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Tensions between Value Capture and Value Slippage: The Case of Brand Communities
Author(s) -
Cova Bernard,
Paranque Bernard
Publication year - 2019
Publication title -
canadian journal of administrative sciences / revue canadienne des sciences de l'administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.347
H-Index - 48
eISSN - 1936-4490
pISSN - 0825-0383
DOI - 10.1002/cjas.1484
Subject(s) - slippage , value (mathematics) , brand community , value capture , profit (economics) , business , marketing , virtue , brand equity , value creation , advertising , economics , industrial organization , microeconomics , political science , computer science , law , machine learning , financial economics
With the development of intangibles, the issue of value capture has become of paramount importance, especially for firms that have a community of users gathered around their brand. While the notion of utilizing communities may be appealing, transforming the relationship between firms and communities into profit for the firm is less obvious. The dual challenge for firms is capturing the value created by the brand community, while avoiding any kind of value slippage to another actor. From a re‐examination of five cases of value creation with brand communities in different industries, we delineate three assemblages of actors and episodes manifesting value slippage, and two manifesting value capture by virtue of the attitudes and behaviours of the firms that own the brands. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd.