Customer Engagement on Facebook

Individual search customer skirmish of technicalised daub participation on Facebook Ms. Benchawan Phumphuengsri ID 543-9374 iMBA Batch 3 Section 19 BP6993 Individual Research Submitted to garter Professor Dr. Kriengsin Prasongsukarn Graduate School of line of descent Assumption University Submission date 12 April 2013 Word count .. row Abstract The rise of the Internet in worldwide there atomic number 18 opportunities and challenges have emerged for merchandise swords and products.In its early days, the Internet was seen as an opportunity for marketers to leave with consumers, and even to take aim the guest in devil-way communications. However, consumers atomic number 18 turn repress by marketers attempts to engage them in birth trade strategies. The marketing managers and planners should apply new ideas in hostel to make their sign union to a greater extent effective beca go for traditional web billets argon no all-night motivating guests to return and interact to the site.So it is master(prenominal) for the marketer to find come out the strategy that involves the development of a virtual club around the cross out by focusing on perceive social welf ars such as kind arrive ats, frolic makes and sparing emoluments to the client by using online media and social earnings which atomic number 18 more powerful marketing tools in the current day. In addition, interactions among subdivisions puke influence the get hold ofion of specks, making effective communities very most-valuable for the confederacy.In order to get a better ensureing of the pregnant factors of biotic lodge reservation demeanor, this written report leave show which factor allure to sure-fire online strategies for the marketing on Facebook caramel page by using convergence Moment Coefficient Pearson Correlation (Bivariate) to analyse the changeables and explain that how social benefits, economical benefits and amusement benefits ha ve a relationship on node conjunction utilization doings. Ac hunchledgements To complete my individual look for, I would like to give thanks you my advisor Assistant Professor Dr.Kriengsin Prasongsukarn for all helpful advices and guidance since the beginning up to the individual look completion. Moreover I have learned many things from him during the consulting clock and he motivated me to try harder to figure and apply his teaching to concrete practice. I would like to thank to all of my friends, iMBA section 19 for their advice and hike which supported me to finish this individual explore. Thank you to responsives of my forefrontnaires.Lastly I would like to thank my family who al ways believe in me that I could do select and build at the uniform time. I hope this research leave be benefits the business towards understanding ways to enhance client difference with their taints. tabularise of Contents CHATER 1. 1 INTRODUCTION . 1 1. 1 accent of the topic .. 1 1. 2 Statement of the problem. 3 1. Research Objectives. 3 1. 4 Scope of Research .. 4 1. 5 Limitations of research .. . 4 1. 6 Signifi give the gatet of poll . 5 1. 7 explanation of terms .. .. . 5 CHATER 2 LITERATURE REVIEW.. 5 2. 1 Theoretical literature .. 5 2. 2 Related Literature review article . . 7 2. 3 Summary table of findings of previous researches. .. CHAPTER 3 look for conceptual FRAMEWORK 11 3. 1 Theoretical modeling 11 3. 2 Conceptual Framework.. .. 12 3. 3 Research possibleness .. .. .. 13 3. 4 Operationalization of the variables .. 14 CHAPTER 4 DATA ANALYSIS AND root.. 15 4. 1 Method of Research 15 4. inception of information .. 15 4. 3 Research instrument . 15 4. 4 selective information Analysis . 16 4. 5 Summary of Hypotheses Testing . 22 CHAPTER 5 CONCLUSION AND RECOMMENDATION. 23 5. 1 Conclusion .. 23 5. 2 testimony 24 5. 3 Future Study 25 REFERENCE. . 26 Appendix A Analysis . 28 Appendix B Questionnaire . 2 Customer dispute in a Faceb ook mercenary injury club CHAPTER 1 INTRODUCTION 1. 1 Background of the topic The reason to select the studying residential area affaire behaviors in a Facebook brand society of customers is because nowadays Facebook is a very famous social-networking website that has impacts on daily disembodied spirit and it socially influences the spates choices. The world is moving toward the cyber world is which profits connections are easily access and reachable for every households and businesses.This study entrust show how the customer alliance engagement behavior affects comprehend benefits of the Facebook commercial brand, and substance abuser of its works and applications. We will focus on both manful and female respondents who are Facebook users and devotees of at last unmatchable brand on Facebook, because these populate place respond to our forelandnaire effectively as they already survive social-networking. The familiarity is looking for ways to brand loyalty amo ng customers as the brand federation offers both companies and customers new ways to engage with each other.Whilst companies heading at engaging with influencing appendages perceptions, loyal customers nearly the brand, sharing information, and learning from and around customers (Algesheimer et al. , two hundred5), customers perceive value through the variety of practices that they execute offline and online (Schau et al. , 2009). Although originally, an online brand community of interests referred to a community on the www, recently social media network has been added to companies marketing and brand building activities (Kaplan and Haenlein, 2010).Attracted by the great number of users of Facebook so, the creative marketing activity in Facebook brand community will draw multitude to participate and make the brand succeed. This study will help the unfaltering understand more about customer engagement in the Facebook brand community. 