All posts by joshuakuijvenhoven

How Brand’s User Base Visibility in Social Media Platforms Effect Consumer’s Brand Evaluation


Social media is a widely used channel for companies to connect with consumers. Approximately 83% of Fortune 500 companies have used some form of social media by 2011 (Naylor et al., 2012), which have increased even more by now. Many consumers use these social media platforms to get deeper knowledge about a brand and who affiliates with it. This is useful because consumers reaction to a brand may be affected if they know who other users are (Bearden, Netemeyer, and Teel, 1989; Berger and Heath, 2007). Via these platforms, consumers have the possibility to see other people who affiliated with the brand. This passive exposure to a brand’s supporters is identified as ‘mere virtual presence’ (MVP). This research tries to answer what the effect are of the different types of MVP on brand evaluation and purchase intentions, as there is still little know about the subject.

Consumers find more affinity with a certain brand if they see that similar others support the brand (Berger and Heath, 2007; Escales and Bettman, 2003). Because of this, it is expected that individuals who deal with similar MVP with the brand’s user base will experience high levels of inferred commonality. Therefore, they positively evaluate the brand. On the contrary, if the consumer experience a dissimilar MVP, they will evaluate the brand downwards. Another research suggests that when there is no information available about others, consumers anchor on the self and assume that those others are like them (Naylor, Lamberton, and Norton, 2011). Thus, probably a more safe decision is not displaying pictures of others at all, which is called ambiguous MVP. This ambiguous MVP results in that consumers will project their own characteristics on the brand’s user base, hence higher affinity with the brand. However, a brand’s user base cannot be completely similar to a consumer and is more heterogeneous. Therefore, the last form of MVP this research investigate is that consumers evaluate a brand more positively if they are confronted with a small proportion of similar individuals in a large heterogeneous group.

Findings from this study have the following implications for positive brand evaluations: (1) If the brand’s user base is homogeneous and similar to the target audience, reveal their identity. (2) Second, if the brand’s user base is heterogeneous, but includes users who are similar to the target audience, also reveal their identity. (3) However, maintain ambiguous MVP if the brand’s user base is dissimilar from the target audience. This will result in that consumers evaluate the brand the same as in the similar MVP context. (4) Lastly, results indicate that when brands are jointly evaluated with other brands similar MVP yields better performance than ambiguous MVP. This positive brand evaluation consequently results in higher purchase intentions.

This study contributes to the literature how firms can best manage their social networks in meeting strategic objectives and enhance their brand evaluation. Moreover, this research help to guide brand managers when it is useful to reveal the identity of their online supporters or to remain an ambiguous MVP. Thus, managers are informed which social media platform they should choose because some control over specific fan base is necessary (similar consumers in heterogeneous population). These results are furthermore most useful for new brands to establish a larger supporter’s base. And to manipulate MVP and find similar consumers, firms can target consumers based on demographics. For example, Facebook displays advertisements mostly to certain demographic groups, thus emerging tracking and targeting tools can be used to do this.  Because of this tracking marketers know where their new supporters came from so that they can adjust their MVP and target consumers that fit this demographic profile. This will help brand managers to decide whether to display the brand’s user base or remain ambiguous.

MVP

Bearden, W.O., Netemeyer, R.G. and Teel, J.E. (1989) ‘Measurement of Consumer Susceptibility to Interpersonal Influence’, Journal of Consumer Research, 15: pp. 473-481.

Berger, J. and Heath, C. (2007) ‘Where Consumers Diverge from Others: Identity Signalling and Product Domains’, Journal of Personality and Social Psychology, 95: pp. 593-607.

Escales, J.E. and Bettman, J.R. (2003) ‘You Are What They Eat: The Influence of Reference Groups on Consumers’ Connection to Brands’, Journal of Consumer Psychology, 13, 3: pp. 339-348.

Naylor, R.W., Lamberton, C.P. and Norton, D.A. (2011) ‘Seeing Ourselves in Others: Reviewer Ambiguity, Egocentric Anchoring, and Persuasion’, Journal of Marketing Research, 48, 6: pp. 617-631.

