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BSIUsing Netnography to Extract Knowledge from Online Consumers Conversations

Marketing 2.0 Conference, Hamburg 2005
BSI



          Join the conversation
  MARKETING 2.0 CONFERENCE
      Paris, France 28/29 March 2011
         www.marketing2conference.com
Virtual Community Intelligence:
Using Netnography to Extract Knowledge from
      Online Consumer Conversations

                 Kristine de Valck
          HEC School of Management - Paris
                    devalck@hec.fr




                   October 6, 2005
                  Hamburg, Germany
Virtual communities (VCs)
Definition

• Virtual communities of consumption

  “Affiliative groups whose online interactions are
  based upon a shared enthusiasm for, and
  knowledge of, a specific consumption activity.”
  (Kozinets 1999)


  Virtual community members may:
   –   Obtain product information
   –   Learn about the consumption activity in general
   –   Give information and share experiences
   –   Develop relationships
Online consumer quotes

•   “Uncle Ben’s Pouch Rice is really easy and fast to use. Rip
    open the pouch, put it in the microwave, and: dinner time! It
    is a good product that is very suitable for those occasions
    when you don’t feel like cooking.”



•   “I really like lemon in my cola, but Coca Cola light lemon
    tastes completely unnatural. It is unappetizing. I suggest:
    drink your cola with a real slice of lemon!”



•   “The Pizzahut in Rotterdam has fast service and ok pizzas.
    The salad is bar is meager though.”
Marketers turn to Netspionage

•   Rise of agencies specialized in monitoring online content, e.g.:

                                                 TREND7


•   Companies / NPOs form special Internet-monitoring teams, e.g.:




•   Academic marketing research recognizes the opportunities:
     – Boush & Kahle (2001); Catterall & Maclaran (2001); Kozinets
       (2002); Maclaran & Catterall (2002); Lau, Lee, Ho & Lam (2004)
Underlying motivations

•   There is so much information out there.......
     – 11% of European Internet users contribute content
     – 10% of U.S. Internet users contribute content


•   Naturally occurring behavior

•   Unobtrusive observation

•   Continuous access to informants

•   Less time consuming, less costly, more timely than traditional
    methods
Major drawbacks

•   There is so much information out there…….
     – Where to begin?
     – Where to stop?


•   Lack of quality
     – Forum contributions after introduction of new depilatory cream:
        o “I don’t like it at all”
        o “I like it”
        o “It stinks”
     – Ca. 10% is truly informative


•   Reliability, validity, and generalizability
Monitoring methods


                     Using software to collect, analyze, and store consumer
Web mining           information

                     Scanning discussion forums and chat rooms to track
Signal detection     negative WOM / valuable feedback

                     Analyzing personal web pages to understand brand
Web page analysis    meaning/dedication and symbol systems

                     Analyzing online contributions to understand consumer
Discourse analysis   attitudes, opinions, motivations

                     Prolonged engagement in VC that allows for a deep
Netnography          understanding of consumer value systems & behavior
Monitoring issues


Online discussions are              Online discussions are
                           VERSUS
      PRIVATE                              PUBLIC




 Informed consent is                 Informed consent is
                           VERSUS
    NECESSARY                          UNNECESSARY




 Monitoring requires                 Monitoring requires
                           VERSUS
  DISCLOSURE                         NO DISCLOSURE
Ethical guidelines

http://www.aoir.org/reports/ethics.pdf



•   What ethical expectations are established by the venue?
     – The greater the acknowledged publicity of the venue, the less obligation there
       may be to protect individual privacy, confidentiality, and right to informed
       consent


•   Who are the subjects and/or interactions under study?
     – The greater the vulnerability of the subject, the greater the responsibility of
       the researcher to protect the subject


•   Informed consent: timing, medium, addressees, content
     – Timing, medium, and addressees are context-dependent
     – Make clear how material is used and how identities will be protected
Netnography

 Netnography is a qualitative research methodology
that has adapted etnographic research techniques
      to study the cultures and communities
            that emerge through CMC.

