Isabel Engström Building brand loyalty through customer engage- ment practices A case study on Djerf Avenue’s online brand community Vaasa 2023 School of Marketing and Com- munication Master’s Thesis in Marketing Management 2 UNIVERSITY OF VAASA School of Marketing and Communication Author: Isabel Engström Title of the thesis: Building brand loyalty through customer engagement practices: A case study on Djerf Avenue’s online brand community Degree: Master of Science in Marketing Discipline: Marketing Management Supervisor: Hanna Leipämaa-Leskinen Year: 2023 Pages: 87 ABSTRACT : As a result of resent technological advancements and the launch and significance of new social media platforms companies’ online customer engagement has become increasingly important. The emergence of online brand communities pose a significant asset for companies if utilized successfully. Brand loyal customers are important to a company in terms of long-term profita- bility, positive word-of-mouth and value co-creation. It is therefore in the interest of brands to understand how to engage with their customers to nurture a loyal and interactive relationship with their customers. The purpose of this study is to examine how customer engagement practices can be used to build brand loyalty in a virtual brand community. The study is a qualitative research, and it is done as a case study from the point of view of the online community of Djerf Avenue. The liter- ature review of the study defines the main themes of brand loyalty, customer engagement and online brand communities. A typology created by Hollebeek et al. (2017) identifies eight virtual brand community engagement practices, which are greeting, regulating, assisting, appreciating, empathizing, mingling, celebrating and ranking. The theoretical framework for the study is built based on the eight virtual brand community practices and their impact on brand loyalty. The empirical data for this study is collected through a combination of observations in the case com- munity over a four-month period and thematic interviews on ten community members. The themes for the thematic interviews were based on the theoretical framework and the observa- tions in the community. The observations in the case community identified five virtual brand community engagement practices, which were assisting, appreciating, empathizing, mingling and celebrating. These five engagement practices were analyzed from the point of view of behavioral and attitudinal brand loyalty. In correlation to the engagement practices both attitudinal loyalty and behavioral loyalty could clearly be identified in the findings because as a result of the engagement practices the community members felt more connected to the brand and were more likely to purchase their products even at a premium price. Thus, the findings indicate that in the case community these five engagement practices made the most significant difference in terms of creating true brand loyalty towards the brand and the other community members. Similarly, it was found that the benefits characterized in the theoretical framework relating to brand loyal online brand com- munity members were identified in connection to the five engagement practices. These were a sense of belonging, a stronger relationship with the company, a stronger relationship with other customers and insight into brand related information. It was therefore found that the systematic use of engagement practices that felt authentic to the community and added value for the mem- bers made the community members more loyal to the brand in terms of both behavioral and attitudinal loyalty. KEYWORDS: Brand loyalty, customer engagement, online brand community, virtual brand community engagement practices, behavioral loyalty, attitudinal loyalty 3 Table of Contents 1 Introduction 6 1.1 Introduction to the case community 8 1.2 Research questions and objectives 10 1.3 Research methods 11 1.4 Structure of the study 12 2 Brand loyalty through customer engagement 14 2.1 Brand loyalty 14 2.2 Customer engagement 15 2.3 Online customer engagement 18 2.4 Engagement in online brand communities 20 2.4.1 Online brand community from the customer’s point of view 21 2.4.2 Online brand community from the company’s point of view 24 2.5 Virtual brand community engagement practices 26 2.6 Theoretical framework 31 3 Methodology 33 3.1 Methodological approach 33 3.2 Research method 35 3.3 Data collection 37 3.3.1 Observations 37 3.3.2 Thematic interviews 38 3.4 Data Analysis 40 3.5 Reliability and validity of the study 40 4 Findings 43 4.1 An overview of the virtual brand community engagement practices 43 4.1.1 Assisting 45 4.1.2 Appreciating 50 4.1.3 Empathizing 53 4.1.4 Mingling 55 4.1.5 Celebrating 58 4 4.2 Connecting online engagement practices and brand loyalty 61 5 Conclusion 71 5.1 Summary and the most important findings 71 5.2 Managerial implications 75 5.3 Limitations of the study and future research suggestions 76 References 78 Appendices 83 Appendix 1. Material list 83 Appendix 2. Thematic interview questions 83 5 Images Image 1. Illustration of assistance through showcasing different body types in Djerf Avenue’s Instagram page. (@djerfavenue, 2022, December, 1.) 47 Image 2. Examples of the appreciation shown to different disabilities on Djerf Avenue’s Instagram. (@djerfavenue, 2023, January, 21.; @djerfavenue, February, 7,; @djerfavenue, 2022, December, 30.) 52 Figures Figure 1. Structure of the study. 13 Figure 2. VBCEP process model. (Adapted from Hollebeek et al., 2017) 27 Figure 3. Theoretical framework. 32 Tables Table 1. Definitions of customer engagement. 16 Table 2. Research question and sub-objectives. 34 Table 3. Summary of interviews. 