How Social Media Impacts Consumer Behavior

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How Social Media Impacts Consumer BehaviorHope Jensen SchauAssociate Professor of Marketing

Gary M. Munsinger Chair in Entrepreneurship and Innovation


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Define and Demystify Social Media

Link Social Media to Collective ConsumptionExamine Family and Social Media

Consider Social Media Examples

Consider Brand Communities

Collective and Collaborative Value

Review New Data in Social Media

Examine Social Media and Shopping

Concluding Thoughts

Agenda


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What is Social Media?

Internet and

web-basedtechnologiesused to

transformbroadcast mediamonologues

(one-to-many)into socialmedia dialogues

(many-to-many).


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Demystifying Social Media Social interaction is NOT new,

novel or disruptive

Social media are technologyplatforms that enable socialinteraction

When people interact, they talkabout common points of interest(interest or topic homophily)

Lively discourse revealspreferences, leading to word-of-mouth

Social media can lead to

collective, collaborative behavior


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Social Media and WOM Person-to-person referrals

Basis of many client-basedbusinesses Basis of many product trials across

categories

Word-of-Mouth Marketing Harnessing and leveraging the

power of WOM Australian firm (MLM) believed to

have coined term WOMM in 1980s


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Why is Social Media Important?


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What Do Users Trust


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What is Social Media Marketing?

Using socialnetworks, onlinecommunities,blogs, wikis orany other

collaborativemedia formarketing,

sales, publicrelations andcustomer

service.


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Social Media Tactics

Enhances former

marketingstrategies Introduces new

strategies, e.g.,engagement

Improvesintrafirm resource

integration Builds value

within the supply

chain


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How Does Social Media Improve Intrafirm Resource Integration?


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Most Tweeted Brands


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Social Media is More than WOM

Collective

Collaborative

Value Creating Value Enhancing

Value Realizing


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Concluding Thoughts

Agenda


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Collective Consumption Most theories ofconsumption are based onpsychology and economicswhich overwhelminglyassume individual actors.

Consumption is often

collective.Families Friends

Co-workers Neighbors

Communities Affinity Orgs


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Consumer Collectives

Brand Community:

Specialized, non-geographically bound communitiesbased on a structured set of social relationships amongadmirers of a brand. (Muniz and OGuinn 2001)

Subcultures of Consumption:

Distinctive subgroup of society that self-selects on the

basis of a shared commitment to a particular productclass, brand, or consumption activity. (Schouten and McAlexander 1995)

Consumer Tribes:Multiple, playful, transient, and entrepreneurial groupswhere consumers seek social links with people through

the shared use of products and services. (Canniford 2011)


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TYPOLOGY OF ONLINE CREATIVE CONSUMER COMMUNITIES

(Kozinets, Hemetsberger, Schau 2008)


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Vigilante Marketing Defined Unpaid advertising and

marketing efforts, includingone-to-one, one-to-many, andmany-to-many commerciallyoriented communications,undertaken by brand loyalistson behalf of the brand.

(Muniz &Schau Journal of Advertising

2007)

Consumer-GeneratedContent (CGC), or UGC

Enabled by Social Media


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CGC Lego, Indiana Jones


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Collective, Collaborative Brand Narratives Collaborative, multi-authored

textual narratives centered on

two commercial offering: Vespaand Twilight

Iteratively written and revised,

then offered for wideracceptance among the collectiveat large.

Longitudinal strategy

from the initial circulated drafts tothe collectively agreed upon finalform.


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Vespa Collaborative Narrative 2011

Endorsed

Eco-friendly Urban/Near-Burb

commuting Retro styling Celebrity luxury Futuristic orientation Open class access Social Causes

Silenced

Specific political and policy

Nonregulated touring - play Waste personalization Inefficiencies/Imperfections


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TwilightCollaborative Narrative 2011Endorsed

Enduring romantic commitment

Self-sacrifice

Touchstone feminism

Family

Honor Desire/Lust

Silenced

Questioning the narrator

Religion, specificallyMormon

Stalking, Pedophilia,

Domestic Violence, etc.


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Why is this important?

It is outside the dominion of the firm.

The firm cannot control its content or its dissemination.