Formally introduced in 2002 by Robert V. Kozinets in
Journal of Marketing Research 39 (February): 61-72.

Entrée
Data collection
Analysis and interpretation
Research ethics
Case study objective

  Applying the method of NETNOGRAPHY
     to study the interaction dynamics
 between members in VC discussion forums


To analyze how online forum discussants
communicate with and influence each other


To gain insight in their discourse with respect to
the community’s focal consumption activities
www.smulweb.nl
• Dutch virtual community about culinary matters

   – Topics of interest: recipes, restaurants, food products,
     kitchen utensils, dieting, wine, etc.

   – Online since September 1998

   – More than 160,000 registered members; ca. 30,000
     unique visitors per month

   – Central theme pages, personal home pages, sub-
     communities, forums, chat, articles, reviews, tips

   – Off-line community gatherings
Smulweb’s discussion forums
                      Total     Average         Total
                   number of   number of     number of
                   discussion postings per   discussion
                 threads 2003    thread        starters

Culinary forum       558           24           136

Slimming forum       28            7            26

Wine forum           36            3            22

Q&A forum            260           7            184

Computer forum       90            6            66

General forum       1187           57           127
Netnographic method

•   Entrée in VC in September 2000
     – Start informal observation


•   Systematic review of all topics discussed in the six forums in
    2003

•   Purposeful selection of 53 discussion threads
     –   Topics that are regularly discussed
     –   Topics that generate ample postings
     –   Topics that are brought up by a variety of discussants
     –   Topics that address cooking and eating


•   Total research volume: 3161 postings / 82 discussants
Netnographic method

•   Iterative content analysis
     – Amassing, coding, comparing, and collapsing postings
     – E-profiles of the 82 contributors


•   Member feedback
     –   Entire netnography was posted to the VC
     –   VC-wide solicitation for feedback
     –   16 reactions (active discussants + lurkers)
     –   All positive and affirmative of analysis and interpretation


•   Ethics
     – Announcement in the forums
     – Personal web page in VC with information about research
     – Anonymity ensured by using pseudonyms
Main findings

    Heterogeneity discussants                 Discussion tactics

•    Shared interest                   •   Calling upon authority
•    Diverging opinions and behavior   •   Telling deviating behavior stories
•    Active learning and influencing   •   Contextualizing / justifying
                                       •   Confessing secret passions


       Discussion frames

•    Sharing knowledge
•    Negotiating norms
•    Opposing values
•    Celebrating similarities
Calling upon authority
“Shrimp croquettes with mustard, served on a sandwich. That
makes you want to cry!!!! From where do they get this nonsense?
And there are more untruths in the magazine.” (Amy)

“This so-called journalism that does not make any sense makes
me very angry. Shrimp croquettes with mustard? For heaven’s
sake!” (Brenda)

“I will certainly prepare your shrimp croquettes and I will mention
your name when everybody cries ooh and aah in delight.” (Julia)

“I am going to the market to buy shrimp. Funny what this forum
brings about.” (Brenda)
Stories about deviating behavior
“We ate several times at my parents-in-law, and I am sorry to say
so, but she really can’t cook. [She made] a stew with six kilos of
onions and only 300 grams of meat and she served it with mashed
potatoes and nothing else.” (Monica)

“I also have that kind of mother-in-law. My kids love her cooking, but
that is no surprise because she mixes everything with applesauce. I
really try hard not to eat there.” (Donna)

“I had a colleague who had a fixed weekly menu. They ate omelets
on this day, spaghetti with always the same ready-made sauce on
the next, then another day chicken with curry, et cetera.” (Brenda)

“Sometimes I see people doing groceries who buy a ready-made
mix and then only buy the extra ingredients suggested on the
package. Out of curiosity I often read the meal suggestion that is
given and then I feel sorry for the family that has to eat it.” (Monica)
Contextualizing
“Frozen foods are a solution when you have little time.” (Carol)

