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A Conceptual Study of Brand Communities
A Conceptual Study of Brand Communities
A Conceptual Study of Brand Communities
Harsh Arora*
It is a common strategy for every brand in the world to develop a strong base of brand loyal
customers. Due to immense competition, brand loyalty has become a ‘Holy Grail’ for the brands.
All brands are running to build brand loyal customers. Therefore, the pertinent question is how
to develop this base of brand loyal customers? According to Porter (1990), in the world of
competition, the companies, which want to get success, have to follow any of the three generic
strategies. These are cost leadership, differentiation and focus. Some international brands have
followed the strategy of differentiation and initiated ‘brand communities’. These brand
communities are not specific to any particular product category. Be it a motorcycle brand as Harley
Davidson, or Apple Computers, all are putting considerable emphasis in developing brand
community for their brands. Through these brand communities, they will be able to develop a strong
bonding of their customers with their brands, which can further deepen the brand loyalty. This
paper studies the concept, and its positive and negative facets by emphasizing on its management
perspectives for the international brands.
Introduction
From the time the orientation of businesses shifted from production to marketing, the
entire focus of the companies moved from product to customers (Sheth et al., 1988).
The companies have realized that the customers are the beginning and the end of any
business. A business can only survive with growth, if it find out and satisfy the needs and
wants of the customers. Later the idea to satisfy the customers further looked upon and
the businesses moved ahead of mere customer satisfaction, to customer’s delight. The
increase of competition in the marketplace which gave an opportunity to the customers
to choose among various alternatives, reinforces the idea of customer’s delight for the
businesses. The sole reason of this is to create loyal customer base of a company. This loyal
customer on one hand will continue buying the company’s product. On the other these
loyal customers act as an advocate of the product. This advocacy for the product will
generate positive word-of-mouth communication (Brooks, 1957; Engle et al., 1969;
Haywood, 1989; and Ennew et al., 2000).
Later on with the emergence of globalization in the economy of many countries, the
competition has increased massively. In this context, Mr. Rajeev Bakshi, managing
director, Cadbury’s India, in an interview to Indian Express (August 31, 2000)1 mentioned
* Lecturer, Eastern Institute for Integrating Learning in Management, Kolkata 700091, India.
E-mail: harshiimt@gmail.com
1
http://www.financialexpress.com/old/fe/daily/20000831/fst29027.html (Dated: December 28, 2008 at 11:30 h).
© Conceptual
A 2009 The Icfai University
Study of BrandPress. All Rights Reserved.
Communities 7
that “customer loyalty is fast becoming a disappearing phenomenon, with an increasing
demand for brand variety”. Although the environment was asking for something more
than brand loyalty among the customers, many businesses were striving to achieve the
requirement of brand loyalty among customers. Businesses were running to achieve brand
loyalty as ‘Holy Grail’ (McAlexander et al., 2002). As stated by Rosenberg and Czepiel
(1984) “customer loyalty erodes when there is a wide range of nationwide products and
retailers” (p. 46). The objective of customer retention by developing loyal customers,
market-oriented companies (Gronroos, 1989) were forced to innovate continuously to
offer customers something different from its competitors, in view of gaining high
acceptability followed by retention substantiated with loyality.
When businesses are striving to gain better acceptability and success among the
competitors, Porter (1985) recommends three generic strategies to gain success and
competitive advantage in the marketplace. These are cost effectiveness, differentiation
and focus. Later, Porter (1990) reinforces the idea of differentiation by saying, “advantage
once gained is only sustained by a continual search for different and better ways of doing
things and through modifications in firm behavior within an overall strategic context.
The firm competing with a differentiation strategy, for example, must find a stream of new
ways to add to its differentiation, or, minimally, improve its effectiveness in differentiating
in old ways” (p. 580).
Later, during the advent of globalization, companies considered Porter’s (1990) view
and looked forward towards differentiating their brands from their competitors in some
old ways. Here, old ways can be interpreted as strategies that the industry has already
applied in the past but, currently, it is not in use. It can also be an idle resource in the
organization (Abrahamson, 2004). In this context, companies on the one hand relooked
the concept of symbiotic marketing (Adler, 1966), which deals with the mutual beneficial
relationship among various entities, and on the other, thought of reorienting an existing
nature of human civilization. Here, existing nature of human civilization means the
nature of human beings to live in communities developed by like-minded people. Among
customers, companies have traced out like-mindedness, which have formed informal
networks (Abrahamson, 2004). These networks are a promising source of attaining
sustainable competitive advantage.
