The Impact of New Media on Customer Relationships

1. The Impact of New Media on Customer Relationships Author: V. Kumar, LerzanAksoy, Bas Donkers, RajkumarVenkatesan, Thorsten Wiesel and Sebastian Tillmanns Resource -Journal of Service Research,2010 Professor – 苑守慈 Presenter – Allan Wu

2. Agenda • Introduction & Background • New MediaDefinition • Playing Pinball: A Conceptual Frameworkof New Media’s Impact • Key New Media Phenomenon (1) New Media Information and Services (2) New Media Technologies • Summary and Conclusions • Q&A

3. Introduction&Background • ‘The digital innovations of the last decade made iteffortless, indeed second nature, for audiences to talk back andtalk to each other’’ (Deighton and Kornfeld 2009, p. 4)

4. Introduction&Background • Summarizes the major challenges that new media bring for managing customer relationships • Making use of the opportunities provided by new media requires a thorough understanding of whyconsumers are attracted to these new media and how they influence consumers’ affect and behavior

5. Introduction&Background • (a) consumerbehavior • (b) the successful management of customer interactions • (c) measuring customers’ activities and relationshipoutcomes, highlighting areas for future research.

6. New MediaDefinition • New media • information channels in which active consumers engage inbehaviors that can be consumed by others both in real time andlong afterwards regardless of their spatial location. Ex: websites and other digital communication

7. New MediaDefinition • Digital there are virtually no marginal costs for producing extra copies of digital products • Pro-active contribute to all parts of the value chain, ranging from superficial articulation to extensive products • Visible activities can be seen by others

8. New MediaDefinition • Real-time and memory Memory is also crucial for personalizing future interactions. • Ubiquitous anywhere at any time • Networks Consumers use new media to participate in social networks

9. Playing Pinball: A Conceptual Framework of New Media’s Impact

10. Pinball

11. Pinball

12. Key New Media Phenomena • New Media Information and Services • New Media Technologies

13. Key New Media Phenomena (a) consumerbehavior =>Understanding consumers (b) the successful management of customer interactions =>Customer interactions (c) measuring customers’ activities and relationshipoutcomes, highlighting areas for future research. =>Customer measurement and relationship outcomes.

14. New Media Information and Services 1.New multimedia services 2.Digital consumerarticulation 3.Consumers asretailers 4.Online socialcommunities

15. New multimedia services

16. New multimedia services • Understanding consumers • Effect on traditional • Impact on brand perception • Who engage ? what drive? • EX TV & Youtube • Customer interaction • Consumer willingness to pay in new media environments • What kind of advertising is most persuasive on new multimedia sites? • Customer measurement and relationship outcomes. • How can behavioral data generated on multimedia sites be employed? • Long-term advertising effectiveness and clickstream data • Prediction accuracy of virtual world data for real-world predictions

17. Digital consumerarticulation EWOM

18. Digital consumerarticulation • Understanding consumers • Impact of real-time EWOM on diffusion patterns • Customer interaction • Appropriate strategies for managing negative EWOM • Appropriate ways to interact with consumers who articulate negative EWOM • Customer measurement and relationship outcomes. • Measurement approaches to EWOM • Modeling EWOM’s impact on behaviors • How much to invest in EWOM management?

19. Consumers asretailers

20. Consumers asretailers • Understanding consumers • Under which conditions do consumer prefer used products? • Does the purchase of used products affect brand perceptions? • Customer interaction • How do online second-hand markets affect the value of new products? • Balancing of customer/retailer orientation • Customer measurement and relationship outcomes. • Use of data for other purposes • Can data be embedded in segmentation models?

21. Online socialCommunities

22. Online socialCommunities • Understanding consumers • Impact of a active participation on other consumer behaviors • Overlap between consumers’ activities in online and offline communities • Conditions under which communities can influence brand perceptions • Ex:Fanpage • Customer interaction • How can communities be used for brand management? • Conditions to successfully run service-support communities • Customer measurement and relationship outcomes. • Consumers’ willingness to provide data • Integration of community data with company database • Effects of marketing in communities on customer relationships • Incremental value of engaging activities

23. New Media Technologies 1.Search bots 2.Shopping bots 3.Mobile technologies 4.Recommendationsystems 5.Peer-to-peer networks and piracy 6.Online auctions

24. Search bots

25. Search bots • Understanding consumers • Influence of search on consumer decision making consumers’ choice of search terms • Influence of visibility in searches on brand perceptions • Customer interaction • Understanding the interactions between organic listing and targeted ad placements • Balancing new and existing customers with search advertising • Customer measurement and relationship outcomes. • Effectiveness of search advertising for different customer segments and products • Relative effectiveness of banner advertising vs. keyword search advertising

26. Shopping bots

27. Shopping bots • Understanding consumers • Is information shared with others? • Perception of partitioned prices • Customer interaction • How to adapt to price comparisons? • What are’ ’ideal’’ partitioned prices? • Effectiveness of price concealment strategies • Customer measurement and relationship outcomes. • How can price comparison data be used to improve pricing? • Effects of bots on customer outcomes and moderating role of relationship quality

28. Mobile technologies

29. Mobile technologies • Understanding consumers • Conditions under which consumers are willing to accept permission-based services • Customer interaction • Economic potential of location-based services • Which services have commercial potential? • Tradeoff between push and pull marketing with respect to location-based services • Economic potential of bar codes • Customer measurement and relationship outcomes. • Quality of data collected from mobile devices • Types and measures amenable for measurement via mobile devices

30. Recommendationsystems

31. Recommendationsystems • Understanding consumers • Integration of consumer preferences in recommenders consumer acceptance of recommenders • Customer interaction • Usability and design of recommenders • Optimal amount of information obtained from consumer • Customer measurement and relationship outcomes. • How can recommender data be used for other marketing issues? • How to treat new users • Performance of recommendations compared to other information

32. Peer-to-peer networks and piracy

33. Peer-to-peer networks and piracy • Understanding consumers • How do consumers justify illegal behavior? • How do consumers decide what is worth paying for? • Customer interaction • Effectiveness of anti-piracy strategies • Use of peer-to-peer networks for commercial distribution • Transformation of ‘‘pirates’’ into paying customers • Customer measurement and relationship outcomes. • Usage of peer-to-peer networks to explore cultural trends and identify niche products • Effects of anti-piracy actions on ‘‘healthy’’ relationships

34. Online auctions

35. Online auctions • Understanding consumers • Conditions under which consumer prefer auctions • Choice when ‘‘Buy it Now’’ option exists • Perception of active participation • Customer interaction • Design of interactive pricing mechanisms • Through which auction type should products be sold? • Customer measurement and relationship outcomes. • Do bids allow determining price-response functions or willingness-to-pay? • How can bidding behavior be integrated with customers’ purchase history?

36. Summary and Conclusions • The framework illustrates that new media requirea shift in marketing thinking • Researchers are encouraged to usethis pinball framework as a road map that can help to shed lighton exciting new research questions

37. What other technology could influence customer relationship?

38. Q&A