“I always have green peas and dill in the freezer, and, for an
emergengy, french fries too.” (Neil)

“Frozen foods are handy to keep in reserve and they are healthy
enough. The hospitals all use frozen foods, so why not?” (Harry)

“Nowadays, I buy meat in large quantities, because it’s cheaper. I
divide it in several servings and freeze it. It’s a solution for us,
because it’s more economical and I don’t have to pay a visit to our
expensive butcher everyday. I think it differs little in taste.” (Clair)
Confessing secret passions
“It is not that I wake up at night and engage in indecencies, but
eating late at night and then really gross, yeah, that I do. Just now,
1.30 A.M. I have ripped open the filet américain and ate it with
sweet-and-sour.” (Kevin)

“The later at night, the more gluttonous. I could easily make a
bouillabaisse at night. But I try to restrain myself.” (Brenda)

“I try to buy ‘wisely’ by choosing for these horribly delicious raisin
biscuits, and then I only take one. Or maybe two, no, three….
(Susan)

“My wife hides chocolate for me….. She thinks ☺” (Kevin)

“There is nothing better than food that is hidden.” (Emma)
Main findings

    Heterogeneity discussants                 Discussion tactics

•    Shared interest                   •   Calling upon authority
•    Diverging opinions and behavior   •   Telling deviating behavior stories
•    Active learning and influencing   •   Contextualizing / justifying
                                       •   Confessing secret passions


       Discussion frames                   Culinary value systems

•    Sharing knowledge                 •   Fresh versus ready-made
•    Negotiating norms                 •   Health versus enjoying bad food
•    Opposing values                   •   Simple versus dressed-up dishes
•    Celebrating similarities          •   …..
Conclusions
•   Netnographic research contributes to a richer and deeper
    understanding of the process of interpersonal influence online.

•   Netnographic research allows for in-depth study of a large
    number of consumers > smulweb case study: 82 discussants!

•   Netnographic research is limited to active VC members.

•   Netnographic research requires time and interpretative skills.


    IMMERSIVE   INTERESTING    INSIGHTFUL
        INCOMPARABLE    INDISPENSALBE
Thank you for your attention!

          Kristine de Valck
          devalck@hec.fr

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Using Netnography to Extract Knowledge from Online Consumers Conversations

