Leveraging Business
Relationships in Blogosphere
Exploring the Relationship Between Online Interactivity and
Knowledge and Awareness for Professional Services
Leveraging Business
Relationships in Blogosphere
Exploring the Relationship Between Online Interactivity and
Leveraging Business Relationships in Blogosphere:
Exploring the Relationship Between Online Interactivity and Knowledge
and Awareness for Professional Services
by
Chiel Muurling (Bsc.)
Masters Thesis presented to the University of Groningen (RuG)
In fulfillment of the thesis requirements for the degree of
Master of Science
Business Administration
“ We live on an island surrounded
by a sea of ignorance. As our
island of knowledge grows, so does
the shore of our ignorance.”
J
OHN
A
RCHIBALD
W
HEELER
(1911-)
T
ABLE OF CONTENTS
LIST OF TABLES---II
LIST OF FIGURES---III
FOREWORD---IV
ABSTRACT---V
1
INTRODUCTION --- 1
1.1 Background to the research --- --- --- 1
1.2 Research problem and research questions --- --- --- 1
1.3 Justification of the research --- --- --- 2
1.4 Methodology --- --- --- --- 4
1.5 Outline of the report --- --- --- 6
1.6 Delimitations of scope and key assumptions --- --- --- 8
2
LITERATURE REVIEW --- 9
2.1 Need for relationships --- --- --- 9
2.1.1 Professional service --- 9
2.1.2 B2B inter-organizational relationships --- 11
2.1.3 The role of relationships in overcoming B2B service characteristics --- 13
2.1.4Conclusion --- 16
2.2 Interactivity --- --- --- --- 16
2.2.1 Definition of interactivity --- 16
2.2.2 Online interactivity: exploration --- 19
2.2.3 Online interactivity as a proxy for relationships? --- 23
2.2.4 Conclusion --- 27
2.3 Responses --- --- --- --- 28
2.3.1 Hierarchy of Effects --- 28
2.3.2 Brand Value Chain model --- 29
2.3.3 Online Hierarchy-of-Effects --- 31
2.3.4 Outcomes --- 31
2.3.5Conclusion --- 37
2.4 Cross-channel leveraging of knowledge and awareness --- --- 38
2.4.1 Role of the Online Community --- 39
2.4.2 Cross-channel effects --- 39
2.4.3 Conclusion --- 40
3 DEVELOPING AN INTEGRATED FRAMEWORK --- 41
3.1 Independent variables (Actual Interactivity) --- --- 42
3.2 Cognitive and emotional benefits --- --- --- 45
3.2.1 Hedonic benefits --- 45
3.2.2. Instrumental/cognitive benefits --- 48
3.3 Attitudes --- --- --- --- 48
3.4 Behaviour --- --- --- --- 50
3.5 Interrelationships --- --- --- -- 51
3.7 Moderators --- --- --- --- 53
4 THE CASE OF ACCENTURE’S BLOGPODIUM --- 58
4.1 Introduction to Accenture --- --- --- 58
4.2 Accenture Netherlands 2007 strategy--- --- --- 60
4.3 The strategy translated online --- --- --- 61
4.4 Accenture BlogPodium --- --- --- 61
4.5 Conclusion --- --- --- --- 64
5 METHODOLOGY--- 65
5.1 How this investigation is different from previous studies --- --- 65
5.2 Development of hypotheses --- --- --- 66 5.3 Research Design --- --- --- --- 69 5.3.1 Data collection--- 69 5.3.2 Units of Analysis --- 73 5.3.3 Measurement Methodology --- 73 5.4 Conclusion --- --- --- --- 75
6 DISCUSSION --- 76
REFERENCES --- 86
Appendix 1: Overview of Studies on Online Interactivity --- 100
Appendix 2: Integrated Framework --- 102
Appendix 3: Accenture Netherlands Operating Model --- 103
L
IST OF TABLES
Table 1.1 Framework for Scientific Paradigms---5
Table 2.1 Basic Service Characteristics---10
Table 2.2 Types of Corporate Blogs---23
Table 2.3 Typology of B2B Relationship Marketing Practices on the Internet---24
Table 4.1 Reasons for Companies to Start a Weblog---63
Table 5.1: Industries Served and Presumed Characteristics---74
L
IST OF FIGURES
Figure 1.1 Case Study Positions---6
Figure 1.2 Research Model---7
Figure 2.1: Value Chain and Offering---12
Figure 2.2 Disciplinary Roots of Relationship Marketing---13
Figure 2.3 Online Interactivity Paradigm Choice---18
Figure 2.4: Bulletin board example---21
Figure 2.5: Chat room example---21
Figure 2.6: IBM Corporate weblog---22
Figure 2.7 Domains of Advertising Message Effects---29
Figure 2.8 Brand Value Chain Model---30
Figure 2.9 Service Brand Equity Model---32
Figure 2.10 Relationships Between Corporate Websites and Brand Equity---34
Figure 4.1 Consideration and Awareness of Consultancy in the Netherlands---60
Figure 4.2 Accenture Marketing Life Cycle---61
Figure 4.3 Role of Internet in the Marketing Life Cycle---62
Figure 4.4 Role of Weblog in the Marketing Life Cycle---64
Figure 5.1 Bookmarks/Directly Referred URLs---71
Figure 5.2 Definition of Visit Depth---72
FOREWORD
n the summer of 2006 I had the opportunity to join the Marketing department of Accenture, as part of an internship that would eventually have to result in my Masters thesis, since I had been informed this was an absolute necessity for getting my degree.
With nothing more than the assurance of a roof over my head and the job at Accenture in mind, I left familiar rural Groningen for exciting unfamiliarity of the capital city. The transition was surprisingly smooth, in no small part thanks to some unique characters who I was fortunate enough to call my colleagues for nearly six months.
Whilst learning the tricks of the trade at one of the largest worldwide IT and strategy consultancy firms, and finally being able to put my years of academic knowledge (many years in fact...) to the test, ideas for research subjects ceaselessly kept popping into my head. After one of the many agreeable meetings with my then boss, Jort Possel, I finally settled for a research into the effects of online interactivity and the measurement thereof.
After the initial investigation of the subject, it was very easy to become overwhelmed by the vastness of the online interactivity concept. No consensus seemed to exist on the matter at all! Truth be told, I was pleased with this situation, since it allowed me to sort out the chaos and develop an integrated framework, from a completely new perspective to boot.