39 Table 4. Summary of observation findings. 43 Table 5. Summary and examples of brand loyalty in the case community. 69 6 1 Introduction In marketing research, the topic of customer involvement has been studied for a long time. However, the more recent topic of customer engagement goes beyond involve- ment through building an interactive relationship with the customer (Mollen & Wilson, 2010). In addition, customer engagement has recently gained interesting new dimen- sions through the emergence of social media and online brand communities (Bowden et al., 2018). Hollebeek et al. (2021) state that customer engagement does not have one specific definition, however customer’s brand interactions are the common dominator in all customer engagement research. Online customer engagement has become increas- ingly significant to companies as the continuous technological advancements and launch of new social media platforms have made online interactions more accessible and signif- icant than ever. Dessart et al. (2015) argue that it is in the interest of brands to understand how their customers engage with the brand in online environments, as the relationships customers form with one another as well as with the brand are vital for a brands success. In addition, according to Villanueva et al. (2008) successfully leveraging online customer engage- ment has the possibility to foster brand loyal customers who spread positive word of mouth, which has a more significant effect on customer behavior compared to tradi- tional marketing. Having brand loyal customers is an important asset to a company in terms of long-term profitability as they buy more in value and frequency, they are easier to reach, and they promote the brand to new customers through positive word of mouth (Harris & Goode, 2004). A loyal customer is defined by having a strong connection to the brand and being committed to buying and engaging with the brand (Chaudhuri & Holbrook, 2001). In ad- dition, Jacoby and Chestnut (1978) define brand loyalty as a non-random behavioral re- sponse, such as a purchase, which is repeatedly expressed over a period and that stems from a psychological decision-making process. 7 However, more recently brand loyalty is often examined through attitudinal and behav- ioral loyalty, which Russell-Bennett et al. (2007) argue, are both needed to achieve true brand loyalty. Behavioral loyalty is defined as purchasing frequency as well as the inten- tion to repurchase or increase purchases in the future (Romaniuk & Nenycz-Thiel, 2013; Chaudhuri & Holbrook, 2001; Hem & Iversen, 2002). In comparison, attitudinal loyalty is seen as an emotional commitment to a brand, which shows itself through, for example positive word of mouth (Russell-Bennett et al., 2007). Having loyal customers is an effec- tive way to minimize business risks during less stable periods and therefore understand- ing how true brand loyalty is achieved and maintained is an important advantage to a company. Traditionally research on brand loyalty has placed emphasis on behavioral loyalty, which focuses more on purchase amounts and frequency (Chaudhuri & Holbrook, 2001). How- ever, Russell-Bennett et al. (2007) state that attitudinal loyalty highly influences behav- ioral loyalty and thus both should be studied to gain true and long-lasting brand loyalty. Similarly, Brodie et al. (2013) argue, that research regarding the types of participation and involvement in brand engagement is limited. The emergence and growth of social media presents an opportunity but simultaneously a possible risk to companies. Social media platforms have allowed customers to interact with each other in new dimensions and it has given a new sense of visibility and belong- ing to customers. This can be seen through the increased formation and importance of online brand communities (OBCs). OBCs are a meaningful engagement platform that en- courages interaction between the focal brand and a customer as well as among custom- ers. OBCs have a positive influence and a source of value to both customers and compa- nies. However, Cova and White (2010) remind of the risk of commentary in online brand communities developing a negative connotation towards the brand. Therefore, it is vital for brands to understand how and what tools help to ensure loyal customers and positive online brand communities (Bowden et al., 2018). 8 Hollebeek et al. (2017) have studied OBCs engagement practices and through their re- search they have identified eight virtual brand community engagement practices (VBCEP), which highlight the different types and phases of customer engagement in an online brand community all the way to becoming an active and loyal member. Hence, this study focuses especially on virtual brand communities and what types of engage- ment practices are typical to them. The eight VBCEP’s identified by Hollebeek et al. (2017) are: greeting, regulating, assisting, appreciating, empathizing, mingling, celebrating and ranking. In this study the terms online and virtual are used as synonyms for each other. According to Hollebeek and Belk (2021) research on the effectiveness of brand engage- ment in specific online platforms remains insufficient and therefore forms a significant gap in research. In addition, Hollebeek et al. (2021) argue that as technology and social media platforms evolve, online customer engagement is an essential theme to study as it can result in innovative opportunities for customer engagement and brand engage- ment. Hollebeek et al. (2017) research on virtual brand community engagement prac- tices states that a deeper understanding of the key outcomes of VBCEPs in different in- dustries is still limited and should be researched. The focus of this study is therefore on customer engagement and what types of customer engagement practices are employed in the online brand community around the clothing company Djerf Avenue. 