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The Influencer of Online Brand Communyties
The Influencer of Online Brand Communyties
REFERENCES
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International Journal of Electronic Commerce
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The Influence of On-Line Brand Community
Characteristics on Community Commitment and
Brand Loyalty
Heehyoung Jang, Lome Olfman, Ilsang Ko, Joon Koh, and
Kyungtae Kim
ABSTRACT: The relationship between on-line communities and on-line brands is inves
tigated by examining how on-line brand community's characteristics affect community
commitment and brand loyalty-in particular, how the hosting type of an on-line brand
community affects the relationships between characteristics and community commitment.
A survey of 250 respondents revealed that their community commitment was significantly
influenced by their community interaction and the rewards for their activities, but not by
information quality and system quality. The analysis shows that the hosting type of a
community has a significant moderating effect and that community commitment increases
brand loyalty. Interpretations and implications of the findings, as well as future research
directions, are discussed.
KEY WORDS AND PHRASES: Brand community, brand loyalty, community commitment,
company-initiated community, consumer-initiated community.
This study was supported by the second BK21 program of the Korean govern
ment.
International Journal of Electronic Commerce / Spring 2008, Vol. 12, No. 3, pp. 57-80.
Copyright ? 2008 M.E. Sharpe, Inc. All rights reserved.
1086-4415/2008 $9.50 + 0.00.
DOI 10.2753/JEC1086-4415120304
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58 JANG ET AL.
operating mechanisms. Most studies in this area have focused on the factors
affecting loyalty to an on-line community or the antecedents of loyalty to a
brand or product.
This paper examines the influence of on-line brand community charac
teristics on community commitment and the resulting impact of community
commitment on brand loyalty. It also analyzes how different types of com
munities affect the relationships between brand community characteristics and
community commitment. In line with these two main purposes, the following
four aspects are elucidated: the key characteristics of on-line brand commu
nities, the influence of these characteristics on community commitment, the
differential impacts of community type on community commitment, and the
relationship between community commitment and brand loyalty.
The discussion that follows highlights the importance of on-line brand
communities in Internet business and explores how they increase the brand
loyalty of the consumers who use and participate in them. An understand
ing of on-line brand communities is expected to provide companies with an
opportunity to gain competitive advantages in marketing their products and
services.
Theoretical Background
On-Line Community and Brand Community
Community
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INTERNATIONAL JOURNAL OF ELECTRONIC COMMERCE 59
to the community as a whole and its individual members [39]. In short, a com
munity is defined as an organization of individuals or small groups that have
an intention to get together and a sense of mutual responsibility [48, 49].
T?nnies observes that social relations fall into one or another of two cat
egories: Gemeinschaft and Gesellschaft [55]. These terms are often translated as
//community// and "society." Gemeinschaft relationships are local, cohesive,
enduring, intimate, and face-to-face; Gesellschaft relationships are large-scale,
impersonal, and calculative, and in consequence are weaker. An on-line com
munity is similar to a Gemeinschaft, except that it forms through an electronic
communication medium and is not bound by space and time.
Gusfield distinguishes two types of communities: the traditional territo
rial or geographical community (e.g., a neighborhood, town, or region) and a
relational community concerned with human relationships (e.g., hobby clubs,
religious groups, fan clubs) [16]. Most on-line communities are relational com
munities. However, members of on-line communities actively interact with
one other on a specific site in cyberspace and have an emotional attachment to
the site that resembles the attachment of members of a traditional community
to the physical place of their relationship.
On-line Community
The ubiquity of the Internet and the human desire for connectedness, knowl
edge, and information has combined to create new social forms such as on
line communities. Communities on-line are quite different from those in the
physical world. In traditional communities, people meet one another face to
face, get to know one another, and then, if the chemistry is right, form relation
ships. In the on-line world, people get to know others, form relationships ,and
only then, if the chemistry is right, choose to meet them face to face [48]. In
addition, participation in an on-line community is driven by volitional choice,
whereas in traditional bounded communities membership may be imposed
involuntarily by geographical location [4].
There are multiple definitions of an on-line community. Rheingold de
fines the on-line community as a social aggregation that emerges from the
Net with sufficient human feeling to form a web of personal relationships in
cyberspace [48]. Hagel and Armstrong also see the on-line community as a
computer-mediated space [17]. Bagozzi and Dholakia view on-line commu
nities as computer-mediated social spaces with intentional actions, in which
content is created by members through ongoing communication processes
[4]. However, Rothaermel and Sugiyama note that on-line communities may
not be a complete substitute for personal, simultaneous, one-to-one inter
action, either vocally or face-to-face [49]. Their study found that about 30
percent of the respondents communicated with other community members
via telephone and in person, in addition to their on-line participation. Fox,
proposing a community embodiment model (CEM), illustrates that relation
ships of various kinds may exist between physical and virtual communities
by a more dominant communal mechanism [12]. In the real world, commu
nity members often engage in off-line as well as on-line interactions [29, 41].