A lot of hard work later, I had not only the framework completed, but had developed an alternative measurement tool for analyzing the effects as well. The fruits of my labour is what you have in your hands now.
Thomas Alva Edison once famously remarked that the secret to success is 10 percent inspiration and 90 percent perspiration. Whether this thesis has been a complete success is not up to me to judge, only that I did my best to comply with Edison’s statistic.
Enough about me, because I surely haven’t done this all by myself. First of all, my thanks go to my thesis supervisor, Mr. Jaap Wieringa. Without his constructive criticism, and his patience with me during the long periods of waiting for any signs of progress on my part, this paper would look nothing like it does now.
I owe a great deal of gratitude to all my colleagues of the Marketing department at Accenture. Never have I met a zanier group who could drive so resolutely to deliver high performance. Thank you all for learning me the ropes and for your interest in my research. Especially I want to thank Jort Possel, for all his help, positive comments and generally for being a pleasure to work with.
This research that you see in front of you would not have been possible without my parents, simply because I would not have been possible without my parents. More importantly however, they have supported me (emotionally and financially) and believed in me throughout my many college years, even when I sometimes had my doubts.
Lastly, I want to express my gratitude to two people who showed me that slow academic starters can in fact finish in front of their peers. My big brother Rutger who was always willing to help me with my studies (including this thesis) and provide very welcome tips on student life in general.
ABSTRACT
This paper looks at the effects of online interactivity on the customer mindset for business professional service companies. In particular, it investigates the differential effects on knowledge of the services offered and the awareness of the focal company. An integrated framework, which adopts a Hierarchy-of-Effects model to assume the direct and indirect linkages between online interactivity and knowledge and awareness illustrates the intermediary factors that work towards the dependent variables knowledge and awareness. Divergent from previous studies, an exploratory research into industry and relationship characteristics of the visitors of the interactive website is conducted to examine the differential impact of the independent variables of online interactivity on the dependent variables knowledge and awareness. These characteristics influence the effects through a process called mediated moderation, i.e. it influences the effect of a mediator, in this case perceived interactivity.
A case study of Accenture's BlogPodium illustrates the need and goals of highly interactive websites for B-to-B services providers. Based on the particular context of Accenture's client base, a measurement methodology is developed to measure the effect on knowledge and awareness, based on web traffic data, and therefore completely unobtrusively. Moreover, measurement based on web traffic data is completely objective, and overcomes some of the inherent shortcomings of questionnaires. Specifically, awareness is assumed to be approximated by a measurement of visitors entering by means of bookmarks and directly typing the URL of the website. Knowledge is approximated by a combination of 4 metrics: Visit depth, visit duration time, content page views and top traversed paths.
The results of this study have certain important implications for managers and marketers operating interactive websites. The most important take away is the measurement tool, which provides an alternative means for organizations to keep track of customers’ behavior on the internet.
Second, the proposed integrated framework can be used by marketers as a starting point for understanding the effects of online interactivity as a marketing communications tool. For example, the characteristics of the industry the company operates in (i.e. turbulence, complexity and hostility), type of company (B-2-B or B-2-C and services-oriented or product-oriented) and the relationship with the focal company (duration, number of products or services purchased and monetary worth) are assumed to be substantial moderating factors of online interactivity. These factors need to be kept in mind when setting up an interactive website.
1
INTRODUCTION
This chapter is an introduction to the research, and comprises the research problem and research questions, as well as an explanation of the used methodology, the outline of the report and a justification of the research and some key assumptions which will be adopted during the report.
1.1 Background to the research
The internet has the ability to transform the way companies interact with their customers and their potential customers. Most interestingly, due to the fact that company websites are accessible 24/7, they can add greatly to the development and management of relationships with their customers.
However, up to this point in time, most companies use their corporate websites as a platform to ‘push’ their advertising messages, whereas the potential to engage in online dialogue has been leveraged by very few companies1. Company weblogs seem to hold the greatest promise for online interaction, and recently the surge of individual weblogs on the World Wide Web has stimulated organizational discussions on whether companies could successfully deploy corporate weblogs as part of their marketing strategy.
This thesis investigates the potential of corporate weblogs as a means to build relationships online and thereby to increase knowledge and awareness of the services offered in a business market service setting. The exploratory findings will be extended to an empirical setting that is illustrative for the focus of the research. In particular, the corporate weblog activities of Accenture in the Netherlands will be examined. Based on the Accenture case, a measurement tool will be put forward that has the ability to accurately measure the impact of corporate weblogs on the customer mindset.
1.2 Research problem and research questions
Based on an assessment of current online activities at Accenture Netherlands, the following Management Decision Problem unfolded (Malhotra, 2004):
MDP| How can corporate weblogs increase the knowledge and awareness of our services of our current clients and prospects, and how can we measure it?
The translation into a Marketing Research Problem based on a preliminary assessment of Marketing literature:
1
MRP| Which variables and moderators contribute to the effect of online interactivity on knowledge and awareness of visitors of the services offered by a B-2-B professional service provider, and how can awareness and knowledge be conceptualized in an online setting to measure the effects?
In order to solve the MRP, some sub questions will be addressed which take a funnel shaped (broad-narrow) approach.
I. Why are relationships with customers so important in a B2B service setting?
II. Which characteristics of online interactivity make it an accurate proxy for relationships?
III. How can the concepts of knowledge and awareness be operationalized in a B2B service setting? IV. How can knowledge and awareness of services online be leveraged offline?
V. Which direct and indirect relationships between the elements of online interactivity and knowledge and awareness potentially exist?
VI. How can knowledge and awareness creation be measured?
1.3 Justification of the research
Academic relevance
Brand responses have been studied in various ways, chiefly focusing on financial, behavioral and attitudinal outcomes. These responses were in turn assumed to be influenced by marketing communications, e.g. advertising, print, promotions, interactive communications etc.
A significant body of research has been devoted to the study of the development of brand equity for addressing the effects of brand responses. The brand equity concept comprises amongst others attitudinal outcomes, such as knowledge and awareness, and thus presents a paradigm for the study of these effects. The most fruitful fields of research in this respect have been the studies of brand equity in a Business-to-Consumer market (e.g. Keller, 2003a and Aaker, 2004). These so-called customer-based brand equity (CBBE) models have been used as a framework for understanding the relationships that some element of brand equity has on the ultimate perceptions of customers and the effect on the focal company (either financial, behavioral or attitudinal).
Similarly, brand equity in a professional service setting has not been explored in any detail, while the inherent characteristics of services suggest that it may be even more important for services (Krishnan and Hartline, 2001).
