Jun 24, 2004
reserach paper following part

beacuse blogdrive seems to have problems to publsih my whole paper ... here comes the rest of it ...

 

 

4. The perspective of Amazon.com

 

Amazon.com Inc. was incorporated in 1994 in Seattle, Washington, and since its “[…] opening for business as the ‘Earth’s Biggest Bookstore’ in July 1995, Amazon.com has become one of the most widely known, used and cited commerce sites in the World Wide Web (WWW)” (Gurbaxani / Shrikande, 1999, 1). Because it brought online-marketing and retailing to a new level it was called the ‘Wal-mart of the Internet’ (Gurbaxani/Shrikande, 1999, 1). Starting on the US Market with the online retailing of books and CDs, Amazon.com has become a global brand with online stores available in English (for Canada, USA and Great-Britain), Spanish (for the USA, Spain and South-America), French, Japanese and German (for Austria, Switzerland and Germany). The brand status of Amazon.com is now so valuable that it is placed in the Top Ten of companies with the highest ‘brand-value’ (see Tybout / Carpenter, 2001, 76).[21]

As it Gurbaxani / Shrikande figure out: “The principal competitive factors in Amazon.com’s market are brand recognition and customer focus” (Gurbaxani / Shrikande, 1999, 8). Both qualities are also visible in the customer reviews, because it is one strong part of the Amazon.com brand and embodies the customer-centric corporate philosophy of Amazon.com. In this chapter I will try to show what meanings the customer reviews can have, beyond this mentioned link between brand and corporate philosophy (a point which I will also further describe in chapter 4.2.). Now using the perspective of Amazon.com, the customer reviews play important roles in the realms of service, public relations and the process of brand loyalty, which I will analyse in the following chapters.

 

 

4.1. Service meaning

 

One thing in describing the qualities of customer reviews is so trivial, that you can easily overlook it, what happens in a few descriptions of this phenomenon: Customer reviews fill the blank space of the web site, Amazon.com itself had to fill otherwise. This was really an argument in the beginning of this online-retailing, as Robert Spector describes it: “[…] a more pressing reason was that Amazon.com Web site had all this white space to fill so it needed a way to generate more content” (Spector, 2000, 142). So the customer reviews has a simple spatial quality (or quantity) in the perspective of Amazon.com.

Writing all these reviews provides other customers a lot of information and helping guidelines by searching an appropriate product. How helpful these reviews are for following customers is shown in an extra column above the review (e.g. 4 of 5 people found this review helpful). So the customer reviews are also a kind of substitute for salesmen in the real world. It has an consultant function no real person or avatar could adequate fulfil for such an huge amount of products, Amazon.com offers. The knowledge of all customer reviews together presents a greater richness and quality about their products, that also the best companies salesmen could not present in such a big diversity. So the customer reviews are also pure information, something with what can be dealt on the Internet. So Suresh Kotha sees Amazon.com also as a kind of “information broker”: “The firm competes as ‘information broker’ for books and not just as retailer of books as do most physical bookstores” (Kotha, 1998, 216).  

All of these described effects can be placed in the service-sector of Amazon.com, where the customer reviews fulfil roles the customer service sector of Amazon.com had to fulfil otherwise.

 

 

4.2. Public relations meaning

 

Every new review, which is written on Amazon.com changes the site of the company and makes it interesting to return, because every time you come back the site has changed and is grown. This quality of a website is called ‘stickiness’, which is described by Holland / Menzel Baker: “[…] site stickiness is the ability to encourage customers to stay longer, navigate more deeply into a site and return more often” (Holland/Menzel Baker, 2001, 37). This site stickiness is a fact that is crucial for the success of a company, and it is reached in the case of Amazon.com also through the customer reviews.

In the beginning of the companies history (when the focus was exclusively on selling books and CDs) Amazon.com employed three book editors, who read book reviews, “[…]perused customers and reviewed current events to determine what books would be featured” (Spector, 2000, 141). Executive director Rick Ayre demonstrates the purpose of these employees for the image of the Amazon-brand in the following quote:

           

“If you spend a lot of time on the site, I hope you get a sense of the quirky, independent, literate voice, and that behind it all you’re interacting with people, and that it’s people who care about these things, not people, who are trying to sell you these things. My mantra has always been ‘the perfect context for a purchase decision’ (Spector, 2000, 141).

 

Now in 2004 the customer reviews are having this ‘quirky, independent, literate voice’ instead of Amazon.com employees. Customer reviews are making the products on Amazon (and simultaneously the whole company) more trustful, because the reviewers have no direct commercial goal to selling this or that article. Also as in the case of weblogs, trust is the crucial quality which makes the difference, and this is reached not through a corporate press release but through a “true voice” (see Dafermos, 2003,38 ff.) By letting the customers value, Amazon.com remains their image of neutrality, and authenticity. What is more reliable than a company which gives their public relations-tasks into the hands of critical customers?   

But the customers fulfil not only the roles to promote certain articles, but they also promote Amazon.com itself through writing customer reviews. Every review reflects back on the company, strengthens the customer-centric image of Amazon.com. Every written review, every registered reviewer promotes indirectly Amazon.com, because he or she accepts and supports through writing their way of business.

Founder and CEO of Amazon.com (which fulfils with his charismatic persona and his remarkable statements also a role in the brand) Jeff Bezos stresses in every given interview the great promotional importance of happy customers (especially in the online-market):

 

“Word-of mouth is even more powerful online than it is in the brick-and-mortar world because, as Bezos has said many times, in the real world, if you make a customer unhappy, he’ll tell five friends; if you disappoint a customer on the Internet, he’ll tell 5,000 friends – or maybe 50,000 friends. […] Happy customers will become evangelists for a company they like and will use the Internet as a megaphone to spread the world and help bring in new customers” (Spector, 2000, 136-137).

 

That this idea of promotion through happy customers works, can be seen on the Internet.[22] So all these tasks (stickiness, authenticity and promotion) show the great meaning of customer reviews for the realm of public relations.

 

 

4.3. Brand loyalty

 

All these public relations qualities lead direct to one of the most important thing within the online-market: brand loyalty.

“In general, brand loyalty is understood to describe characteristics of those consumers who have a strong commitment to a brand, because they view that a brand is being more satisfactory than alternatives and this evaluation is reinforced through repeated use” (Holland / Menzel Baker, 2001, 36) as it is defined by Jonna Holland and Stacey Menzel Baker.

This is of crucial importance in a so dense market as the one of online-retailing, or especially the online book industry:

 

“An analysis of the online book industry reveals that it is not difficult for a competitor to launch an online bookstore to compete with already established companies like Amazon.com. What is difficult is establishing and maintaining a loyal customer base. Considering the high buyer power and the large number of substitutes, attracting customers and keeping them is a challenge” (Gurbaxani /Shrikande, 1999, 8).

 

Because of the large numbers of competitors (e.g. in the book market BarnesandNoble.com or Borders.com), winning the brand loyalty of a customer is crucial.

Writing a review on Amazon.com, sharing the interest community, gaining status through being a top reviewer – all these factors are producing brand loyalty.[23] So Surest Kotha confirms in the year 1998: “It appears that these activities have promoted more loyalty among the firm’s customers. Currently about 40% of the book orders come from repeat customers (SEC, 1997).” (Kotha, 1998, 218).

This shows that the goal of Jeff Bezos and Amazon.com is reached:

 

“Bezos understood that there has always going to be people who will ‘flame’ a company on cyberspace bulletin boards and news groups, and that he couldn’t possibly hire enough people to monitor those sites and respond to the flames. But what he could do is build incredible customer loyalty so that when the company does screw up, there will be enough satisfied customers to come to its defence” (Spector, 2000, 137).

 

This customer loyalty to Amazon.com seems to be very strong, If you look in all these forums, discussion activities, ‘Friends & Favorites’ list around the web site of Amazon.com. Also a few examples of customer loyalty could be seen in history.[24]  And the starting point for all these activities which leads to this customer loyalty is the first step to participation with Amazon.com (except buying) the writing of customer reviews.

 

 

 

 

 

 

 

5. Conclusion

 

As I have shown in the last chapter, the customer reviews have a crucial meaning for a great realm of organisational sectors of Amazon. Customer reviews fulfil service and public relation tasks in providing content, information, authenticity, stickiness and promotion, and they strengthen direct and indirect the brand and customer’s brand loyalty. And all this work is done by two million customers. This great amount of helpful information is produced without any direct financial reward.[25] Customer reviews are after all unpaid work.

Nicole Schreiter in her dissertation Die Entdeckung des aktiven Kunden (2003) acknowledges this point in the case of Amazon.com (Schreiter, 2003, 1). This active client is not a new phenomenon, but exists already before the times of cyberspace:

           

“Dabei kann der aktive Kunde definiert werden als Konsument, der in seinen Leistungen gezielt in betriebliche Vorgänge einbezogen wird. Die Entdeckung des aktiven bzw. Produktiven Potenzials des Konsumenten ist keine Neuerscheinung” (Schreiter, 2003, 2).