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60 JANG ET AL.
Firms like Dell and Cisco Systems have transformed suppliers and customers
into members of their corporate communities, thereby enabling exchanges of
valuable information and knowledge with them. More and more firms are
recognizing the advantages of on-line brand communities, which include the
opportunity for effective communication with customers and of obtaining
valuable ideas. Brand communities do not simply provide companies with
an additional communication channel; they also enable the possibility of
establishing linkages to devoted users [2]. A brand community starts based
on its core asset, the brand itself, and grows by building relationships among
members interested in the brand.
There are several classifications of on-line brand communities (e.g., Con
stance [7], Henri and Pudelko [19], Kozinets [33]), but by and large they can
be grouped into two major types based on the criterion of who hosts them:
(1) consumer-initiated communities voluntarily built by their members and
(2) company-initiated communities built by the company that owns the brand
in order to establish a relationship with consumers and induce productive
feedback from them. The hosting type may be one of the most important fac
tors in classifying on-line communities because it results in different operating
mechanisms [5, 39]. Constance similarly proposes that virtual communities
fall into two categories based on establishment type and relationship orien
tation: (1) member-initiated communities (analogous to consumer-initiated)
and (2) organization-sponsored communities (almost identical to company
initiated) [7].
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INTERNATIONAL JOURNAL OF ELECTRONIC COMMERCE 61
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62 JANG ET AL.
In light of the preceding definitions, one may say that in the context of an
on-line community, commitment refers to each member's attitude toward
the community The concept of commitment may predict members' actual
behaviors in an on-line community, such as solving problems for others,
giving help, and community participation. Thus, to accommodate a broad
range of commitment in an on-line community, commitment is here treated
as an attitudinal factor that appears when the members of a community feel
that the continuing relationship between their community and themselves is
valuable.
In the service marketing literature, service quality, perceived value, and
satisfaction are considered to be antecedents of commitment [15, 21, 52]. Koh
and Kim argue that leaders' enthusiasm, off-line interaction, and enjoyability
lead to a sense of on-line community that has a significant influence on mem
bers' commitment [29]. Several articles proposing that leaders' effort, off-line
activities and managerial strategies (e.g., rules, reward systems) directly affect
members' commitment and intention to participate in an on-line community
[31, 60]. However, there has been little investigation of members' attitudes
and behavior in the context of an on-line brand community that may vary by
community typology.
In a company-initiated on-line brand community, customers' participation
in building their opinions and managing their continuing experiences can be
easily monitored and controlled by the company. Such a community may be
handicapped in building customers' commitment to the branded product.
However, in a consumer-initiated on-line brand community, customers volun
tarily participate in building information about good features of the product
and valuable experiences with it. Uncontrolled feedback from fellow members
helps members to trust their community and strengthen their commitment.
Therefore, members tend to have higher beliefs and concerns about product
information and experiences from their peers in a consumer-initiated on-line
brand community than in company-initiated one.
Loyalty
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INTERNATIONAL JOURNAL OF ELECTRONIC COMMERCE 63
a need for more and better efforts to bring people to a company's home page
and retain them as loyal and profitable customers [28]. Loyalty, which is a
key requirement in establishing any kind of relationship marketing, may also
play an important role in expanding e-commerce [14]. Based on the preceding
discussion, loyalty can be defined as either attitudinal or behavioral. Since
commitment, as an attitudinal factor, is included in the research model of this
study, the focus will be on behavioral loyalty, which drives brand recommen
dation to others and increases consumer retention. Loyalty may be a relevant
variable to represent the degree of influence a brand has on consumers in the
on-line community context where a company gains competitive advantages
in marketing.
There have been many studies of the factors affecting loyalty, such as service
quality, product quality, information quality, corporate image, price, and com
mitment [10, 34,40], but little work combining brand loyalty with the on-line
community concept. That is to say, few researchers have noted that brand
loyalty can be increased by on-line community participation or commitment.
The present study explores the link between brand community commitment
and level of brand loyalty.
In on-line brand communities, loyalty to a brand is expected to be influenced
not only by customers' voluntary participation in the community, but also by
their autonomous management of the Web site. In consumer-initiated on-line
brand communities, because the trustworthy information and experiences
presented are trustworthy, customers are likely to build strong commitments
to the community, thereby establishing persistent loyalty to the relevant brand
or branded products.
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64 JANG ET AL.