It is the brand which plays a central role in these informal networks. Members of these
networks have something in common. They hold an emotional association with the
brand. For the companies, to achieve sustainable competitive advantage, they need loyal
emotional association of the customers towards the brands (Martesen and Gronholdt,
2004). They thought of developing a community that will have an overlapping
relationship, i.e., relationship between the customers and a common brand with which all
have a positive association. Shang et al. (2006) have mentioned with respect to the virtual
community for a particular brand that “since the impact of lurking and the impact of the
perceived attitude of the messages on loyalty are independent, companies should
encourage the establishment of communities about their products and try to attract
8 The Icfai University Journal of Brand Management, Vol. VI, No. 2, 2009
consumers to participate in virtual communities, even if someone else operates it”
(p. 413). Companies, irrespective of their product category, consider this idea as a way to
take the concept of brand loyalty to a new height. Companies, like Harley Davidson,
Apple Computers, Nikon, Chrysler, Saab, Starbucks and many other, have initiated this
idea and promoted it. On the assumption of raising the association (both rational and
emotional) with the brand, like-minded people having one to one relationship with the
brand put together to form a formal community (Martesen and Gronholdt, 2004). It is
nothing but to put informal group of people into a structured community with common
goals and orientation. Although the companies name these communities (viz., Apple
Newton, Nikonians, Harley Davidson Owner’s Group, etc.) as per their suitability, the core
idea behind is to bring up a ‘brand community’.
10 The Icfai University Journal of Brand Management, Vol. VI, No. 2, 2009
The purpose of this paper is to understand, if these two terms put together, as ‘brand
community’. Although some work is available on brand community, still there is a scope
for understanding its perspective. Its scope is increasing considerably with the rapid
growth of information technology. Again globalization and increasing competition is
compelling the companies to think differently to acquire and retain their customers.
These in turn enhance the need to understand the concept of brand community as an
opportunity for the companies to get success. At the same time, it is some sort of a
challenge for both the marketer and academicians to relook the concept of brand
community periodically, for changes in managing the application of it (McAlexander
et al., 2002). As stated by Amine and Sitz (2004)3, “the brand community presents a special
interest both for the marketing researchers and brand managers because it gives new
theoretical perspectives on key concepts (e.g., the brand loyalty, word-of-mouth, and lead
usership) and because of its considerable implications for marketing strategies” (p. 2).
Therefore, this paper looks into the perspective of brand community, its managerial
implication along with the advantages and disadvantages, the sustenance and growth of
itself and the brand under consideration.
Brand Community
The current marketing orientation and cutthroat competition in the global sphere had
enforced marketers and academicians to look into the matter of customer relationship
building in view of retaining the customers. In this regard, consumer behavior has
considerable importance. The focus of the companies is to get closer to the customers to
retain them and make them loyal towards the brand. On the other hand, customers once
get the value for their money followed by satisfaction of their need from a particular brand,
compel them to come closer to the brand. They prefer to maintain a rational and
emotional relationship with that brand (Martesen and Gronholdt, 2004). Martesen and
Gronholdt (2004) have measured brand equity based on the rational and emotional
variables (Figure 1).
It is not only relationship, but also the feeling of pride to be associated with the brand
as, for example, owners of Harley Davidson motorcycle (McAlexander et al., 2002; and
Cova and Pace, 2006), owners of GM’s Hummer vehicle (Luedicke, 2006), users of Apple
Newton computers (Schau and Muniz, 2006). The owners also share their satisfaction with
the prospective and existing customers. The tendencies to share views, opinions regarding
the product they are associated with, make them come closer to the brand and to the
existing customers of the brand. These in turn form a community and in marketing, it is
called brand community.
Many social scientists have studied the idea of community and many researchers in the
area of marketing have studied brands. However, brand community, as an idea, was
3
Amine Abdelmajid and Sitz Lionel (2004), “How Does a Virtual Brand Community Emerge? Some Implications
for Marketing Research”, University of Paris, available at http://lionel.sitz.googlepages.com
Howdoesabrandcommunityemerge.pdf (Dated: December 30, 2008 at 15:00 h).
