32 research outputs found

    Are Facebook Brand Community Members Really Loyal to the Brand?

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    Although research into consumer participation in online brand communities has grown in recent years, still little is known about how membership in a Facebook brand community is related to brand loyalty. This study tests the direct and indirect effects of brand community engagement, electronic word-of-mouth (eWOM) intention, and community promotion behavior on attitudinal loyalty, repurchase intention, and positive word-of-mouth. Partial least squares modeling is used to test the conceptual model on data from a survey of 1,936 Facebook brand community members. The results support most of the hypotheses and show that whereas brand community engagement and eWOM intention are strongly associated with all the aspects of brand loyalty, community promotion behavior only affects word-of-mouth. The results also reveal that user activity in the Facebook brand community has no effect on positive word-of-mouth

    Advocacy participation and brand loyalty in virtual brand community

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    Brand owners use virtual communities to strengthen brand loyalty by engaging consumers in active content creation activities. Personal and reciprocal communication and consumers’ participation in virtual brand communities are the main sources through which communities contribute to brand loyalty formation. This research examines the antecedents and consequences of advocacy participation in virtual brand communities. The results show that the VBC members’ advocacy participation is strongly contributed by the community’s ability to promote reciprocal and personal use experience, which also directly affects the members’ brand satisfaction. The results further show that advocacy participation and participation frequency positively contribute to especially attitudinal loyalty formation. Participation is found to be negatively related with brand satisfaction

    Perception-based pricing strategies for mobile services in customer marketing context

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    Traditional pricing research has focused on analysing price setting procedures and cost or competition based pricing strategies. Customer- or perception-oriented pricing strategies have been left on little attention among business practitioners and academics. The need for development and investigation of these new pricing strategies has occurred after the emergence of new electronic and mobile services; traditional pricing strategies have resulted unsatisfactory results. With this study we have concentrated on elucidating the unobserved fields of perception-based pricing in mobile services business. The focal point of the study consists of analyses of the customers’ price perceptions of mobile services, and the analyses of the differences in the perceptions between the three predefined customer segments: mobile segment, combined segment, and fixed-line segment. Four latent customer-based factors were constructed which were expected to explain and predict the differences in the customers’ price perception levels: service satisfaction, price sensitivity, innovativeness, and investment readiness. And for providing practical solutions for pricing problems, the present study examined also the applicability of the bundle pricing strategy for mobile services. These analyses disclosed that customers in the each segment perceived mobile services to be rather expensive, though differences between and inside the segments were notable. Out of the four analysed factors especially customers’ innovativeness and the price sensitivity were accurate indicators of the customers’ price perception levels. Customers also seemed to prefer acquiring mobile services in bundles rather than separately, and a positive relationship between the customers’ bundle preferences and price perceptions were foundMunnukka on tutkinut havaitun hinnan mukaisten hinnoittelustrategioiden sovellettavuutta mobiilipalveluiden liiketoimintaan, jossa päähuomio on kohdistettu asiakkaiden hintakäsityksiin. Hän pyrki selvittämään, kuinka eri asiakasryhmät eroavat hintakäsitysten suhteen toisistaan sekä, kuinka hintakäsityksiin voitaisiin vaikuttaa hinnoittelumenetelmien avulla. Munnukka selvitti myös, kuinka tyytyväisyys operaattorin palveluihin, hintaherkkyys, innovatiivisuus ja investointivalmius selittävät asiakkaiden hintakäsitysten eroja. Lisäksi hän tutki pakettihinnoittelun sovellettavuutta mobiilipalveluihin.Selvittämällä asiakkaiden hintakäsitysten tason palveluiden tarjoajat voivat tehostaa toimintaansa tarjoamalla asiakkaille hinnoittelu- ja palveluvaihtoehtoja, jotka parhaiten vastaavat heidän tarpeitaan

    Dynamics of price sensitivity among mobile service customers

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    The influence of purchase-related risk perceptions on relationship commitment

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    Purpose – Perceived risk is an intrinsic element of all organizational decision making and business relationships. It is closely interconnected with relationship commitment and strongly affects the buying decisions. Therefore, the organizations that best understand the risks perceived by their customers and hold the means that allow the customers to accommodate these risks, possess a significant competitive edge. The paper aims to discuss these issues. Design/methodology/approach – This research surveys 165 companies on purchase-related risk perceptions and tests the effects of three risk dimensions on relations commitment, and the effectiveness of procedural control on managing these risks. Moderation effect of buying situation is also tested. Structural equation modelling is used to test the conceptual model on data from Finnish companies. Findings – The participants in organizational buying experience three types of risks, product performance, personal psychological, and personal financial risks. Higher product performance and personal financial risks are found to decrease the customer’s commitment to the supplier, whilst higher psychological risks have a positive effect on relationship commitment. Procedural control is confirmed as an effective application in managing risks in organizational buying process. Buying situation significantly affects the model. Originality/value – The present study shows that purchase-related risk perception is a multidimensional construct which consist of both organizational and individual-level aspects. The authors also provide new insights into the effectiveness of procedural control on mitigating organizational risk perceptions in different buying situations.peerReviewe
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