 

Schreiter gives in her work a general overview about the active consumer theories and distinguishes between three different approaches: the level of society, subject and organisation. On the level of society none of the theories can describe the customer review phenomenon. On the level of subject / interaction does the theory of Mills / Morris (1986) fit in the point that it understands the consumer as partial employee:[26]

 

“Das Verständnis des Kunden als ‘Partial Employee’ (Mills/Morris 1986) verdeutlicht auch an dieser Stelle das Bemühen der Dienstleistungsorganisation, die Grenzen zwischen sich und dem Kunden aufzuweichen – den Kunden metaphorisch gesehen mit ins ‘Boot’ zu holen, um wiederum seine aktive Beteiligung auf diesem Wege zu steigern und erfolgreich zu beeinflussen” (Schreiter, 2003, 101).

 

This approach fits in the understanding that customers not only take part in an interactive process but really fulfil services or public relation tasks for Amazon.com by reviewing a product.

On the level of organisation theory of active consumers the theory of Schmid / Gouthier (1999)[27] is the only which really stresses the consumers valuing quality ans describes them as a kind of resources, as explained by Schreiter:

 

“Für die Dienstleistungsunternehmung gewinnt der aktive Kunde als Ressource eine zentrale Bedeutung um Wettbewerbsvorteile gegenüber anderen Dienstleistungsanbietern zu erzielen. […] Die Möglichkeiten der Kundeneinbindung reichen von der Phase der Ideen- und Designfindung bis hin zur Nutzung des Kunden als Produkttester” (Schreiter, 2003, 95)

 

But all these theories offered in the work of Schreiter only highlight one side of this phenomenon. These theories might fit for discount-market or online-banking, where the consumer has an more active part than before. But the great difference to these forms is that customer reviews have also valuable meanings for customers who write them.

These customers are seldom aware of the fact that they do unpaid work for Amazon.com, because the benefits they get through these reviews are more obvious to them. So customer reviews have a crucial value and meaning for both sides of the participatory process. And such an “opportunity” offered by Amazon.com, where both sides profit seems to be a really good deal.

 

6. Bibliography

 

  • Admati, Anat R. / Pfleiderer, Paul (2001): Noisytalk.com: Broadcasting Opinions in a Noisy Environment

http://gobi.stanford.edu/ResearchPapers/Library/RP1670R.pdf

  • Carpenter, Gregory S. / Tybout Alice M.. (2001): Creating and Managing Brands. In: Iacobucci, D. (ed.) (2001): Kellog on Marketing. John Wiley & Sons, Inc, New York, p.74-102
  • Dafermos, George N. (2003): Blogging the Market: How weblogs are turning corporate machines into real conversations

http://opensource.mit.edu/papers/dafermos3.pdf

  • Gurbaxani, Virjay / Shrikande, Aarti (1999): Competing in Book Retailing: The Case of Amazon.com

http://www.crito.uci.edu/itr/publications/pdf/AMAZON.PDF

  • Holland, Jonna / Menzel Baker, Stacey (2001): Customer Participation in Creating Site Brand Loyalty. In: Journal of Interactive Marketing, Volume 15, Number 4, Autumn 2001, p.34-45

http://uwacadweb.uwyo.edu/smbaker/Customer_participation_site_brand_loyalty.pdf

  • Kotha, Suresh (1998): Competing on the Internet: The case of Amazon.com. In: European Management Journal, Volume 16, Number 2, April 1998, p.212-222
  • Krishnamurthy, Sandeep (2002): Case Study #1. Amazon.com – A Business History in E-Commerce Management: Text and Cases

http://faculty.washington.edu/sandeep/d/Amazon.pdf (while writing was the ULR deleted)

  • Lessig, Lawrence (2001): The Future of Ideas: The Fate of the Commons in a Connected Wold. Random House Books, New York
  • Reimerdes, Gesine (2001): Amazon: Markenaufbau im Internet In: Riekhof, Hans-Christian (ed.) (2001): E-Branding-Strategien: Mit Fallstudien von Amazon, Dell, Eddie Bauer und Otto sowie Konzepten von Boston Consulting, Elephant Seven, Grey, IFM, Scholz & Friends und Unykat, Gabler, Wiesbaden
  • Schreiter, Nicole (2003): Die Entdeckung des aktiven Kunden: Eine Untersuchung zur Thematik der produktiven Beteiligung des Konsumenten am Dienstleistungsprozess im Kontext des sich wandelnden Konsums

http://archiv.tu-chemnitz.de/pub/2003/0118/data/Diplomarbeit_AKO.pdf

  • Spector, Robert (2000): Amazon.com: Get Big Fast. Random House Business Books, London/Sydney et al.
  • Subramani, Mani / Peddibhotla, Naren (2004): Quantity and quality: Understanding contribution of knowledge to public document repositories
http://misrc.umn.edu/workingpapers/fullpapers/2004/0416_050304.pdf


[1] This anonymity is one of the points which causes a lot of critique about this reviewing system, as it is described by John Spector: “Anonymity is the part of the reviews that a lot of authors and publishers dislike, because it makes it too easy to sabotage and slander other peoples work in a very visible and public way”(Spector, 2000, 143). But also the other possibility of “hyping” your own work through yourself and friends is possible.

[2] As described by Robert Spector, by quoting Glenn Fleishmann, the catalogue manager of Amazon.com, the corporate philosophy on customer reviews was “Attack ideas, not people”(Spector, 2000, p.142). Therefore it is completely forbidden to attack the authors or writing anything obscene or offending. If reviews not conform to these guidelines they are not posted or offending words are replaced through three dots. Grammar, misspelling, typos etc. were not corrected (my information about these guidelines relate mainly to the description of Dennis Littrell see: http://www.amazon.com/exec/obidos/tg/cm/member-glance/-/ABN5K7K1TM1QA/ref=cm_tr_trl_bio_17/104-2970388-4395169?see-more-desc=1 (22.06.2004) 

[3] They use 1000 profiles of Amazon.com reviewers and analyze this qualitative data following the techniques of open coding and axial coding advocated by Strauss & Corbin (1990) (Subramani / Peddibhotla, 2004, 10). My research, which includes also the perspective of Amazon.com focuses only on the profiles of the Top 50 reviewers without using coding techniques (caused by reasons of the volume of this research paper).

[4] See: Hutchby, I. (2001): Conversation and Technology from the Telephone to the Internet, Polity Press

[5] Bowman, Shayne / Willis, Chris: We Media, Chapter 4: The rules of participation (http://www.hypergene.net/wemedia/weblog.php?id=P40) 22.06.2004

[6] One random example which shows the great diversity of interests and favors:

http://www.amazon.com/exec/obidos/tg/cm/member-glance/-/A16QODENBJVUI1/ref=cm_tr_trl_bio_43/104-8696185-4599913?see-more-desc=1 (22.06.2004)

[7] A community which does not only exist online, but also meet in the real world, as in the case of the meeting of the top reviewers of Amazon com. (see http://seasonedwithlove.com/from_the_desk_of_rebecca.htm) (22.06.2004)

[8] Beyond that bulletin boards are offered by Amzon.com to give reviewers and their referent groups a forum to communicate outside the reviewing realm (Subramani / Peddibhotla, 2004, 9).

[12] e.g. “My mission is to provide Amazon customers with honest, unbiased (I hope) assessments before they buy”( http://www.amazon.com/exec/obidos/tg/cm/member-glance/-/A2EENLV6OQ3DYM/ref=cm_tr_trl_bio_28/104-8696185-4599913?see-more-desc=1) (22.06.2004)

[14] On the German webpage Amazon.de the company raffles 50 € for people who write the first review of a new or a still not reviewed product.

[16] “Why are my reviews all positive? Easy, I don't post negative reviews. That is not to say that I have not wasted my time on some pretty awful books because I have. I have simply chosen to only post the positive ones so that you can quickly scan my list of reviews and know that if it is really bad it is not even there getting in your way. I assume you are looking for a good book and not for a bad one!” (http://www.amazon.com/exec/obidos/tg/cm/member-glance/-/A1T6PXM2M3N84A/ref=cm_tr_trl_bio_19/104-8696185-4599913?see-more-desc=1) (22.06.04)

“Part of the pleasure of this experience is being able to say something nice about a book someone has put their heart and soul into. If I don't like your book (for whatever reason) I just won't write a review” (http://www.amazon.com/exec/obidos/tg/cm/member-glance/-/ABN5K7K1TM1QA/ref=cm_tr_trl_bio_17/104-8696185-4599913?see-more-desc=1) (22.06.2004)

[17] This propagandistic meaning of customer reviews is actually discussed, as an error in the computer system of the Canadian webpage of Amazon showed that the author John Rechy uses the possibility of anonymous reviewing to write enthousiastic reviews about his own books (see:  http://www.netzeitung.de/voiceofgermany/282240.html) (22.06.2004)

[18] Bowman, Shayne / Willis, Chris: We Media, Chapter 4: The rules of participation (http://www.hypergene.net/wemedia/weblog.php?id=P40) (22.06.2004)

[19]  http://www.amazon.com/exec/obidos/subst/community/reviewers-faq.html/ref=cm_tr_trl_faq/104-2970388-4395169 (22.06.2004)

[20] http://www.amazon.com/exec/obidos/tg/cm/member-glance/-/A1MJMYLRTZ76ZX/ref=cm_tr_trl_bio_38/104-2970388-4395169?see-more-desc=1 (22.06.2004)

[21] The annual turnover reached in 2003 a value of 5,3 billion US Dollars (+34 % / 2002), with an annual profit of 35 million US Dollars and a sales value of 2 billion US Dollars from the foreign business. (source: http://www.spiegel.de/wirtschaft/0,1518,283850,00.html) (22.06.2004)

[22] e.g.: http://www.bunker306.com/amazon/amazon.shtml (22.06.04)

[23] An other important fact is the personalised system of recommendations, including a collaborative filtering system which exactly defines your taste in books, music etc. and informs you about new articles which fit in you taste scheme. So someone, whose taste was analysed for a long time and to whom are always offered the right products, won’t change as easy to a competitor, where this filtering process would start from the begin on.

