TABLE 5.5 Value Creation Practices SOCIAL NETWORKING Welcoming Greeting new members, beckoning them into the fold, and assisting in their brand learning and community socialization. Lending emotional and/or physical support to other members, including support for brand-related trils (product failure Articulating the behavioral expectations within the brand community. for nonbrand-related life issues (llness, dleath,job) Governing IMPRESSION MANAGEMENT Evangelizing ustifying COMMUNITY ENGAGEMENT Staking Milestoning Badging Documenting Detailing BRAND USE Sharing the brand “good news,” inspiring others to use, and preaching from the mountaintop. Deploying rationales generally for devoting time and effort to the brand and collectively to outsiders and marginal mem- bers in the boundary Recognizing variance within the brand community membership and marking i Noting seminal events in brand ownership and consumption Translating milestones into symbols and artifacts. ntragroup distinction and similarity. the brand relationship journey in a narrative way, often anchored by and peppered with milestones. Grooming CustomizingModifying the brand to suit group-level or individual needs. This includes all efforts to change the factory specs of the Commoditizing Distancing/approaching the marketplace in positive or negative ways. May be directed at other members (you should Cleaning, caring for, and maintaining the brand or systematizing optimal use patterns. product to enhance performance. sell/should not sell that) or may be directed at the firm through explicit link or through presumed monitoring of the site (you should fix this/do this/change this) Bourcer Adapted from Hope Jensen Schau, Abert M.Muniz and Erc J. Amould, How Brand Community Practices C Create Value.: Journal of Marketing 73 (September 2009p

Q1) The loyalty program which provides a value creation for customers is highlighted below –

Through the porgram, the firm adds few points to the consumer’s account on every purchase depending on the value of the purchase. The points can be accumulated and redeemed on future purchases, as they can be valued to money for eg. 20 points equal to 1 $.

There are different levels of loyalty status, which includes Diamond, Gold, and Silver which depends on the value of purchases and the number of points accumulated, used for future purchases etc.

The rewards associated with the loyalty program are good as the points are accumulating on routine purchases of the consumers.

Consumers have choice on when to redeem the points, how much to redeem, what they can purchase in exchange etc.

The app consists of the purchase history; the number of points awarded on each purchase and accumulated the products that can be purchased with the accumulated points etc.

The information is sufficient to guide the consumers towards making purchases of their choice.

The loyalty program/app can be improved by collaborating and partnering with various brand stores so that consumers can redeem wherever they wish to.

Q2) Below are the value creation processes utilized in the program –

Social Networking – The program being introduced through social media communication messages and push notifications from consumers who can download the app, make the purchase and earn reward points that can be used to redeem for later purchases, the program has not only welcomed the consumers towards making purchases of their choices but also kept them engaged with redemption for new purchases.

Brand use – The firm has created a brand recognition by not only providing value to the consumers through the product but also creating additional value through reward points. The firm has customized its programs by increasing the scope of the reward program to add more brands and stores where the purchases can be made.

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