Filling another void in the academic field, the effects of interactivity on the aforementioned factors have not been studied in detail. Some general frameworks discussing the effect of interactivity on some aggregated variables have been presented, but a discussion on the effects of interactivity on a specific variable has been limited, and the relationship with knowledge and awareness has been largely neglected in academic literature. Moreover, when any relationships have been researched they have been so on an individual (and often B-to-C) level, whereas this study attempts to discover the attitudinal effects of interactivity on an organizational level. So the academic value of the research is mostly in the funnel-shaped coverage of the topics under investigation, i.e. from some attention in the general brand equity domain to practically none in a B-2-B service setting on an organizational level. This broad investigation however has its limitations with respect to the empirical testing of the proposed effects, and should be seen as a preliminary attempt to better understand the effects of online interactivity rather than a confirmatory analysis.
Practical and managerial relevance
The present study is exploratory in nature, and should be considered thusly. The relevance for managers is therefore in the understanding of the effects of online interactivity. Most importantly, the study provides an integrated framework which assumes all direct and intermediary effects of online interactivity (for example for corporate weblogs) towards the customer mindset of organizations as entities visiting these websites. With this framework as a starting platform, online marketers of B-to-B service organizations can assess the relevance and opportunities for their company for operating a highly interactive website. Moreover, because the model adopts a comprehensive viewpoint, online marketers can tweak the variables according to their specific criteria and needs.
1.4 Methodology
Introduction
The methodology chosen for this research has to be in line with the objectives the research wants to achieve and the main questions it sets out to answer. In fact, the adequacy of the theory is entangled in the process by which the theory is generated (Strauss, 1987).
In that respect, the methodology has to meet the following criteria:
Use of an extensive body of research as an input for a research on general relationships between variables
Formulation of hypotheses and development of a framework based on literature research Exploration of applicability of the developed framework to a specific case
Transfer of these results to the academic field of Marketing
Paradigm choice
As can be extracted from the above enumeration, the goal is to provide value to the academic field of Marketing by tapping into the existing pool of Marketing knowledge and research. The proposed methodology should reflect this bi-directional nature, and thus be a mix of induction and deduction, i.e. using prior theory to test some specified facts (Miles and Huberman, 1994). However, the research is more inductive than deductive, in the sense that the formulation of the framework is exploratory rather than confirmatory. This argument is also reflected in the development of the measurement tool, which is intended to be a impetus for further quantitative testing for confirmation of the developed hypotheses and framework. Finally, the characteristics of the empirical research (i.c. only one case firm) are also more indicative of inductive exploratory research than deductive confirmatory research (Perry, 1998).
An additional methodological issue to consider when selecting an appropriate research design or paradigm, is the general-specific path chosen to approach the subject, i.e. general theories are used as inputs to develop some industry- and case specific assumptive relationships. In this respect, contingency theory (Galbraith, 1973) is used for the empirical analysis and the development of the hypotheses, and on the basis thereof best-fit-for-this-case descriptive recommendations are given.
Paradigm Deduction/ induction Dimension Objective/subjective Commensurable/ incommensurable
Positivism Deduction Objective Commensurable Critical theory Induction Subjective Commensurable Constructivism Induction Subjective Incommensurable Realism Induction Objective Commensurable
Table 1.1: Framework for Scientific Paradigm (Source: Perry, 1998)
Justification of the Marketing Research Process
As illustrated above, the research design is exploratory in the sense that the objective of the study is to uncover relationships between different variables on the one hand, and to provide managerial implications for the focal company and other practitioners on the other hand based on an empirical investigation.
For the first part of the research, external secondary data will be used as an input for the formulation of a framework and hypotheses.
An extensive review of respected academic marketing journals and books will be used as primary sources of information. Considering the broad-narrow perspective of this research, the context of the research and the different views in academic literature should be taken into account. Therefore not only the most recent, but also older academic research need to investigated to paint a complete historical picture of the divergent views that exist on the subject at hand (Baker, 2001). To overcome the pitfalls of error (accuracy), objectivity and nature, the scope of the research will be clearly and unambiguously defined and literature will be examined accordingly.
Regarding the second part of the research (empirical research), the generalizability additionally comes into play. By using a combination of valid secondary internal data (i.e. web metrics and a list of industries served by the company) and by clearly investigating settings and industries to which the exploratory findings might apply, generalizability, as well as reliability and validity, will be assured. The developed measurement tool can thereupon be tested for specific contexts.
Criteria for case selection and their number
Moreover, the research is largely inductive exploratory in nature, fewer case studies are needed in order to be valid, as indicated by figure 1.1.
Case study procedures
Based on the developed integrated framework, hypotheses will be put forward based on a contingency perspective. Subsequently a measurement tool will be proposed for the testing of these hypotheses and for companies to adapt to their own particular setting. Ultimately, the specific industries served by the focal case company will be listed, and a measurement design will be substantiated based on the specific research setting.
1.5 Outline of the report
The outline of the report is a natural extension of the chosen research and methodology. Given their nature and content, a case study research methodology sequence has been selected as a suitable outline for the report. Specifically, the ideal sequence for a case study research methodology stipulated by Perry (1998) has been adapted to suit the specific character of this case. For example, the sequence of steps necessary in exploratory research as indicated by Malhotra (2004) has been joined together in the model by Perry (1998).
Exploratory Confirmatory Prior theory used in data collection and analysis Number of cases
Clarification of the research model
The research model presented in figure 1.2 illustrates the academic route that will address the MRP sub-questions formulated earlier. The model is a combination of two factors: the research phases indicated on the left hand side (moving from top to bottom) and the specific topics discussed in these phases towards answering the aforementioned sub-questions (moving from the top left to the bottom right).
It can be inferred from this model that, following the present introduction and methodology section, a literature review will ensue that aims to answer the first five proposed sub-questions. This will result in the formulation of a framework, which encapsulates all identified direct and direct links between online interactivity and the knowledge and awareness construct. Based on this framework and a case study of a company using an online interactive channel for increasing the knowledge and awareness of customers about their services, a measurement tool for tracking the knowledge and awareness creation in a highly interactive online setting is presented. Exploring links between online interaction and knowledge and awareness Relationships in a B-2-B service setting Interactivity Knowledge and awareness Cross-channel leveraging of knowledge and awareness Secondary External Data Management Decision problem Marketing Research Problem Research Questions Introduction & Methodology Secondary Internal Data Analysis Conclusions & Implications
Integrated Framework
Formulation of hypotheses
Development of Measurement
Tool
Academic & managerial
implications
Case Study
Finally, the managerial implications as well as the implications for researchers as the result of this study will be discussed, alongside the study’s most important limitations and recommendations for further research.
