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               Beyond Loyalty
               Enhancing online brand-related interaction

               David Langley               @DavidLangleyNL

               iMMovator Cross Media Network Masterclass
               25 September 2012, Hilversum
1




Agenda

14.30 David Langley (TNO)
        Critical factors for influencing online brand experience
15.30 Mark Woerde (Lemz)
        Successful prosocial brands
16.00 Break
16.10 Group exercise: Your cases
17.20 Wrap-up and follow-up
17.30 Borrel
3




Vision

 For the first time in history there is connection between a mass of
 people who may have similar values and opinions.
  It’s easy to express an opinion
    Watch a short film, play a game, like
  It’s easy to bundle opinions
    Attacking: aimed at changing organisations
    Proactive: firms connect to the groundswell


 The basis for a rich form of two-way communication
  This is changing the nature of firm-consumer interaction
  Major new opportunity for firms: consumers as ambassadors
4




The empowered online consumer
5




Activism




           Energy-intensive = low numbers
           Increasingly easy to marginalize
6




Slacktivism




              Feel-good factor
                 No impact
Online slacktivism




       Over 100.000 Dutch people joined in online

  As from this year all chocolate letters will be fair trade
8




ProSociality

 People are ProSocial when they are open, friendly and help others
 Firms are ProSocial when they contribute to society through their
 brand values
 Marketing beyond Corporate Social Responsibility (CSR)
 Pro-active: empower and engage online slacktivists
9




The rise of social media
10
11




van Deursen & van Dijk 2010/2011
12
13




Social media has grown rapidly – today nearly 4 in 5 active Internet
users visit social networks and blogs
53 percent of active adult social networkers follow a brand (compared
to 32 percent who follow a celebrity)
Across a snapshot of 10 major global markets, social networks and
blogs reach over three-quarters of active Internet users
                                                           [Nielsen 2011]
14




Drivers of loyalty are changing
15




Keller & Lehmann, Marketing Science 2006
16




What consumers think about firms that give back
to society
17




What firms think about firms that give back to
society
 76% of executives believe that corporate social responsibility
 contributes positively to long-term shareholder value
 55% of executives agree that sustainability helps their companies
 build a strong reputation (McKinsey, 2010).
18




Bhattacharya & Sen, Journal of Marketing 2003, and Currás-Pérez et
al, Journal of Business Ethics 2009:
 Loyalty is strongest for firms which help consumers to satisfy
 self-definitional needs
   Identity similarity
   Identity distinctiveness
   Identity prestige
   Identity knowledge
   Identity coherence
   Identity trustworthiness
   Identity attractiveness
19




Approaches to prosociality
20




Different approaches to ProSociality

                   Empower


                    Enable

                  Contribute

                   Reducing
                negative impact

                 CSR reporting


                      none
21




1. CSR reporting
22




2. Responsible: reducing negative impact
23




3. Contributing
24




3. Contributing
25




4. Enabling




 Since 2000, 25 countries have eliminated Maternal and Neonatal Tetanus (MNT)
 MNT remains a major public health problem in 34 countries
4. Enabling




              iMMovator
27




5. Empowering
28




Critical success factors for

online prosocial initiatives

   aimed at consumers
29




Sen & Bhattacharya Journal of Marketing Research 2001:
 Consumer-company congruence is not just product-related but also
 determined by the CSR performance
 “Research a variety of CSR initiatives and select those that enjoy
 the highest and most widespread support among the company’s key
 consumer segments.”
 Consumers are more sensitive to negative information
 Low-CSR support consumers sensitive to CSR-CA trade-off
30




Torelli et al Journal of Consumer Research 2012
 Evaluations of self-enhancement brands (Rolex, BMW) are reduced
 by CSR-related terms (Welfare, recyclable, volunteer).
 Different for openness or conservation brands (Apple, hand-made
 toys)
Torelli et al Journal of Marketing 2012
 Achieving consumer-company congruence across cultures is a
 major challenge
 Some values are related and enhance each other whereas some
 values are incompatible with each other
31




     Schwartz and Boehnke (2004)
32




Bigne et al European Journal of Marketing 2012
 For brand-cause alliances, there is a difference between functional
 fit (product attributes and cause objective) and image fit (e.g. Pepsi
 Refresh Everything)
 Image fit between brand and cause is used as a cue to evaluate
 altruistic brand motivations and brand credibility
33




