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Effects on Brands in Real-time Marketing on Social Media

Written by D. Håkansson, T. Bengtsson

Paper category

Bachelor Thesis

Subject

Business Administration>Marketing & Sales

Year

2015

Abstract

Thesis: Brand equity 2.1.1. Customer-based Brand Equity (CBBE) The American Marketing Association defines a brand as "a name, term, logo symbol or design, or a combination of them, designed to identify the goods or services of a seller or a group of sellers and distinguish them from competition Opponents." It can be a functional, rational or tangible difference, but it can also be a more symbolic, emotional or intangible difference provided by the brand. According to Kotler and Keller (2012), the brand is one of the company's most valuable assets. Brand equity is the added value of a brand to a company’s products and services, which can be measured by consumers’ thinking and behavior on the brand, such as price, market share, or profitability (ibid.). Customer-based brand equity (CBBE) can be explained as the influence of brand knowledge on consumers’ responses to the brand’s marketing activities. If the CBBE is positive, consumers will react more positively to the product or service and the actual marketing activity itself than when the brand is not recognized (Kotler & Keller, 2012). The CBBE concept is basically the power of the brand, which is embodied in the brand that customers have seen, heard, felt and understood in previous experiences over time (ibid.). Keller (2013) uses the following sentence to explain the concept of CBBE; “The power of a brand lies in the mind and heart of the customer” (page 143). The challenge marketers face when building a brand is to ensure that customers have the desired experience for their products or services so that the desired feelings, beliefs, opinions, opinions and images are associated with the brand (ibid.). 2.1.2 Brand loyalty According to Aaker and Joachimsthaler (2009), brand loyalty can be regarded as one of the most important dimensions because it generates long-term value. Aaker (1991) defines brand loyalty as an index that measures the connection and relationship between a brand and its customers. Revenue and sales, and brand loyalty also contribute to acceptance and willingness to pay more for products or services. The relationship between consumers and brands is either based on value propositions or positive feelings. If the value proposition can be affordable prices or on-time delivery, positive feelings can be admiration or fun (Aaker, 1996). Consumer satisfaction is the main factor in consumer repeat purchases, which in most cases will lead to brand loyalty. Loyalty programs can be used to increase and enhance brand loyalty, such as customer clubs or frequent and repeat customer benefits (ibid.). 2.2.1 Social media 2.2.1.1 What is social media? "What is social media?" There is no simple explanation for this question. Social media can be distinguished from mass media because they are based on the content generated by users, rather than using professional organizations like mass media. Social media can be described as a network in which many people communicate with many other people, and each recipient has the same possibilities and conditions to send messages through the same channels as others. (Nationalencyklopedin, 2015) According to Kaplan and Haenlein (2012), social media can be defined as a set of Internet-based applications that use the technical foundation of Web 2.0 to provide opportunities to create and exchange user-generated content. Web 2.0 was first introduced in 2004 as a new way for software developers and end users to use the World Wide Web as a platform, and all users continuously modify content and applications in a collaborative manner. (Kaplan and Haenlein, 2010). Although Web 2.0 is not a technological update of the World Wide Web, it uses features such as Adobe Flash (used to add animation, interactivity, and audio/video). Kaplan and Haenlein (2010) pointed out that Web 2.0 can be regarded as a platform for the evolution of social media. Nationalencyklopedin (2015) also proposed a matching definition; the evolution from the Internet of Statistics to the Internet of Communication. This diagram provided by Berthon, Pitt, Platenger & Shapiro (2012) explains Web 2.0 in a similar way; “supporting the collective media phenomenon and promoting consumer-generated content technical infrastructure.” Therefore, Web 2.0 can be seen as promoting the World Wide Web Different technological innovations in content creation, interaction and communication on the Internet. This has led to a new definition of people called creative consumers, who have generated a lot of value-added content in social media (Berthon, Pitt, Plateger and Shapiro 2012). All in all; social media can be defined as a set of Internet applications, which are built on the basis of Web 2.0 technology and provide a way for people to create and exchange user-created content. Content can have many shapes, such as audio, video, image, text, and community. (Kaplan & Haenlein, 2010, Berthon, Pitt, Plangger & Shapiro 2012) Social media has many positive aspects, such as providing unlimited communication possibilities. (Nationalencyklopedin, 2015).2.2.1.2 Social media platforms and applications Kaplan and Haenlein (2010) define a social media platform as an application that gives users the opportunity to create personal information that can be shared with friends, and you can also Send direct messages between each other. Read Less