1.6 Delimitations of scope and key assumptions
The conducted research clearly takes a contingency perspective, and thus considers circumstantial and environmental factors as important moderators of the effectiveness of a strategy. The generalizability of this research therefore is limited to organizations operating in a business market and offering professional services. The research is also limited in the sense that an organizational perspective is adopted, and therefore weblogs serving consumers as entities will not be considered.
2
LITERATURE REVIEW
The following section will address the main questions from the introductory chapter. The chapter commences with a discussion on the need for relationships based on the characteristics of business markets and professional service industry. Subsequently, the online interactivity concept will be explored, and the question to what extent it is a proxy for relationships will be addressed. The knowledge and awareness constructs will be examined after that, and how they can be conceptualized in a B-2-B service setting. Cross-channel leveraging of these constructs will be the final topic under investigation, before moving on to the development of the integrated framework.
2.1 Need for relationships
The specific research setting – a Business-to-Business service context – poses certain challenges for the focal company. The characteristics of both professional services and Business-to-Business markets will be explored, and the role of relationships for leveraging these qualities will be discussed.
2.1.1 Professional service
There has been substantial research into the specific characteristics of services vis-à-vis those of products. However, no real consensus has been reached so far (Blankson and Kalafatis, 1999). The debate centers around two questions:
- Are there pure products or pure services?
- Are there characteristics that all services share and are different from product characteristics?
Pure services or a continuum?
Regarding the former, the issue revolves around the question whether services and goods can be placed on a continuum or can be clearly separated based on some shared components exhibited by either goods or services, but not by the other group (de Chernatony and Segal-Horn, 2001 present an overview of this discussion).
Representing the continuum group, Levitt (1981) amongst others, has argued that there is significant overlap in the characteristics of goods and services. In similar vein, Wyckham, Fitzroy and Mandry (1975) have postulated in an exploration of taxonomies in Marketing, that within group variance may be just as large as between-group variance.
be regarded as an offering (Wyckham, Fitzroy and Mandry, 1975)2. Using the offering concept, products or services need to be described in terms of a core product, a tangible product and an augmented (intangible) product (e.g. Lovelock and Wirtz, 2004: 98).
Service characteristics
Regarding the discussion on service characteristics, there seems to be a growing acceptance amongst scholars about some of the most basic service characteristics (see table 2.1), but whether these are sufficiently discriminating of goods characteristics remains a matter of academic discussion (Wyckham, Fitzroy and Mandry, 1975).
Characteristic Description Implications
Inseparability Simultaneous nature of production and consumption makes it impossible to separate
Direct sale
Heterogeneity Uniformity of output is not always possible Difficult to assure quality Perishability Utility of services is short lived, because they cannot be
stored
Problem with demand fluctuations Cannot be stored
Ownership Customer has no ownership of service activity or facility
Advantages of non-ownership need to be stressed
Non-standardization Consistency of service delivery is difficult to achieve due to human processes
Uniformity needs to be created
Intangibility The output of services is difficult to view or touch Difficult to judge price and quality in advance
Table 2.1: Basic Service Characteristics (Source: adapted from Blankson and Kalafatis, 1999)
The above enumeration is typical of the discussion around the characteristics or qualities of services. However, the results of these characteristics on an attitudinal or behavioral level for buyers of services are indicative of the effect of these service qualities.
Risk
The types of perceived risks that influence consumer decision making include functional, performance, physical, psychological, social, and financial (Tsiros and Heilman, 2005). Some of these risk types seem more closely associated with consumer decision making, whereas others (performance and financial) seem to be more relevant for business marketers, notwithstanding that all characteristics are applicable to the B-to-B setting.
The intangibility of services indicated in table 2.1, increases the levels of perceived3 risk of purchase for customers. As indicated by Krishnan and Hartline (2001), the lack of search attributes in most services make
2 Wyckham, Fitzroy and Mandry (1975) regard offerings as sets of need satisfiers offered in particular product/markets. 3
the purchase task complex, and thereby riskier than it is for the purchase of goods (closely related to psychological and functional risk). The characteristic of intangibility also involves that the acquisition of services bring with them certain costs that cannot be fully determined beforehand. This increases the likelihood of potential financial losses to the costumer, thus increasing financial risk.
In similar fashion, perishability contributes to higher levels of risk. As demonstrated by Tsiros and Heilman (2005) in a grocery market setting, perishability effects functional, performance and physical risks more clearly than the other three identified forms of risk.
Incidentally, perceived risk is typically higher for professional services (such as consultancy firms) than it is for generic services. For example, financial risk for professional services is higher, because purchase costs are often higher, and prices are not definitive beforehand, and can fluctuate during the implementation or execution of a service (known as open-ended pricing; Hill and Neeley, 1988). Moreover, psychological risk is higher in professional services decisions, due to higher anxiety levels related to lower knowledge levels and (as a result) greater dependence on service providers.
Credence characteristics
However, with regard to the universality of these characteristics, most academics accept that not all characteristics describe each service type equally well. For example, risk is perceived highest in service types that are high in credence attributes4 (Mitra, Reiss and Capella, 2001).
Arguing in favor of the existence of discrepancies between service organizations, Karantinou and Hogg (2001) argue that consultancy services characteristics are in part common for all types of services, but also has distinctive characteristics unique to this type of service. Whereas all service companies have a certain degree of personal contact, professional services such as consultancy are different in that the contact will be more personal and face-to-face (Yorke, 1990), and there will be co-production and co-delivery of the service.
2.1.2 B2B inter-organizational relationships
Similar to the differences between service products and goods products, business-to-consumer characteristics differ from those in business markets5. With respect to buyer-seller relationships, business markets are characterized by (Vitale and Giglierano, 2002: 10):
- Fewer buyers
- Buyers with more knowledge (technical expertise of professionals in the buying center6)
4 Credence attributes include any product characteristics that can not be evaluated even after purchase or consumption. 5
- Emphasis on personal selling and intrapersonal relationships instead of advertising - Significant info exchanged between participants on a personal level
- Stable, long term relationships encourage loyalty - Shorter, more direct channels
The result of these characteristics is that business customers value different things in economic exchanges than do customers in a B-to-C context. Similar to the service setting, business customers purchase offerings that create solutions and satisfaction (Vitale and Giglierano, 2002: 18). What creates solutions and satisfaction, depends on the value that customers attach to the offering. Porter (1985) developed the value chain concept to encapsulate the processes in which companies can offer value (as perceived by the customer) to their targeted customers (see figure 2.1).
