Prosumers….rise!!!!

 The article by Ritzer et al (2012) introduced the concept of prosumption, involving a combination of product and consumption, and prosumer, one who is both producer and consumer. Although the concept was practically evolved along with human history, it is receiving new attention from academia and business communities, especially in the age of Internet and social media. As the authors elaborated, value of any brand is no longer solely constructed by company newsletter and press releases. Brand enthusiasts voluntarily become brand ambassadors and talk about their beloved brands. Especially, I might be focused on narrow scope, but a grandeur shift toward experience economy powered by technologies is certainly fueling the role of prosumers. Material specifications of product are no longer the single source of consumer satisfaction. Rather, the source of their satisfaction is their experiences with products of services.

In that sense, the significance of peer products and services reviews cannot be emphasized enough because every piece of information is not functions as part of brand super-structure. Also, as Chia (2012) suggested, bloggers’ motivation to become prosumers is shifting from the expectation of financial gains to the acquisition of street creed. Hence, it may not be an accident that consumers are increasingly relied upon peer reviews of products rather than so-called expert reviews or corporate sponsored ads (Willemsen et al. 2011). My reasoning is that expert reviews are often technical specifications and features oriented rather than usability and experience. Hence, I can posit that peer-reviews supposedly offer the sense of down-to-earth feel, suggesting to viewers that some regular Joes like them wrote this review.

Besides, peer productions are not just about their passionate conversations of certain brands or playing a role of brand ambassadors. Prosumers stake their reputation and trust relationship and play a significant role of formulating norms and expectations of their virtual community (Kozinet et al. 2010). Nevertheless, we cannot shake the feeling that the system is rigged. Any bloggers could have written only positive message about certain products and brands in an exchange of any monetary compensation. As Jensen (2011) described, the issue of blogola, paid blog, can be serious ethical challenges in the era of social network. In my opinion, self-regulations and ethical guidelines of corporate sponsorship must be adopted as blogsphere norms.

In fact, we may be given more power than ever before. We can voice ourselves loud and clear, and we may be surprised to find a lot more people do share similar minds. We already surpassed the point where we are happy about a material product alone. Now, prosumers are one of the most significant pieces of the puzzle for successful business because we are part of companies’ ultimate business goal, successful branding.

 

Week 6 readings…

Jensen takes a look at the idea of “blogola”, which is basically a system in which an organization pays an individual to blog on their behalf. While there are some very legitimate ethical concerns involved, I don’t see these being any bigger of an issue than the typical television commercial we see on television. Political campaigns and product advertisements often give negative, and in many cases false information and mislead consumers into the purchase of products that are not what they are portrayed to be. I don’t think that these paid blogs could do any worse. With technology and communication advancing so much, it really makes sense for corporations to have a designated blogger. As long as the information can be deemed as relatively credible, I have no problem with it. FTC seems to be really lighting into these blogging systems, but in my opinion, there are much bigger fish to fry.

Online consumer reviews have now become a seemingly more credible way to determine the worth of a product or service. Because the consumer has no “ties” of affiliation with the company or product, it seems as if there is nothing to be gained from them making a positive recommendation, other than the feeling of helping to promote a worthy product. Typically, the input of the consumer, especially if other factors (number of comments, the perceived expertise of the reviewer, the diversity of the comments) are favorable, is considered to be more genuine than the information released by the marketer. The fact that a person must have and log into an account to post a review, and is only allowed to post one comment in regards to the product are other factors that seem to give these reviews credibility.

 

Somewhere in the middle of these two concepts is “Word of Mouth Marketing”. Defined as “the intentional influencing of consumer to consumer communications by professional marketing techniques”, it somewhat differs from “blogola”. Whereas blogola flat out hires a person to blog on their behalf, WOMM entices customers to speak on their behalf, with the offer of prizes, or discounts. The person is not actually on payroll, but is rewarded for their input on the product or service. The writers of this piece go into detail about some of the specific strategies and methodologies used as well.

What Liars Can Learn From Journal Articles – Week 6

Willemsen et al’s article discusses the judgments people make about products being sold online and how such judgments are influenced according to the nature of the reviews for that product. Essentially, negative content for products of experience has a stronger impact on choice, and positive content for search products is more influential. Looking at argumentation, the density and diversity of the kinds of arguments surrounding a product are important for a consumer. If there is a star rating and also descriptions, it’s more likely that a person will make better judgments. Lastly, the expertise claims didn’t show a very strong correlation to the perceived usefulness of reviews.

