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

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 First over agenda Fisrt is

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) The technology is advance raptly. Dramatically change 科技推誠出新 。改變了人們使用通訊或是行為等的方式，直接改變人們互動溝通的方式 像是YOUTUBE ….舉例 人們開始探討傳統和新科技的差別 傳統被取代 EX: TV AD

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 新增新的BM WEB2.0 EX HELP FORSOLVE 問題 降低COST跟提升品質 更多方法去接觸顧客 和顧客互動 所以這篇研究 新N M帶來的現象 This article summarizes the major challenges that new media bring for managing customer relationships we argue that marketing in the era of new media resembles the art of ‘‘pinball playing’’ and illustrate this in a conceptual framework. We identify ten key new media phenomena affecting marketing instruments and discuss how each phenomenon affects (a) consumer behavior, (b) the successful management of customer interactions, and (c) measuring customers’ activities and relationship outcomes, highlighting areas for future research

Introduction&Background (a) consumer behavior (b) the successful management of customer interactions (c) measuring customers’ activities and relationship outcomes, highlighting areas for future research. 掌握這些方式去觀察\

New Media Definition New media 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

New Media Definition Digital Pro-active Visible 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 Characteristics Digital there are virtually no marginal costs for producing extra copies of digital products and that individuals can easily distribute their creations to a global audience without having to pass through traditional ‘‘gate keepers’’ such as publishers EX: Pro-active contribute to all parts of the value chain, ranging from superficial articulation (reviews on retail or fan sites) to extensive co-creation (testing new ‘‘beta’’ products and reporting flaws to the company or even collectively developing open-source products EX Visible Consumers’ new media activities can be seen by others

New Media Definition Real-time and memory Ubiquitous Networks Memory is also crucial for personalizing future interactions. Ubiquitous anywhere at any time Networks Consumers use new media to participate in social networks Real-time and memory Such comments and reviews are often also available indefinitely, so that potential customers may be reading about negative (and positive) customer experiences for years into the future (e.g., the 2001 Houston Doubletree incident; Snopes 2006). Memory is also crucial for personalizing future interactions. EX Ubiquitous New media allow consumers to reach (and be reached by) other consumers and companies almost anywhere at any time through their mobile devices Networks Consumers use new media to participate in social networks, which enable them to create and share content, communicate with one another, and build relationships with other consumers

Playing Pinball: A Conceptual Framework of New Media’s Impact 產品（Product）、價格（Price）、渠道（Place）、促銷（Promotion）產品 消費者(Consumer)、成本(Cost)、便利(Convenience)和溝通(Communication)消費者需求為導向 關聯(Relativity)、反應(Reaction)、關係(Relation)和回報(Retribution)。關係行銷 PRpublic relation F 傳統 A,F->B,E : ->C 單向(unidirectional one way who were able to avoid negative mass media coverage having almost complete control over the brand-shaping messages and, as a result, relationship outcomes such as customer retention (arrow C) through their own actions.

Pinball 產品（Product）、價格（Price）、渠道（Place）、促銷（Promotion）產品 消費者(Consumer)、成本(Cost)、便利(Convenience)和溝通(Communication)消費者需求為導向 關聯(Relativity)、反應(Reaction)、關係(Relation)和回報(Retribution)。關係行銷 PRpublic relation F 傳統 A,F->B,E : ->C 單向(unidirectional one way who were able to avoid negative mass media coverage having almost complete control over the brand-shaping messages and, as a result, relationship outcomes such as customer retention (arrow C) through their own actions.

Pinball Today companies serve up a ‘‘marketing ball’’ (brands and brand-building messages) which is then diverted and often accelerated by new media ‘‘bumpers,’’ which change the offering’s course in chaotic ways. After the marketing ball is in play, marketing managers continue to guide it with agile use of the ‘‘flippers,’’ but the ball does not always go where it is intended to and the slightest miscue can be amplified into a catastrophic crisis In the new media era, companies continue to serve up products, services and messages through traditional channels (arrows A, F), but also through new media channels (arrow K) AFK->G J ->H-> C DOVE AD TV U2 https://www.youtube.com/watch?v=XpaOjMXyJGk

Key New Media Phenomena New Media Information and Services New Media Technologies The first category refers to digital content and the new kinds of consumer behavior that results from it; the second category is about new media infrastructure

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. Mention that this three customer goal So this article will discuss in this three critical part

New Media Information and Services 1.New multimedia services 2.Digital consumer articulation 3.Consumers as retailers 4.Online social communities

New multimedia services video sharing platforms such as YouTube, music streaming services such as Pandora, online video games and MMOGs, and ‘‘virtual worlds’’ such as Second Life

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

Digital consumer articulation EWOM

Digital consumer articulation 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?

Consumers as retailers

Consumers as retailers 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?

Online social Communities

Online social Communities 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: Fan page 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

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

Search bots

Search bots Understanding consumers Customer interaction 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

Shopping bots

Shopping bots Understanding consumers Customer interaction 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

Mobile technologies

Mobile technologies Understanding consumers Customer interaction 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

Recommendation systems

Recommendation systems 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

Peer-to-peer networks and piracy

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 concert

Online auctions

Online auctions Understanding consumers Customer interaction 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?

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

What other technology could influence customer relationship?

Q&A