CASE STUDY – THE SOCIAL NETWORK 2023 Business Finance
2023 CASE STUDY THE SOCIAL NETWORK The growing use of social network sites such
CASE STUDY – 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 likeminded
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) userinitiated
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).
Case Study 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.
a. Discuss these features in details
b. Draw a Conceptual Framework reflecting Jesse’s research problem.
c. Make sure to label the variables in the conceptual framework you develop
(IV, DV, MV or IVV)
2. Jesse has undertaken a literature review to develop his conceptual model.
a. Is there or are there any alternative approaches that would allow Jesse to
develop a conceptual model?
3. 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.
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.
4. Try to come up with a variable that moderates the relationship between one of the
independent variables and ‘member’s satisfaction’.
5. 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
6. Provide the relevant hypothesis for your conceptual model.
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