CASE STUDY – THE SOCIAL NETWORKThe growing use of social network sites (such as Facebook) and online communities (such asfor instance the Apple Computer community, the community of Harley-Davidson riders,and the community of Starbucks customers) provides exciting opportunities fororganizations. Online brand communities allow organizations to engage and interact withcustomers, obtain market information, sell and advertise products, rapidly disseminateinformation, develop long-term relationships with the community, and eventually toinfluence 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 likemindedconsumers who identify with a particular brand and share significant traits, such asfor 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 thebrand (Jang et al. 2008).There are several possible categorizations of online brand communities, but they aregenerally 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) userinitiatedcommunities, voluntarily built by their members (that is, the consumer) (e.g.,Armstrong and Hagel 1996; Kozinets 1999). These two types of brand communities providedifferent opportunities for marketers. For instance, a brand community on a companywebsite is one of the key determinants of attracting consumers to and retaining customerson the website (Nysveen and Pedersen, 2004). Consumer-initiated online brandcommunities may provide consumers with useful information about other consumers’experiences with the product or service and the strengths and weaknesses of products orservices (Jang et al. 2008).The success of online brand communities is heavily dependent on consumer participation inthe online brand community. To determine why consumers participate in online brandcommunities business student Jesse Eisenberg has developed a model based on extantservice marketing literature. The main idea in this literature is that perceived value andsatisfaction 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 Choi2007; Ravald and Grönroos 1996). Jesse wants to apply this idea to consumer participation inonline brand communities. According to Jesse, “members will probably be satisfied with anonline brand community and have the intention to participate in the community when theyderive value from the community. Therefore it is important to know which values membersmay derive from participating in an online brand community.” A thorough review of theliterature has convinced Jesse that participation in online brand communities depends onthe communities’ perceived informational value, self-discovery value, social interactivity value,social enhancement value, entertainment value, and reward value (e.g., Dholakia, Bagazzi, andPearo 2004; Flanagin and Metzger 2001).Case Study QuestionsA good theoretical framework identifies and defines the important variables in the situationthat are relevant to the problem and subsequently describes and explains theinterconnections among these variables.1. There are three basic features that should be present in any theoretical framework.a. Discuss these features in detailsb. Draw a Conceptual Framework reflecting Jesse’s research problem.c. Make sure to label the variables in the conceptual framework you develop(IV, DV, MV or IVV)2. Jesse has undertaken a literature review to develop his conceptual model.a. Is there or are there any alternative approaches that would allow Jesse todevelop a conceptual model?3. Develop the relevant hypotheses based on Jesse’s model (use directional hypotheses).Jesse explains the relationship between entertainment value, satisfaction, andmember’s future intention to participate as follows.ENTERTAINMENT VALUESeveral 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 orinteracting with others (Dholakia, Bagozzi, and Pearo 2004). Many people get fun throughencountering and solving online challenges or contests (McKenna and Bargh 1999). Inaddition, specific and challenging goals may provide an online community entertainmentvalue (Beenen et al. 2004). Providing entertainment within a company-initiated online brandcommunity 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 ofFoodprints, including photos, videos, contests or games, might attract members.4. Try to come up with a variable that moderates the relationship between one of theindependent variables and ‘member’s satisfaction’.5. Provide an explanation of why and how you would expect that this variable affects therelationship between the independent variable of your choice and ‘member’ssatisfaction.6. Provide the relevant hypothesis for your conceptual model.18/04/20201businessfinance