Groza et al Journal of Business Ethics 2011
34




Langley & van den Broek, Internet Politics and Policy 2010


  Presenting evidence
      of goals and
    achievements to        0.310
  potential participants

                                         Scale of participation   R2 0.435
   Sharing personal
    experiences with       0.503                   -0.319
  potential participants


                           0.530         Degree of behavioral     R2 0.365
   Sharing personal                            change
      experiences
  between participants

                           -0.062
     Reducing effort
     required to act
35




Kim & Labroo Journal of Consumer Research 2011
 Non-instrumental effort enhances perceived quality
 Holds for customers focused on “incentive” value (getting the best
 product)
36




Langley, Aarts & Bijmolt working paper
Campaign characteristics
                              Impact on cause
    Social Media drivers      •   Presenting evidence
    •   Stimulus to share
    •   Social activity

                                                        Impact
    Content drivers
                                                        •   Brand image
    •    ProSocial level of                                 •    Overall
        campaign
                                                            •    Social
    •    Congruence brand                                   •    Positional
        (product) and cause                                 •    Environmental
                                                        - Purchase intention

Consumer motives
•   Social benefits                                     Participation

•   Individual benefits                                 - Intention to share

•   Shared identity                                     - Intention to participate
37




The brands used in this research




 Taken from Interbrand’s Top 100 Global Brands
38




Social consumers value brands with empowering
campaigns
 Interaction: Empowerment & Social self-image




                                             Low Social Self-Image

                                             High Social Self-Image




    No Empowerment   With Empowerment


   Explanation: The brands with a ProSocial campaign that is
   ‘empowering’ have a stronger overall brand image for
   consumers that have a high social self-image and a weaker
   brand image for consumers with a low social self-image.
39




Examples of how not to do it
40
41
42




Rialto Bridge, Venice
43




Group Discussions: Your cases
44
                                       26-9-2012 8:43




Your cases

1. Nicole Bakker, Hogeschool voor de Kunsten Utrecht: Interactie met studiekiezers
   via sociale media op gang brengen. Hoe bereik je ze en hoe verbind je ze?
2. Jasper Brugman, Centrum Media & Gezondheid: Internet film/serie voor jongeren
   (Sound Bytes). Hoe bereik je de jongeren en hoe breng je een discussie op
   gang?
3. Gerard Kroon, Promomix: Dierenproducten rechtstreeds aan de consument
   vermarkten. Maar hoe?
4. Vicky Kuyck, Media Academie: Kwaliteitenenquete gratis aanbieden, 'weet wat je
   in huis hebt‘. Hoe matcht het met de waarden en behoeften van de deelnemers?
5. Oscar Langerak, VideoWerkt: Platform voor ICT onderwijs. Hoe beverdert dit
   imago, zichtbaarheid en cohesie?
6. Julien Scholte, Eisma Businessmedia: Online zichtbaarheid van een tijdschrift
   voor jongeren verhogen. Welke toegevoegde waarde kan sociale media bieden?
7. Monique van der Woude, Challenge: Crowdfunding voor een videoproject. Hoe
   bereik je de massa en hoe krijg je ze zover om daadwerkelijk geld over te maken?
45




Group discussions: your cases

 5 minutes pitch
 25 minutes discussion:
  What are the social/societal values of the brand?
  Who is the target group and what are their values? Is there a
  match?
  What is an appropriate prosocial level (responsible, contributing,
  enabling, empowering)?
  Two main solutions to problem?
  Two main challenges which still need solving?
 Short presentations: 5 minutes per group
46




Wrap-up & Follow-up
47




Main take-aways

 Social media are not just another channel
  Two-way communication
  Consumers can contribute
 Being prosocial may strengthen brands’ relationship with consumers
  When it works, consumers become ambassadors
  Not suitable for all brands
 There are different forms of prosociality: from reporting to empowering
 Developing a strategy for enhancing online interaction:
  Search for matching brand / consumer values
  Adopt appropriate level of prosociality
 This is a lively research topic and ongoing research will identify more
 best practices and success factors
48




Technology cluster & Cofinance project

 TNO is interested continuing knowledge dissemination and research
 on this topic:
  Strengthening consumer-company identity via social media
 Two options:
 A technology cluster for sharing TNO’s knowledge
  A network of organisations with a similar requirement for TNO
  knowledge
  Minimum 5 SMEs
  Total costs for SMEs: €5k
 A cofinance project for developing new knowledge
  New research ideas
  SMEs and large firms eligible
  Costs vary

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David Langley TNO @ masterclass beyond loyalty

  • 1. This image cannot currently be display ed. Beyond Loyalty Enhancing online brand-related interaction David Langley @DavidLangleyNL iMMovator Cross Media Network Masterclass 25 September 2012, Hilversum
  • 2. 1 Agenda 14.30 David Langley (TNO) Critical factors for influencing online brand experience 15.30 Mark Woerde (Lemz) Successful prosocial brands 16.00 Break 16.10 Group exercise: Your cases 17.20 Wrap-up and follow-up 17.30 Borrel
  • 3.
  • 4. 3 Vision For the first time in history there is connection between a mass of people who may have similar values and opinions. It’s easy to express an opinion Watch a short film, play a game, like It’s easy to bundle opinions Attacking: aimed at changing organisations Proactive: firms connect to the groundswell The basis for a rich form of two-way communication This is changing the nature of firm-consumer interaction Major new opportunity for firms: consumers as ambassadors
  • 6. 5 Activism Energy-intensive = low numbers Increasingly easy to marginalize
  • 7. 6 Slacktivism Feel-good factor No impact
  • 8. Online slacktivism Over 100.000 Dutch people joined in online As from this year all chocolate letters will be fair trade
  • 9. 8 ProSociality People are ProSocial when they are open, friendly and help others Firms are ProSocial when they contribute to society through their brand values Marketing beyond Corporate Social Responsibility (CSR) Pro-active: empower and engage online slacktivists
  • 10. 9 The rise of social media
  • 11. 10
  • 12. 11 van Deursen & van Dijk 2010/2011
  • 13. 12
  • 14. 13 Social media has grown rapidly – today nearly 4 in 5 active Internet users visit social networks and blogs 53 percent of active adult social networkers follow a brand (compared to 32 percent who follow a celebrity) Across a snapshot of 10 major global markets, social networks and blogs reach over three-quarters of active Internet users [Nielsen 2011]
  • 15. 14 Drivers of loyalty are changing
  • 16. 15 Keller & Lehmann, Marketing Science 2006
  • 17. 16 What consumers think about firms that give back to society
  • 18. 17 What firms think about firms that give back to society 76% of executives believe that corporate social responsibility contributes positively to long-term shareholder value 55% of executives agree that sustainability helps their companies build a strong reputation (McKinsey, 2010).
  • 19. 18 Bhattacharya & Sen, Journal of Marketing 2003, and Currás-Pérez et al, Journal of Business Ethics 2009: Loyalty is strongest for firms which help consumers to satisfy self-definitional needs Identity similarity Identity distinctiveness Identity prestige Identity knowledge Identity coherence Identity trustworthiness Identity attractiveness
  • 21. 20 Different approaches to ProSociality Empower Enable Contribute Reducing negative impact CSR reporting none
  • 23. 22 2. Responsible: reducing negative impact
  • 26. 25 4. Enabling Since 2000, 25 countries have eliminated Maternal and Neonatal Tetanus (MNT) MNT remains a major public health problem in 34 countries
  • 27. 4. Enabling iMMovator
  • 29. 28 Critical success factors for online prosocial initiatives aimed at consumers
  • 30. 29 Sen & Bhattacharya Journal of Marketing Research 2001: Consumer-company congruence is not just product-related but also determined by the CSR performance “Research a variety of CSR initiatives and select those that enjoy the highest and most widespread support among the company’s key consumer segments.” Consumers are more sensitive to negative information Low-CSR support consumers sensitive to CSR-CA trade-off
  • 31. 30 Torelli et al Journal of Consumer Research 2012 Evaluations of self-enhancement brands (Rolex, BMW) are reduced by CSR-related terms (Welfare, recyclable, volunteer). Different for openness or conservation brands (Apple, hand-made toys) Torelli et al Journal of Marketing 2012 Achieving consumer-company congruence across cultures is a major challenge Some values are related and enhance each other whereas some values are incompatible with each other