1.1 Introduction to the case community This research studies the research objectives from the point of view of a case community in Instagram, which has been built around the company Djerf Avenue and its founder Matilda Djerf. Djerf Avenue (2022) is a Swedish fashion brand, founded in 2019 by a fash- ion influencer Matilda Djerf and her partner Rasmus Johansson. The company has been growing quickly and in 2021, the company achieved $8 million in sales revenue and the revenue is expected to rise to $22 million in 2022 (Paton, 2022). In addition to their head office in Stockholm, Sweden, the company has grown its business in 2022 by hiring local employees and opening a new warehouse into their biggest market area, the US 9 (Lundberg Toresson, 2022). Djerf Avenue operates completely online and therefore all sales, marketing and customer engagement is done online through different social media platforms. The company has recently extended their business by launching their own re- sell platform as a step towards more circular consumption. Djerf Avenue describes themselves as a non-seasonal, ready-to-wear brand that delivers timeless pieces that are meant to last and stand the test of time (Lundberg Toresson, 2022). In addition to clothing items, the company has expanded their products to swim- wear, accessories, and homeware such as robes, bedding, and towels. All their pieces are ethically produced in Portugal or Italy, and they aim to make their products as sus- tainable as possible by using sustainable materials and designing timeless pieces that all work together and can be worn for years to come. The company aims to be inclusive to all body types therefore has a size range extending from XXS to 3XL. For every piece of clothing on their website Djerf Avenue aims to feature models for each clothing size, to create a more inclusive shopping experience. As the clothes are only sold online and you are not therefore able to try them on before the purchase, therefore the practice of por- traying each size online aims to help consumers to view what the piece would look like in their size. The company has also committed to never retouching any photos of their models or clothing items that are seen on their website or social media, which further emphasized the feeling of authenticity (Djerf Avenue, 2022). The company appeals to customers through their authenticity, sustainable and inclusive values. However, another significant factor for the success of the brand is the image and following of the brands creator Matilda Djerf. On social media, Matilda Djerf has cur- rently over 2.9 million Instagram followers and 1.2 million TikTok followers and she is often referred to as the “it-girl” of Scandinavian fashion as well as a trendsetter for Gen- Z fashion (Grimes, 2022). In addition, videos under the hashtag matildadjerf have collec- tively over 236,2 million views on TikTok. On her platform Matilda talks about fashion but also emphasizes the importance mental health and self-acceptance, which are values that also translate to the brands image. Djerf Avenue is also highly visible on her personal 10 social media accounts which allows the brand to also gain visibility through her personal popularity and social media community. Matilda Djerf is therefore visible on multiple online platforms which together with Djerf Avenue’s social media accounts create a lively brand community. The empirical part of this study is however focusing on the Instagram community of Djerf Avenue because it is where the brand has the most followers and where they are most active on a daily basis. In April 2023 the Instagram page of Djerf Avenue has over 530 000 followers. As Djerf Avenue was founded only four years ago, is still a relatively new company that has been able to quickly create great success since its launch in 2019. The company is operating entirely online, and all the company’s marketing is done on social media. It is therefore an excellent company to use as a case community for this study to examine how customer engagement practices can be utilized by brands to create brand loyal cus- tomers. 1.2 Research questions and objectives The purpose of this study is to examine how customer engagement practices can be used to build brand loyalty in a virtual brand community. This is studied in the context of a clothing company’s online community and thus customer engagement is looked at spe- cifically from an online engagement point of view. The study aims to answer the question: How can virtual brand community engagement practices increase brand loyalty among customers? The main objective of the research is examined through three sub-objectives. 1. The first sub-objective is to define brand loyalty, customer engagement and online brand communities and discuss them in the framework of virtual brand community engagement practices. 11 2. The second sub-objective is to identify which kinds of virtual brand community engagement practices can be found in the Djerf Avenue brand community. 3. The third sub-objective is to analyze how the brand community members expe- rience the engagement practices from the viewpoint of behavioral and attitudi- nal brand loyalty. 