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EXAMINING BRAND ENGAGEMENT IN THE MOBILE SNS MARKETING CONTEXT

EXAMINING BRAND ENGAGEMENT IN THE MOBILE SNS MARKETING CONTEXT.

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EXAMINING BRAND ENGAGEMENT IN THE MOBILE SNS MARKETING CONTEXT

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  1. EXAMINING BRAND ENGAGEMENT IN THE MOBILE SNSMARKETING CONTEXT Direct quote from：Lee, J., Lee, S.-H., & Kim, H.-W. (2013). Examining Brand Engagement in the Mobile SNS Marketing Context. Paper presented at the 17th Pacific Asia Conference on Information Systems (PACIS), Jeju Island, Korea. Professor ：Dr. Celeste Ng Reporters：1036238 Gabriel：1036241 Fred

  2. Outline • Abstract • Introduction • Conceptual Background • Research Model And Hypothesis • Research Methodology • Data Analysis And Results • Discussion And Implications

  3. ABSTRACT (1/2) • As more people access social network services (社群網路服務), especially by using mobile devices, more organizations come to use SNS as a channel for their marketing and promotion. • This study examines brand engagement(品牌參與)of a user with a promoting company in the mobile SNS marketing(手機社群網路服務行銷)context by adopting customer value theory(顧客價值理論). • This study aims to examine brand engagement in the mobile SNS marketing context by deriving and empirically testing a theoretically grounded(理論基礎)model such factors leading to mobile brand engagement.

  4. ABSTRACT (2/2) • The paper’s model is validatedthrough qualitative data analysis(質性研究分析)and quantitative data testing(量化研究測試)on a mobile SNS, KakaoTalk, which issuccessful in mobile SNS marketing. • The findings show the significance of three factors (price discount(價格優惠), relationship support(關係支持), and convenience(便利性)) of mobile SNS marketing on the brand engagement. • The findings further showthe significant consequences of brand engagement such as purchase decisions(購物決定) and word-of-mouth activities(口碑活動).

  5. INTRODUCTION (1/4) • The arrival of the digital economy is creating a new market to produce(產生), distribute(發布), and trade(交換) information(訊息). • New business models are based on ubiquitous(無所不在)computingvia mobile devices to enable exchange of capital(資金), products(產品), and information. • In the mobile market, smartphones have become a source of income(收入來源)for mobile advertisers(手機廣告). • With the increase in mobile phone users, growth of the mobile advertisement market seems likely.

  6. INTRODUCTION (2/4) • Mobile advertisement means that the advertisement message(廣告訊息), which is a marketing message sent from advertisers to consumers, is mediated by mobile devices(由手機當作中介). • One of major benefits of mobile advertisements includes a higher response rate(更高回覆綠)than with internet advertisements, and real-time, relevant triggers. • Before use of smartphones, PC online was 43%, television was 28%, and radio was 15%. Since the arrival of smartphones, PC online is 33%, television is 21%, and radio is 13% while the new platform, mobile, soaredto 23%.

  7. INTRODUCTION (3/4) • Some SNS(Social Network Service) providers (e.g., FourSquare, Facebook, and KakaoTalk) have already started providing based marketing functions(以行銷為基礎的功能)to their corporate users based on their SNS platform(社群網路服務平台). • Another major benefit of mobile SNS-based marketing is interpersonal communications between the users, i.e., word-of-mouth (口碑). • Customer engagement with a brand is important for the brandcompany in maintaining sustainable relationship(長久關係)with those customers.

  8. INTRODUCTION (4/4) • Despite thegrowing phenomenon of mobile SNS(Social Network Service) marketing of brands, there is a lack of understanding of mobile brand engagement(品牌參與), its antecedents(前因), and consequences(後果)in the mobile SNSmarketing context. • Regarding customer engagement with brands, there is a lack of theoretically grounded approaches(理論為基礎的方法)with quantitative(量化研究)empirical validation (e.g., through survey). • The study adopted customer value theoryin identifying antecedents of mobile brandengagement.

  9. RESEARCH QUESTIONS • This study seeks to answer two research questions: • What characteristics(特點)of mobile SNS(Social Network Service) marketing of brands affect brand engagement? • How brand engagement affects the two main consequences of mobile marketing, customer purchase(顧客購物)and WOM(口碑)?

  10. CONCEPTUAL BACKGROUND

  11. MOBILE SNS MARKETING (1/4) • While mobile technology has shown rapid development in all industries(在所有行業快速發展), it has particularly changed business marketing activities. • Mobile marketing has grown rapidly because of: • Fast delivery of information. • Interactivity(互動). • Wide access to customers and • High customer response(既廣且深的顧客回應).

