Article Information
Virtual World Affordances:
So Ra Park, Fiona Fui-Hoon Nah, David DeWester, Brenda Eschenbrenner –
Selection of Article
I selected this article because I thought it was interesting that companies can use virtual worlds to enhance brand value. Establishing brand value is extremely important for businesses and if they can effectively do this in virtual communities it would be much cheaper than traditional media to convey the same image. This would be a valuable skill that I could teach to my students or use for myself personally if I choose to go into the business sector.
Summary of the article
The question that the researcher’s had to ask themselves in this study is that since the advent of virtual worlds a few years back there has not been much research done to study the effectiveness of building brand equity in these virtual world environments. They wanted to find out how companies can build brand equity in this environment and create an interactive customer experience.
To discover how customers can become more engaged in the virtual world the researchers focused on a concept called “Flow” which users get into that engage them in the virtual world process. “Flow” can be defined as the time when a user gets so involved in the activity they are taking part in they lose track of time because it is so fun and engaging. The researcher’s looked at this flow model which has three components to help explain how businesses can build brand equity with their brand and products. The “Flow” model is based on three criteria: control characteristics, content characteristics, and process characteristics.
In order for a business to effectively build brand equity the researchers found that they must develop an interactive experience in the virtual world that requires users to have skill and overcome challenges. This can be accomplished by learning how to navigate the virtual world and listen to instructive training programs that can teach users the basics of navigating the virtual world environment. Customers must feel comfortable interacting in this type of environment to build any type of brand equity.
The second aspect that researchers discovered was that users must have interactivity and vividness in their experiences in the virtual world. This can be solved through the formation of social networks, sporting events, concierge offices, and reactive objects that users can manipulate. To make this seem more real it needs to be vivid through realistic objects, spatial 3D, realistic avatars, multimedia, and haptic feedback.
The third aspect they focused on was extrinsic and intrinsic motivation in the users experience. Monetary incentives, free trials, competitive events, exclusive membership, and exclusive ownership helped contribute in this area.
Combining all three components helped build what researcher’s referred to as “Flow” which eventually leads to increased levels of brand equity. Specific strategies that companies take knowing the research include the following:
- Give avatars in virtual worlds Linden Dollars to complete surveys (Extrinsic motivation)
- Give free trials to avatars such as HR Block’s Tango software (Extrinsic motivation)
- Provide games and contests that get avatars involved (Intrinsic motivation)
- Offer exclusive membership and ownership rights to customers on an island (Intrinsic motivation)
By enhancing the customer’s flow experiences while interacting in a business virtual world site customers are more likely to enjoy and interact in the experience and perceived brand equity will increase.
Business Education Classroom Application
In a marketing class it is important for marketers to build brand equity through proper positioning in the market. For a class assignment the class could work with a local company and create a store in Second Life that focuses on implementing the characteristics that are needed for a “flow” state. The class could invite other avatars to the virtual world store and offer incentives and games that increase the “Flow” state thus leading to increased brand equity and loyalty by the users. The class could give a survey to customers asking them about their experience on Second Life and if they have not checked it out before give them an invitation. After a period of a couple months see if this involvement has made a difference in the loyalty of customers.
Business Environment
Businesses can use this “Flow” state of mind and develop interactive pieces that help build brand equity for their business. For instance, personal finance companies could have games in Second Life where avatars could invest Linden Dollars to see their return on investment. If avatars feel they can receive a good return in a virtual environment there is no reason to believe that they would not like to try it out in real life and invest in that particular company.
Opinion of Research
I can see the relevance of establishing a “Flow” state in people in order for anything to be effective in virtual worlds. Customers need to feel engaged and they have to have fun in the process. That is how companies build true brand loyalty and build their equity.
6:31 am - 12-6-2010
The benefits for participating in the virtual world would seem to very beneficial in attracting individuals to participate.
9:06 am - 12-10-2010
This flow concept is very interesting indeed. Building brand equity is a very popular use of SL.