Figure 2.1: Value Chain and Offering (Source: adapted from Vitale and Giglierano, 2002: 20)
Joining the characteristics of business market buying-seller relationships with the value chain concept, it is postulated that business firms need to provide clusters of values, since each individual’s needs in the buying center need to be satisfied at given points in the process (Vitale and Giglierano, 2002: 65). The business buying decision process is namely dependent on three different kinds of needs of the buying center: the organization’s needs for benefits, the buying center individual’s needs stemming from the role in the buying center, and the buying center member’s personal need.
6
A buying center is here defined as a collection of individuals with a stake in the buying decision, individuals who contribute to the final purchase decision (Vitale and Giglierano, 2002: 62).
Specifically, with respect to knowledge and awareness of services offered by business firms, members of the buying center of customers or potentials are active in the second stage of the buying decision process, sc the selection stage. In this stage, appropriate suppliers are identified based on a list of criteria determined in the definition stage (stage 1). Thus it is essential that at this stage of the buying decision process, members of the buying center all have a level of awareness about the company and knowledge on the services it offers.
2.1.3 The role of relationships in overcoming B2B service characteristics What is it?
Relationship Marketing (RM) as a paradigm and as a discipline borrows heavily from both the business marketing domain and the services marketing discipline. RM can best be viewed as an overarching discipline that captures both the elements of business marketing and services marketing amongst others (see figure 2.2).
Relationship Marketing has been defined from a number of perspectives.
Broadly speaking, it refers to all marketing activities directed toward establishing, developing, and maintaining successful relational exchanges, according to Morgan and Hunt (1994).
Grönroos (1996, p. 11) sees RM as a process, which “… is to identify and establish, maintain, and enhance relationships with customers and other stakeholders, at a profit, so that the objectives of all parties involved are met; and that this is done by a mutual exchange and fulfillment of promises.”
Gummeson (1994, p.2) defines RM as a separate discipline within marketing, combining relationships, networks and interaction.
Services Marketing Database Marketing & Direct Marketing Business Marketing Interaction & Networks Marketing Channels
Relationship
Marketing
Why is it relevant?
These definitions above are illustrative for the way that RM has been regarded by scholars and management alike. It is in essence a tool for firms to engage in long-lasting partnerships with customers, by a mutual exchange of information and fulfillment of objectives.
The benefits of the Relationship Marketing concept can be classified according to the following benefit types (Gwinner, Gremler and Bitner, 1998):
- Social benefits
- Psychological benefits - Economic benefits - Customization benefits
Measurement of benefits can be classified as measures in outputs or impacts, whereby the latter refers to the effects of messages on knowledge, attitudes, and/or behaviors.
Since the focus of this study is on the effect on knowledge and awareness on the part of business customers, economic benefits and customization benefits are neglected for the sake of this study, since these types consider the outputs of some form of marketing communication (i.e. market share, shareholder value) more than the effect on the customer mindset, which encapsulates the emotional responses to a set of actions by a firm7. As Andersen and Kumar (2006) have demonstrated, affect and cognition exhibit a mutual relationship, i.e. a change in either one can influence the level of the other factor. Thus, for the aims of this study, only psychological and social benefits of relationship marketing are to be explored, since these will play the most significant role on the creation of knowledge and awareness.
What are the benefits?
Lowering perceived levels of risk
Relationships have the ability to decrease the perceived level of risk typically associated with the credence characteristics of professional services (Berry, 1995). Risk is considered one of the prime characteristics in complex, professional services (Mitchell, 1994), which also typifies management consultancy (Karantinou and Hogg, 2001). Moreover, professional services are described as being high in credence and experiential qualities (Lovelock, Vandermerwe and Lewis, 1999).
Overall, in the case of complex services, which are high in perceived risk and where service evaluation is heavily dependent on credence qualities, it is more likely that buyers and customers want to develop longer-term relationships (Barnes and Howlett, 1998). Likewise, for a business-to-business context, the development of relationships is a key contributor to the minimization of the perceived risk level (Ford, 1980).
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Improving the level of trust and commitment
A classic study by Morgan and Hunt (1994) furthermore showed the critical role of trust and commitment in relationships. They argue that some factors might augment the trust and commitment level, and thereby lower the perceived risk level. Specifically relevant, communication positively influences the trust level.
The effect of the heightened level of trust is demonstrated by Andersen and Kumar (2006), in that higher levels of trust apply to increased cognitive levels.
Increasing comprehension and judgement
Still another way of looking at the links between relationships and service characteristics, is by accepting the fact that service delivery is very visible in a service context, and therefore the focus ought to be more on the process characteristics of the transaction instead of on the technical outcome8 (Grönroos, 1984). In order for service firms to put more emphasis on the process characteristics instead of the physical outcomes, it is essential to visualize the actions and processes taken by the service firm, otherwise clients would not understand the processes involved due to a lack of visibility. One way to overcome this issue, is by creating closer relationships with clients, and to establish more frequent dialogue with customers. In fact, Grönroos (2000) argues that by establishing dialogues with firms, customers can learn by means of receiving smooth and accurate information, and that relationship value increases as a result of it9.
Moreover, related to the comprehension factor, the lack of objective measures for evaluating services is an obstacle for firms. This adds weight to the importance of subjective measures for evaluating services. Adding to the bulk of research pleading for the use of relationships for overcoming the effects of service business characteristics, Czepiel (1990) has argued that due to their inherently interpersonal focus, customer relationships can overcome the lack of objective measures.
Possibilities to meet individual and organizational needs
B-to-B characteristics determine that both individual and organizational needs need to be satisfied. Especially, several stakeholders need to be made aware of the firms services, and different sets of values need to be addressed. This is due to the fact that different elements of the knowledge construct will be an important element for the consideration of a service for different buying center members. Relationships allow firms to get closer to all decision makers, understand what each member’s needs are, what constitutes value, and adapt their offering accordingly10.
8
Grönroos (1984) refers to technical quality when describing what the customer receives as a result of the interactions with a firm. In contrast, process characteristics are regarded as the functional quality of a service.
9
These kinds of processes wherein firms and customers learn from each other by means of interaction and dialogue, has come to be known as learning relationships (Peppers, Rogers and Dorf, 1999).