  12. MOBILE SNS MARKETING (2/4) • Mobile marketing refers to the multi-way communication and promotion of an offer between a firm and its customers using a mobile medium(移動媒體), device, or technology. • Mobile advertising means identifying customers who are likely to use the advertiser's service using relevant keywords on mobile websites. • In this study, mobile advertising refers to the advertisements direct to customers via mobile devices such as smart phones.

  13. MOBILE SNS MARKETING (3/4) • Internet advertisement allows consumers to select the information they want, but with mobile advertisements, information delivery is more important because limited information is offered in a limited space(有限的訊息提供在有限的螢幕大小). • Because mobile advertising is based on the use of short message service (短訊息服務) - it is capable and is effective for promoting brands and providing coupons(折價券). It is also effective in checking customer responses directly compared to other channel-based marketing approaches.

  14. MOBILE SNS MARKETING (4/4) • A consumerpositive experience with mobile services for entertainment and information can have a positive effect on mobile advertisements. • Furthermore, mobile coupons can be offered to relevant consumers at the right time and mobile messages can provide useful real-time information to consumers..

  15. BRAND ENGAGEMENT (1/4) • Sprott et al. (2009) proposed brand engagement by conceptualizing(概念化)it as an individual customer’s tendency(個別顧客傾向)to include a brand as part of his or her self-concept. • They further developed scales to measure a customer’s general engagement with a target brand. • They explained that brand engagement can predict customers’differentialattention to, memory of, and preference for their favorite brands through empirical testing.

  16. BRAND ENGAGEMENT (2/4) • Considering the effectiveness of an advertising media(廣告媒體的效果), Bezjian-Avery et al. (1998) proposed consumer engagement(消費者參與)by conceptualizing how consumers spend more time considering the advertisements in the interactive media context. • They discussed that the effectiveness of the interactive media(互動媒體的有效性)can be measured in two ways: • its engagement (i.e., whether consumers spend enough time considering the advertisements) and • its persuasiveness(說服力) (i.e., whether consumers report stronger positive affect, references, and purchase).

  17. BRAND ENGAGEMENT (3/4) • Mollenand Wilson (2010) suggested online brand engagement in terms ofcommitment(支持)- a cognitive(認知)and affective(情感)commitment to an active relationship(積極的關係)with the brand as personified by the website or other computer mediated entities designed to communicate brand value. • Similarly, Cadler et al. (2009) proposed online media engagement by conceptualizing engagement as the overall experiences (e.g., enjoyment and utilitarian(功利)) of online media vehicle.

  18. BRAND ENGAGEMENT (4/4) • This study defines mobile brand engagement as an individual’s affective state of mind representing his or her active relationship with a chosen brand in the mobile SNS-based marketing context.

  19. CUSTOMER VALUE THEORY AND CONCEPTUAL FRAMEWORK (1/11) • As the customer value increases in the transaction relationship with a brand, customers want to stay in the relationship with the brand. • Previous research found that value, by taking the role of motivation, increases customercommitment (Pura 2005) and loyalty (Anderson and Srinivasan 2003).Therefore, customer value as a motivator(動力)may lead to a customer’s engagement with a brand in the mobile SNS marketing context.

  20. CUSTOMER VALUE THEORY AND CONCEPTUAL FRAMEWORK (2/11) • Customer value theory explains that there are sub-values(次要價值) like hedonic(享樂),conditional(有條件的), functional(功能性), social(社交), and epistemic(知識) values (Sheth et al. 1991), and having functional, social, and emotional(感情) values (Sweeney and Soutar 2001).

  21. CUSTOMER VALUE THEORY AND CONCEPTUAL FRAMEWORK (3/11) • Functional value in particular can be divided into performance and monetary(金錢) value. • This study applied four value categories of the customer value theory to mobile brand engagement in the context of mobile SNS marketing context: monetary value(金錢價值), epistemic value(認識、知識價值), social value(社交價值), and functional value(功能價值) (See Figure 1).

  22. CUSTOMER VALUE THEORY AND CONCEPTUAL FRAMEWORK (4/11)

  23. CUSTOMER VALUE THEORY AND CONCEPTUAL FRAMEWORK (5/11) • Monetary value includes a discount coupon as a mobile advertising instance of a brand. • Epistemic value has been defined as curiosity, novelty and knowledge(Sheth,1991). • Epistemic value directly sends the latest information from the brand to customers. • The information from the brand thus affects directly the epistemic value perceived by customers.

