Address all questions.
- You must give quality answers that show mastery of the case and questions asked using clear logic and supporting facts. Also, the answers must directly answer the questions in the case.
- Case analyses test the understanding of key elements of research methodology, therefore they must be thoroughly addressed.
- You must use citations with references to document information obtained from sources. The key elements of research methodology, business analytics, and concepts are found in the sources listed in this syllabus (it is your duty to search for them, read, analyze, evaluate, summarize, paraphrase in your answers, and cite the authors who wrote the articles, books, term papers, memoirs, studies, etc. What it means is that you will have not less than 5 references from the listed sources.
- Grammatically correct paper, no typos, and must have obviously been proofread for logic.
- Questions must be typed out as headings, with follow up answers in paragraph format, and a summary or conclusion at the end of all answers as in the outline (Sample provided in Course Resources).
- Case analysis must be in APA format.
CASE CHAPTER 6: THEORETICAL FRAMEWORK AND HYPOTHESIS
DEVELOPMENT
THE SOCIAL NETWORK
The growing use of social network sites (such as Facebook) and online communities (such as for
instance the Apple Computer community, the community of Harley-Davidson riders, and the
community of Starbucks customers) provides exciting opportunities for organizations. Online brand
communities allow organizations to engage and interact with customers, obtain market information,
sell and advertise products, rapidly disseminate information, develop long-term relationships with the
community, and eventually to influence 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 like-minded
consumers who identify with a particular brand and share significant traits, such as for 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 the brand (Jang et al. 2008).
There are several possible categorizations of online brand communities, but they are generally
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) user-initiated communities,
voluntarily built by their members (that is, the consumer) (e.g., Armstrong and Hagel 1996; Kozinets
1999). These two types of brand communities provide different opportunities for marketers. For
instance, a brand community on a company website is one of the key determinants of attracting
consumers to and retaining customers on the website (Nysveen and Pedersen, 2004). Consumer-
initiated online brand communities may provide consumers with useful information about other
consumers’ experiences with the product or service and the strengths and weaknesses of products or
services (Jang et al. 2008).
The success of online brand communities is heavily dependent on consumer participation in the online
brand community. To determine why consumers participate in online brand communities business
student Jesse Eisenberg has developed a model based on extant service marketing literature. The main
idea in this literature is that perceived value and satisfaction 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 Choi 2007; Ravald and Grönroos 1996). Jesse wants to apply this idea to
consumer participation in online brand communities. According to Jesse, “members will probably be
satisfied with an online brand community and have the intention to participate in the community
when they derive value from the community. Therefore it is important to know which values members
may derive from participating in an online brand community.” A thorough review of the literature has
convinced Jesse that participation in online brand communities depends on the communities’
perceived informational value, self-discovery value, social interactivity value, social enhancement
value, entertainment value, and reward value (e.g., Dholakia, Bagazzi, and Pearo 2004; Flanagin and
Metzger 2001).
Figure 1 provides a graphical representation of Jesse’s ideas.
QUESTIONS A good theoretical framework identifies and defines the important variables in the situation that are relevant to the problem and subsequently describes and explains the interconnections among these variables. 1. There are three basic features that should be present in any theoretical framework. Discuss
these features. Jesse has undertaken a literature review to develop his conceptual model. 2a. Is there or are there any alternative approaches that would allow Jesse to develop a
conceptual model? 2b. Describe the advantages and disadvantages of undertaking a literature review to develop a
model. 2c. Describe the advantages and disadvantages of the alternative approach that you have come
up with.
Self-discovery value
Social interactivity value
Social enhancement value
Entertainment value
Reward value
Member’s satisfaction Loyalty toward online brand community
intention to participate
Informational value
3a. Label the variables of Jesse’s conceptual model in terms of independent, dependent, moderating, and/or mediating variables.
3b. Explain the general difference(s) between moderating and mediating variables. 4. Develop the relevant hypotheses based on Jesse’s model (use directional hypotheses). Jesse explains the relationship between entertainment value, satisfaction, and member’s future intention to participate as follows. ENTERTAINMENT VALUE Several 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 or interacting with others (Dholakia, Bagozzi, and Pearo 2004). Many people get fun through encountering and solving online challenges or contests (McKenna and Bargh 1999). In addition, specific and challenging goals may provide an online community entertainment value (Beenen et al. 2004). Providing entertainment within a company-initiated online brand community 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 of Foodprints, including photos, videos, contests or games, might attract members. 5a. Provide a thorough evaluation of Jesse’s arguments. 5b. Provide a better explanation of why we would expect this relationship to exist. 6a. Try to come up with a variable that moderates the relationship between one of the
independent variables and ‘member’s satisfaction’. 6b. Provide an explanation of why and how you would expect that this variable affects the
relationship between the independent variable of your choice and ‘member’s satisfaction’. 6c. Provide the relevant hypothesis.