1.3 Research methods The research method of this study is qualitative research. A qualitative research method was selected as it best supports the purpose of this study which is to better understand the kinds of virtual brand community practices that can be found in the Djerf Avenue brand community. According to Eriksson and Kovalainen (2015, p. 4) a qualitative re- search approach focuses on interpretating and understanding the subject that is studied. As the theory of virtual brand communities’ engagement practices by Hollebeek et al. (2017) is fairly new, a qualitative research method is a good fit for the study to gather a deeper understanding of the topic. The study is done from a phenomenological herme- neutical perspective. In addition, the study is done as a case study of the online brand community of Djerf Avenue’s Instagram. The empirical materials are collected through observations made in the online brand community and through thematic personal inter- views with selected members from the online brand community. According to Puusa et al. (2020), the importance of understanding the subject in order to be able to choose the right themes for the thematic interview is vital. Therefore, the themes of the thematic interviews are designed based on the theoretical framework of the literature review as well as the main findings of the observations. Altogether ten individuals from the case company’s online brand community are interviewed on the engagement practices observed in Djerf Avenue’s Instagram community. The combina- tion of thematic interviews and observations is the appropriate approach for this inter- view due to its flexibility, which allows individuals’ personal experiences to be high- lighted. 12 The analysis of the collected data is done through a content analysis, where the data is characterized into categories based on the discussed themes. Eriksson and Kovalainen (2016, p. 122) state, that analysis through categorization is most efficient when the aim of the study is to create a thorough understanding of the subject, as it is in this research. 1.4 Structure of the study This study consists of five chapters. The first chapter is the introduction, where the back- ground of the study, the research question, main objectives and research methods are explained. The second chapter creates the theoretical framework for the study. Through a literature review, it examines the main themes of the thesis, brand loyalty, customer engagement and virtual brand community engagement practices. In addition, the chap- ter discusses online brand communities from the point of view of both customers and the company. The second chapter answers to the first sub-objective of the study and creates the theoretical framework for the empirical research. The third chapter is the methodology chapter where the choices for the methodological approach, research method, data collection and data analysis are explained. In addition, the reliability and validity of the study are discussed in this chapter. The fourth chapter presents and analyses the findings of the empirical research. This chapter aims to answer to the second and third sub-objectives of the study. The fifth and last chapter is the con- clusion, where the main findings of the study are presented. In addition, limitations of the study and future research suggestions are given. Figure 1 below summarizes the structure of the study. 13 Figure 1. Structure of the study. • Introduction to the thesis, its main concepts, research question and the introduction of the case community. 1. Introduction • The literary review of the study examining the themes of brand loyalty, online customer engagement and virtual brand community engagement practices. Answers to the first sub-objective of the study. 2. Brand loyalty through customer engagement • The chosen methodologial approach, research method, data collection and data anysis are explained. In addition, the reliability and validity of the study are discussed. 3. Methodology • The findings of the thematic interviews are presented and analyzed. Chapter aims to answer to the second and third sub-objective of the study. 4. Findings •The summary of the main findings of the study, managerial implications and further research suggestions are presented. 5. Conclusion 14 2 Brand loyalty through customer engagement This chapter aims to answer the first sub-objective of the study by defining and develop- ing an understanding of customer engagement, brand loyalty and virtual brand commu- nity and their engagement practices. The chapter begins by defining and discussing brand loyalty and customer engagement based on previous research. After this, sub- chapter 2.3 introduces and builds an understanding of online customer engagement and sub-chapter 2.4 examines how OBCs can benefit both the company and the customer. In sub-chapter 2.5 the eight virtual brand community engagement practices are introduced and examined. Finally, the sub-chapter 2.6 summarizes the findings of the chapter and creates a theoretical framework for the empirical part of the study. 2.1 Brand loyalty Brand loyalty refers to the degree of attachment a customer has developed for a brand (Liu et al., 2012). If a customer develops a strong connection and commitment towards a specific brand, they become loyal to it (Chaudhuri & Holbrook, 2001). According to Chaudhuri and Holbrook (2001) brand loyalty stems from brand trust, which refers to the trust a customer has in the quality of the product or service. In addition, positive emotions and thoughts towards a brand are similarly necessary in creating brand loyal customers. Brand loyalty can typically be divided into and measured in terms of two types of loyalty, attitudinal and behavioral loyalty (Russell-Bennett et al., 2007). True brand loyalty con- sists of a combination of both attitudinal and behavioral loyalty. Behavioral loyalty, also referred to as purchase loyalty, is defined through buying frequency, willingness for re- purchases