[24] “For example, in early 1997 Microsoft’s online magazine Slate conducted an ordering test to see who could deliver a hot-seller faster – Amazon.com or a local Seattle book store. The store won, but loyal Amazon.com customers besieged Slate with flame mail and defended Amazon.com against the criticism. The Amazon.com PR department had intended to reply to Slate, but discovered they didn’t have to, because the customers did it for them” (Spector, 2000, 137).

[25] Exceptions are the few awarded prizes and the lottery system for the first customer reviews, but this is not one of the basic motives for participation, as I showed in chapter three.

[26] Schreiter refers to the following article: Mills, Peter K. / Morris, James H. (1986): Clients as “Partial” Employees of Service Organisations: Role Development in Client Participation. Academy of Management Review, Volume 11, Number 4, p.726-735

[27] Schreiter refers to the following article: Schmid, Stefan / Gouthier, Matthias H.J. (1999): Dienstleistungskunden – Ressourcen im Sinne des resource-based-view des Strategischen Managements? In: Diskussionsbeiträge der Wirtschaftswissenschaftlichen Fakultät Ingolstadt, Volume 131, p.1-13


Posted at 01:06 am by Jani
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"I review Therefore I am" An analysis of the different meanings of customer reviews on Amazon.com

Index

 

1.       Introduction                                                                  2

2.         The customer reviews on Amazon.com                                               3

3.         The reviewer perspective                                                                    4

3.1.      Meanings that create a value for a community                          6

3.1.1.   Reviews as community builders                                                           6

3.1.2.   A medium for sharing experiences                                                       7

3.1.3.   Altruistic meaning                                                                               8

3.2.      Meanings with individual values                                                           9

3.2.1.   Meaning of training                                                                             9

3.2.2.   Financial and promotional meaning                                                      10

3.2.3.   Status                                                                                                 11

4.         The perspective of Amazon.com                                                         12

4.1.      Service meaning                                                                                  13

4.2.      Public relations meaning                                                                      14

4.3.      Brand loyalty                                                                                      16

5.         Conclusion                                                                                         18

6.         Bibliography                                                                                       20

 

 

 

 

 

 

 

 

 

 

 

 

1.     Introduction

 

Amazon.com, one of the greatest online-retailers worldwide was founded by Jeff Bezos with the idea “[…] to make Amazon.com ‘the most customer-centric’ company in history” (Spector, 2000, p.136).  Since the enterprise was build in Seattle and started with the online-selling of books and CDs the customer-friendly idea stands in the focus of the whole organizational branding and marketing strategy of this company. On the Amazon website a lot of tools like a system of recommendations or private wish lists seek to create a sphere of a total new and completely personalized shopping experience. “Preference-matching engines are constantly gathering data about what I buy and what others buy; Amazon adds to that data preferences that I express”(Lessig, 2001, 132) is this system of described by Lawrence Lessig, who states: “But I doubt any of your friends know your tastes in music and books as well as Amazon knows mine“(Lessig, 2001, 132).

One of these options for a personal use Amazon.com offers is the possibility for customers to write own product reviews. So every registered customer of Amazon.com can write reviews about any article which can be bought via Amazon.com. Whether these are books, movies, clothes, computers or kitchen utensils, everything can be critically commented by everyone.

In this research paper I want to focus on these customer reviews and their different meanings they can have in different contexts. After describing the ‘phenomenon’ itself and how it is organized I will examine, what kind of qualities these reviews have for the people who write them. After that I will change the perspective from the customer to the organizational site of Amazon.com. I will describe what values and meanings the written reviews offer to the organizational site and how this ‘unpaid work’ of the customers can be seen in the terms of the organization and marketing context. Finally I am going to compare these two different realms of meanings of customer reviews and will try to place it in short in the general discussion of active consumer theories.

2. The customer reviews on Amazon.com

 

To every product, which can be bought on Amazon.com can be written a personal review by every customer who feels free to. The number of reviews is not limited and with this constant changing content, Amazon.com repositories attract over 14 million users every month (Subramani / Peddibhotla, 2004, 9). At the moment Amazon.com has nearly two million volunteer reviewers,(Subramani / Peddibhotla, 2004, 2) and except special awarded cash prizes for customer book reviews (Spector, 2000,142) the writing is completely uncompensated. Customers has to register, but can review anonymous[1], reviews are limited to 1000 words and they have to follow the editorial guidelines of Amazon.com.[2] The reviews are moderated and censored by a small group of Amazon.com-editors (Subramani / Peddibhotla, 2004, 9) and a computer system. Beneath a textual review, customers can rate products on a five-star scale and can comment on how useful other customer reviews have been to them. Instead of giving a kind of reward (see above), Amazon honors the voluntary reviewing work through a kind of ranking, which is described by Subramani / Peddibhotla: “[…] Amazon ranks reviewers using a composite of the number of reviews submitted and the average number of helpful votes received by reviews”(Subramani / Peddibhotla, 2004, 9).

 

 

3.     The reviewer perspective

 

This described ranking system which offers customers the possibility to describe themselves and their motivation is one of my basic sources for this chapter to describe and understand the different meanings of customer reviews. Subramani / Peddibhotla, who use the same source for their research, explain what the content of such reviewer profiles is:

 

“The profiles contained rich personal details that contributors revealed about themselves. This often included personal details such as where they lived, how old they were, details about their families and pets, descriptions of their professional careers, information on their hobbies, their interest, their passion and pet peeves, the factors motivating them to write reviews, personal life history, their favorite books and the music that they liked”(Subramani / Peddibhotla, 2004, 9).

 

The level of information differs and some reviewers choose to stay anonymous, hidden through a nickname and an impersonal email-address.

Using this information I will try to define the meanings of these reviewers for the participating customers. I use the research Mani Subramani and Naren Peddibhotla have done, but my approach differs a little. Subramani / Peddibhotla examine in their analysis Quantity and quality: Understanding contribution of knowledge to public document repositories the motivation of users of Amazon.com to write customer reviews and seek answers to the question, what the quality of contribution drives.[3] Using this analyzed motivations my research will, in comparison to Subramani / Peddibhotla, shift the perspective and focus on the review itself. Comparable to the theory of affordances, Hutchby uses for media theory[4], I will try to describe the customer reviews as a kind of “medium” providing different meanings and values in different contexts. Leaving the personal perspective (motivation) and shifting to a model which put the object (customer reviews) in the centre and throwing light on its different meanings by changing the perspective, offers the great advantage, that these meanings are easier comparable to each other. If I concentrate on “customer reviews” the object has many facets, but remains stable, instead of focusing on motivation, which would change the whole condition of the model by shifting to other perspectives (as e.g. the company side).

As it is mentioned in the work of Subramani / Peddibhotla, the recognition of values of those public online repositories has taken place in scientific research, but there has been until now little effort to understand these motivational aspects of this phenomenon (Subramani / Peddibhotla, 2004, 2) In the most articles about this phenomenon it is understood as an “emotional benefit” (Reimerdes, 2001, 243), gained through this form of participation. Only a few works in online-research try to describe the motives behind the participation in general. Amy Jo Kim using the offline-theories of Abraham Maslow offers in her book Community Building on the Web (2000) a general description of possible motives, which is summarized by Chris Willis and Shayne Bowman:

 

“Viewed in this context, we can assume that people are motivated to participate in order to achieve a sense of belonging to a group, to build self-esteem through contribution and to garner recognition for contributing; and to develop new skills and opportunities for ego building and self-actualization”[5]  

 

Using this bunch of motivations to understand the meanings of customer reviews leads to my two basic groups of meaning within this reviewer context: meanings that create a value for a community (e.g. writing a review to help other customers) and meaning that only has individual values for the reviewer. I hope that this basic distinction helps to define clearer the meanings of customer reviews on Amazon.com. I will start with the more obvious meanings, which includes values for users around the Net (the basic idea of the use of the Internet).