Product Quality
12 The Icfai University Journal of Brand Management, Vol. VI, No. 2, 2009
In addition, with the increasing use of Internet, the scope of building brand communities
among different countries has increased manifold (Prykop and Heitmann, 2006).
It is true that information technology, especially World Wide Web, has given enormous
opportunities to the companies to build brand communities globally. However, at the same
time, the advent of Internet has raised the communities considerably formed by the
customers by themselves (Amine and Sitz, 2004; and Jang et al., 2008). At times,
companies are not even aware of these types of brand communities formed by its
customers, e.g., ‘Microsoft Xbox Game Consol’ (De Almeida et al., 2007). In general, as the
relevant literature on brand community reveals, there are two forms of brand community,
i.e., customer initiated and managed brand communities and company initiated and
managed brand communities (De Almeida et al., 2007; and Jang et al., 2008).
The studies by De Almeida et al. (2007) find out the differences between firm-managed
and customer-managed brand communities, which reveals certain facts. These are:
• “Many of the most active participants tended to post and respond to messages
actively in both community venues.
• Firm-managed communities tended to be employed primarily for instrumental
purposes by customers, such as seeking assistance with a specific problem, learning
about upcoming product launches, events, etc. In contrast, customer-managed
communities allow more for broader ‘off topic’ interactions not necessarily
involving the firm’s products and brands. In these communities, we found the
emergence of small friendship groups of a firm’s customers.
• Firm-managed communities to be largely targeted toward specific, well-defined
consumer segments by the firm. In contrast, customer-managed communities
appeared less clearly targeted, and were likely to be formed by members of customer
groups that the firm may have overlooked. As such, customer-managed communities
may enable the discovery of new marketing opportunities for the firm” (p. 645).
Another aspect of the definition of brand community given by Muniz and O’Guinn
(2001), says that it is non-geographically bound. With the spread of information technology
upcoming social sites (www.orkut.com, www.facebook.com, etc.) are enabling people around
the world to share their thoughts. This is allowing the users to develop virtual
communities. It gives considerable emphasis for the companies to build brand
communities globally by removing the political and geographical boundaries (Shang et al.,
2006). In the era of globalization when companies are going global, their customer-base
is also becoming global. However, getting a global base of customers is not enough; the
pertinent issue for the companies is how to retain and manage diverse customers
belonging to diverse culture from various countries? At the same time, the growth in
information technology in the world enabled these companies get the diverse customers
come closer and form a community. This in turn, gave the companies the opportunity, to
get homogeneity out of heterogeneous customers in the world. As stated by Jang et al.
(2008), “firms like Dell and Cisco Systems have transformed suppliers and customers into
members of their corporate communities, thereby enabling exchanges of valuable
14 The Icfai University Journal of Brand Management, Vol. VI, No. 2, 2009
potential social influences and create characteristics similar to traditional communities.
These communicating groups in cyberspace have been called virtual communities”
(p. 398). Study done on virtual communities for brand by Shang et al. (2006), also reveals
that the emotional belongingness is less in virtual communities than it is there in physical
brand communities. Mostly people involve into this kind of brand communities to get the
information related to a brand.
16 The Icfai University Journal of Brand Management, Vol. VI, No. 2, 2009
to support the activities. A study in the context of the brand community of Jeep and
Harley Davidson, McAlexander et al. (2002) revealed that “marketers may also take an
active role in establishing the shared rituals, traditions, and meanings that foster
consciousness of kind. Tools such as a ‘History of Jeep’ exhibited at Camp Jeep and Jeep
101 helped underscore a sense of similarity, authenticity, and exclusivity among
participants. Promotional materials that depict the product in use may help establish
shared aspirations” (p. 42). In the same context, McAlexander et al. (2002) again said that
“as community members, marketers also contribute to the process of community building
by creating the context in which owner interaction occurs” (p. 42).