  24. CUSTOMER VALUE THEORY AND CONCEPTUAL FRAMEWORK (6/11) • The authors identify perceived information quality(訊息品質觀點)(i.e., the quality of messages received from the brand through mobile SNS) as an antecedent of mobile brand engagement. • Social valueenables users to share a brand advertisement with other people and directly convey it by word of mouth.

  25. CUSTOMER VALUE THEORY AND CONCEPTUAL FRAMEWORK (7/11) • From the Social value perspective(社群價值觀點), the authors identified relationship support (i.e., whether the mobile marketing services of the brand supports an individual’s relationship with others) as an antecedent of mobile brand engagement. • Functional value is suitable for marketing that has no limit in space and time as people can receive information service anytime and anywhere.

  26. CUSTOMER VALUE THEORY AND CONCEPTUAL FRAMEWORK (8/11) • Traditional media are limited in their ability to deliver advertising messages to consumers. • The authorsidentify perceived convenience(便利性觀點)(i.e., whether an individual can use the mobile services provided by thebrand anytime and anywhere as an antecedent of mobile brand engagement.

  27. Framework of Mobile Brand Engagement (9/11) • The conceptual framework (see Figure 2) shows the overall relationships around mobile brand engagement. • The four factors derived from the customer value theory, representing key characteristics of mobile SNS marketing, are proposed as antecedents of mobile brand engagement.

  28. Framework of Mobile Brand Engagement (10/11) • The authors selected two factors, representing the two most important results (i.e., purchase from the brand and word-of mouth about the brand) of brand engagement, as the consequences. • Brands or companies conduct marketing or promotion activities to provide marketing messages to customers and then lead them purchase from the brands.

  29. Framework of Mobile Brand Engagement (11/11) • Word-of-mouth (WOM) refers to interpersonal communication concerning the evaluation of products or service of interest(消費者間對於服務感興趣或產品評價的口碑交流). • WOM is highly influential on potential customers’ purchasing behaviors and decision-making.

  30. RESEARCH MODEL AND HYPOTHESIS

  31. RESEARCH MODEL AND HYPOTHESIS (1/12) • Based on the conceptual framework in Figure 2, six hypotheses of the research model are proposed. • There are four antecedents representing key characteristics of mobile SNS marketing in terms of customer value types leading to mobile brand engagement. • The mobile brand engagement in turn drives(激勵、導致)the intention to purchasefrom the chosen brand and WOM about the brand.

  32. RESEARCH MODEL AND HYPOTHESIS (2/12) • Perceived price discount as monetary value refers to the perception, from the viewpoint of monetary value, of price discount or cost benefits that can be received by mobile services of a chosen brand. • When the customer value increases, customers will become repeat purchasers and maintain a continuous relationship based on trust for the company. • The customers' trust in the company leads to customer loyalty.

  33. RESEARCH MODEL AND HYPOTHESIS (3/12) • When customers recognize the monetary value from thepromotion coupon, i.e., perceived price discount, offered by the brand, they may pay more attention tothe relationship maintenance with the brand. • H1: Perceived price discount has a positive effect on mobile brand engagement.

  34. RESEARCH MODEL AND HYPOTHESIS (4/12) • Perceived information quality refers to the extent that current(流行), accurate(精準)and diverse(多樣)information is provided by mobile services of a chosen brand. • Among the various reasons thatconsumers access advertisements, the main reason is information gathering(訊息收集). • H2: Perceived information quality has a positive effect on mobile brand engagement.

  35. RESEARCH MODEL AND HYPOTHESIS (5/12) • As people get high quality information from the chosen brand through mobile marketing, they tend to have positive attitude toward the marketing of the brand and may want to develop or maintain their relationship with the brand, i.e., brand engagement. • As people get high quality information from the chosen brand through mobile marketing, they tend to have positive attitude toward the marketing of the brand and may want to develop or maintain their relationship with the brand, i.e., brand engagement. • H2: Perceived information quality has a positive effect on mobile brand engagement.

  36. RESEARCH MODEL AND HYPOTHESIS (6/12) • Social relationship support as a social valuerefers to the perceived capability of the mobile services of a chosen brand in maintaining and enhancing interpersonal relationships with others (Kim et al. 2011). • As people come to develop and maintain relationships with other by using the mobile services of a brand, they may have positive attitude toward the service and want to develop or maintain relationship with the brand, i.e., brand engagement.

  37. RESEARCH MODEL AND HYPOTHESIS (7/12) • As people get high quality information from the chosen brand through mobile marketing, they tend to have positive attitude toward the marketing of the brand and may want to develop or maintain their relationship with the brand, i.e., brand engagement. • H2: Perceived information quality has a positive effect on mobile brand engagement.

