MKGT203Investigativeessay

This essay argues in three sections, that brand communication

within the social media ecosystem has the potential to allow for a
certain transparency of brands intentions. The first section focuses
on how social media has enhanced the brand community concept,
and its impact on brand meaning. The Second section postulates the
credibility of eWOM. Lastly, it investigates authentic cues in social
media, and its relationship with brand equity
The proliferation of social media has inaugurated a new arena for
companies to construct their social digital brand, thereby
strengthening consumer-brand relationships and brand meaning.
However, whilst social software appears to foster trust through an
establishment of a direct and personal multi-dimensional peer-to-peer
communication channel, the trustworthiness and authenticity of
communicating in such an unregulated environment is questionable.
The immense transformation of the media landscape has
transformed brands into an ongoing social process whereby value is
co-created in the interplay and negotiations of various stakeholder,
subsequently giving consumers power to influence brand perception
and loyalty, as well as value equity, relationship equity, and
brand equity. Companies strive for reliable and credible brand
communication in a marketplace where access and institutional
authority is uncontrollable by brand management. Furthermore,
electronic word of mouth, such as customer reviews, blogs, and the
engagement of opinion leaders, allow for honest brand
assessments, and a true evaluation of brand trust. The byproduct of
eWOM is an enhancement of the intentionality dimension, where
brands can potentially become symbols of emotional security and
dependability. However, social media communication can also be
firm-created and infact stimulate the user-generated content that
appears to be independent from the firm. Nonetheless, firms use
this backdrop to establish brand communities, allowing customers to
become a support service, advocate, and ultimately, evangelists for
the brand.
Brand Communities
Social media is an ideal environment for building online brand communities (OBC);
an essential conduitforthecustomertocustomer(C2C)participationandsharingofbrand
information and utilitarian and hedonic values. Muniz and OGuinn define a brand
community as a specialized, non-geographically bound community based on a
structured set of social relations among admirers of a brand, thus promoting
creation and negotiation of meaning. Customers become constantly exposed to
brand content and the meaningful experiences other customers have had with the
brand, strengthening the engagement and interaction between consumers and brand
entities, inevitabely making the brand appear more trustworthy. In the long term,
active engagement promote membership continuance, participation and giving and

receiving recommenations, which then promotes brand loyalty and customer

advocacy. OBCs allow brands to fulfill their defined purpose to establish consumer
relationships with a firms brand identity, and furthermore, to satisfy a range of
attributes associated with a purchase. The service-dominant nature of OBCs implies
that the value of offerings, and brand value is co-created as a result of the social
interactions between stakeholders that take place in virtual spaces such as online
brand communities. According to social identity theory, brands are no longer created
to identify or promote products, but rather it is a complex social phenomena,
manifested in BCs that allows consumers to augment their self-concept by fulfilling
their need to identify with symbols and groups. IN fact, OBC simiplifies relationship
marketing theory as performing important brand functions such as socialization and
support service are made more efficiently. For example, consumers act as brand
agents and support services for product faults, thus pursing some sort of economic
value through networking with fellow members. Passionate consumers often defend
the brand agains negative comments, in effect, positively influencing brand loyalty
and reaffirming the history and culture a brand. Furthermore, members of brand
communities are an excellent platform for innovation and product improvement as a
result of their commitment and attachment to the brands future. The direct
involvement that consumers are provided with in the creation of brand value,
suggests that consumers are influential figures that must be managed in order to
achieve favourable brand perception and value proposition .

Brand trust, that is, the willingness of the average consumer to rely on the ability of
the brand to perofrm its stated function, is enhanced by mechanisms made possible
by social media. Firstly, the dissemination of information online to admirers and
potential admirers of the brand, allows for easy communicating and sharing of
thoughts concerning the brand and its products with other consumers and marketers.
Furthermore,

relationship enhancement occurs simultaneously with

information sharing, ultimately, decreasing information asymmetry, reducing
uncertainty and increasing predictability and dependability of the brand,
resulting in trust enhancement._____ hypothesized and proved that the maintaince and
management of consumers congiitive and affective commitment to an active relationship, in
the customer centric model of brand communities, positively influence brand trust and loyalty.