It is perceived by consumers as morecredible than paid marketing

communications. It portrays the brand from an emic

(inside) perspective. It demonstrates consumer collective andcollaborative value creation.


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Concluding Thoughts

Agenda


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What are the implications formarketers of doing family

through social mediatechnologies?

Connected Families: How ConsumptionPractices Survive Distance

Amber M. Epp, University of Wisconsin-Madison

Hope Jensen Schau, University of Arizona

Linda L. Price, University of Arizona

Marketing Science Institute Working Paper Series


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Trends Toward Long-Distance Families Commuting for work 3.8 million Americans are in commuter marriages, a 30% increase

between 2000 and 2006 (U.S. Census 2006)

Characterizes both privileged and lower-income families (Holmes 2009;Sloan Work and Family Research Network)

High unemployment rates contribute to this trend

Military deployments 44% of active duty military members have children (1.2 million children

affected) (Cozza 2011)

Changes in family structure One third of all children in the U.S. have a non-resident parent (U.S.

Census 2006)

Normative life course changes


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Products, brands, and services become embedded in our meaningful family practices (Brady

2007; Larson and Wiley 2006; Warde 2005)

caught up in sacred traditions that connect us (Epp andPrice 2008, 2010, 2011; Gibbs 2006; Wallendorf and Arnould 1991).

Family: A Consumers First Collective


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Other Company Responses

Shift i C ti P ti


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Shifts in Consumption Practices


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Link Social Media to Collective Consumption

Examine Family and Social Media






Concluding Thoughts

Agenda


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Brand Centered Platforms

Previous Feature


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Concluding Thoughts

Agenda


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The TwilightBrand Community

Brand Community: Twilight


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The TwilightSaga Four Novels (+ one

unfinished) Teenage vampire

romance Young adult Fantasy

Romance

Many metrics indicate theTwilightsaga outsold JKRowlings Harry Potterseries in the United Statesand may surpass HPseries globally.


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The Author Stephenie Meyer a Mormon housewife

Brigham Young University BA English

Twilightwas her FIRST foray into writing

Prior work experience as a receptionist

Best Selling Author in 2008 and 2009

2008

#49 on Timemagazines 100 Most Influential People

2009

#26 on Forbes Celebrity 100 list of most powerfulcelebrities

#5 on Forbes Hollywoods Top Earning Women

Broke JK Rowlings record for weeks at #1 NYTBestSeller

2010 #59 on Forbes Celebrity 100 list of most powerfulcelebrities, despite no book release in 2009 or 2010

2011

#90 on Forbes Celebrity 100 list of most powerfulcelebrities

Her husband is a retired auditor turned stay-at-home dad


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Collective Consumption Collective consumption dominated

females engaged in the Twilightbrand.

Few fans engaged the brand alone.


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Consumer Engagement Consumers participation in brand usage,brand discourse and brand-related activities.


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Lessons from Twilight Although reading is solitary, the social

component of this brand is important to the

fans and members of the Twilightbrandcommunity.

Fans are attracted to the saga through otherevangelical fans and w-o-m on social media.

Fans learn about and become part of the

brand community through social media. Fans stay engaged with the brand community

through social media and face-to-face contact.


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Threadless Community is the Brand A unique feature of

Threadless is nocommunity nobrand

Threadless, oncethe most innovative

small company inAmerica, alsohangs by a Thread:

Had trouble

replicating this modelin other productcategories Naked andAngry(housewares)

Inc. Magazine, June 2008


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Community submits designs

Community scores designs

Threadless prints high scoring

designs on shirts

What is Threadless?


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Threadless : Scoring DesignsScore

Comment

&Discuss


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Threadless CommunitySo, your design wins

Tell people about your design

Check out how it was scoredand by how many people

You receive$2,000 in cash

and a $500Threadless gift

certificate


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Threadless Community

See what others think

about your design

See pictures of peoplewho bought your design

So, your design wins


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Threadless is a brand that in essence IS

the community. As the foundersthemselves say no community, nobrand

Threadless the community existsprimarily online in social media formats.

Lessons from Threadless


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Review New Data in Social MediaExamine Social Media and Shopping

Concluding Thoughts

Agenda


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How Brand Community Practices Create Value

Hope Jensen Schau (University of Arizona)

Albert Muniz (DePaul University)Eric Arnould (University of Wyoming)

Journal of MarketingSeptember 2009

Identify and categorize from aconsumer-centric perspective, and in a

generalizable fashion, co-creativepractices, drawing upon a corpus of dataacross nine brand communities.

