Online brand communities in China: an empirical investigation on value co-creation and brand loyalty

Abstract

This paper explores the application of online brand communities in China with a particular focus on how Western companies may use them for cultivating brand loyalty, generating positive word-of-mouth and driving innovation and value co-creation. Assumptions and the research question were based on existing literature on online communities. Video interviews were conducted with seven professionals working for international brands operating in China that owned an active brand community. Data was manually analysed by the author following the principles of the case study approach. The results show that the companies’ perceptions of the brand community differs from the theoretical definition. Moreover, smaller and medium businesses have no interest in exploring communities as a part of their strategy at the early stage of their China discovery. However, results obtained from the core research sample proved that communities are the main source of innovation for brands, and they assist them in cultivating brand loyalty and generating positive WoM. Contrary to the assumptions, WoM is not a primary source of brand discovery in the B2B space. However, it is a key factor in building the brand’s credibility in the Chinese market. In terms of implications to practice, the results show that communities are an important element for brands in order to stay engaged with their customers and build industry-wide recognition for both the community members and the brand. The study provides novel (among English-language literature) insights into the B2B space in China. However, the findings are limited by the number of analysed cases which leaves space for future research.