  38. RESEARCH MODEL AND HYPOTHESIS (8/12) • Perceived convenience as functional value refers to the extent to which an individual can use the mobile services of a chosen brand anytime and anywhere to perform what he or she wants (Berry et al. 2002). • The ubiquity of the mobile service enables brands to send marketing messagesto customers anytime and anywhere. • Mobile SNS marketing service therefore, increases convenience both from the brand and customer perspective.

  39. RESEARCH MODEL AND HYPOTHESIS (9/12) • As customers come to perceive convenience from the use of mobile SNS marketing of brands, they may develop positive attitude toward it and develop relationships with the brand, brand engagement. • H4: Perceived convenience has a positive effect on mobile brand engagement.

  40. RESEARCH MODEL AND HYPOTHESIS (10/12) • Purchase intention refers to an individual’s level of intention to purchase a product from a chosen brand(消費者對所選產品購買的意願等級), Kim et al. 2011). • As the level of involvementor engagement with a brand increases, it may be linked to various positive outcomes, such as personalinvestments in the use of the mobile SNS services of the brand.

  41. RESEARCH MODEL AND HYPOTHESIS (11/12) • Forexample, they may want to exhibit pro-social behaviors(親近的社群行為), e.g., purchasing from the brand and positiveWOM, in the relationship with the brand. • H5: Mobile brand engagement has a positive effect on purchase intention.

  42. RESEARCH MODEL AND HYPOTHESIS (12/12) • WOM– an individuals’ information sharing and communication activities with others about a chosen brand. • As an individual’s commitment to a relationship with a company increase, the person conducts WOM activities and communicates the positive aspects of the company to others. • Hypothesis 6: Mobile brand engagement has a positive effect on WOM.

  43. RESEARCH METHODOLOGY

  44. RESEARCH METHODOLOGY • Data to empirically validate the research model were collected through an online survey(透過網路收集、調查). • We chose KakaoTalk Plus Service as the context of our study because it is a successful mobile SNS in terms of mobile marketing. • We also conducted interviews with the service users andthe marketing manager of KakaoTalk Plus Service to gain more in-depth information(深入的訊息)and assist in theinterpretation(協助解釋)of survey results.

  45. Kakao Talk & Plus Service

  46. KAKAOTALK PLUS SERVICE (1/5) • KakaoTalkPlus Service, amobile SNS with more than 32 million users in January, 2013, was selected for the research. • It started its service as a mobile SNS, called as KakaoTalk, for individual users. • KakaoTalk provides messenger-oriented services, similar to Windows Live Messenger(或是Line)in the smart phone context.

  47. KAKAOTALK PLUS SERVICE (2/5) • People can download and install a free mobile application of KakaoTalkfrom either AppStore or Android Market on their smart phones. • KakatoTalklater added new service, KakaoTalk Plus, to facilitate mobile marketing(促進手機行銷)of corporate customers(合作廠商). • Corporate customers, called as Plus Friends, register in the KakaoTalk Plus Service after paying for the registration(付費註冊). • Individual users then select some of the Plus Friends and register them asfriends in their KakaoTalk service.

  48. KAKAOTALK PLUS SERVICE (3/5) • Plus Friends then conduct mobile marketing by sending information such as brand and promotion and mobile discount coupons through the KakaoTalk Plus service. • KakaoTalkPlus was launched inOctober 2011 and increased exponentially(指數成長), exceeding 10 million people on October 27 and exceeding(超乎預期) 25 million people on January 28, 2012. • We collected qualitative(質性)data by conducting interviews with 20 users(20位消費者)of KakaoTalk Plus Service of brands and one manager of KakaoTalkPlusservice.(註:先透過面談來先行的探討)

  49. KAKAOTALK PLUS SERVICE (4/5) • Examples of Plus Friends - McDonalds,Burger King, Outback Steakhouse, Levis, Pizza Hut, Uniqlo, Adidas, KFC, Lotte Department Store, etc. • The most cited reasons why interviewees use the KakaoTalk Plus Service of each brand were because they “want to get information” about the chosen brand and 3 out of 20 said they “want to get discount coupons” from the brand.

  50. KAKAOTALK PLUS SERVICE (5/5) • The interviewees also mentioned that they could check the messages sent from the brands “anytime and anywhere”,representing the convenience of the service, and “recommend some promotion events (e.g., price discount) to friends” anytime andanywhere which supports the relationship maintenance and enhancement with their friends.

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