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2.1.4 Conclusion
For this research, a business service relationship will be the focus, where the service offering concept (Wyckham, Fitzroy and Mandry, 1975) is accepted as a leading paradigm for the rest of this report. As a result, inherently the continuum view on services is accepted as a suitable approach to evaluating services (i.e. the offering concept; Lovelock and Wirtz, 2004).
Since it is argued that consultancy is typified by some unique characteristics which in effect determine the nature of the consultancy-client relationship, a contingency perspective (Galbraith, 1973) should be adopted in analyzing relationships. In fact, even the type of consultancy service (e.g. strategic, IT, operational and marketing) could affect the propensity of relationships to develop, as projects in general management and strategy development require more frequent, numerous interactions, favor longer-term co-operation and facilitate the development of closer relationships (Karantinou and Hogg, 2001).
Relationship marketing is concluded to be a suitable means to overcome the inherent difficulties of the nature of professional business services. Focusing on the psychological and social benefits of business relationships, especially the increase in the level of trust and commitment, the reduction of the perceived level of risk and the facilitation of the possibilities to judge the service are identified as important characteristics for achieving this aim.
2.2 Interactivity
The interactivity construct was originally developed in the 1980’s, and has since received a fair amount of scholarly attention. Since that time, different definitions of the construct have come and gone, as well as different sets of measurements and research settings. In this report, the scope will be limited to the interactivity construct in an online environment.
2.2.1 Definition of interactivity
The concept of interactivity has thus far been very hard to define, due to its multi-faceted nature.
Since a discussion on all definitions which are used to characterize interactivity goes too far for the aims of this report, an (by no means comprehensive) enumeration of definitions will be presented in appendix 1. The listing of definitions and the respective authors is in its basic form a list which is presented by McMillan and Hwang (2002), but additional relevant definitions have been added and less relevant definitions have been deleted from the list.
Paradigms on interactivity
As noted by Jee and Lee (2002), researchers have studied interactivity as part of the communication process, as a medium characteristic a communication system property, individual trait, psychological state, and variable characteristic of communication settings. It is also regarded as a multi-dimensional construct by other authors.
In broad terms, there exist thus some bi-polar viewpoints or paradigms on interactivity, including:
Interactivity from a communicator’s perspective versus an audience’s perspective (Wu, 2006 and McMillan and Downes, 2000)
Actual interactivity versus perceived interactivity (Wu, 2006)
Antecedents of interactivity versus consequences of interactivity (Jee and Lee, 2002)
Besides theses divergent bi-polar views on the interactivity construct, it can furthermore be classified in one or several of the following ways:
Dimensions of interactivity (Haeckel, 1998)
New paradigm or component of marketing mix or merely new channel (Coviello et al, 2001) Processes, features, perception or combination (McMillan and Hwang, 2002 )
Computer mediated or non-computer mediated interactivity (McMillan and Downes, 2000)
Paradigm choice and working definition
Considering the aims and specific character of this study, the choices with respect to the adopted paradigm can be explained in terms of the following characteristics of the study:
Focus on the impacts of the interactivity construct;
On some psychological and social factors on the part of the customers Taking a contingency perspective (constraint from chapter 1)
With these aims in mind, the interactivity construct will be considered from an audience’s perspective, since the interest of this study is in the differential impact of interactivity on the knowledge and awareness construct. Following the same line of reasoning, perceived interactivity will be the point of departure instead of actual interactivity, because as demonstrated by McMillan (2000), customer characteristics such as involvement and demographic characteristics impact the attitude towards websites. Extending this insight, it is assumed for the sake of the present study, that organizational characteristics and the relationship it has with a company has a differential impact on the level of knowledge and awareness of the customer.
Nonmediated (behavioral) interactivity Perception of interactivity General conception of interactivity Mediated (technology-based) interactivity Moderating firm characteristics
Finally, as two additional research constraints, interactivity will be researched independently from other marketing channels, and will be thus be considered as a new paradigm and only computer mediated interactivity will be explored.
Taken together, this coincides with the model proposed by Johnson, Bruner II and Kumar (2006), who likewise focus on both the antecedents and consequences of computer-mediated interactivity. They furthermore assert that interactivity is a perceptual construct, which is a function of both non-mediated (objective) interactivity and mediated technology-based interactivity. The present study adopts this model, and extends it by considering the interfirm differential characteristics to moderate the impact on perceived interactivity (see figure 2.3).
Figure 2.3 shows the original components of the online interactivity concept proposed by Johnson, Bruner II and Kumar (2006) in grey, and the added moderating component that will additionally be considered in blue. The dotted lines depict a subjective relationship (i.e. they differ between users) and the normal lines represent an objective relationship.
Figure 2.3: Online interactivity paradigm choice (Source: adapted from Johnson, Bruner II and Kumar (2006)
A working definition of interactivity, should encapsulate all the factors associated with the chosen paradigm. Most notably, the following characteristics of interactivity should be included:
Consequences and antecedents of interactivity
The concept of perceived interactivity, which is explicated in depth in chapter 3.
dialogue in those instances is defined as an enabler of two-way communication whereby the sender retains primary control over communication (McMillan, 2002). Relatedness of messages is then theorized to relate to the extent that in a given series of communication exchanges, any third (or later) transmission (or message) is related to the degree to which previous exchanges referred to even earlier transmissions (Rafaeli, 1988). However, since the one (responsive dialogue) is a prerequisite for the existence of the other (relatedness of messages), they will be assumed to be interchangeable concepts and will thus be considered simultaneously. This assumption echoes McMillan and Hwang’s (2002) observation that online interactivity dimensions oftentimes overlap each other.
Mutual discourse and Two-way communication. Similar to the previous point, these two dimensions are often broken down into separate elements, but in fact they relate to the same underlying concept, sc. the opportunity of all participants have to send and receive messages (McMillan, 2002).
Real-time participation is often added in the list of interactivity dimensions. This dimension signifies the importance of the speed of the medium, which is typically conceptualized to be a function of synchronicity of the communication (whether or not messages quickly follow one another), and the time for pages to load or the time to find relevant information (McMillan and Hwang, 2002).
Connectedness is not always included as an interactivity element, but is especially relevant when considering interactivity in virtual communities. It relates to the (subjective) feeling of being linked to a world outside the specific site (Dholakia et al., 2000). According to Dholakia et al (2000), this can be created through hyperlinks to related topics and sites, online chat rooms, discussion forums, newsgroups and other efforts that build a sense of community.