1. 1. 2 Social Network, Facebook Over the l ast years, the ways mickle search, constituent information and communicate with each other has changed dramatically (Hennig-Thurau et al. , 2010). Social media networks such as Facebook, Twitter, or YouTube are playing a major office and are more valuable in business communication.The changes force the company and brand to focus on online go in order to create relationships to customers. Facebook allows companies several services to contact and communicate with their customers. yellowish brown pages are a very interesting tool for companies to use. Usual typicals of sports yellowish browns are self-identification as a fan, cultural competence, emotional engagement, co-production and auxiliary usance (Kozinets et al. , 2010). The Internet brought the possibility to overcome geographical restrictions and also help the company build fan communities world-wide.In practice, Facebook users freighter be fans of a fan page by pressing the like-button, then it identifies that t hey like this brand and will present their profiles on social network. The gist and information of fan page is automatically posted to the customer is Facebook tidings feed, and the customer can post comments on the fan page, interact with the brand, frontward offers from the page as well as the interact with other community members (Jahn and Kunz. ,2012). 1. 2 Statement of problem As a social network, Facebook has moved(p) the social life and activity of people in several ways.With its availableness on many mobile devices, Facebook allows users to continuously stay in molecule with friends, relatives and other connections wherever they are in the world, as long as there is access to the Internet. It can also tie people with same interests or beliefs through groups and other pages. This study will help the company to understand more how community engagement behavior in Facebook is important to the company for implementing the technique to create company brand perception and sp end a penny market share via Facebook.In addition, engaging with the brand community in various behaviors, receive different relationship benefits, for example diversion, may make customers more satisfied. This assumption is based on the reasoning that customers. This study will check how a customer engagement behavior affects consumers perceived benefits, and assume a positive degree relationship mingled with the constructs. (Gummerus et al. , 2012) 1. 3 Research object glasss The research objective is to study the affects of community engagement behavior of Facebook commercial brand on perceived benefits.The company can know more insight of customer doings especially the company who focuses on social network marketing activities. This study will help the company create marketing and substance to their page on Facebook effectively to increase perceived benefit of the brand. * To study community engagement behaviour has a positive relationship on social benefit * To study c ommunity engagement behaviour has s positive relationship on entertainment benefit * To study community engagement behaviour has a positive relationship on economic benefit 1. Scope of research The research analyse the affects of community engagement behaviour on iii factors of perceived benefits. The three independent variables of perceived benefits factors are social benefit, entertainment benefit and economic benefit. The respondents of this research are male and female Facebook user in Bangkok. This research result would be advantage to the marketing department of the company who has community page of their brand on Facebook they can apply more attractive activities for their members.This study will help them to monitor their Facebook fan page effectively after they understand the fact that the brand community will help a pie-eyed draws individual customers and to create relationships with those customers, and also establishing long-term relationships. 1. 5 Limitations of res earch at that place are some limitations to this study of customer community engagement behaviours of commercial brands on Facebook. The study is limited to the engagement behaviour in a Facebook commercial brand community, while customers also engage with the brand in other ways.The limitations that need to be considered are first, self-selection of respondents affects the results which may come from lazy community users. Second, the behavioural treasures were reported by the respondents themselves, and do not know that the answers are from actual behaviour or not. Finally, because the findings are based on commercial brand on Facebook page and the respondent have to be both Facebook user and commercial brand community page so this will represent only some portion of target customer of the company not the whole market 1. Significant of the study The findings in this study have several implications for social media strategies, and help the company to understand why customers part icipate in the Facebook brand community which is important to change magnitude more numbers of Facebook users to become brand community members and towards develop marketing on Facebook, which is lower cost than other commercial media. Firms may pauperism to encourage and reward consumers to become more active on the site to receive maximal perceived benefits from the community (Gummerus et al. 2012). 