 

 

3.1.         Meanings that create a value for a community

 

3.1.1. Reviews as community builders

 

Basically, writing customer reviews brings opinions of people together, who have read the same book, listened to the same CD or watched the same film. This brings people together, who have some special interests or experiences in common and link them through a special reviewed subject.

As I can only assume, these links brings people together who would not normally search for a special community to this topic otherwise. Because of the fact, that a lot of reviewers have a broad range of interests[6], the reviews offer a link to other people around the world (in the case of Amazon.com mainly around the USA) who have joined the same product. This creates “a sense of community” (Spector, 2000, 141-142).[7] The growing content of this community of interest leads to a ‘virtuous cycle’, a kind of inner-community development, as it is described by Suresh Kotha:

 

“As this content growths, it attracts others to add to the richness of the mix, thus creating a virtuous cycle […]. In essence this is an explicit attempt to create a community around the needs for transaction” (Kotha, 1998, 217).

 

But the reviews are not only the starting point for this community of interests, this whole development is further fostered by Amazon.com through additions, described by Subramani / Peddibothla:

 

“Amazon.com allows a reviewer to develop and track a referent group by creating a ‘Favorite People’ list. When one of those people in this list writes a review or recommends something, Amazon puts it in the individual’s customized ‘Friends and Favorites’ home page. This allows the reviewer to keep track of members in his or her referent group and their opinions” (Subramani / Peddibothla, 2004, 9)[8]

 

So Amazon.com is not only an online-retailer, but also a starting point for finding the right community related to a favorite interest, or as it one reviewer literally describes: “Amazon is the true virtual book club”.[9]

 

3.1.2. A medium for sharing experiences

 

One subject closely linked to the idea of reviews as community builders is the sharing of experiences via reviews. Maybe you define this as an special point within this community-context (chapter 3.1.1), but I think this has not to be in every case, because “lurkers”, who just read without any other kind of participation can also share these experiences via reviews, although they are not a part of the community of interest.

This point of shared experiences is stressed by Amazon.com to find new participants (Gurbaxani / Shrikande, 1999, 11) and the reactions and descriptions from customers show, that this meaning of customer reviews is a strong argument for participation, e.g. as it is mentioned by reviewers: “[…] I am delighted to share what has always been a solitary experience with other people”[10], or “To know you share a love of a certain author, painter or musician is almost intoxicating at times”[11]

 

 

3.1.3. Altruistic meaning

 

Reviewing on Amazon.com is, except a few awards, a voluntary, uncompensated job (see chapter 3.2.2.). One of the key factors for describing volunteering is the term of altruism, “[…] defined as helping without expecting a direct reward” (Subramani / Peddibhotla, 2004, 5). The motivating element behind this is empathy, which is “[…] identified as a key antecedent of the altruistic motive […] which in turns leads to helping”(Subramani / Peddibhotla, 2004, 6).

Writing a customer review can have this altruistic quality: you can share your experiences and help in this way other customers trying to find the appropriate product. Customer reviews can highlight interesting niche products or warn customers who have wrong associations or assumptions about an article. In the self-description of the reviewers the altruistic motive is a strong one for their writing.[12] This altruistic meaning is in my definition a very wide category, because it sums up the wish to help, but also the helping quality it offers to the readers. It contains the aspect of reciprocity, too (the wish to help, after reading a helpful review), which is treated as an extra category by Subramani / Peddibhotla (Subramani/Peddibothla, 2004, 12).

 

 

 

3.2.         Meanings with individual values

 

Subramani / Peddibothla focus in their analysis on the customer’s motivation to write reviews on reasons, which can be placed in the wide realm of altruistic motives (e.g. empathy, reciprocity etc.). So it comes as no surprise that their definition of contribution focuses mainly on social characteristics, which finally produces benefits for a whole community. They state: “[…] repository contribution therefore represents uncompensated volunteering by individuals for the benefit of others” (Subramani / Peddibothla, 2004, 3).

To acknowledge this definition would neglect the fact, that customer reviews can also have three important meanings which are only valuable for the writers themselves, which I want to discuss in the following chapters.

 

 

3.2.1. Meaning of training

 

To write a review offers a kind of training qualities to the writers. As reviewers state, the writing sharpens thoughts by articulation or the limitation on 1000 words can help to sum up complicated connections.[13]

This shows “[…] that the activity of contributing a review an individual can improve one’s writing skills, organize and clarify the content of one’s thoughts about the subject, and provide an avenue for enjoyment”(Subramani / Peddibothla, 2004, 12-13). These training abilities are provided through the reviews on Amazon.com, because everybody can be a reviewer on this webpage. And in comparison to training at home for yourself Amazon-reviewers can clearly see how good their reviews are, through feedback or ranking of reviews in terms of helpfulness.

 

3.2.2. Financial and promotional meaning

 

First of all, customer reviews on amazon.com has a, although a very tiny, financial quality. Amazon.com awarded cash prizes for the best customer book reviews (Spector, 2000, 142)[14]

But more important is the promotional quality of customer reviews, which leads to a propagandistic benefit. If you look at the backgrounds of the Top 50 reviewers it is conspicuous that there are a lot of free-lance reviewers, authors, consultants or journalists. Their reviews lead to their profiles, where they promote own books or services.[15] A lot of reviewers try to put links to their own weblogs or homepages in their profiles, although it is forbidden by Amazon.com to use hyperlinks.

This promotional quality is not limited on profiles, but also the customer reviews itself are a pure medium of propaganda. Customer reviews on Amazon.com are mainly a promotion of something the author likes, and it is striking, that the five-star ranking (as the highest possible ranking) dominates the ranking practice, as it is clearly shown in the work of Admati / Pfleiderer (Admati / Pfleiderer, 2001, 1). The reviewers themselves explaining this behavior in different ways, but always with the same message.[16]

So these exclusive positive reviewing speaks also against an dominant altruistic approach, because only reviewing good things does not help other customers to protect against worse products. So this promotional meaning of customer reviews is one which shows clearly the exclusively individual value for customers for purpose of promotion or propaganda.[17]

 

 

3.2.3. Status

 

For Bowmann /Willis who  are trying to describe the possible motivations for participation in their research work of We Media, the key factor is gaining status or building reputation in a given community. This thesis is stressed by quoting Howard Rheingold (on his book Smart Mobs): “For some the ego-driven surface of this motivation is more practical underneath – people want to establish themselves as an authority on a subject”[18]

Writing an review about a special product obtains authority on this subject, because if you can review something you obviously have the quality to value. Also Subramani / Peddibhotla acknowledge this status meaning: “The possibility of recognition as a value reviewer represents the only formal incentive offered to contributors” (Subramani / Peddibhotla, 2004, 9) The status of the reviewer is strengthened through the whole reviewer ranking system Amazon describes as it follows: “The Top Reviewers list is our way of honoring the individuals whose honest, intelligent reviews help make Amazon.com a great place to shop”[19] This status meaning, as mentioned above, includes here the qualities to judge and value. Giving the customers the power to value products is according to Chris Locke (who is quoted by George N. Dafermos in his paper Blogging the market) the greatest innovation Amazon.com has brought to the Internet (Dafermos, 2003, 31).      

So if you write the first review, you simultaneously define its value and can be an opinion leader within this community of interests. These status meanings can be traced back to the comments of the Top Reviewers of Amazon.com. Writers mention the experience of rewriting something completely new and one reviewer under the nickname “Magellan” sees himself as a “true navigator through the world of knowledge”.[20]

These meaning of customer reviewers for maintaining or gaining a certain expert status highlights once again the individualistic character customer reviews can have and shows clearly the weakness of an only altruistic approach of online participation in the case of customer reviews.

 

 

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Jun 5, 2004
questions and answers for session 8

Lasica, J. (2003): Blogs and Journalism Need Each Other (Nieman Reports, Fall 2003)

 

My question: How does Lasica places the Weblogs in the great context of news and journalism? And how great is their importance?

 

Answer: Lasica sees Blogs not as a competitor to other kind of news in the realm of journalism. He stresses the point that the distinction whether they are journalism or not is not the goal of his article: “We need, then, to stop looking at this as a binary, either-ort-choice. We need to move beyond the increasingly stale debate of whether blogging is or isn’t journalism and celebrate Weblogs’ place in the media ecossystem” (p.73). This statement shows that a Lasica sees Blogs as something radically new, not simply comparable to the form of traditional journalism. It is not a new kind of journalism, but a way with a mostly non-professional background, a favour for niche-themes and written only caused by ideological and not economic reasons. So it’s nothing radical new (because they appeared a lots of independent newspapers or tv-stations  before, but new technology offers now more possibilities to spread and guarantee a greater public awareness). Lasica stresses the point that it is nothing in opposition to traditional journalism because their underlying common idea is information and they share the same “rules”: “The conventions of journalism  - accuracy, credibility, trustworthiness and being straight up with your readers – are guideposts that any good blogger engrave on her wall” (p.73). In this sense the importance of blogs is limited, they can people make aware that a lots of other stories and meanings of happenings exist outside the world of tradition journalism, but in the end they are only just one new tool in the great realm of journalism. They are an addition and at the end nothing more or less than a supplement: “Blogs won’t replace traditional news media, but they will supplement them I important ways” (p.74). 