In essence, the working definition should include characteristics of the interface, in order to establish which types of computer-mediated exchanges constitute interactivity and which do not. On the other hand, user characteristics and perceived interactivity should be considered in order to draw valid conclusions with respect to the differential effect of interactivity.
2.2.2 Online interactivity: exploration
In its most basic form, computer-enabled web-based interactivity can be established by any form of virtual community. Virtual communities can be broadly defined as an entity that exhibits all of the following characteristics (following the definition by Balasubramanian and Mahajan, 2001):
It is constituted by an aggregation of people. Its constituents are rational utility-maximizers.
Its constituents interact with one other without physical collocation, but not every constituent necessarily interacts with every other constituent.
Its constituents are engaged in a (broadly defined) social-exchange process that includes mutual production and consumption (e.g., mutual dissemination and perusal of thoughts and opinions). While each of its constituents is engaged in some level of consumption, not all of them are necessarily engaged in production. Such social exchange (as opposed to monetary or material exchange) is a necessary, but not always the only, component of interaction between the constituents of the entity. The social interaction between constituents revolves around a well understood focus that comprises a
shared objective (e.g., environmental protection), a shared property/identity (e.g., a national culture or a lifestyle choice), or a shared interest (e.g., a hobby).
Based on the above enumeration, a typology of virtual communities can be drawn. The types of virtual communities differ on some characteristics, such as the possibilities to change and shape content and the speed of interaction. For other characteristics, the different types do not differ at all or very marginally, and sometimes they are used interchangeably to describe the same form of virtual community.
Most often however, virtual communities are presented as commercially sponsored bulletin-boards or chat rooms on company websites (Thorbjørnsen et al., 2002). This neglects the inherent differences between the various forms of virtual communities.
To overcome these issues, and to be able to validly form homogeneous groups (heterogeneous from one another), Thorbjørnsen et al. (2002) propose a segmentation based on the following elements:
Whether the dialogue proceeds in realtime—called chatting—or asynchronously by members posting messages on a bulletin board.
Bulletin boards and Forums
Bulletin boards and forums are increasingly common on company and brand websites. These boards or forums are usually categorized according to topics, and consumers can search for postings relevant to his or her interests. Messaging occurs asynchronously, and bulletin boards are usually open to the general public (both members and non-members), at least for reading messages (Thorbjørnsen et al., 2002). Forums in B2C markets are often customer-to-customer communication platforms (where the role of the company is limited to that of a facilitator), in B2B markets it is most common for the company to
engage in dialogue and discussions with their customers, as well as customers communicating amongst themselves. Forums differ from chat rooms because forum participants do not have to be online at the same time.
Chat rooms
Dialogue in chat rooms occurs in real-time, and therefore it is often unfeasible for companies to be present in the majority of the discussions. The influence of the
company is therefore oftentimes limited to that of an initiator and facilitator of communication between customers or visitors of the chat rooms. However, companies can stage special chat sessions between company personnel and visitors on some pre-defined topic. However, chat rooms have the least opportunities to be a vassal of relationship marketing because the voice of the company is limited to infrequent chat sessions. Due to the fact that the company is not present in most discussions, they cannot obtain sufficient information in
order to understand customer wishes and fulfill them. Moreover, the topics in chat rooms are often ill-defined, and therefore it is difficult to increase knowledge levels of visitors using this medium.
Figure 2.4: Bulletin board example
Discussion groups
Discussion groups are often presented as an interchangeable name to online communities. However, they form but a certain domain within the online community landscape. Typically, discussion groups have limited access to registered visitors, whereby the role of the focal company is very limited. In fact, users often have the ability and the tools at their disposal to help shape the physical environment (or E-scape; Koernig, 2003), and to add new topics within a general framework. Users leave messages to read for other users upon visiting the website. Company members themselves often do not engage in any great detail in the discussions, except for when their expertise is warranted or actively sought by discussion group members.
Weblog
Weblogs are described as web pages that serve as a publicly accessible personal journal for an individual (Lee, Hwang and Lee, 2006). In a commercial context, a typology of blogs exists, although clear lines are difficult to draw (see table 2.2).
According to Lee, Hwang and Lee (2006), five corporate blogging strategies in terms of control mechanisms can be drawn up. These consist of four top-down strategies and one bottom-up strategy.
Bottom-up (company-wide): employee-based blogging culture
Top-down I (top management commitment): focus on executives blogs and do not offer ordinary employee blogs
Top-down II (individual): Relatively small number of bloggers act as online evangelists (includes employee, executive, group and promotional blogs)
Top-down III (group): Companies do not host any personal blogs operated by one author, instead groups of employees are responsible for a blog on a specific topic
Top-down IV (promotion): Various types of promotional blogs are used to advertise new products or upcoming events, often lack the authentic human touch.
In similar vein, Hartelius (2005) has developed a taxonomy of blogs, which largely corresponds to the strategies identified by Lee, Hwang and Lee (2006). She distinguishes between group blogs and personal blogs, whereby the latter can be divided in supplementary and individualizing personal blogs.
Weblogs are to a large extend similar to forums, except for the fact that the influence of the company is bigger (company is the initiator of the contact, instead of merely reacting on posts by visitors). With regard to the openness, it is usual for weblogs to be accessible for non-member visitors.
However, with respect to the question whether blogs actually constitute a virtual community, and if such a thing is possible, scholars are in disagreement (Hartelius, 2005). It is posited for this study that only the fourth top-down corporate blogging strategy does not offer the ability to create a virtual community, because the content is often disregarded as untrustworthy.
Blog Types Characteristics
Employee Maintained by a rank-and-file employee Varies in content and format
Group Operated by a group of rank-and-file employees Focuses on a specific topic
Executive Featuring the writings of high-ranking executives Promotion Promoting products and events
Newsletter Covering company news
Table 2.2: Types of corporate blogs (Source: Lee, Hwang and Lee, 2006)
2.2.3 Online interactivity as a proxy for relationships?
As was argued in chapter 2.1, the focus of the effects of the relationship building process is on: Social and psychological benefits
Selection stage of the buying decision process
Harrison-Walker and Neeley (2004) proposed a typology for classifying customer relationships in B2B marketing. Their typology builds on two dimensions: 1) the purchase decision process (‘Buyphase’) which includes pre-purchase, purchase and post-purchase stages and 2) the level of relationship marketing as identified by Berry and Parasuraman (1991). According to them, relationship marketing can be practiced on one of three levels; financial bonds, social bonds and structural bonds.