  • 32. 31 Schwartz and Boehnke (2004)
  • 33. 32 Bigne et al European Journal of Marketing 2012 For brand-cause alliances, there is a difference between functional fit (product attributes and cause objective) and image fit (e.g. Pepsi Refresh Everything) Image fit between brand and cause is used as a cue to evaluate altruistic brand motivations and brand credibility
  • 34. 33 Groza et al Journal of Business Ethics 2011
  • 35. 34 Langley & van den Broek, Internet Politics and Policy 2010 Presenting evidence of goals and achievements to 0.310 potential participants Scale of participation R2 0.435 Sharing personal experiences with 0.503 -0.319 potential participants 0.530 Degree of behavioral R2 0.365 Sharing personal change experiences between participants -0.062 Reducing effort required to act
  • 36. 35 Kim & Labroo Journal of Consumer Research 2011 Non-instrumental effort enhances perceived quality Holds for customers focused on “incentive” value (getting the best product)
  • 37. 36 Langley, Aarts & Bijmolt working paper Campaign characteristics Impact on cause Social Media drivers • Presenting evidence • Stimulus to share • Social activity Impact Content drivers • Brand image • ProSocial level of • Overall campaign • Social • Congruence brand • Positional (product) and cause • Environmental - Purchase intention Consumer motives • Social benefits Participation • Individual benefits - Intention to share • Shared identity - Intention to participate
  • 38. 37 The brands used in this research Taken from Interbrand’s Top 100 Global Brands
  • 39. 38 Social consumers value brands with empowering campaigns Interaction: Empowerment & Social self-image Low Social Self-Image High Social Self-Image No Empowerment With Empowerment Explanation: The brands with a ProSocial campaign that is ‘empowering’ have a stronger overall brand image for consumers that have a high social self-image and a weaker brand image for consumers with a low social self-image.
  • 40. 39 Examples of how not to do it
  • 41. 40
  • 42. 41
  • 45. 44 26-9-2012 8:43 Your cases 1. Nicole Bakker, Hogeschool voor de Kunsten Utrecht: Interactie met studiekiezers via sociale media op gang brengen. Hoe bereik je ze en hoe verbind je ze? 2. Jasper Brugman, Centrum Media & Gezondheid: Internet film/serie voor jongeren (Sound Bytes). Hoe bereik je de jongeren en hoe breng je een discussie op gang? 3. Gerard Kroon, Promomix: Dierenproducten rechtstreeds aan de consument vermarkten. Maar hoe? 4. Vicky Kuyck, Media Academie: Kwaliteitenenquete gratis aanbieden, 'weet wat je in huis hebt‘. Hoe matcht het met de waarden en behoeften van de deelnemers? 5. Oscar Langerak, VideoWerkt: Platform voor ICT onderwijs. Hoe beverdert dit imago, zichtbaarheid en cohesie? 6. Julien Scholte, Eisma Businessmedia: Online zichtbaarheid van een tijdschrift voor jongeren verhogen. Welke toegevoegde waarde kan sociale media bieden? 7. Monique van der Woude, Challenge: Crowdfunding voor een videoproject. Hoe bereik je de massa en hoe krijg je ze zover om daadwerkelijk geld over te maken?
  • 46. 45 Group discussions: your cases 5 minutes pitch 25 minutes discussion: What are the social/societal values of the brand? Who is the target group and what are their values? Is there a match? What is an appropriate prosocial level (responsible, contributing, enabling, empowering)? Two main solutions to problem? Two main challenges which still need solving? Short presentations: 5 minutes per group
  • 48. 47 Main take-aways Social media are not just another channel Two-way communication Consumers can contribute Being prosocial may strengthen brands’ relationship with consumers When it works, consumers become ambassadors Not suitable for all brands There are different forms of prosociality: from reporting to empowering Developing a strategy for enhancing online interaction: Search for matching brand / consumer values Adopt appropriate level of prosociality This is a lively research topic and ongoing research will identify more best practices and success factors
  • 49. 48 Technology cluster & Cofinance project TNO is interested continuing knowledge dissemination and research on this topic: Strengthening consumer-company identity via social media Two options: A technology cluster for sharing TNO’s knowledge A network of organisations with a similar requirement for TNO knowledge Minimum 5 SMEs Total costs for SMEs: €5k A cofinance project for developing new knowledge New research ideas SMEs and large firms eligible Costs vary