I enjoyed reading the article because it made me think about what I look for in reviews when I shop online, and I think the authors’ findings are consistent with my own experience. For example, when I moved here, I needed a bike to get to campus, so I looked at different department store websites like Target and Walmart for something cheap but with good reviews. I found myself taking more seriously the negative reviews because I didn’t want a piece of junk, even though I wanted it cheap (*irony*). The more reviews I read, the more leery I noticed I was becoming of positive reviews. Is it possible for online reviews to be fake, a deliberate attempt by the company to entice the consumer by providing a positive review? How could I discern between the authentic reviews and the fake ones?

A study presented at conference for computational linguistics provides the answers to these questions. In this study, Hancock et al develop a system that detects “deception opinion spam,” testing the veracity of reviews from hotels and other companies. An example of a deception opinion spam is based on yelp.com: “My husband and I stayed at the James Chicago Hotel for our anniversary. This place is fantastic! We knew as soon as we arrived we made the right choice! The rooms are BEAUTIFUL and the staff very attentive and wonderful!! The area of the hotel is great, since I love to shop I couldn’t ask for more!! We will definatly be back to Chicago and we will for sure be back to the James Chicago.”

Some of their findings show that truthful reviews commonly speak about “spatial configurations (e.g. bathroom, on location)” as opposed to the liars. The liars tend to speak more about “aspects external to the hotel being reviewed (e.g., husband, business, vacation). Deception also includes less usage of first person singular, and reviews tend to be more positive than negative.

Here’s a link to the article: http://aclweb.org/anthology/P/P11/P11-1032.pdf

and how it is discussed in the New York Times: http://www.nytimes.com/2011/08/20/technology/finding-fake-reviews-online.html

I’m thinking that fake reviewers could learn a lot from both articles. I feel weird about making this conclusion because it’s almost as if I’m encouraging deception in reviews. But I’m glad to be better informed about what to look out for when I shop online.

The Prosumers

The Ritzer et al. (2012) article discussed the idea of the prosumer. The article stated, “the term prosumption was coined by Alvin Toffler in 1980 and refers to a combination of production and consumption (Ritzer et al., 2012).” The article discusses how production and consumption go hand in hand. This article also cited Lusch and Vargo’s (2006) concept of a “service-dominant logic of marketing.” This idea has been very influential within my academic field. One of the foundational premises of S-D logic is that “the customer is always a co-creator of value (Lusch et al., 2007). That is, the customer plays a role in both the producing and the consuming. This idea meshes nicely with the marketing concept, which basically informs marketers and businesses to be customer focused. It appears that this co-creation is not a new concept; rather, it has been more noticeable with the development of new technologies and platforms.

Although the consumer is providing free labor, he or she does appear to be voluntarily providing it. For instance, I know that I am giving Facebook data about myself, and that I am freely providing content for the site. However, I choose to do this, but I do agree that companies can be and should be more forthright in letting us know that they will be using our data. But what are we getting in return for our labor? As the Chia (2012) article points out, there are plenty of bloggers out there who provide all of this content, but only to a small audience. These bloggers do not have much hope of making a lot of money off their blogs, but they can find reward in the conversations they generate with a handful of others who are willing to take the time to read their blog and interact with them. Money isn’t everything!

Much of this weeks articles also discussed blogs and advertisements.  The Kozinets et al. (2010) article had an interesting analysis of how individuals present WOMM within their own blogs, and how their readers responded to the endorsements. It was interesting to see how the content of a person’s blog impacts the norms that are expected within a certain community. It appears that context may matter in whether or not WOMM will be accepted by potential consumers. Jensen (2011) also discussed blogs and advertisements. However, this book chapter was more concerned with the ethics of sponsored posts. I was most alarmed by the idea of flogging. “Flogging occurs when fake or false accounts of happy imaginary customers and consumers are created (Jensen, 2011). I cannot believe that any company would risk their reputation by participating in such an unethical activity. I think that I agree with the idea of disclosure. If someone is being paid to post about a product, he or she should inform the readers of this happening. I can remember receiving a note from my apartment that offered to put me in a drawing for a cash prize (if I remember correctly) for posting a review about the complex. I do not believe that they said it had to be a positive review, but they gave an example in the note of a shining review. I did not participate. It just felt funny.

