By Philipp Wiegandt, Prof. Dietmar Harhoff Ph.D.

Firm-established model groups allow businesses to extend the logo loyalty and word-of-mouth communique in their buyers. additionally they symbolize an enough organizational shape for firms to combine shoppers into their innovation methods. Philipp Wiegandt empirically analyzes the consequences the construction of a firm-established model neighborhood has at the model loyalty and word-of-mouth communique of its individuals through the years. He unearths that constructing a firm-established model neighborhood creates worth for either - the corporate and their consumers.

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85) Combined with the cost-benefit analysis of the exchange theories, these points give a first general overview as to why people engage in groups and - more important for this thesis - in brand communities. 2 revealed more brand community specific implication. According to these studies, brand communities combine traditional community values such as friendship, trust, and reciprocity with individual needs such as self-realization, consumption or information gathering (von Loewenfeld 2006). 1).

Halin 1995, p. 38 In each transaction not only property rights are transferred but also transaction costs arise. These transaction costs occur in the: x Initiation x Agreement x Handling x Controlling x And adjustment of transactions (Picot et al. 2002, p. 68). The transaction cost theory deals with the production costs for the creation of the exchangeable good and the transaction costs arising during the handling and organisation of the exchange (Williamson 1985, p. 22). The production costs comprise the resources 37 38 Picot (1982, p.

It can be one of the main forces for collective action, especially in times of threat to the brand community and contributes to group cohesion (Muniz & O’Guinn 2001, p. 413). In the case of a brand community moral responsibility is decisive for integrating new members and retaining old members and in assisting in the “correct” use of the brand. Helping others is a very important community component and either means fixing problems where specialized knowledge is required or sharing information on brand-related resources (Muniz & O’Guinn 2001, p.

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