CredibleinformationreceivedfromonlineC2Ccommunicationeffectivelyreducesbranduncertainties
amongstconsumers,therebyrenderingOBCgovernancefundamental.Theperceptionofconusmersin
regardstothecredibilityofinformation,differsbetweencorporatesponsoredcommunities(firm
governed)andindependentlyownedcommunities.____revealthatfirmgovernedOBCsare
developedtofulfilcorporateinterestsofpromotingproducts,andthemereassociationofthefirmwith
theonlineforumautomaticallyquestionstheauthenticityandbelievabilityofinformationexchanged.
Ontheotherhand,communitygovernedOBCssolepurposeistouniteconsumerswithcommon
brandspecificinterests,renderinganyinformationonthisplatformlessbiased,andmorecredibleand
trustworthythanthatassociatedwiththeproducingcompany.FourierandLeeproposeahybrid
approachtogovernancewherefirmsneithercontrolthecommunity,norabdicateresponsibility.Hatch
andSchultzconcurthatthiswillenhancecocreationwithinthecommunity.Asharedgovernance
modelpostulatesastablevalenceofinformation,thatis,areflectionofpositiveandnegative
informationontheproductinquestion.____studyofOBCsfoundthatpositiveinformationfroman

OBChasastrongereffectthannegative,asitprovidesconusmerswithadesiredconfirmationofa
productssuitability.Therefore,asharedgovernancemodelofOBCsstimulatesatrustworthyand
credibleenvironmentofbrandcommunication.

Electronic Word of Mouth

Theubiquitousanduncontrollablenatureoftheinternethasstirredaculturalshiftinacustomer
centric direct, significantly increasing the influence of electronic Wordofmouth (eWOM) as a
channelofcommunication.Ineffect,thegrowinggroundswellofcustomerpowerisbecominga
promenientandpotentialthreattooverallbrandreputation,consumerbehaviourandtheoverallbottom
line of a company. Kietzmann & Canhoto (2013, pp.147-148) define eWOM as "any

statement based on positive, neutral, or negative experiences made by potential, actual,

or former consumers about a product, service, brand, or company, which is made
available to a multitude of people and institutions via the Internet. eWOM exacaberates
consumer empowerment, as consumers can voice their unbiased opinions and
recommendations through comments, online reviews, and blogs to a multitude of internet
users, and occasionally, morph into digital opinion leaders. In effect, the evaluation of

the effectiveness of product differentiation by follow consumers, are used as

cues, and ultimately, influence consumer decision making more so than
recommendations by the firm/experts, according to _____. Bloggers, as
suggested by the two-step flow theory, are a prime example of online opinion
leaders of brand communication. This theory postulates that these digital
influences interpret and disseminate media information rapidly. Similarly, the
innovation model suggests that they are early adopters of innovative products
and are willingly to embrace a sense of openness in communicating their
unbias views. Nonetheless, self-enhancement and exhibitionism, that is, the
seeking of status and appreciation are key motives driving bloggers honest
and altruistic interaction.
Consequently, it is essential for brands to engage with these online
influencers, in order to attain authentic and trustworthy presence among
online communities, and strengthen customer relationships. Nisbet and
Kotcher (2009) indicate that the significance of opinion leaders relies not on
formal power or prestige, but instead on their ability to serve as the
connective communication tissue that alert their peers to what matters among
political events, social issues, and consumer choices. Therefore, this suggest
that automonous bloggers are reliable and credible because they are
considered independent from direct affiliation with a firm, and accepted as
one of us, and by extension, brands suggested by bloggers also pass the
reliablity test.
Blogger engagement can be risky and inadequate in some situations, and
needs to be proactively and strategically managed if brand perception is to be
authentic and accurate. Firstly, as bloggers are unpaid media, there is always
a chance for uncontrolled messages and misinformation about a brand.
Secondly, the commercialization of blogs has rendered blogs questionable as
often digital influencers are inencouraged to leave favourable comments or
promote new product for viewers for financial gain by the firm. This somewhat
unethical tactic diminishes the trust and acceptance of reviews and disturbs
the results of the hierarchy of effects model, which map out how conusmers

awareness and knowledge develop into a prompted feeling and ultimate

acceptance or rejection of product. Additionally, some firms use maneavours
such as monitoring and delating negative feedback to control a positive
favourable brand image. Although negative WOM or disproportional valance is
linked to dissatisfaction, and can be detrimental, fabricating or sponsoring
positive images is intrusive, and leads to the same outcome.