Although individuals may rely on WOM from other online users, it appears that the unethical acts by businesses and bloggers may bring into question the legitimacy of much of these claims. Willemsen et al. (2011) also pointed out that “negative arguments along with positive arguments contribute to higher perceived usefulness” when it comes to online consumer reviews. Therefore, it appears that blogs that display unwavering favoritism toward a brand or product, may not be judged as being useful to potential consumers. An individual reading a blog like this may assume some form of flogging, whether or not this has taken place.

References

Chia, A. (2012). Welcome to me-mart. The American Behavioral Scientist, 56, 421-438.

Jensen, R. (2011). Blogola, sponsored posts, and the ethics of blogging. In B. E. Drushel & K. German (Eds.), The ethics of emerging media: Information, social norms, and new media technology (pp. 213-232). New York: Continuum.

Kozinets, R. V., de Valck, K., Wojnicki, A. C., & Wilner, S. J. S. (2010). Networked narratives: Understanding word-of-mouth marketing in online communities. Journal of Marketing, 74(2), 71- 89.

Lusch, R. F., & Vargo, S. L. (2006). Service dominant logic: Reactions, reflections, and refinements. Marketing Theory, 6(3), 281-288.

Lusch, R.P., Vargo, S. L., and O’Brien, M., (2007), “Competing Through Service: Insights from Service-Dominant Logic,” Journal of Retailing, Vol. 83, No. 1, 5-18.

Ritzer, G., Dean, P., & Jurgenson, N. (2012). The coming of age of the prosumer. The American Behavioral Scientist, 56, 379-398.

Willemsen, L. M., Neijens, P. C., Bronner, F., & de Ridder, J. A. (2011). ‘Highly recommended!’ The content characteristics and perceived usefulness of online consumer reviews. Journal of Computer-Mediated Communication, 17(1), 19-38.

The Circle of Life: Prosumerism on the Serengeti.

The antelope consume the grass and produce meat for the lions. The lions consume the antelope, die and produce grass for the antelope.  The nature of an ecosystem is defined by the ways in which all members consume and produce resources.  Economic systems are another form of ecosystem.  As such, each member of an economic system is and has always been both consumer and producer.  Ritzer et al correctly point out that the traditional consumer/producer dichotomy limits our understanding of social and cultural interactions.  However, rather than thinking in terms of members as prosumers, it would be more helpful to view those interactions as manifestations of the ecosystem.  Economic and power relationships can then be illuminated by understanding the ways in which resources are allocated.  In this way, we can understand that production is mediated by the basic needs of consumption.  The allocation of resources devoted to the production of a blog (time, and technology) are mediated by the consumption needs of the blogger (food and shelter).  Sustaining a blog can only be accomplished when its production does not consume more resources than are available to the blogger.  Popular and successful blogs require a good deal of time.  Time that could otherwise be spent working on something that returns more tangible rewards, like a job.  As the article states, very few blogs are actually consumed enough to sustain their producers.  In this regard, there is nothing special about bloggers.  Just ask any poet, actor, minor league ball player or any of a number of other professionals where all but the elite practitioners have to support their activities with another job.  For those blogger on the cusp of financial viability but worry about selling their souls, they can take heart that their dilemma is nothing new either.  How many musicians have faced “selling out” to make the big time? A closer corollary can be found in traditional forms of journalism and media.  Newspapers and broadcast networks constantly balanced independent reporting and production with the need to sell the advertising  which enable the production in the first place.  We have long since become comfortable with the paid spokesman on radio, tv, and in print.  Ethical questions arise when there in not transparency in the relationship.  We have enacted laws and other forms of regulation to create that transparency in older forms of media, and we will do the same for the blogosphere.  Regulation has always lagged behind technology and regardless of what is enacted, there are those who will find ways to exploit the system.  Caveat emptor!

Prosumption and Ethical Dilemmas

In the internet age, it is easy to think of ourselves as living in a time when everything is new. Ritzer, Dean and Jurgenson give us a little perspective when they assert that we as humans have been prosuming since our earliest days (2012). Prosuming seems built in to our everyday lives. By simply going to the grocery store and then making a meal from what I have bought, I’ve played the role of both consumer and producer. However, I do think this term is a good one to use to frame our understanding of a time when so much of what we use digitally is interactive. Again, Wikipedia comes to the forefront as a perfect explanation of prosumption. Without constant and varied user input into the site, it would fail to be a real time touchstone for information on almost any topic.

