The Impact of New Media on
Customer Relationships
Author: V. Kumar, Lerzan Aksoy, Bas Donkers, Rajkumar
Venkatesan, Thorsten Wiesel and Sebastian Tillmanns
Resource -Journal of Service Research, 2010
Professor – 苑守慈
Presenter – Allan Wu
1
Agenda
• Introduction & Background
• New Media Definition
• Playing Pinball: A Conceptual Framework of New
Media’s Impact
• Key New Media Phenomenon
(1) New Media Information and Services
(2) New Media Technologies
• Summary and Conclusions
• Q&A
2
Introduction&Background
• ‘The digital innovations of the last decade made it
effortless, indeed second nature, for audiences to
talk back and talk to each other’’ (Deighton and
Kornfeld 2009, p. 4)
3
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 why
consumers are attracted to these new media and
how they influence consumers’ affect and behavior
4
Introduction&Background
• (a) consumer behavior
• (b) the successful management of
customer interactions
• (c) measuring customers’ activities and
relationship outcomes, highlighting areas
for future research.
5
New Media Definition
• New media
o information channels in which active
consumers engage in behaviors that can be
consumed by others both in real time and
long afterwards regardless of their spatial
location.
Ex: websites and other digital communication
6
New Media Definition
• 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
7
New Media Definition
• 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
8
Playing Pinball:
A Conceptual Framework of New Media’s Impact
9
Pinball
10
Pinball
11
Key New Media
Phenomena
• New Media Information and Services
• New Media Technologies
12
Key New Media
Phenomena
(a) consumer behavior
=>Understanding consumers
(b) the successful management of customer
interactions
=>Customer interactions
(c) measuring customers’ activities and relationship
outcomes, highlighting areas for future research.
=>Customer measurement and relationship outcomes.
13
New Media Information
and Services
1.New multimedia services
2.Digital consumer articulation
3.Consumers as retailers
4.Online social communities
14
New multimedia services
15
New multimedia services
• Understanding consumers
o Effect on traditional
o Impact on brand perception
o Who engage ? what drive?
• EX TV & Youtube
• Customer interaction
o Consumer willingness to pay in new media environments
o What kind of advertising is most persuasive on new multimedia sites?
• Customer measurement and relationship outcomes.
o How can behavioral data generated on multimedia sites be employed?
o Long-term advertising effectiveness and clickstream data
o Prediction accuracy of virtual world data for real-world predictions
16
Digital consumer
articulation
EWOM
17
Digital consumer
articulation
• Understanding consumers
o Impact of real-time EWOM on diffusion patterns
• Customer interaction
o Appropriate strategies for managing negative EWOM
o Appropriate ways to interact with consumers who articulate negative
EWOM
• Customer measurement and relationship outcomes.
o Measurement approaches to EWOM
o Modeling EWOM’s impact on behaviors
o How much to invest in EWOM management?
18
Consumers as retailers
19
Consumers as retailers
• Understanding consumers
o Under which conditions do consumer prefer used products?
o Does the purchase of used products affect brand perceptions?
• Customer interaction
o How do online second-hand markets affect the value of new products?
o Balancing of customer/retailer orientation
• Customer measurement and relationship outcomes.
o Use of data for other purposes
o Can data be embedded in segmentation models?
20
Online social
Communities
21
Online social
Communities
• Understanding consumers
o Impact of a active participation on other consumer behaviors
o Overlap between consumers’ activities in online and offline communities
o Conditions under which communities can influence brand perceptions
• Ex: Fan page
• Customer interaction
o How can communities be used for brand management?
o Conditions to successfully run service-support communities
• Customer measurement and relationship outcomes.
o
o
o
o
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
22
New Media Technologies
1.Search bots
2.Shopping bots
3.Mobile technologies
4.Recommendation systems
5.Peer-to-peer networks and piracy
6.Online auctions
23
Search bots
24
Search bots
• Understanding consumers
o Influence of search on consumer decision making consumers’ choice of
search terms
o Influence of visibility in searches on brand perceptions
• Customer interaction
o Understanding the interactions between organic listing and targeted ad
placements
o Balancing new and existing customers with search advertising
• Customer measurement and relationship outcomes.
o Effectiveness of search advertising for different customer segments and
products
o Relative effectiveness of banner advertising vs. keyword search
advertising
25
Shopping bots
26
Shopping bots
• Understanding consumers
o Is information shared with others?
o Perception of partitioned prices
• Customer interaction
o How to adapt to price comparisons?
o What are’ ’ideal’’ partitioned prices?
o Effectiveness of price concealment strategies
• Customer measurement and relationship outcomes.
o How can price comparison data be used to improve pricing?
o Effects of bots on customer outcomes and moderating role of relationship
quality
27
Mobile technologies
28
Mobile technologies
• Understanding consumers
o Conditions under which consumers are willing to accept permissionbased services
• Customer interaction
o Economic potential of location-based services
o Which services have commercial potential?
o Tradeoff between push and pull marketing with respect to location-based
services
o Economic potential of bar codes
• Customer measurement and relationship outcomes.
o Quality of data collected from mobile devices
o Types and measures amenable for measurement via mobile devices
29
Recommendation systems
30
Recommendation systems
• Understanding consumers
o Integration of consumer preferences in recommenders consumer
acceptance of recommenders
• Customer interaction
o Usability and design of recommenders
o Optimal amount of information obtained from consumer
• Customer measurement and relationship outcomes.
o How can recommender data be used for other marketing issues?
o How to treat new users
o Performance of recommendations compared to other information
31
Peer-to-peer networks
and piracy
32
Peer-to-peer networks
and piracy
• Understanding consumers
o How do consumers justify illegal behavior?
o How do consumers decide what is worth paying for?
• Customer interaction
o Effectiveness of anti-piracy strategies
o Use of peer-to-peer networks for commercial distribution
o Transformation of ‘‘pirates’’ into paying customers
• Customer measurement and relationship outcomes.
o Usage of peer-to-peer networks to explore cultural trends and identify
niche products
o Effects of anti-piracy actions on ‘‘healthy’’ relationships
33
Online auctions
34
Online auctions
• Understanding consumers
o Conditions under which consumer prefer auctions
o Choice when ‘‘Buy it Now’’ option exists
o Perception of active participation
• Customer interaction
o Design of interactive pricing mechanisms
o Through which auction type should products be sold?
• Customer measurement and relationship outcomes.
o Do bids allow determining price-response functions or willingness-to-pay?
o How can bidding behavior be integrated with customers’ purchase
history?
35
Summary and Conclusions
• The framework illustrates that new media require a
shift in marketing thinking
• Researchers are encouraged to use this pinball
framework as a road map that can help to shed
light on exciting new research questions
36
What other technology could
influence customer
relationship?
37
Q&A
38