 

 

Gillmore, Dan (2003): Moving Toward Participatory Journalism (Nieman Reports, Fall 2003)

 

My question: Gillmore in comparison to Lasica, is more enthusiastic about the importance and power of journalistic blogs in the general development of news. He sees a bright future for this new way of journalim, but what  is the weak uncertain point in his argumentation?

 

Answer: The problem I see in the vision of Gillmore is that he doesn’t take the role of the user into the account. His text is written from his point of view, as a journalist seeing the new opportunities for trustworthiness, contact to the readers and offering “forgotten” stories and approaches. As he stresses it, this model of Blogs is a new form of a more communicative way of journalism:  “In an era when the public has a pervasive distrust of journalists, listening strikes me as a good way to improve our relationship with the audience” (p.80). In the sense of Gillmore Blogs offer all these qualities, and he sketches an optimistic vision of this new kind of journalism: “I’m optimistic however, largely because the technology will be difficult to control and because people like to tell stories” (p.80). And that  is the importance and simultaneously the weakness of his whole argumentation. It’s maybe true that people like to tell stories, but do they also like to listen to stories. In this point Gillmores argumentation is only one side of the coin. Because of the existing possibilities to hear a lot of different stories and independent voices it is not automatically said that people would prefer these new form of journalism instead of tradition tv- or newspaper-journalism. To create a whole new way of journalism (and not just an supplement as stated by Lasica) people who not just write weblogs are needed, but also people who want to read all this stuff, because without a readership who accepts this it is to my mind not a new journalistic form but only a simple uncontrolled output of stories and opinions whirring through the great endless cyberspace without echoes and importance.

 

 

Middelaar, Luuk van (2003):  On Logos and Grassroots: The Anti-Globalisation Movement Between Morals, Economics and Politics

(see http://www.cne.org/pub_pdf/032003_luuk_grassroots.pdf)

 

My question: On which “levels” (argumentation, ideology, definition etc.) are laying the basic weaknesses of the anti-globalisation movement, according to van Middelaar?

 

Answer: One of the basic problems  van Middelaar sees in the whole context is the question of defining “globalisation”. This term causes a lots of problems and misunderstandings, because anti-globalisation movements don’t criticise the fact that cultural values spread across the world or boundaries disappear, but just only globalisation activities which touches economical aspects. As van Middelaar points it out, the term isn’t very well chosen and more confusing, because it contains a contradiction in itself. Without globalisational efforts (Internet, global community etc.), anti-globalisation development in this form wouldn’t exist, people wouldn’t meet and there wouldn’t exist a public awareness of organisations such as attac. This weakness is definition, which contains a contradiction causes a lot more problematic points. But focusing on just the economic side of the problems causes a lot of new problems instead. The anti-globalisation movement which criticises  capitalism and economic global influences is based on the same principles: “There is no way out of the world of money, not even for the people who think they’re fighting against it” (p.20). So the whole general argumentation against capitalistic development contains a fundamental contradiction within itself. So it came as no surprise that Klein’s book against brands paradoxically became a kind of brand itself. But the problems of this movement are not only lying on the levels of definition and ideology, but also (caused by the weaknesses on the two levels before) on the level of argumentation. Because the focus on ideology is not well chosen and full of contradictions it prevents a clear and logic argumentation, which acknowledges both sides of the problem. So, as van Middelaar points it out, the way of argumentation of the anti-globalisation approaches are always polemic and short-sighted in itself: “But all to often in ‘the Movement’ , moral indignation springing from a prima facie division in rich and poor takes place of athorough analysis of the problem” (p.36). So this weaknesses and contradictions on this three levels are the main problems of the whole development.  

 

 

 

Warde, Alan (2002): Production, consumption and ‘cultural economy’ In: du Gay, Paul / Pryke, Michael (2002): Cultural economy: Cultural analysis and commercial life. Sage Publications, London / Thousand Oaks / New Dehli, p. 185-200

 

My question: What is according to Warde the problem in reflecting the aesthetic component of consumption?

 

Answer: The aesthetic component is brought into discussion by the theory of Celia Lury in her book Consumer Culture (1996): Lury states that there are symbolic and cultural aspects of consumption which has leaded to a ‘stylization of consumption’. This aesthetic quality is of great importance for Lury’s whole understanding of consumption: “It is this, stylization and aestheticization , and not just the existence of consumer ethic or attitude, that characterizes consumer culture” (p.192). In the distinction, Warde opens up through the use of Williams threefold use of the term ‘culture’, Lury uses the third approach (culture (iii)), in the form of a cultural culture. The importance of this “cultural” influence is basically for Lury: “Thus, consumer culture is defined by aestheticization and stylization,a s generated through ‘the art-culture system’, and is illustrated by the dual movement of the increase of cultural goods produced in the economy and of economic forces operating on culture” (p.192). According to the opinion of Warde this is an overestimation of the aesthetic influence on consumption, because of two basic reasons. The first argument is, that  consumption behaviour is driven more than by just aesthetic considerations, you simply need consumption of basic goods. The second argument Warde uses is that consumption fulfils the role of work as of passive entertainment. Consumption is nothing special aesthetic: “A good deal of consumption is characterized less by its meaningfulness than by its taken-for-granted ordinariness” (p.193).

Finally Warde mentions that “aesthetic orientation is a necessary attribute of the use of cultural goods” (p.198) but there exists a underlying danger to exaggerate the importance of the component within this whole consumption context.

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Jun 1, 2004
questions and answers for session 7

Tybout, A. / Carpenter, G. (2001): Creating and Managing Brands In: Iacobucci, D. (ed.) (2001): Kellog on Marketing. John Wiley & Sons, Inc., New York

 

My question: Why does the image of the “one” universal customer not fit in the brand-model that is used by Tybout and Carpenter?

 

Answer: First of all the importance of the customer is very important if you speak about brands, whether they are national or global. The value of brands leads directly to the profits of the enterprise: “The power of brands with consumers translates directly into profits for those who own them” (p.75). The brands connect the company values and the customers: “In sum up, brands serve as a bridge between company and its customers – they are symbols of the value that the company creates” (p.101). But stressing this image there is not one bridge which guides the customer to the specific bunch of company values, but there are a wide range of bridges from different sides which offer the customer an possible approach to the product behind the brand. As Tybout and Carpenter stress in their article, there are three types of brands: the functional, image and experiential brands. Everyone has different qualities and needs special forms of advertisement and tools to maintain their brand quality. What also differs between these three types (the boundaries are blurring, so a functional brand can become a  experiential brand, as shown in  the case of Volvo) is the level of involvement of the customer. Functional brands are working with the factors of quality, price, place, service etc. which are nearly the same for every customer. If an image brand is created the involvement of the customer is needed, because if the customer doesn’t want to accept the underlying associations and images to connect them to the brand name, the brand only functions on the production level again. But the highest involvement of the customer is needed to create experiential brand, because without the participation of the customer the whole brand fails. So it comes not as a surprise, that the new medium of participation, the Internet fosters the creation and maintaining of brands such as the Star Trek experience (p.96). Tybout and Carpenter state: “Whatever the brand and product category, heavy users of it are likely to be more emotionally involved and, thereby view the brand as having more image or experiential characteristics than do light users of the brand” (p.97-98). So the brand is nothing stable, but something which differs related to the level of involvement of customers. So these fluid definition of brands is something closely related to a specific customer, not a general group or the ‘one’ customer.  

 

 

 

Dafermos, G. (2003): Blogging the Market: How Weblogs are Turning Corporate Machines into real Conversations (See: opensource.mit.edu/papers/dafermos3.pdf

 

My question: What does the mushroom growth of weblogs say about social developments in cyberspace?

 

Answer: The Internet is a space without real bodies and identities. Avatars and Nicknames offers less information about the real user you are communicating via Chat, ICQ, guestbooks etc. The development and success of personal weblogs seems to indicate that there is s kind of trend to personality. The customer reviews on Amazon.com, the discussed book-tips given by Andrew Sullivan on his weblog are given by real, existing people and not by an anonymous company or a pseudonym. That is what matters in the opinion of Dafermos: “[..] if weblogs have a true voice, they also have a chance of succeeding” (p.38). It seems to be that this development of weblogs (whether corporate or private) is the reaction on a great desire to create something like personality within this impersonal, anonymous space of the Internet. Dafermos stated this for the vase of corporate websites: “Weblogs are an attempt to break free from the dehumanised, conformant with corporate guidelines on how to address an audience PR speak”. So this seems to be one step in an development within the impersonal Internet. The first one was the use of Avatars and human-like guiding creatures, the second is the ‘personalization’ of the Internet through ‘true voices’ by real persons.