1. 7 Definitions of Terms Fan pages the important tool on Facebook for brand communication. The company can use to integrate and interact with the customers effectively (Dholakia et al. , 2004). biotic community engagement behaviour is the customer behaviour that is more value than purchase the product or service, and can be delimit as a customers behavioural manifestations that have a focus as motivational drivers rather than purchasing by the brand or firm (van Doorn et al. , 2010).Social benefits results from interaction among the company and consumer and note to recognition a nd also friendship (Gweinner et al. , 1998). Entertainment benefits is the relaxation and fun which customer perceive and could encourage community participation (Dholakia et al. , 2004). frugal benefits refer to people brotherhooding brand communities in order to get discounts and time savings, or to take part in marketing activity campaign and competitions (Gwinner et al. , 1998). CHAPTER 2 LITERATURE REVIEW 2. Theoretical Literature Customer engagement in brand communities Customer engagement in brand communities causes the customers interactive experiences direct to the brand, is context-dependent, and develops consumers experience of brand value (Brodie et al. , 2011). Customer engagement is some measure used to represent the highest form of loyalty (Bowden, 2009 Roberts and Alpert, 2010), but as behavioural indicator it comprises all kinds of behaviours, not only those that are characteristic of high degrees of loyalty (Libai, 2011 Narayandas, 1998).The customer engagement c onsists of five dimensions. First, customer engagement can be delimit in a different ways depending on customer time, interest or preference this called customers resources. Second, it can generate in different of outcomes for the customer such as improvement in the service. Third, it can be different in background and be momentary, for example on going behaviour or bare a complaint. Fourth, it has various impact on the company both contradict and positive impact. Fifth, customer can engage in the behaviours for specific bearings (van Doorn et al. , 2010).Consumers engage in a number of behaviours that tie their relationship with the brand. For example oftenness of reduce, buying behaviours, and intended behaviour which go beyond the traditional measure of the loyalty of the customer (Gummerus et al. , 2012). Perceived benefits of customer engagement in brand communities Before the existence of Web 2. 0, the customers did not consider social benefits important in an online c ontext. They sought to experience trust benefit and special treatment benefit such as saving time and receiving special service rather than experience social benefit (Yen and Gwinner, 2003).The previous research canvas on practical benefits which included informational and instrumental benefits (Dholakia et al. , 2004) which are often possible through a Facebook fan page set up by the company. This study is focused on social, entertainment and economic benefits which we called perceived benefits. The reasons that people use social networking site are social connections such as keeping in touch with their friends and exchanging information such as events or gossip, (Raacke and Bonds-Raacke, 2008). In similar interest, Foster et al. 2010) tack together the important motivation of people to participate the social network is the perceived information value from the community and the connection to their friends. The experiential value that derives the satisfaction of the customer of u sing online services is entertainment (Mathwick et al. , 2001 Nambisan and Baron, 2009 Nonnecke et al. , 2006). Entertainment benefit can be expected as an important more than e-commerce in a brand community context. The Facebook fan pages spend their time with the community page such as venture applications (Gummerus at al. 2012). Many previous researches also show that entertainment plays an important role as shared and consumed content on social networking sites (Sheldon, 2008 LaRose et al. , 2001). Economic benefits (Gwinner et al. , 1998) mention to people connecting brand communities because they want to get discounts and time savings, or to be a part in awards and competitions. 2. 2 Related Literature Review Brand Community The companies aim to engage with the loyal customers, influencing the member to have good perception toward the brand, distributing information and earning form and about customers (Algesheimer et al. , 2005), customer perceive value from the variety of p ractice that they perform online and offline (Schau et al. , 2009). An online brand community referred to a community on the World Wide Web, recently social media has been added to companies marketing and brand building activities (Kaplan and Haenlein, 2010). In this study, brand community is defined as a group of people who possess a token brand or who have a strong interest in a brand, and who are active both online and offline (Muniz and OGuinn, 2001 Jeppesen and Frederiksen, 2006).Research on brand communities found several different dimensions, including geographic concentration, social context, size, and