Naylor, R.W. Lamberton, C.P. and Norton, D.A. (2012) ‘Beyond the “Like” Button: The Impact of Mere Virtual Presence on Brand Evaluations and Purchase Intentions in Social Media Settings’, Journal of Marketing, 76, 11: pp. 105-120.

 

Skillshare: The Future Belongs to the Curious


This start-up built an alternative education system that’s poised to have a major impact on the learning landscape” (Tracy, 2017).

Skillshare, launched in April 2011 by Michael Karnjanaprakorn (Joyner, 2017), is an online learning platform where the world’s best experts teach world’s best skills. With Skillshare it is possible to learn and practice a skill by doing. You can learn a skill together with their community of over 2 million students and teachers and network with them. Classes and skills are taught by expert practitioners, which makes it possible for everybody to get unlimited access to over 14,000 classes in different categories, such as design, technology, entrepreneurship and many more (Skillshare, 2017). This start-up  uses the benefits from crowdsourcing. The crowd is used to teach other interested individuals a new skill, that are traditionally performed by a designated agent (Howe, 2006)

how-it-works

Learning should be as easy as listening to music at Spotify or watching your favorite movie on Netflix. Skillshare is really about learning by doing and every class is project-based as well. Students can create projects, alter them to the website and can get feedback from students all around the world (Skillshare, 2017). Thus, unlike other educational online platforms, you don’t need to have a Ph.D. to teach something valuable. And on the other hand, learning skills is for everyone universal accessible and relatively inexpensive. It is for everyone easy to become a lifelong learner.The mission of Skillshare is to close the professional skill gap and provide universal access to high-quality learning (Skillshare, 2017). They believe that there is a huge difference between education and learning. Skillshare empowers people to take a leap in their careers, improve their lives and pursue the work they love, by teaching skills online that are needed in tomorrow’s world. This mission directly shows the major strength of Skillshare and how they differentiate themselves from competitive education platforms. Skillshare allows everyone to sign up and teach a class. By doing this they want to provide universal access to high-quality learning.

explaoin

How it works

For the lifelong learner, Skillshare makes it possible to get universal access to high-quality learning and to learn anything they want to. They offer the possibility to watch classes, online and offline, on your own schedule, anytime and anywhere. Thus they make it possible to learn at your own pace. Furthermore, the classes are taught by an expert with experience in the field. These classes include video lessons that are relatively short with most lessons under one hour, written text. And with the project-based environment you really learn by doing and are able to share your project in the class to get feedback and collaborate with a large community (Skillshare Help, 2017). They offer their members the possibility to create projects and build a portfolio of their work. On the other hand, Skillshare makes it possible for everyone to share their knowledge in a particular field, as long as the class follows certain guidelines. The company has proven adept at acquiring experts to teach on their website (Bromwich, 2015).

Skillshare has a freemium model which allows users to access free classes, create projects and discussions within them. However, this model includes videos with advertisements. A premium model offers their users to get unlimited access to over 14,000 classes, watch them offline and ad-free (Skillshare Premium, 2017).

Efficiency criteria:

Skillshare is one of the leading educational platforms that offers everyone universal access to learn a new skill at an affordable price. The platform maximizes the joint profitability of both of the players involved (Carson et al., 1999). On one side, it is for individuals easy to reach a large audience and teach them a skill of their experience. They are not bounded by a physical location anymore and therefore can have a more efficient personal schedule. Additionally, they can earn a little to a lot.

On the other side, many individuals can learn and practice a new skill at an affordable price. At the same time, they can collaborate with a large community and get feedback from them, so that the wisdom of the crowd can be used.

Evaluating the institutional environment, the largest threat for Skillshare is that there are too many new teachers who don’t add value to the platform. However, because there are guidelines and requirements that should be met before a class can be created, this threat is limited.

Concluded, Skillshare is an online platform that offers universal access to high-quality learning at an affordable price.

References:

Bromwich, J. (2015) ‘Anyone Can Be a Teacher at Skillshare, an Online School, The New York Times, available online from: https://www.nytimes.com/2015/03/20/education/anyone-can-be-a-teacher-in-this-online-school.html?_r=0 [28 February 2017].