 

      

 

Nixon, Sean (2002): Re-imagining the ad-agency: the cultural connotations of economic forms In: du Gay, Paul commercial life, Sae Publications, / Pryke, Michael (ed.) (2002): Cultural economy: cultural analysis and London/Thousand Oaks/New Dehli, p.132-147

 

 

My question: Why is the small aspect of remuneration within the organisational structure of advertising industries so important for the whole argumentation of Nixon’s article?

 

Answer: Nixon sees the remuneration of financial arrangements within the advertisement industry as a key aspect, because it has a representing quality: “These financial arrangements – specifically forms of remuneration – are interesting because they have come to be seen by advertising industry insiders as carrying powerful meanings in themselves; meanings to do with the identity of advertising agencies as service providers” (p.134). They have a symbolic function for the client and play a “strategic role” (p.134) in the customer-client relation. How a company handles their remuneration arrangements represents so not only the organisational structure, but also the appreciation of the customer. As it is highlighted by Nixon, the form of remuneration defines the customer-agency relationship, which is an important factor in the advertisement market: “Competing models of remuneration were seen to carry powerful meanings about the nature of the client/agency relationship and so rethinking remuneration has itself been integral to the broader process of defining the ad agency” (p.145).

Moreover the remuneration arrangement is not only a financial act but also the symbolic combination of a cultural part (creativity) and an economic part (finance) . It deals with the question if and how creativity is measurable in an economic context, and the way how agencies use different models of remuneration shows their opinion about the culture-economy relationship.   

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May 28, 2004
outline research paper

Unfortanetly I got a heavy bronchitis this week and so I can not hold the presentation of my research topic today (even if I could you would not understand the most of it between the coughing). So I decided to put a more detailed description of my topic on my weblog as a little compensation of my missing real presence.


Participatory Culture

Outline Final Paper

Jan Henrik Thiemann

F030260

 

The meaning of customer reviews in the case of Amazon.com

 

 

My motivation: I’ve been fascinated for a long time by the system the online-seller Amazon.com uses to give customers the feeling of knowing everyones taste through various tools. Auctions, wish lists, recommendations and a specific system of guiding through interesting products offers a new “personal” shopping experience in an original unpersonal space as the Internet. One of the first things, which was offered by Amazon.com, and which is now used by  a lot of other online-sellers, is the use of customer reviews. This new form of online criticism made by amateurs but so important for the choice of other customers fascinated me (especially in its wide range from review-topics) and so I decided to choice this as my research topic.

 

The phenomenon: First I want to describe the context of Amazon.com which creates the background for the customer reviews:

Amazon.com was founded by the American Jeff Bezos and started in July 1995 with online-booktrade-market. From the first online-presence the idea of the company was influenced by the “founding commitment to customer satisfaction and the delivery of an educational and inspiring shopping experience” (see here )

Now not only books, but also CDs, DVDs, videos, toys and games, electronics, kitchenware, computer and a lot more is available for millions of customers in more than 220 countries around the world. Amazon.Com has agencies in the US (Amazon.com also in Spanish available) in Canada (amazon.ca), Japan (Amazon.co.jp), Great Britain (Amazon.co.uk), Germany Amazon.de), Austria (Amazon.at) and France (Amazon.fr). Amazon.com is traded on the NASDAQ at AMZN.

I have chosen the phenomenon of customer reviews on Amazon.com, because of the importance of this company. Amazon.com is a global brand. The customer-based principle including customer reviews functions in different cultures around the world. The Amazon-site has the same principles and functions whether you surf to the US, German, French or Japanese site. Amazon brought this new opportunity of online criticism to a broad range of users and uses it consequently to create their customer-related brand. This is accepted and acknowledged by a lot of Amazon-fans and users, for example see here:

(www.bunker306.com/amazon/amazon.shtml)

Because of this reasons, I choose the reviews on Amazon.com for my examination of online customer reviews.

 

My thesis is: Customer reviews on Amazon.com are not just a simple form of participation, but have different qualities for the organisation (Amazon.com) and their customers. In addition are these reviews not just participation but also a representation of the new role of the “active client” within our society.

 

Within my research paper I am going to look at three main questions?

 

1) From the customer side: What are the reasons for customers to write reviews? What is their motivation?

2) From the side of organisation: Why does Amazon.com offers such an opportunity? And how are these customer reviews used to create and maintain their brand image?

3) From a more general perspective: How does this kind of customer participation fit in a modern trend of the “active client”? How has the consumer-role changed?

 

 

To answer question number 1) I will first take a look to the objects themselves (the reviews) and analyse the reasons reviewers offer in their small personal accounts. (There are descriptions and personal pages on amazon.com, where the most “useful” and “worshipped” reviewers shortly describe their motivation and personal and working background). I will search for questions what “emotional benefit” is given to reviewers to spend their free time to write unpaid reviews. If a good theory about motivations for online criticism will pass my way, I would include it, but I have not found such an approach yet ;-)

 

To answer question number 2) I will how Amazon.com uses the customer reviews to stress their customer-friendly image. I will examine how important this factor was by creating this brand image and how it was fostered. In the case of organisation there are a lot of studies, interviews or articles which help me to find connections between the reviews and the brand. I also want to show how this non-organisational element guarantees Amazon.com attributes like neutrality or authenticity.

 

After looking at this small topic (customer reviews on a special online-seller) I want to wide up the focus and place this phenomenon within a social development. Look what customer reviews simply are: unpaid work by customers for Amazon.com simultaneously giving them authenticity and neutrality. But this is not a specific phenomenon but a social trend within the last decades.

In this last part of my research paper I will mainly use the work of Nicole Schreiter “Die Entdeckung des aktiven Kunden” (2003). This dissertation gives a good overview about theoretic models of the new active consumer (e.g. the model of the ‘prosumer ‘ by Michel or Toffler). In this context the phenomenon of “Mc Donalds” (McDonaldization) is mentioned as a emergence of active consuming. In the case of McDonalds you take your meal to a table, which you seek and bring your dish back, in the opinion of George Ritzer the starting point for consuming developments like self-service-shops or online-banking, where the customer does unpaid work, which was former done by the producer/organisation.

I use Schreiters general overview (maybe a few primary sources) because it combines many theories and the whole theoretical field is too complex for a short aspect of a research paper. But I will use this approach to embed the Amazon.com customer review phenomenon in a broader context. (Maybe I can this customer context also relate to the question of participation as labour, which it is indeed in the case of Amazon, related to the work of Uricchio and Jenkins, but this is a question of time and space and only an option for final and further thoughts about this topic). 

 

 

The relevance of my research is given, because customer reviews are now reality for a lot of realms in the Internet (books, films, music, technology). Because of the great role Amazon.com plays for the development of online-reviews in general, a detailed look on the double-sided meaning of these reviews may help to understand specific problems within this realm. If you understand the motivation for both sides of production and can draw a connection to social general developments in the customer role, this may help to understand the new customer-model and make aware for new changes or details within this market-process.

         

 

Tentative Literature:

 

Amazon.com:

  • Gurbaxani, Virjay / Shrikande, Aarti (1999): Competing in Book Retailing: The Case of Amazon.com In: Center for Research on Information Technology and Organizations I.T. in Business. University of California, Irvine, Papers 124

http://repositories.cdlib.org/crito/business/124

  • Hof, Robert (2000) Jeff Bezos: There’s no shift in the model. In: Business Week, February 21, 2000

http://www.businessweek.com/2000/00_08/53669094.html

  • Kotha, Suresh (1998): Competing on the Internet: The Case of Amazon.com In: European Management Journal. Vol 16, No2, April, 1998, p.212-222
  • Reimerdes, Gesine (2001): Amazon: Markenaufbau im Internet. In: Riekhof, Hans-Christian (ed.) (2001): E-Branding-Strategien. Mit Fallstudien von Amazon, Dell, Eddie Bauer und Otto, sowie Konzepten von Boston Consulting, Elephant Seven, Grey, IFM, Scholz & Friends and Unykat. Gabler, Wiesbaden p.240-247
  • Sandeep, Krishnamurthy (2002): Case Study #1: Amazon.com – A Business History in E-Commerce Mangament: Text and Cases. South Western College Publishing
  • Spector, Robert (2000): Amazon.com: Get Big Fast. Random House, Business Books, London/Sydney et al

 

Customer Reviews (on Amazon):

  • Dafermos, George N. (2003): Blogging the Market: How weblogs are turning corporate machines into real conversations

http://opensource.mit.edu/papers/dafermos3.pdf

 

The active consumer:

  • Schreiter, Nicole (2003): Die Entdeckung des aktiven Kunden. Eine Untersuchung zur Thematik der produktiven Beteiligung des Konsumenten am Dienstleistungsprozess im Kontext des sich wandelnden Konsums

http://archiv.tu-chemnitz.de/pub/2003/0118/data/Diplomarbeit_AKO.pdf

  • Ritzer, George (1993): The McDonaldization of Society: An investiagtion into the changing character of contemporary social life. Thousand Oaks, Pine Press

 

 

 

 


Posted at 12:36 pm by Jani
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May 20, 2004
missing question 5 and q & a for session 6

Negus, Keith (2002): Identities and industries: The cultural formation of aesthetic economies In: Du Gay, Paul / Pryke, Michael (2002): Cultural economy: Cultural analysis and commercial life, Sage, London/Thousand oaks/New Dehli, p. 115-131

 

My question: What seems to be the right way for changing a corporate culture, and what problems are appearing in this case?