temporality (Dholakia et al. , 2004 McAlexander et al. , 2002). Regarding the size, Dholakia et al. , (2004) found the differences between small group-based communities and big communities in terms of motivation to join the communities. Another dimension is their temporality in communities, some are steadfast and others are short-term.The temporal stability of community memb ers can be benefit to marketers as well as longevity associates with a long-term, stable market. Finally, geographically concentrated or scattered are considered as a dimension of communities (Hur at el. , 2011) The keys of brand community participation are hedonic and functional. operational goals mention to information sharing among community members, while hedonic goals lead customer to have a positive experience over the interactions among the member (Holland and Baker, 2001).Regardless(prenominal) of which aim is established before a participation, the effect of brand community on private lives has been growing, for example over actual product consumption and purchasing, or the formation of opinions toward products or brands (Hagel and Armstrong, 1997), since they have been changing the role performed by existing reference groups (Constant et al. , 1996). The firms have begun to use brand communities for the strategic purpose of getting closer to a specific target market segme nt.Members of a brand community define the outline and particular community activities by the inter-relationships between members who like the same brand, and as they share information about the brand (Muniz and Schau, 2005), they set up brand-centered sub-culture (Schouten and McAlexander, 1995), which could be applied for companies brand-building strategies. Then, the interaction between brand communities and companies is helpful for the firms to analyse customers characteristics and needs more accurately, so that firms can achieve long-term customer relationships at a lower cost. . 3 Summary table of findings of previous researches. there are many research workers who studied about the customer engagement, brand community, social networking, social benefit, entertainment benefit and economic benefit. The researcher name, objective and result are as be delay 2. 1 Previous empirical studies CHAPTER 3 RESEARCH CONCEPTUAL FRAMEWORK 3. 1 Theoretical Framework From previous researc h two engagement behavioural factors were found, 1 being community behaviour and one being transactional behaviours as independent variables (Gummerus et al. , 2012).The variable measuring how often customers confer the page and react to the brand on Facebook. Therefore, the three constructs were social benefits, economic and entertainment benefits as mediator. The dependent variables were relationship outcome, one is satisfaction and one is loyalty. Figure 3. 1 Model of study on relationship benefits negociate the effect on customer engagement on relationship outcomes Source Johanna Gummerus, Veronica Liljander, Emil Weman, Minna Pihlstrom, (2012),Customer engagement in a Facebook brand community, Management Research Review 35 (9), 857 877 . 2 Conceptual Framework The theoretical role model of relationship benefits mediate the effect on customer engagement on relationship outcomes (Gummerus et al. , 2012). The researcher adjusted the conceptual framework to study the relationsh ip on customer engagement behaviour and perceived benefits as follows Figure 3. 2 Conceptual Framework There are three independent variables which are social benefit, entertainment benefit and economic benefit. The dependent variable of this conceptual framework is community engagement behaviour. . 3 Research hypothesis The hypotheses studies the relationship between customer engagement behaviour which is community engagement behaviour about the brand community on Facebook and perceived benefit which are social benefit, economic benefit and entertainment benefit and demonstrate that there is positive relationship of customer community engagement behaviour on perceived benefit for Facebook users in Siameseland. Customer engagement in brand communitiesFrom previous studies, the researcher examined the customer behavioural engagement in a brand community relationship on perceived relationship benefits of Game Club in Facebook. For this study we will study a customer community engageme nt behaviour relationship on perceived relationship benefits of Facebook user in siamese connectionland who are members of the commercial brands fan page. Perceived benefits of customer engagement in brand communities From previous studies, the researcher examined the relationship benefits mediation of customer engagement on satisfaction and loyalty of Game Club in Facebook.For this study we will research the relationship of customer community engagement behaviour and perceived benefits which are social benefit, entertainment benefit and economic benefit of Facebook user in Thailand who is fan page of the commercial brand. Hence, the hypothesized model can be summarized as shown below H1 Community engagement behaviour has a positive relationship on social benefits. H2 Community engagement behaviour has a positive relationship on entertainment benefits. H3 Community engagement behaviour has positive relationship on economic enefits. 3. 4 Operationalization of the variables CHAPTER 4 DATA ANALYSIS AND RESULT 4. 