  • 1. BSIUsing Netnography to Extract Knowledge from Online Consumers Conversations Marketing 2.0 Conference, Hamburg 2005
  • 2. BSI Join the conversation MARKETING 2.0 CONFERENCE Paris, France 28/29 March 2011 www.marketing2conference.com
  • 3. Virtual Community Intelligence: Using Netnography to Extract Knowledge from Online Consumer Conversations Kristine de Valck HEC School of Management - Paris devalck@hec.fr October 6, 2005 Hamburg, Germany
  • 5. Definition • Virtual communities of consumption “Affiliative groups whose online interactions are based upon a shared enthusiasm for, and knowledge of, a specific consumption activity.” (Kozinets 1999) Virtual community members may: – Obtain product information – Learn about the consumption activity in general – Give information and share experiences – Develop relationships
  • 6. Online consumer quotes • “Uncle Ben’s Pouch Rice is really easy and fast to use. Rip open the pouch, put it in the microwave, and: dinner time! It is a good product that is very suitable for those occasions when you don’t feel like cooking.” • “I really like lemon in my cola, but Coca Cola light lemon tastes completely unnatural. It is unappetizing. I suggest: drink your cola with a real slice of lemon!” • “The Pizzahut in Rotterdam has fast service and ok pizzas. The salad is bar is meager though.”
  • 7. Marketers turn to Netspionage • Rise of agencies specialized in monitoring online content, e.g.: TREND7 • Companies / NPOs form special Internet-monitoring teams, e.g.: • Academic marketing research recognizes the opportunities: – Boush & Kahle (2001); Catterall & Maclaran (2001); Kozinets (2002); Maclaran & Catterall (2002); Lau, Lee, Ho & Lam (2004)
  • 8. Underlying motivations • There is so much information out there....... – 11% of European Internet users contribute content – 10% of U.S. Internet users contribute content • Naturally occurring behavior • Unobtrusive observation • Continuous access to informants • Less time consuming, less costly, more timely than traditional methods
  • 9. Major drawbacks • There is so much information out there……. – Where to begin? – Where to stop? • Lack of quality – Forum contributions after introduction of new depilatory cream: o “I don’t like it at all” o “I like it” o “It stinks” – Ca. 10% is truly informative • Reliability, validity, and generalizability
  • 10. Monitoring methods Using software to collect, analyze, and store consumer Web mining information Scanning discussion forums and chat rooms to track Signal detection negative WOM / valuable feedback Analyzing personal web pages to understand brand Web page analysis meaning/dedication and symbol systems Analyzing online contributions to understand consumer Discourse analysis attitudes, opinions, motivations Prolonged engagement in VC that allows for a deep Netnography understanding of consumer value systems & behavior
  • 11. Monitoring issues Online discussions are Online discussions are VERSUS PRIVATE PUBLIC Informed consent is Informed consent is VERSUS NECESSARY UNNECESSARY Monitoring requires Monitoring requires VERSUS DISCLOSURE NO DISCLOSURE
  • 12. Ethical guidelines http://www.aoir.org/reports/ethics.pdf • What ethical expectations are established by the venue? – The greater the acknowledged publicity of the venue, the less obligation there may be to protect individual privacy, confidentiality, and right to informed consent • Who are the subjects and/or interactions under study? – The greater the vulnerability of the subject, the greater the responsibility of the researcher to protect the subject • Informed consent: timing, medium, addressees, content – Timing, medium, and addressees are context-dependent – Make clear how material is used and how identities will be protected
  • 13. Netnography Netnography is a qualitative research methodology that has adapted etnographic research techniques to study the cultures and communities that emerge through CMC. Formally introduced in 2002 by Robert V. Kozinets in Journal of Marketing Research 39 (February): 61-72. Entrée Data collection Analysis and interpretation Research ethics
  • 14. Case study objective Applying the method of NETNOGRAPHY to study the interaction dynamics between members in VC discussion forums To analyze how online forum discussants communicate with and influence each other To gain insight in their discourse with respect to the community’s focal consumption activities
  • 15. www.smulweb.nl • Dutch virtual community about culinary matters – Topics of interest: recipes, restaurants, food products, kitchen utensils, dieting, wine, etc. – Online since September 1998 – More than 160,000 registered members; ca. 30,000 unique visitors per month – Central theme pages, personal home pages, sub- communities, forums, chat, articles, reviews, tips – Off-line community gatherings
  • 16. Smulweb’s discussion forums Total Average Total number of number of number of discussion postings per discussion threads 2003 thread starters Culinary forum 558 24 136 Slimming forum 28 7 26 Wine forum 36 3 22 Q&A forum 260 7 184 Computer forum 90 6 66 General forum 1187 57 127