From “Highly recommended!” The Content Characteristics and Perceived Usefulness of Online Consumer Reviews, I liked that the authors separated experience products from search products in their experiment. I did not expect that the negative reviews of experience products would be more useful than the positive ones, as attested by Willemsen, Neijens, Bronner and de Ridder (31). However, after some reflection, and even catching myself doing so while online shopping last weekend, I do gravitate toward the negative reviews of a product when it has those “intangible attributes that cannot be known until purchased” (23). Additionally, I did find it humorous that in contrast to last week’s reading, Peer or Expert, that the authors of this piece found a weak, but present correlation between the expert written reviews and usefulness (31).

Going forward in this week’s readings was a study in blogs and bloggers, how they see themselves and the ethical dilemmas that have arisen from their own actions and corporations trying to appropriate the platform as a sales tool. After reading through these three articles on the topic of blogs, it became painfully aware to me how short the distance is between a genuine (non-corporately created) blogger and their audience. Without the filter of editors and peer review that other writers have built in, these bloggers’ mistakes are made in real time. There is a sense that when a newspaper columnist publishes an article that then becomes criticized, the paper itself bears some of the reputational damage. A blogger has no such shield. As a relatively new medium, today’s bloggers are making the mistakes required to prompt a structure of regulation, such as the proposed FTC regulations discussed in Blogola, Sponsored Posts, and the Ethics of Blogging.

Some of the numbers listed in our readings were staggering. For example, in Networked Narratives: Understanding Word-of-Mouth Marketing in Online Communities, the authors quote from a 2007 survey that “50% of all internet users are regular blog readers” (73). Despite checking of 15-20 blogs a day myself, that is still a massive number that I would never have expected. It is no wonder they are being targeted by advertisers. I have followed several blogs from being part of the 99% of “lonely roads” that Chia references in Welcome to Me-Mart, to full blown “probloggers” able to take blogging from hobby to career on sponsorships from corporations using them for advertising.  That being said, for those blogs not generating a profit, I’m not sure that I agree with the view that blogs as user generated content are exploitive just because the user bares the cost of maintenance. I buy supplies for my hobbies all of the time and what I create from the supplies doesn’t generate funds enough for me to be profitable. But that is not the point of a hobby, is it?

I found this interesting…

This is a webinar that I received an e-mail advertising…

 

http://thompsoninteractive.com/site/offer.jsp?promo=001629EM&priority=00296004996&utm_source=00296004996&utm_medium=email

 

COURSE DESCRIPTION:

Like it or not, many of your employees likely are accessing Facebook, Twitter, LinkedIn and other social media sites on and off the clock. Telling them not to may be impractical. But improperly managing the associated risks can put your business in jeopardy.

This unique webinar will explore the many issues emerging from the explosive popularity of social media:

  • Where do you draw the line on when and how much an employee can engage with social media?
  • What should your social media policy include or avoid? The answers may shock you.
  • Your employees are blogging, tweeting and networking — on your behalf as well as their own. Who owns the followers?
  • Is it lawful for a recruiter, HR, or a supervisor to peruse the Facebook or Twitter pages of an employee or potential hire?
  • What are the privacy ramifications of social media on the workplace?
  • Is it possible to control employees’ use of social media without violating the National Labor Relations Act or other employment and civil rights laws?

In this 90-minute interactive webinar you’ll learn about the risks and benefits of allowing employees access to social media sites, practical solutions concerning regulation of social media access in the workplace and what you need to do to update your policies.  And, you’ll have the opportunity to have your social media questions answered during the live Q&A portion of the webinar.
 
You’ll Learn:

  • Now that the NLRB has issued its first social media decision, how does it impact your workplace?  
  • What changes should employers make to current policies to reflect social media?
  • How should policies be integrated into an employee handbook?
  • What are the legal risks of allowing employees to use social media sites?
  • What do you do if employees begin accessing social media sites through their personal smart phones at work?
  • How do discrimination laws and rules apply to off-site use of social media?

Who Should Attend:

  • Human Resources Professionals
  • Hiring Managers
  • In-House Labor and Employment Counsel
  • Business Managers and Supervisors
  • Employment Law Attorneys
  • College/Employment Placement Officers

User, not Loser, Generated Content!