At times, it is observed that strong brand communities do not allow the companies
to improve over the brand. Due to their high emotional attachment with the existing
brand, the change is restricted. At that time although it is difficult for the management
to make the community members understand the need but still if the management is
closely tied up with the brand community it can have an advantage over the community
members to convince them over the change and still be loyal to the brand. Another aspect
is, there may be a difference in the opinion among the community members. A study by
Luedicke (2006), about the Hummer Brand Community (HBC), found that “within the
HBC, differences exist about the importance of social distinctiveness. Among the urban
H2-fractions of the HBC (approx. 70,000 owners), design and social attention are more
likely to be predominant motives for purchase. H1-owners (approx. 10,000) seem to be
more attracted by the vehicle’s off-road capability. However, these particularities of the
HBC’s social distinctiveness presuppose social environments that pay attention and
feedback to the community. In this empirical context, social attention appears to be given
for both sides” (p. 489). Thus, segmented brand community can be an option in
minimizing this kind of discrepancy, leading to unsatisfied customers of the brand. There
is another facet of brand community, which requires attention from the managers as it can
lead to problems from the brand community. As research done by Cova and Pace (2006),
reveal that with the advent of internet, many virtual brand community members, not only
share the information about the related brand, they also share products that can be shared
using internet, like movies, etc. This compels other industries, like the entertainment
industry, which have no stake over the brand community, as the brand community is for
a product not related to entertainment industry, to incur losses. The findings reveal that
the community members of the non-convince products were sharing the movies online
among the members. To protect the empowerment companies like Coca Cola, Red Bull
formed online communities but restored the options of community members to see the
information on the community sites but can share their feeling only with the companies.
With the advent of internet and increase in the scope of online brand community, it is
a challenge for the companies initiating online brand community to manage the unwanted
information over the net. Even though the chance of spreading rumor over various online
Conclusion
The concept of brand community is emerging. It has gained momentum among many
multinational companies like Harley-Davidson, Hummer, Apple Computers, Nikon,
Chrysler, Saab, Starbucks, etc. It has also found attention by many eminent scholars and
researchers. But, still it is in its nascent state. With the development of World Wide Web
both customers and companies or brands have taken the opportunity to form online brand
communities to share information, experiences (both positive and negative), promote,
ideas to improve, suggestions, etc. This poses the advantage of developing brand loyalty
among the customers by involving them into a community structure. It allows companies
to promote their brand to retain them by developing a sense of emotional and rational
association with the brand. This enables to instigate positive word-of-mouth and protect
its image by developing a sense of relationship among the brand, customer and other
community members, which usually restrict the rival company’s positioning.
In the Indian scenario, although the multinational companies, which have online
brand communities, allow customers to join these communities but lack of awareness
about the concept of brand communities and its advantages, restrict the customers to join
these communities. Recently some of the companies have been taking certain steps to
promote and apply the concept of brand community in India. Among them, Cadbury’s
India recently introduced an online community, meethamoments.com4 for Indian
customers. Chevrolet SRV5 has started hosting space over their website for the Indian
customers where visitors can sign in to get an opportunity for a test drive. PepsiCo India6
allows customers in India to share their association with the brand on its website. Rediff,
Yahoo, Gmail are also attracting customers to initiate brand communities. ITC has its
e-choupal7 where it allows customers to get together to share information related to their
business. But, still a lot is to be done in creating awareness about the brand communities
in the country.
Although, Indian customers and companies need to understand the concept of brand
community, companies have already applied this as a tool to promote and generate loyal
4
http://www.meethamoments.com
5
h t t p : / / w w w. c h e v r o l e t . c o . i n / a c t i o n / r b C N B r o c h u r e B y M a i l A c t i o n ? a c t i o n =
MA&cnInput=TESTDRIVE&cntry_cd=IN&lang_cd=en&website_cd=GBPIN&MMNAMPLT=001
6
http://www.pepsiindia.co.in/pwp.html
7
www.echoupal.com
18 The Icfai University Journal of Brand Management, Vol. VI, No. 2, 2009
customers who can keep a close watch on its activities and proceedings. If the activities
are not managed properly, the companies may get their brand image hampered, lose
control over decision making on the brand, and cannot achieve competitive advantage
through it. Therefore, the application of brand community has considerable management
implications. These aspects of brand community in the current marketing environment
provide scope for further research. Again, the dynamic nature of the customers gives an
opportunity to the researchers to explore the concept further. The concept is important
for brand managers, consumers and marketing researchers in the current competitive
environment. Hence, its implementation, management and control require more
researches to validate and generalize its applicability.
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