 

Answer: Negus offers an example within the record industry of the US, where a record label (EMI) and its executive was requested to “change the culture”.  The President and CEO Davitt Sigerson decided to fire 70 percent of the employees and to limit the roster of artist under the contract of this label  (p.125). This seems the way for changing culture, beneath marketing and organisational strategies are the people the key factor within a corporate culture process. So it seems less important to create a “new” brand or the image of it, but rather changing the inner-personal structure of the company. That is the same idea as the basic model of Scheins organisational structure, which deepest level is grounded on basic assumptions, made by the leaders of an organisation. Küng-Shankleman describes these basic assumptions: “These are the unconscious, taken-for-granted beliefs, perceptions and feelings about the organisation and its environment which act as the ultimate sources of values and drivers of action”. These description seems very familiar if you look, how Negus describes the music situations in the UK: “The ‘genre culture’ of British rock music had provided a particular series of orientations, assumptions, dispositions and values, and these were carried into the organizations of music production […]” (p.120) These underlying basic assumptions are the factor which drives and steers the culture of a company or a record label. But these assumptions are made by humans and their personal feelings and are not build upon pure economic facts and trends (as Negus stresses it in the case of Sigerson, p.126). These people, who, influenced by values, assumptions and taken-for-granted beliefs, are the most important but simultaneously the weakest link in the chain of corporate culture within an organisation.  So the problems which appeared in the case of EMI seemed unavoidable. Sigerson fired a lot of important people who dominated the corporate culture, but instead of a neutral factor Sigerson, himself then with his not-alone-economic assumptions and their consequences became the weakest link and was fired.

 

 

Shirky, Clay (2000): What is the P2P … And What isn’t

http://www.openp2p.com/lpt/a/472

 

My question: What are in the sense of Shirky the important qualities which define applications as peer-to.peer?

 

Answer: The definition, or has he says, the litmus test for finding out if something is P2P is divided into two conditions. The first, that the application mustn’t treat variable connectivity and temporary network addresses as the norm. That means that the application isn’t build up on stabile IP addresses and stable always connected servers and computers and accept this sort of “unreliability” within its system. The second condition includes the possibility of  giving the nodes (users) at the edges significant autonomy within this system, for example in the case of Napster where everybody is allowed to search other peoples directories and use their storage. The definition, Shirky gives is one which is not involved in the question of server-based applications. If a great server (as in the case of Napster) is used is not the point, but important in the sense of Shirky how this system is used, if there exist central power resources (Yahoo) and under which conditions it functions. This makes the difference in being a P2P system or not.

 

 

Rutherford, Emilie (2000) The P2P Report

http://www.cio.com/research/knowledge/edit/p2p_content.html

 

I found it hard to find critical questions for a small text (four pages) which offers pure facts and is written without offering any theories and seems to be written for possible customers within this realm. The only possibly questionable distinction Rutherford made is in the case of flavors between collaborative computing, instant messaging and affinity communities, but this seems totally clear in my opinion. So I can’t offer any questions or answers.

 

 

Wellman, Barry / Boase, Jeffrey (2001): A Plague of Viruses: Biological, Computer and Marketing (Current Sociology, draft)

 

 My question: Why have the “brokers” in the model of Wellmann & Boase such a great importance?

 

Answer: What all kinds of viruses need in the network models of Wellmann & Boase are possibilities to spread. In a densely knit group everybody helps to spread the virus because of the dense contact-behaviour. In a ramified network there is not a such closeness and there are a lot of gaps and structural holes were a spreading process can be stopped. People who fill this gap are so called “brokers”: “These key gatekeepers and brokers are the means by which avirus  spreads out through ramified networks” (p.8). With the help of the broker, a virus can travel between groups ans spread out through ramified networks. This person, the broker is important for biological and  computer viruses and also viral marketing, because every form of a virus needs hosts whio have access to different groups to accelerate the transgression.

This all looks nice in this stereotyped model of densely knit and ramified networks but as they mention the reality offers less of such typical network systems: “The actual world is a combination of both forms of networks. […] People and their computers often belong to densely knit networks while at the same time maintaining ramified ties” (p.11). Wellmann / Boase call this mixture-system of local and global connection “glocalization”. And this “realistic” model makes the role of brokers problematic, because in such a system, where everybody has local and widespread connections (especially via email) everybody is also a broker (with access to both kind of network-types). If everyone is a broker the whole theory about the importance of such brokers seems to be frail, and with that the whole model seems to fail in this glocalization-network.    

Posted at 07:52 pm by Jani
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May 19, 2004
Virtual church - this is really strange

A few days ago the first virtual church in UK can be visited. It's a project of the Methodistic church which si called "church of fools" for as they stated "people on the edge of faith". You can pray, chat and do a lot of other strange things in this virtual church (including advertisement). But as I noticed in a German magazine soon after the start they were getting into  a lot of problems.
Strange things happen on the Net ;-)

Posted at 04:53 pm by Jani
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May 17, 2004
Question and answers for session 5

Harries, Dan (2002) Watching the Internet In: Harries, Dan (2002) The New Media Book, BFI, London

 

My question: Harries describes a new way of participating within the Internet at the entertainment level, a hybrid mode of viewing and using, called „viewsing“. But how clear is the definition Harries offers and what are the natural limitations of this new participation form?

 

Answer:  The definition Harries offers at the beginning is still a little blurred: “I call this third emerging mode of spectatorship ‘viewsing’ – the experience of media in a manner that  effectively integrates the activities of both viewing and using, such as participating in a real time online poll that directly affects a live video feed” (p.172). “Viewser” in the sense of Harries are so modern  new “connected consumers” (p.172) enjoining a new made area for multitasking entertainment facilities. The further distinctions between using and viewing are perfectly clear: using as form of interactivity which creates as the examples of the online quiz-shows a constant experience of a limited range of interaction without an immersion in special programme and viewing as the pure act of consuming livestreams or other audio-visual material which is brought to the Internet. Bringing this separated forms together seems to my mind the creative but also critical point of his definition. Harries does not mean the mixture of playing an online movie and scrolling through a text at the same time (p.175). His description of a “viewsing” highlights the aspect of the mutual influence of this different qualities by mentioning Manovich’s concept of ‘cognitive multitasking’. These new interactivity is not also a new approach of joining the Internet but also a whole new experience, as it Harries figures out: “In other words, viewsing becomes the true manifestation of multimedia spectatorship and offers media an interesting and engaging interactive experience” (p.180) And this is in my opinion the problematic point in his theory. This new viewsing experience is described as a new method, a new phenomenon, a whole new experience which might be the future of Internet activities. To my mind this new approach is only a special case of the using/interactivity-side and not a new form itself, because the realm of possibilities are so limited. The examples Harries uses (de Bus, Big Brother and The Runner) are three examples of one special television genre, which deals with gaming and live surveillance. This new form of live-“docutainment” (does this word also exist in English) is limited to a small category of tv-formats, and only for this limited area the model of Harries seems to fit. This is in my opinion not enough to speak about viewsing compared to the models of using and viewing as an independent new approach.   

 

 

Benkler, Yochai (2000): From Consumers to Users: Shifting the Deeper Structures of Regulation toward Sustainable Commons and User Access

(www.law.indiana.edu/fclj/pubs/v52/no3/benkler1.pdf)

 

My question: What seems to be the general underlying problem in the relation of structural media regulation and the new digitally network environment?

 

Answer: The general underlying problem of this case is independent of the levels of  informational structure. Benkler speaks about the three layers of informational environment (the physical, logical and content layer), but the general problematic aspect lays deeper in this context. This main problem is the distribution of power within this great complex, what is simultaneous the same problem of the first amendment, which palys an important role in the argumentation of Benkler. So he says: “These cases [United States vs. Associated Press etc, J.H.T.]  represent a central problem of the first amendment law. […] the problem arises from the technological and economic fact that different people and organizations  in society have very different power to affect the flow of information in society” (p.565). These powerful ruling institutions are either enterprises like AOLTimeWarner or also courts and the government itself. So politicians and judges who create laws to ensure a decentralization and a “free” Internet are reaching the total opposite by using their power to change the possibilities theses free cyberspace originally offers. This case might happen as Benkler remarks on page 566: “The problem is that government might use its power to suppress speech it disagrees with under the guise of regulation to enhance freedom of speech, and that government would get too comfortable with the idea of regulating communications markets and regulate well beyond what is necessary to assure robust, open discourse” (p.566). And this different possibilities of power (through laws and acts) offers the whole development of reproductioning the producer-consumer relationship within the three different layers which  caused all the problems Benkler describes. But as I said before, these are only the results, the main problem lays much deeper.

