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DR SAMUELSON APPAU

LECTURE 7

§ Understand how consumers build relationship with

brands § Explore ideas to build branding as a relationship § Understand brand communities § Bounce!

CONSUMER-BRAND RELATIONSHIPS

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Possessions as an extension of the self (Belk 1988) § We build, maintain and discontinue identities with our possessions § Me and what is mine are indistinguishable

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How we treat… § Gained possessions § Lost possessions § The Others’ possessions

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Animated relationships § Anthropomorphism § Ritualized usage § Affective response

§ Object

Idea

Experience

Relationship

§ Changing power dynamics § Collaborative § Symmetrical § Reciprocal

§ Role title change § Friend/friend e.g. Airbnb § Entrepreneur/supporter e.g. Uber § Club/member e.g. American Express § Family/member e.g. Southwest Airlines

Blackston 1993; Bonchek and France 2016

Consumers form inter-personal relationships with brands.

Brands serve as relationship partners. Fournier, Susan. (1998). Consumers and their brands: Developing relationship theory in consumer research. Journal of Consumer Research, 24(4), 343-353.

CONSUMER-BRAND RELATIONSHIPS TYPOLOGY v Arranged marriage v Rebounds v Secret affairs v Committed partnerships v Enslavement

v Childhood friendship v Flings v Kinships v Courtships v Enmities

Fournier, Susan. (1998). Consumers and their brands: Developing relationship theory in consumer research. Journal of Consumer Research, 24(4), 343-353.

§ Depends on: § CBBE § Consumption value § Consumer commitment § Consumer personality and life stage § Consumer marketing knowledge § Situational factors

§ Leads to: § Biased brand image § Attribution biases § Devaluation of competing brands § Purchase loyalty § Advocacy § Accommodation § Tolerance/Forgiveness

Fournier, 1998

Apostles Advocate Supporter Client Customer Prospect

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Extra-ordinary devotion and intense attachment to a brand

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Extreme consumer behaviors and obsession

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Cult-like dependence

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Messianic role

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Devoted brand apostles

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Negative and positive connotations

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Brand response?

[Chung et al. 2009; Cova and Fuschillo 2013; Thorne and Bruner 2006]

TOWARDS REAL ENGAGEMENT…A STRATEGY OF BRANDS = RELATIONSHIPS

PRODUCT AND SERVICE VALUE Don’t get distracted by bells and whistles

"People don't want to buy a quarter-inch drill. They want a quarter-inch hole!” -Theodore Levitt

CO-CREATING VALUE Involving customers and other relevant stakeholders in the value creation process

Not just about likes, shares and comments… It is the strategic adoption of consumer expertise, desires and experience

RELENTLESS AND SUPERIOR CUSTOMER SERVICE

Every encounter with the customer is a moment to shine . Extra.

GIFT GIVING BEHAVIOURS A gift is a material expression of a relationship. An added benefit, a cost saved, and a present to mark moments solidifies every relationship A gift in time saves love

To make a gift of something to someone is to make a present of some part of oneself -Marcel Mauss

PERSONALIZED MARKETING You must know your consumer well enough to be them

It’s the little things that count

You can personalize products, info, events, stories, experiences, payment, delivery, feedback…

PERMISSION MARKETING

A good relationship is built on consent, anticipation and approval

When it is unwanted, it is… Godin, 1999

“We all belong to tribes....human decision making is predominantly driven by the basic, yet irresistible urge to belong to groups and function as part of a social system.” —Masi, 2005

A brand community is a specialized, non-geographically bound community, based on a structured set of social relations among admirers of a brand (Muniz and O’Guinn 2001).

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Leading factors § Disappearance of social communities; rise of societies § Rise of brand as social signifiers and mobilizers § Consumer tribalism

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Characteristics § Shared consciousness § Shared affect § Shared rituals and traditions § Shared sense of moral responsibility § Imagined boundaries

1.

Brand community should be a business strategy

2.

Of the community, with the community, for the community

3.

Engineer the community, and the brand will be strong

4.

Accept the good, the bad and the ugly

5.

Don’t rely on opinion leaders; build inclusiveness

6.

IMC applies here too

Fournier and Lee (2009)

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Brands serve as consumer relationship partners

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Branding is a relationship; if done right, it generates real engagement

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Real engagement is about attitudinal and purchase loyalty

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When building a brand community, make it about the community first

BRANDING IN THE SHARING ECONOMY

The Sharing Economy … an internet-mediated exchange of goods and services based on access instead of ownership. …accessing goods through hire/rental than purchased ownership Also known as: Collaborative consumption Access-based consumption The hire/rental economy The gig economy Business-to-consumer Peer-to-peer

Global Financial Crisis (GFC)

Internet (e-commerce)

Millennials

OPPORTUNITIES AND THREATS

Redefining value

1. Access as means of delivering value 2. Rethinking the product life cycle 3. Collaboration and boundary spanning roles

Trust and security

1. The sharing economy is a trust economy 2. Online feedback creates a virtual résumé 3. Security and privacy

1. Working within grey areas of the law 2. Working with regulators 3. Ethical standards

Regulation

LEARN MORE: https://www.futurelearn.com/courses/sharing-economy

1.

The sharing economy is a viable option for new and existing businesses

2.

Access over ownership presents an opportunity for brand growth but brands must be willing to be collaborative

3.

Trust is the single most important association in the sharing economy

4.

Brands in the sharing economy will benefit from working with regulators to find a common ground.

LUXURY BRANDS Reading: Managing Luxury Brands (Kapferer 1996)

SPECIAL TOPIC: Branding in Subsistence Markets...