Research Engagement


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Brand Community Research Engagement

3Com Audrey 20 months of naturalistic observation

8 in-depth interviews with key members

Apple 7 years of naturalistic observation

2.5 years of participant observation

82 in-depth member interviews

Garmin 4 years naturalistic observation

I year participant observation


Jones Soda 4.5 years naturalistic observation


Lomo and Holga 5 years naturalistic observation

Mini Cooper 2 years of naturalistic observation

Tom Petty

and the

Heartbreakers

23 years naturalistic observation

12 years participant observation

67 in-depth interviews

StriVectin 3 years naturalistic observation


Xena: Warrior

Princess

12 years naturalistic observation

2.5 years of participant observation

28 in-depth interviews


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Research Approach We access participants in brand communities in collaborativeco-creation activities specifically, as well as their emic notionsof value relating to branded offerings and communal activities.

We employ extended ethnography.

TPATH Brand


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Managerial Implications Uncover underlying consumer value. Companies should foster a broad array of

practices, moving beyond merecustomization.

Managers can encourage a broad array of

practices via seeding. Focus on practices provides guidance for

engagement - scripting

Companies can encourage the interactionof practices to foster greater customerengagement with the brand.


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Concluding Thoughts

Agenda


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Semiotic Iconography and meaning

Sentiment Analysis Emotional valence

Semantic Analysis Grammar and structure

Thematic Content analysis

New Data in Social Media:Discourse Analysis


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Valence of text: positive, negative, neutral

Emotional content

Find patterns among sentiments

Find relationships with other forms of analysis:

semiotic, semantic, thematic

Sentiment Analysis


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Sentiment Analysis


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Sentence length

Grammar formality

Use of pronouns Use of verbs

Use of articles

Active/passive structure Find relationships among and

within semantic categories

Find relationships with otherforms of analysis: semiotic,sentiment, thematic

Semantic Analysis


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Thematic Analysis

Product Development

Technical Support

Why not fix the machineso that its more green

space was the main reason

we went with Leica

offered to credit us for the

additional waste disposal


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Each inflection point is a messaging

opportunity Tipping Points

Long Tails

Inflection Points and Marketing Strategy


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Concluding Thoughts

Agenda

Social Media and Shopping Behavior


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Social Media and Shopping Behavior Haul Videos

YouTube

Sharing ShoppingHauls orOutcomes Finds

Deals

Following Views

Comments


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Social Media and Shopping Behavior

Share

outfits Share

make-uptips

Share

Jewelryensembles


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Levi has

generalconsumerfeedback

and yourfriendsfeedback.

Retail Responses


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Macys

combinesreality tv withsocial media to

enhanceshopping.

Retail Responses


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Concluding Thoughts

Agenda

Lucky 13 CGC Facilitation Checklist


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My Place or Yours: Create a Gathering Place

Share the Brand: Encourage Consumers to Collaboratively Create the

Brand Meaning

Structure Matters: Provide Parameters that Encourage and Enable

Collaboration

Set Up the Soapboxes: Create Evangelizing Opportunities

Im OK, Youre OK: Provide Justifying NormsDifferent is Good: Encourage Members to Stake their Domains

Making Mountains out of Milestones: Embed Celebratory Occasions

Badges? Maybe we ~do~ need stinkin badges

For the Record: Document EverythingCleanliness is Next to Godliness: Solicit and Distribute Grooming Tips

Brother Can I Make a Dime? Encourage Commoditization

Study, study, study!

Lucky 13 CGC Facilitation ChecklistMuniz and Schau Business Horizons 2011


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Social Media are not disruptive technologies, butrather enable consumers to behave as they are

inclined.

Social Media formats enable increased socialinteraction and increased consumer engagement.

Social Media provide new data for firms to monitorthat precede manifest market behavior (salesvolume etc.) and allow for mining deeperknowledge of consumer perceptions and

inspirations and create value.

Concluding Thoughts


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Concluding Thoughts

Agenda


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Thank you!

How Social Media Impacts Consumer Behavior

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