 

 

Lessig. L. (2001): Innovation from the Internet In: Lessig, L. (2001): The Future of Ideas: The Fate of the House of Commons in a Connected World. Random House, New York       

 

My question: What makes the Internet and it’s structure so special in comparison to other media?

 

Answer: The Internet offers a whole new bunch of possible opportunities in the way it could be used or as Hutchby would have said with its communicative affordances. As Lawrence Lessig stresses it a few times the Internet is understandable as a medium whose architecture was not given by itself. The “architecture”, described as the modes it was and is used may change, it offers unlimited space and simultaneously creates barriers as shown in the cases of Napster. But this architecture is man-made, according to Lessig, “But cyberspace at its birth did have a certain character” (p.121). A character that disabled any mean of controlling the communicating ends in a principle of “end-to-end” (p.121).

This end-to-end principle which offers any member within this media realm to participate shows the general basic idea which came up by the invention of every new medium. At the beginning in the case of every medium it was thought about using it as a way of a global communication and participation channel (for example in the case of the telephone, telegraph, television etc.). Also the radio was at the beginning seen as possible medium of both transmitter AND receiver. This idea was e.g. brought into discussion by Bertolt Brecht in his famous article about the new qualities of the radio.

These general possibility which is discussed for every medium is now reached with the Internet. This end-to-end quality, every consumer also a “producer” is the underlying idea of the whole “peer-to-peer” discussion and this general discussion of Lessig about the architecture of the Internet.   


The last question and answer will come tomorrow morning

Posted at 11:42 pm by Jani
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May 14, 2004
The Apprentice

I've seen the whole episode yesterday and I'm still really impressed. I think this is one of the best examples for the right concept of a programme with the best chosen "persona" in an appropriate cultural context at the right time. Great!
If you are interested in an reaction of an intellectual American and his feelings about "The Apprentice" look at this. Very interisting is also how the slogan of Trump is "used" into the context of the US election ;-)

Posted at 12:40 am by Jani
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May 10, 2004
answers and questions for session four

Nixon, Sean (2003): Advertising and Commercial Culture In: Nixon, Sean (2003) Advertising Cultures. Sage, London

 

My question: What is the key aspect that distinguishes Nixons concept of  ‘commercial culture’ from the other theories (Lash/Urry, Scase/Davis, Featherstone etc.) he mentions in his article?

 

Answer: To answer this question the kind of definition Nixon gives at the beginning is very important. “The idea of ‘commercial culture’ also insists on the importance of grasping the generative relations with wider economic, political and cultural formations into which commercial processes are drawn with particular  historical settings” (p.2?) Nixon relates commercial culture to a specific given framework within particular historical settings. In other words time, place and all circumstances together build this kind of idea which is called ‘commercial culture’ (which can be compared to the theory of large technological systems of Thomas P. Hughes which also needs special conditions of time and place to start and foster special inventions and their further development steps).

Nixons theory isn’t linked to special situations, but refers to a framework of conditions, which distinguishes his theory from the others. Lash and Urry’s idea about reflexive organisation is caused by terms of Fordism and Post-Fordism which follows the same epochal model of change that Nixon refuses. Also the model of Scase / Davis about the coming of an information society and their four ideal types of organisations leads to a “dualistic model of cultural change” (p.10?) as Thomas Osborne mentions. And the theory of “new cultural intermediaries” mentioned by Mike Featherstone (who uses mainly the work of Bourdieu) causes a time problem. The epithet “new” throws up automatically the question of periodisation (because where something is new, there must have been something old) which leads also to a  establishing of this theory within a special timeframe. This problematic point can also be found in the consumption history studied by McKendrick.

The first theory which is mentioned, which shares the ideas of Nixons thesis is the theory of Frank Mort. Here Nixon stresses again his main point, the quality which is characteristic for his approach. Commercial culture must be viewed as a discrete object of study which stresses once again “[…] the importance of attending to particular forms taken by commercial endeavour at specific times and in specific places”(p.18?)    

 

 

Küng-Shankleman, L.(2000): What is organisation culture? In: Küng-Shankleman, L. (2000): Inside the BBC and CNN: Managing Media Organizations. Routledge, London

 

My questions: Why is culture a fluid term in the opinion of Küng-Shankleman? And what for problems causes this fluid behaviour in the organisational context?

 

Answer: The whole argumentation of this chapter by Küng-Shankleman is mainly based on the concept of Schein (1996), which describes culture as “nothing more than  the accumulated learning shared by a set of members of an organisation” (p.9). Learning founds here on three cultural levels with basic assumptions as the starting level. Something based on assumptions stands naturally not on a solid ground and is influenced by different realms. In the case of organisational cultures are the influences Schein mentions the influence of the national culture, the (powerful) role of the founder and environmental influences. All together create the basic assumptions which are finally responsible for the whole organisation culture. Based on such a fluid ground, because environmental and cultural influences are changing all the time, Küng-Shankleman acknowledges that “Culture may be difficult to change but is not static” (p.12). So it is both something stabile (the chosen organisation culture, the brand) and something fluid (the assumptions, environment, consumers etc.). So culture in this context is both, as Küng-Shankleman mentions, product and process (p.12).

This ambiguous character is a problematic one, because everything within this organisational context and finally the product is linked to the cultural realm. As The author remarks mission, strategies and competencies are linked to the cultural background, which is not stable predictable. So the close relationship to the fluid cultural term makes the whole construct vulnerable. If the environment with all its cultural meanings and values changes, strategies and competencies (based on former assumptions) can maybe become worthless.

 

 

 

De Mooij, M. (1998): Dimensions of Culture In: De Mooij, M. (1998): Global marketing and Advertising. Sage, London

 

First of all this whole model De Mooij sketches seems very clear and logical. But without knowing the exact data (e.g. in the mentioned ESM report) and without knowing enough about the cultural backgrounds of North-American or Asian culture it is impossible to me to see how right these assumptions about general cultural types and behaviours are. So my question focuses on the European area, which is an area I know a little about.

 

My question: Is a general differentiation between European countries not to superficial to describe such a specific term as culture?

 

I think the dimension model of Hofstede de Mooij uses to build categories in cultural differences reaches not far enough if you want to use it for promotional matters. I think in a period of globalisation and migration, especially in Europe, you can’t describe cultural distinctions parallel to the boundaries of the countries. Or in a melting pot as the United States you can’t use one national “scheme” to describe the culture of the whole great country, without ignoring all the immigrants and influences from South America, Europe or Asia. The same happens in the whole European community and so the systematic use of descriptions as “the Germans” “the Dutch” etc. seems to me problematic, because behaviours and cultural values can extremely differ within a country. De Mooij self mentions that there can be different positions within a country in the case of IBM studies in Italy: “In Italy, the IBM data used by Hofstede were collected in the North, where people appaered to be highly individualistic. Other studies and my own observation of Italian television advertising indicate that the Italians as a whole are much more collectivistic” (p.79). So the author mentions this problematic point, but seems to ignore it. If you look at Spain, the Basques and Catalans have created over ages special regional identities which differs from the stated national identity, the same happened in Germany, where the reunion of West- and East-Germany didn’t lead to one common identity but still to different cultural identities and behaviours. Also the increasing number of immigrants which keep their original cultural identity without any assimilation with their new home-country makes it to my mind difficult to speak about identity in terms of countries.

 

 

McRobbie, Angela (2002): From Holloway to Hollywood: Happiness at work in the new cultural economy? In: Du Gay, Paul / Pryke, Michael (2002): Cultural economy: Cultural analysis and commercial life, Sage, London/Thousand Oaks/New Dehli

 

My question: What is the most problematic point in a general description and definition of “working culture”?  

 

Answer: McRobbie mentions three key features related to the recent debate about work. These are ‘youth’, ‘permanently transitional work’ and ‘creativity’ (p.98). The first two features are closely linked to the question of age, which all its consequences (constitution, family, willing to spatial movements,  financial compulsions etc.) So in my opinion age is the “fluid” term which makes is very hard to give a general definition of actual working situations. You can see this critical factor mainly in the works of Sennett and Leadbeater. Sennett in his analyse of American workers focuses only of older people, which has a lot of problems within the new flexible economy. Leadbaetaer describing the success-stories of young dynamic selfmade-men and women shows the completely other side of this problem, by focusing only on the younger workers as McRobbie mentions “He is uncritical of the limitations of the new meritocracy and unconcerned by those hard workers in the new cultural economy who, despite great effort and some degree of success, have still only got midway up the ladder of mobility by the age of 40” (p.108).

McRobbie herself stresses this problematic age-factor within her studies by saying “Independent creative work is thus transitional in terms of lifecycle, with high levels of investment in the early years following the completion of education or training” (p.110).

The consequence of a situation of working culture, where the key features are closely linked to the term of age is clear: you can’t describe the general situation without ignoring this important age-distinction, so definitions of working situations must be separated into realms of different lifecycles.  

       


Posted at 11:45 pm by Jani
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