  • 17. Netnographic method • Entrée in VC in September 2000 – Start informal observation • Systematic review of all topics discussed in the six forums in 2003 • Purposeful selection of 53 discussion threads – Topics that are regularly discussed – Topics that generate ample postings – Topics that are brought up by a variety of discussants – Topics that address cooking and eating • Total research volume: 3161 postings / 82 discussants
  • 18. Netnographic method • Iterative content analysis – Amassing, coding, comparing, and collapsing postings – E-profiles of the 82 contributors • Member feedback – Entire netnography was posted to the VC – VC-wide solicitation for feedback – 16 reactions (active discussants + lurkers) – All positive and affirmative of analysis and interpretation • Ethics – Announcement in the forums – Personal web page in VC with information about research – Anonymity ensured by using pseudonyms
  • 19. Main findings Heterogeneity discussants Discussion tactics • Shared interest • Calling upon authority • Diverging opinions and behavior • Telling deviating behavior stories • Active learning and influencing • Contextualizing / justifying • Confessing secret passions Discussion frames • Sharing knowledge • Negotiating norms • Opposing values • Celebrating similarities
  • 20. Calling upon authority “Shrimp croquettes with mustard, served on a sandwich. That makes you want to cry!!!! From where do they get this nonsense? And there are more untruths in the magazine.” (Amy) “This so-called journalism that does not make any sense makes me very angry. Shrimp croquettes with mustard? For heaven’s sake!” (Brenda) “I will certainly prepare your shrimp croquettes and I will mention your name when everybody cries ooh and aah in delight.” (Julia) “I am going to the market to buy shrimp. Funny what this forum brings about.” (Brenda)
  • 21. Stories about deviating behavior “We ate several times at my parents-in-law, and I am sorry to say so, but she really can’t cook. [She made] a stew with six kilos of onions and only 300 grams of meat and she served it with mashed potatoes and nothing else.” (Monica) “I also have that kind of mother-in-law. My kids love her cooking, but that is no surprise because she mixes everything with applesauce. I really try hard not to eat there.” (Donna) “I had a colleague who had a fixed weekly menu. They ate omelets on this day, spaghetti with always the same ready-made sauce on the next, then another day chicken with curry, et cetera.” (Brenda) “Sometimes I see people doing groceries who buy a ready-made mix and then only buy the extra ingredients suggested on the package. Out of curiosity I often read the meal suggestion that is given and then I feel sorry for the family that has to eat it.” (Monica)
  • 22. Contextualizing “Frozen foods are a solution when you have little time.” (Carol) “I always have green peas and dill in the freezer, and, for an emergengy, french fries too.” (Neil) “Frozen foods are handy to keep in reserve and they are healthy enough. The hospitals all use frozen foods, so why not?” (Harry) “Nowadays, I buy meat in large quantities, because it’s cheaper. I divide it in several servings and freeze it. It’s a solution for us, because it’s more economical and I don’t have to pay a visit to our expensive butcher everyday. I think it differs little in taste.” (Clair)
  • 23. Confessing secret passions “It is not that I wake up at night and engage in indecencies, but eating late at night and then really gross, yeah, that I do. Just now, 1.30 A.M. I have ripped open the filet américain and ate it with sweet-and-sour.” (Kevin) “The later at night, the more gluttonous. I could easily make a bouillabaisse at night. But I try to restrain myself.” (Brenda) “I try to buy ‘wisely’ by choosing for these horribly delicious raisin biscuits, and then I only take one. Or maybe two, no, three…. (Susan) “My wife hides chocolate for me….. She thinks ☺” (Kevin) “There is nothing better than food that is hidden.” (Emma)
  • 24. Main findings Heterogeneity discussants Discussion tactics • Shared interest • Calling upon authority • Diverging opinions and behavior • Telling deviating behavior stories • Active learning and influencing • Contextualizing / justifying • Confessing secret passions Discussion frames Culinary value systems • Sharing knowledge • Fresh versus ready-made • Negotiating norms • Health versus enjoying bad food • Opposing values • Simple versus dressed-up dishes • Celebrating similarities • …..
  • 25. Conclusions • Netnographic research contributes to a richer and deeper understanding of the process of interpersonal influence online. • Netnographic research allows for in-depth study of a large number of consumers > smulweb case study: 82 discussants! • Netnographic research is limited to active VC members. • Netnographic research requires time and interpretative skills. IMMERSIVE INTERESTING INSIGHTFUL INCOMPARABLE INDISPENSALBE
  • 26. Thank you for your attention! Kristine de Valck devalck@hec.fr