Information
Quality
System
Quality7
Interaction
Reward
This study addresses four major characteristics of the on-line brand com
munity: (1) quality of information, (2) quality of system, (3) interaction, and
(4) rewards for activities. The first two characteristics are known to exert a
strong influence upon the satisfaction and loyalty to the community of its
members [3, 44, 61]. McWilliam emphasizes the importance of interaction
in increasing consumer commitment to communication [36]. Sheth and Atul
reveal that a reward for valuable information to the community may accel
erate the level of community commitment [53]. Accordingly, the following
hypotheses are developed:
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INTERNATIONAL JOURNAL OF ELECTRONIC COMMERCE 65
H2. The type of on-line brand community moderates the relationship between
brand community characteristics and community commitment.
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66 JANG ET AL.
Research Method
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binary [4, 15, 24]
Source
Degree of activity in exchanging information [22, 24]
Excellence, affluence, newness, credibility [21, 39]
Convenience of navigating through information
Upgrade (downgrade) of member privileges
Exchanges between host and members
Excellence of Web design [21,39] Degree of emotional attachment
Degree of need to participate
Measurement according to degree of activity
Speed of inquiry and response Recommendation to others [15]
and interpersonal exchanges
Sense of belonging [7, 22]
Stability of system access Degree of satisfaction
Monetary reward [34]
Psychological reward
Degree of trust Purchase of brand
Degree of monetary or psychological rewards for proactive
Speedy and convenient search for information in community
Degree of brand attachment to or repurchase of products
and between community members and host of community
Degree of information exchange among community members Degree of strong and positive feelings toward community
Operational definition
Quality of information provided through community
Initiated and operated by company that owns brand
Voluntarily initiated and operated by consumers with help of menu hierarchy and layout
members of brand community
or services of brand
among members
Table 1. Operational Definitions and Measures of Variables.
Characteristics of on-line brand community
Reward for activities
Quality of information
Name of variable
Quality of system On-line brand community
Type of community
Consumer
Interaction
Company
Brand loyalty
commitment
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68 JANG ET Ah.
Factor Analysis
The internal consistency of the variables was verified with Cronbach's alpha
values, and 11 items showing low reliability were eliminated. Every variable
has at least three items. Validity was assessed by factor analysis. Principal
component analysis with varimax rotation was used to draw out factors. Fac
tors with an eigenvalue higher than 1.0 were selected. Table 3 demonstrates
that every variable had a factor loading higher than 0.7. Cronbach's alpha
values were also higher than 0.7, demonstrating the satisfactory reliability of
the research variables.
Hypotheses Testing
Simple correlations among the research variables as well as descriptive sta
tistics, such as means and standard deviations, are shown in Table 4. Pearson
correlations were calculated for the six variables measured by interval or ratio
scales. All variables were significantly correlated to each other at p < 0.001.
Potential multicollinearity among the dependent variables was checked, but
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INTERNATIONAL JOURNAL OF ELECTRONIC COMMERCE 69
Features (%)
Age
<20 7.6
20s 73.5
30s 18.5
40s 0
>50s 0.4
Total 100.0
Gender
Male 78.6
Female 21.4
Total 100.0
Time period of activity in comm
Less than 6 months 17.2
Less than 1 year 33.6
Less than 2 years 19.3
Less than 3 years 10.5
Longer than 3 years 19.3
Total 100.0
Type of brand community
Company-initiated 42.4
Consumer-initiated 57.6
Total 100.0
Features M SD
Table 2. Descriptive
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0.907 0.888 0.810 0.774
alpha
Cronbach's
0.132
0.124
0.0960.186
0.227
0.265 0.052
0.164 0.173 0.8780.7610.677 2.068
Factor4 -0.031 -0.011 14.773
75.506
Factor3
0.810 2.223
-0.0030.0440.0100.1300.2490.2320.0710.3150.8470.760 0.0920.1230.105
15.881
60.732
Cronbach's
alpha 0.924 0.864
Rotated component
0.084
44.851 25.363
83.206
0.822
Rotated component
0.893 0.169
Quality of of
information 2Reward
Community commitment 1 commitment
Community Community
2 commitment 5
Quality information 3
Cumulative variance (%)
Quality
Quality
of information
of information
4 6
Quality Quality
of system
Quality
of 3system
of system
4 2
Reward for Reward
Reward activity
for
Scale itemsfor 2 activity
activity
for
activity
3 5 6 Interaction 4Interaction 5Interaction 1 Eigenvalue
Scale items
Brand1 loyalty
Brand loyalty Brand4 loyalty 5
Eigenvalue
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M SD information system Interaction activities commitment
1.476 0.494***
1.414
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4.163
7.704 2.6840.9590.2444.0204.5053.0512.440
9.199 1.850
-0.130
4.208 -0.140
Coefficient
? 0.438**0.136**
0.209**0.195**0.361 ** 0.365**0.452**0.157**
INFO x TYPE
Independent
variables REW x TYPE
INTER x TYPE
SYS x TYPE
INTER INTER
INFOSYS REWTYPE
INFOSYS REWTYPE
F significance)
43.230
(0.000) (0.000)
25.898
(level of
2.707
AF significance)
(level of
(0.000)
43.230
(0.031)
Notes: INFO = quality of information; SYS = quality of system; INTER = interaction; REW = reward for activity; TYPE = type of community. | p < 0.1; * p < 0.05; * * p < 0.01; * * * p <
0.495
0.472
0.687
0.703
Model 1 Model 2
0.001.