Service-dominant logic has certainly made a striking impression on marketing academia. It focuses on viewing a customer as an operant resource, or a collaborative partner who co-creates value with the firm (Vargo and Lusch 2004). In short, it is a market with orientation, as opposed to a market to orientation, in which a market and customer were analyzed and products were produced to meet customer needs (Vargo and Lusch 2007). When we studied this concept that is now very popular in the marketing literature, I was surprised to learn that the term service-dominant logic was not coined until 2004. Upon reading Ritzer, Dean, and Jurgenson (2012), however, I learned that researchers such as Toffler and Kotler have been studying the idea of presumption for over thirty years, which set the stage for related ideas such as service-dominant logic. One of the most unique examples of prosumption offered by Ritzer, Dean, and Jurgenson is the Twitter backchannel at conferences. I have tweeted about various sessions at academic conferences and have found the process to be engaging because it allows me to participate in the session even if I did not give a formal presentation. Furthermore, by offering my opinions on the presentation, I am able to connect with other conference attendees who are also tweeting.

Willemsen et al.’s (2011) finding that the negativity effect occurs for experience products whereas the positivity effect occurs for search products is quite useful for marketers who maintain companies’ online presence. For instance, if a restaurant was concerned about the effect of online reviews on the patronage of the restaurant, it would be extra careful to monitor negative reviews, whereas a computer manufacturer should pay attention to whether consumers are bothering to write positive reviews about their products. However, I felt that the study should have included the number of reviews as a control variable. If there is only one positive review of a product, I tend to feel more skeptical about it than if there are many positive reviews. Additionally, if there is one scathing review among multiple positive reviews, I tend to consider the angry reviewer to be a “nitpicker”, or someone who is generally difficult to please. This would be an interesting future consideration for online review studies.

Chia (2010) mentions that some scholars believe that people who create UGC are being exploited because they are not compensated for their work. Peterson even goes so far as to say that UGC should be termed “loser-generated content” instead of “user-generated content”. While I agree that companies and marketers can make money off of user-generated data, I do not think that the people who create this content are being exploited. They are creating this content willingly, and no one (besides the authors of books that teach people how to capitalize on their blogs) is promising that they will earn any monetary compensation from it. I found it interesting that so many bloggers consider reader comments to be a form of compensation. However, as mentioned by Chia, social compensation does not translate into actual compensation. But perhaps bloggers who do not get many hits on their blogs realize that blogging is not a realistic means of substantial income. In other words, they see it as more of a hobby, in which case, social compensation may suffice.

prosumer party pack

Immaterial labor seems like the natural way of things on the net. Ritzer, Dean and Jurgenson’s “The Coming of Age of the Prosumer,” provides a nice summary of prosumption as an idea that runs rampant on the Internet but isn’t limited strictly to computer-based activities. Mixing production with consumption has wormed its way into our lives in how we shop for food in supermarkets (cutting out the old-fashioned grocer and more recently the living cashier) and how we dine in fast food restaurants such as McDonalds. We, the prosumers, very willingly engage in labor that cuts costs for businesses. As this article hints at and this week’s other readings take on fully is the sense of community that is tied to the notion of prosumption and how that community perception and loyalty waxes and wanes dependent on the perceived influence of marketing and truthfulness.

The immediate formal result of prosumption on the Internet is evidenced in our co-creation of social network sites (something I had never considered as labor before), blogs, and virtual marketplaces such as Amazon.com. Interestingly, Jenny Davis’ article on Transableism, introduced in “The Coming of Age of the Prosumer,” is about healthy people who want to be disabled, which is relevant to prosumption as a co-creation of identity made possible by a website. I was reminded of Tobias Funke’s “never-nude” affliction on the show Arrested Development. With a supportive online community, a wide variety of identity-shaping psychic alterations seem likely to occur.

The rest of the readings took on the complicated task of figuring out how influence can be judged amongst the prosumer community. From weighing the “usefulness” of online peer reviews to the effects of blog advertising on the community of blog readers, the articles considered the issue from many angles. The ethical concerns of blogs measured in “Blogola…” by Ric Jensen were fascinating in a comparative consideration to journalism, a tradition that upholds certain frameworks and expected behaviors of reportage in an effort to remain a credible source of information. Being a credible source of information also means that you are who you say you are, not a corporation posing as a citizen news source/promotional opportunity.  “Networked Narratives: Understanding WOMM in Online Communities,” by Kozinets, Valck, Wojnicki and Wilner extends the ethical analysis to the blog reader community and how perception of a trustworthy, or at least consistent, blogger may shift when he or she is enlisted by marketers to participate in advertising campaigns. The case studies depicted in this article were a cool way of integrating empirical research.