

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