1 Method of Research The Facebook user who is a member of the fan page of the brand on Facebook is defined as a target group to distribute the questionnaire in order to test the hypothesis. The questionnaires are available into two methods one is online questionnaire and second is questionnaire idea. The respondent who answered the questionnaire of this study is all Thai Facebook users and also being a fan page of commercial brand on Facebook.The questionnaire combined 4 constructs which are customer community engagement behaviour construct, social benefit construct, entertainment benefit construct and economic benefit construct and consists of 23 questions which this research applied the question from the previous study base on this research objectives. 4. 2 Source of Data This research was applied from the previous study of customer engagement on Facebook. The information was collected from 208 respondents who are Facebook users and members of a commer cial brand fan page and were tested to prove the hypotheses.The researcher collected data by distributed 58 questionnaires in Siam Square, Assumption University and Thai Summit Tower building in Bangkok, and posted a questionnaire online for Thai Facebook users and there is 150 respondents from online questionnaire. The date duration to collect the data is twenty- quadrupleth February 2013 to 12th March 2013. 4. 3 Research instrument The instruments for gathering the data for the research are online questionnaire and paper questionnaire.To test the hypothesis the question paper consists of varies specific questions to measure the relationship of community engagement behaviours on three perceived benefit, social benefit, economic benefit and entertainment benefit. The questionnaires consist of four constructs. The Community engagement behaviours the perceived benefit statement was measured on a Five-point Likert scale with the anchors Strongly agree Strongly disagree. slacken 4. 1 Measurement Scale 4. 4 Data Analysis In this research, there are three types of data epitome.First, this study uses descriptive analysis to analyse the absolute frequency and persona of the data in screening question and demographic information. Second, this research use dependability analysis to test the reliability of each question for dependent and independent variables. Finally, this research use inferential analysis to analyse the correlation coefficient between variables by using Pearson correlation (Bivariate). descriptive Analysis After screening question of the questionnaire from 208 respondents there are 200 respondents who are Facebook users and be a member of brand fan page and 8 respondents who are not Facebook user.The following table shows the frequency and percentage of demographic by using descriptive analysis. Table 4. 2 Screening question Facebook user From table 4. 2 of 208 respondents, we found 200 respondents are Facebook users 96. 2% (200) and 3. 8% (8) a re not Facebook user. Brand fan page on Facebook From table 4. 2, after the first screening question we got 200 respondents who are members of a brand fan page on Facebook. Frequency of visit fan page From the table 4. 2, the highest percentage of visits to brand fan page on Facebook of the respondents is 1-3 times per week and the last(a) percentage is once a month or seldom.There are 37. 5% (75) of respondents who visit 1-3 times per week, 29. 5% (59) of visit daily, 20% (40) of 4-6 times per week, 7% (14) of 2-3 times per month and 6% (12) of once a month or seldom. Table 4. 3 Demographic information performer of Gender From the table 4. 2, the highest percentage of respondents was female. There are 56. 5% (113) of female respondents and 43. 5% (87) of male respondents. Factor of Age From the table 4. 2, the highest percentage of respondents was age 25-29 years old and the lowest percentage is age below 20 years old.There are 69% (138) of age 25 to 29 years old, 16% (32) of age 21 to 24 years old, 12. 5% (25) of age 30 and above and 2. 5% (5) of age below 20 years old. Factor of education take From the table 4. 2, the highest percentage of respondents was college/university direct and the lowest percentage is high instruct level. There are 66. 5% (133) of college/university level, 31. 5% (63) of advance degree level and 2% (4) of high school level. Table 4. 4 The Analysis of Descriptive statistics of constructs by using Average Mean and Standard Deviation dependableness AnalysisThe purpose of testing the reliability is to measure the question of each variable by using Cronbachs Coefficient Alpha test. The results of each variable are as follows Table 4. 5 The reliability Analysis of Research legal instrument From table 4. 5, the results show that the reliability of all variables is greater than . 6 so all questions are reliable to use for this study. Inferential Analysis There are 3 independent variables which are social benefit, entertainment benefi t and social benefit to analyse the relationship with community engagement behaviour by using Coefficient Pearson Correlation (Bivariate).Each independent variable has a positive relationship to community engagement behaviour and significant value is less than 0. 01 which means all hypotheses are fail to reject (supported). Hypothesis 1 Community engagement behaviour has a positive relationship on social benefits. Table 4. 6 The Analysis of relationship between Community engagement behaviour and Social benefit As the result in table 4. 6, the sig. is equal to . 000 which is less than . 01 (. 000