COMMUNITY OF ORIGIN EFFECTS ON VIRTUAL BRAND COMMUNITIES PARTICIPANT

Abstract

The question about the effectiveness of companies in maintaining their own communities versus benefiting from the ones owned by consumers remains open. We examine differences between firm-managed and customer-managed brand communities regarding the impact of perceived psychographic homogeneity, availability of virtual avenues and relationship with the brand on the community's influence on members and the assessments and intentions of community participants. Data were obtained from 555 respondents in two leading Microsoft XBOX brand communities in Brazil. Results indicate that management of the community of origin is the moderator of all considered relationships. Also, the most favorable effects for the company occur in the community that is not directly controlled and managed by the company itself. Brand loyalty, however, is higher for members of the official brand community. Guidelines on how companies can benefit from consumer-managed communities are discussed.