Authenticity within social media

The duality of commercial motives, and the growing trend to
position brands as authentic, forces companies to utilize social
media to communicate benevolence, thereby fostering affective
commitment of customers. .Napolietal(2014,p.1091)definebrandauthenticityasa
subjectiveevaluationofgenuinenessascribedtoabrandbyconsumers.Thereisgeneralagreement
thatauthenticityisbuildfromastrong link between an organisations stated goals and

promoises and its actions/acheivements exists, and if problems arise, a belief

that the firm will strive to resolve the issue. This is exemplified through
Toyotas adoption of social media to implement crisis management after a
sudden-acceleration recall, allowing for the dilution of damaging rumours on
facebook and twitter, which strengthened the promise of Toyota to put the
consumer first. _____ perceive brand authenticity as conceptualized by
three factors. Firstly, the consistency between the brands promise, and the
corporate values and strategy, is critical to foster concidence, trust and
loyalty. Brand customer orientation is concerned with sustaining and
satisfying a superior value and meaning of a brand to customers. Lastly,
brand congruency, that is, between the commitment of internal stakeholders
of a company and its brand values. If in fact there is evidence of corporate
dissonance, the brands reputation and trustworthiness darnish globally as a
result of the . . With the excess of firm-generated online communication,
such as online communities and sponsored instagram and faceboook stars,
authenticity is becoming a desired element to cement an inner personal truth
and identity for a brand. Therefore, social media acts as a companies
oopportunity to identity consumers needs and interests, and how their brand
connects to attributesofauthenticitylinkstopast,handcraftedmethods,respect
fortraditions,orculturallinks;A brand is no longer what we tell the consumer it
is it is what consumers tell each other it is. Therefore, online opinoion
leaders judge the projected authenticity of a brnad, using it as a
useful decision- making heuristic in how they portray their personal
consumer-brand experience to other viewers. eWOM research sattes
that these online reiviews affects firm performance and perception
in the short and long term. Ultimately,the___natureofonlineC2C
communication,hasresultedinacynicisticconsumermarket,wheredecpetion,
trickeryandexaggerationtravelthroughouttheinternet,increasingthedifficultyof
brandstobuildtrust.Brandmanagersshouldappeardistantfromcommercial
considerations,anddownplaytheircommercialprowess,withoutappearingintrusive
orexploitativeofthesocialmediaculture.

FirmcreatedOnlinecommunities,forexample,arebelievedtobeestablishedbecause
ofthefirmslovefortheproduct,inturn,strengthingBrandrelationshipquality
(BRQ),asbrandsarehumanized,andbecomeactivepartnersinthefunctional,
utilitarian,psychologicalandemotionfacetsofoneslife.However,regardlessofhow
crediblethebrandappears,ifthereisastrongcommercialorientationorlackof
tradition,itmaynotbeportrayedasauthentic.Asaresult,brandequitysuffers,as
consumersknowledge,attitudeandassessmentofthebrandsbecomesforgedand
unreliable.Infact,blogsandwebsitesareincreasinglybeingdedicatedtohow
authenticandhonestcompanyorbrandare,ascompanieswho aspire to build
trusted brands, sustainable marketplace success and community reputation,
the imperative of authenticity will inevitably grow in importance.However,the
implicationofsocialmediaisthatbrandstoriesandperceptionsareauthoredby
multiplestakeholders,andsobrandmanagersexertlesscontroloverbrandmeaning.
Forexample,ifacredibleonlinereviewvoicesanegativeimageofaproductora
failureofaproductsintendedpurpose,consumersaremorelikelytobelievethis
review,overacompaniespromise,asaresultofthestrongtiesbetweenconsumers.In
effect,disappointingconsumershasbecomeincreasinglyriskyasthescaleandspeed
ofsocialmediaexaggeratesthisshortfall.OnlinecomplaintsaboutVVAstedious,
redundantrequestionsforsecurityinformationareanotherexampleofhowsocial
mediaholdstheopportunitytorevitalisebrandpromise.Theircreationofasecure
optinserviceeliminatedtheproblem,allowedanembodimentofauthenticand
relevantcommunication.Ontheotherhand,socialmediacanrevealthelackof
genuinenessofacompany.Sonydeceitfuldecisiontopayanagencytocreatean
authenticblogandyoutubeaccounttopromoteaPSPgame,wasseverelycriticised
whenconsumersbecameawareoftheirlackofinvolvementinthiscommunication.
Ultimately,socialmediachallengesthelandscapeofbrandmanagement,andelevates
howparamountauthenticityistothesurvivalofpositivebrandmeaningandimage.
Conclusion:

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