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INTERNATIONAL JOURNAL OF ELECTRONIC COMMERCE 73
the moderating variable and the independent variables. In Model 2, two inter
action terms, quality of information and quality of system, were marginally
significant (? = 0.181, p < 0.05; ? = 0.202, p < 0.1), which supported both H2-1
and H2-2. However, the other two interaction terms (reward x type, interac
tion x type) were not significant. Thus, neither H2-3 nor was supported.
These results imply that information quality and system quality exert a greater
influence upon community commitment in the consumer-initiated type of
commirnity than in the company-initiated one.
To properly test contingency hypotheses such as H2-1 and H2-2, it is nec
essary to display interaction terms graphically as well as to examine them
mathematically [23,50]. The overall data set was divided into two categories,
company-initiated community and consumer-initiated community, and the
influence of information/system quality on community commitment was
plotted with the divided data, as shown in Figure 2. In the case of company
initiated communities, commitment did not significantly increase as the levels
of information or system quality intensified (the slopes of the cases flattened).
However, in the consumer-initiated commirnity type, increasing information/
system qualities had a significantly positive impact on commirnity commit
ment (the slopes were steep). Thus, it is obvious that information/system
quality had more influence on community commitment in the case of con
sumer-initiated communities than in company-initiated communities.
In addition, regression analyses were conducted to examine the relation
ships between affecting factors and commitment with the two different data
sets grouped by community type. In the case of consumer-initiated communi
ties, both information quality and system quality had a statistically significant
influence on community commitment, but in company-initiated communities
neither of them significantly affected the corrurutment. These results strongly
support the interaction effects of community hosting type on the relationships
between information/system quality and community commitment.
Finally, Table 6 shows that H3, proposing that brand community commit
ment significantly influences brand loyalty, was supported (? = 0.390, p <
0.001), implying that community commitment increases brand loyalty.
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74 JANG ET AL.
Dependent Independent
variable variable ? t R7 F
Brand loyalty Community 0.390*** 6.480 0.152 41
commitment
Conclusion
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INTERNATIONAL JOURNAL OF ELECTRONIC COMMERCE 75
CoPs as either top-down or voluntarily created, and posited that these two
types have different operating mechanisms. In the case of CoPs created and
operated by the top-down approach, some affecting factors that were expected
to influence community stimulation were not significant in the regression
analysis. In the case of purely voluntary CoPs, all of the community stimulants
were significant, as expected. These results are in agreement with the present
findings?two different kinds of communities have different mechanisms of
community stimulation. That is, in purely voluntary communities, community
commitment or stimulation strongly depends on all of the major community
characteristics, such as information/system quality, interaction, usefulness (re
ward), leadership, and off-line activities in the community. However, in semi
voluntary or mandatory communities, commitment may be partially affected
or even not significantly influenced by such community characteristics. The
differential effects of community characteristics on community commitment
by community type have managerial implications for practitioners. Excessive
management and sponsoring by companies could harm the spontaneity of
community participants, which is one of the pivotal characteristics of both
on-line brand communities and CoPs in organizations.
Some additional implications for community leaders can be derived from
the study's findings. First, in the case of a consumer-initiated community, the
leaders should concentrate on increasing information quality as well as system
quality. Second, leaders of both consumer-initiated brand communities and
company-initiated brand communities can enhance their Web sites by provid
ing functions that promote member interaction, such as BBS (bulletin board
systems), chat, or messenger services, since interaction strongly influences
community commitment. Finally, based on the present finding that rewards for
activities had a significant impact on community commitment, leaders should
continuously filter out low-value materials from their site in order to make
the community more useful for members. Editorial control of the contents to
give rewards to community members helps to sustain a community.
The present study also found that community commitment increases brand
loyalty, which is consistent with most prior studies (e.g., [26]). This result
suggests that by increasing community commitment, companies can improve
their financial performance through consumer rephrasing and word-of-mouth
marketing. Since community stimulation or commitment is able to enhance
product brand value, it may be meaningful for companies in selling their
brands (or products), and thus they need to prepare a variety of strategies to
support their brand communities. For example, they could provide community
members with physical places for off-line activities and with support money
for regular /irregular off-line community meetings. They might even invite
brand community leaders to tour the company, which could help the company
to solicit and obtain customers' ideas about how to increase brand value.
Although the sample in this study was largely made up of people in their
twenties, this probably is an accurate reflection of the age of the mainstream
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76 JANG ET AL.
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