Type of Relationship Bonding
Pre-Purchase Purchase Post-Purchase
Economic Bonds Cell 1: Standardized Search
Assistance
Online Product Demonstration Electronic Catalog
FAQ
New Product Announcement Competitive Comparisons
Cell 4: Standardized Purchase Facilitation Electronic Ordering and
Payment Real Time Inventory Status
Cell 7: Standardized Customer Support
Order Tracking/Order Status Report
Product Return Assistance
Social Bonds Cell 2: Personalized Search
Assistance Personal Greeting Discussion Groups/Forums Chatrooms/Bulletin Boards Guided Product Selection
Cell 5: Personalized Purchase Facilitation Product Recommendations Customized Product Design
Cell 8: Personalized Customer Support and Involvement Discussion Groups/Forums Customer Training Seminars
Customer Involvement in Planning Customer Feedback
Structural Bonds Cell 3: Technology-Based Search Assistance
Browser Sharing Real Time Q&A Tracking (Interactive)
Cell 6: Technology-Based Purchase Facilitation Favorites Page for Frequently
Ordered Items Vendor-Managed Inventory
Document Storage
Cell 9: Technology-Based Customer Support and
Involvement Customer Activity Record
(CAR) Virtual Meetings Internet Telephony Customer
Service Table 2.3: Typology of B2B Relationship Marketing Practices on the Internet (Source: Harrison-Walker and Neeley, 2004)
The pre-purchase phase identified by Berry and Parasuraman (1991) is consistent with the selection stage of the buying decision process (Vitale and Giglierano, 2002), and comprises the same elements.
Furthermore, the establishment of social bonds is extended with psychological bonds for two reasons:
1) social and psychological bonds have a mutual effect, i.e. social states influence psychological states and vice versa, and 2) the definition of social bonds by Berry and Parasuraman (1991) includes factors that are equally psychological as social11.
Facilitator of Relationship Marketing
As can be extracted from table 2.3, the deployment of web-based forums, discussion boards and chat rooms is the most suitable strategy for B2B firms, aiming to establish social (and psychological) bonds in the pre-purchase phase of the relationship (cell 2). Extending this line of reasoning, it is posited that corporate weblogs can be applied interchangeably with bulletin boards.
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Although no studies have been conducted that directly relate Relationship Marketing with interactivity in the B-to-B service context, some inferences can be made from previous research. For example, Jo and Kim (2003) found that websites with a higher degree of interactivity, were more effective in building relationships with publics (which constitute another, but similar, form of RM)12. Their results suggested that the unique features of the Web play an important role in building relationships between an organization and publics, and that the enhancement of interactivity in a Web site improves the relationships with publics.
Also, consumer communities contribute to relationship marketing by ensuring the consumer is involved and can obtain meaning from the conversation that takes place within the community (Szmigin, Canning and Reppel, 2005). Specifically, online or virtual communities allow and encourage conversations to happen that an be of value to various parties involved (buyers, suppliers and other interested parties), such that some form of community bonding takes place (Szmigin, Canning and Reppel, 2005).
Providing further academic support for the suitability of virtual communities as a means to establish relationships, Coviello, Milley, and Marcolin (2001) point to the criticality of dialogue as a basis for consumer-brand relationships. Dialogue has been demonstrated to be the most important element of online interactivity. In similar vein, Styles and Ambler (2003) describe relationships as conduits along which communication flows. Consequently, the internet can be seen as a medium enhancing communication flowing between organizations, thereby establishing relations..
Chen, Griffith and Shen (2005) moreover mention that online interactivity greatly facilitates relationship marketing.
Effects of virtual community relationship building
The effects of virtual or web-enhanced communities, and their utility as a marketing communication tool have received little scholarly attention (Andersen, 2005). Prior to discussing all possible relationships between online interactivity (as a proxy for virtual communities), the benefits of virtual communities on the inherent difficulties of B2B service relationships will be briefly discussed, based on the identified issues in chapter 2.113.
Lowering perceived levels of risk
Szmigin, Canning and Reppel (2005) demonstrated that dialogue not just between customers and the company, but also between sets of customers, create a form of social bonding, which encourages relationship building. The ability to discuss their opinions and views on topics related to the services offered by the company hosting
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Hunt, Arnett and Madhavaram (2006) present an illustration of the different forms of RM in figure 1. It shows that the publics (which falls under the ‘lateral partnerships’ segment) form a different segment within the overall framework. It depends on the view of the scholar if publics should indeed be included.
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the virtual community with independent customers, reduces anxiety levels amongst customers and potential customers, and thus decreases the perceived risk level.
Moreover, since customers have only imperfect information on the market incumbents, it is important for companies to provide as many credible brand signals as possible in order to reduce perceived risk (Christodoulides and de Chernatony, 2004). With respect to information credibility, information obtained from actors not involved in the focal company has been demonstrated to be viewed as more credible, relevant and emphatic than marketing-provided sources of information (Bickart and Schindler, 2001).
Finally, as demonstrated in the beginning of the chapter, the characteristics of management consultancy services lead to high levels of perceived risk. Consumers, as well as business decision makers, depend on personal sources of information (e.g. word-of-mouth advertising and personal contact with the company) to reduce pre-purchase uncertainty rather than impersonal communications (Koernig, 2003).
Improving the level of trust and commitment
Lower levels of trust are typically associated with lower company knowledge levels. Following that line, improving the knowledge of the service provider may increase the level of trust and thus commitment. In a study on corporate blogging strategies of Fortune 500 companies, Lee, Hwang and Lee (2006) demonstrate that by arguing that bloggers can enhance corporate credibility and trust by disseminating well thought out opinions on their respective companies and giving outsiders new insights into the companies’ cultures.
Using Internet technology to develop and maintain customer relationships can increase customer satisfaction, which in turn can enhance trust and commitment (Harrison-Walker and Neeley, 2004). It is argued that using different levels of internet technology into service encounters, will lead to enhanced service levels. Moreover, trust and commitment lead to stable buyer-seller relationships, which are necessary for long-term success (Bauer, Grether and Leach, 2002).
Increasing comprehension through visualizing the service
Similar to the point made on trust and commitment levels, virtual communities and corporate weblogs especially provide the opportunity for companies to show more of their company’s services and people, that offline communication cannot provide due to the simple limitations of time and place (i.e. it is much harder to come by to the office and speak to as much employees as one can in a computer-enabled environment).