Carson, S. J., Devinney, T. M., Dowling, G. R., & John, G. (1999) ‘Understanding institutional designs within marketing value systems’, Journal of Marketing, 115-130.

Howe, J. (2006) ‘The rise of crowdsourcing’, Wired, 14 (6).

Joyner, A. (2017) Skillshare Takes On the Education Gap, available online from: http://www.inc.com/best-industries-2013/april-joyner/skillshare-education-gap.html [28 February 2017].

Tracy, A. (2017) Skillshare: Redesigning  Education for the Masses, available online from: http://www.inc.com/abigail-tracy/35-under-35-skillshare-online-education-platform.html [28 February 2017].

Skillshare (2017) Unlimited access to over 14,000 classes, available online from: https://www.skillshare.com/ [28 February 2017].

Skillshare Help (2017) How does Skillshare work?, available online from: https://help.skillshare.com/hc/en-us/articles/205208147-How-does-Skillshare-work- [28 February 2017].

Skillshare Premium (2017) Why Premium?, available online from: https://www.skillshare.com/premium [28 February 2017].

Technology Usage and Online Sales: An Empirical Study (De, Hu and Rahmad, 2010)


Many internet retailers offer their customers advanced technology features to enhance the shopping experience, such as search functions and recommendation systems. However, how do these technologies influence consumers’ shopping behavior? Does the way these consumers use these technologies influence sales or their purchasing patterns?

Information systems, such as search and recommendation technologies are used to enhance the customer experience, by reducing the steps required to come to a preferred product. Furthermore this systems help the consumer to discover products that they would not have sought out otherwise. In the consumer journey, the consumer passes the “information search” stage before the stage of “alternative evaluation” and “purchase”. And during this information search, consumers first try to activate prior knowledge, before acquiring external sources. There are two types of products: products that are displayed in a company’s advertisement, also called promoted products; or products which are not displayed in any advertisement, called non-promoted products. Some consumers search for a specific product, with an exact name. This is called “direct search”. Some consumers do not know where they are looking for and type just a word, like “dress”, this is called “non-direct search”. Consumers who look for a product with a direct search often used their prior knowledge.

tabel-blog

Interesting to see, is that consumers who use direct search influence online sales, however, they only affect promoted products. This indicates that consumers who are encountered with promoted products through advertisements, use that prior knowledge to directly search for the products to purchase it. Furthermore, direct search is negatively related with non-promoted products. Furthermore, recommendation systems positively influence online sales, for both types of products. However, the recommendation system works stronger in categories with many products, than in categories with a few products. An explanation might be, it is likely that consumers lack prior knowledge of a large proportion of the product assortment and therefore find provided recommendations more beneficial. An unexpected finding is that non-direct search has no influence on consumers’ purchase behavior.

These findings are interesting for internet retailers, but it proves that it is beneficial to invest in advanced technology features, such as search and recommendation systems because this will lead to higher levels of sales. Furthermore, if online retailers want to increase sales via search systems it is suggested to also promote products because otherwise the tool only enhances the customer experience.

An example that successfully adopted these technology systems is Amazon. Amazon is one of the largest online retailers in the world that sells almost everything. Another advanced technology feature that Amazon uses is collaborative filtering systems, where the consumers get information about what other consumers bought after buying a particular product: “Consumers who bought this product also bought this…”. Unfortunately, this study has not included this technology feature. However, no worries, other research has proven that these systems also increases the diversity and amount of products purchased by a consumer (Lee and Hosanagar, 2015).

However, findings from this paper still show the importance of investments in information technologies, as it influences consumers purchase behavior. Furthermore internet companies are continuing to develop more sophisticated search and recommendation systems, which is a good trend.

De, P., Hu, Y.J. and Mohammed, R.S. (2010) ‘Technology Usage and Online Sales: An Emperical Study’, Management Science, 56, 11: pp. 1930-1945.

Lee, D. and Hosanagar, K. (2015) ‘People Who Liked This Study Also Liked: An Emperical Investigation of the Impact of Recommender Systems on Sales Diversity’, available online from: https://papers.ssrn.com/sol3/papers2.cfm?abstract_id=2603361 [14 February 2017].