and the intention to increase purchases in the future (Romaniuk & Nenycz- Thiel, 2013; Chaudhuri & Holbrook, 2001; Hem & Iversen, 2002). In comparison, Chaudhuri and Holbrook (2001) and Russell-Bennett et al. (2007) define attitudinal loy- alty as the emotional commitment a customer has to a brand. This can be seen through 15 intention to repurchase over other brands due to a unique value that the customer as- sociates with the brand. Attitudinal loyalty can also be seen as the support of a brand through positive word-of-mouth. Positive word-of-mouth creates new customers, which makes brand loyal customers valuable assets to a company. Analysis on brand loyalty often places emphasis on behavioral loyalty and number of purchases. Russell-Bennett et al. (2007) however state that attitudinal loyalty leads to behavioral loyalty and vice versa, a decrease in attitudinal loyalty may affect purchase frequency and therefore attitudinal loyalty is equally as important to pay attention to. Customer satisfaction from previous purchases together with customer involvement plays a central role in building attitudinal loyalty. Brand loyal customers are important to a brand not only in terms of current purchasing power, but also in long term profitability. According to Chaudhuri and Holbrook (2001) a loyal customer is willing to pay premium price for a brand they believe offers unique value compared to its competitors. In addition to paying a higher price, Harris and Goode (2004) state that loyal customers also buy more and are easier to reach. They therefore have the potential be valuable to a company in terms of profitability. Ganesh et al. (2000) and Harris and Goode (2004) also explain that brand loyalty translates into reduced mar- keting costs as loyal customers enthusiastically act as advocates to a brand through word-of-mouth and value co-creation through customer created content. Positive word- of-mouth around a brand is a source for new customers in the future (Oliver, 2014). This highlights the importance of having both behaviorally and attitudinally loyal customers. 2.2 Customer engagement In marketing, the concept of customer engagement does not have one universal defini- tion, rather it is described as a multidimensional concept (Hollebeek et al., 2021; Vivek et al., 2012). Research often places focus on either the psychological components or be- havioral components of customer engagement. Brodie et al. (2011, p. 259) for example 16 define customer engagement as a “psychological state that occurs by virtue of interac- tive, co-creative experiences with a focal agent/ object (i.e., a brand) in a focal service relationship”. Similarly, Hollebeek (2011) describes customer engagement as a “state of mind” in relation to a brand. However, in comparison Van Doorn et al. (2010, p. 254) define it as “behavioral manifestations that have a brand or firm focus, beyond purchase, resulting from motivational drivers”. Nevertheless, most definitions of customer engage- ment share a focus on customer’s brand interactions (Hollebeek et al., 2021). A compre- hensive definition regarding both psychological and behavioral components is given by Sedley (2010) “repeated interactions that strengthen the emotional, psychological or physical investment a customer has in a brand”. Table 1 presents the prior academic def- initions of customer engagement. Table 1. Definitions of customer engagement. Definition Author(s) Focus of the definition “A psychological state that occurs by virtue of interactive, co-creative experiences with a focal agent/ object (i.e., a brand) in a focal ser- vice relationship” Brodie et al. (2011) Psychological components “The level of a customer’s motiva- tional, brand-related and context- dependent state of mind charac- terized by specific levels of cogni- tive, emotional, and behavioral activity in brand interactions.” Hollebeek (2011) Psychological and behavioral components “Behavioral manifestations that have a brand or firm focus, beyond purchase, resulting from motiva- tional drivers” Van Doorn et al. (2010) Behavioral components 17 "Repeated interactions that strengthen the emotional, psycho- logical or physical investment a customer has in a brand” Sedley (2010) Psychological and behavioral components According to Dessart et al. (2015) and Vivek et al. (2012) customer engagement offers additional value to traditional customer brand relationships by creating an interactive relationship that has the ability to deepen the relationship between a company and the customer beyond a more surface level purchasing relationship. Having an engaged rela- tionships with customers is according to Brodie et al. (2011) an essential part of a suc- cessful marketing strategy. Villanueva et al. (2008) have found that customers engagement, such as word-of-mouth, has a significantly greater effect on customer behavior compared to traditional market- ing activities. In comparison to traditional marketing activities, Vivek et al. (2012) and Loureiro et al. (2017) emphasize the significance of direct interaction and relationship building between the customer and the brand. Brodie et al. (2011) describe customer engagement as being simultaneously both a strategic imperative to create and sustain competitive advantage and an important predicator for future business performance. Hollebeek et al. (2017) state that as engaged customers tend to show higher levels of brand-related activity and spread positive word-of-mouth they are an important asset to managers in terms of spreading brand awareness and brand loyalty. Similarly, Dessart et al. (2015) highlight the strong relationship between customer engagement and brand loyalty. Brodie et al. (2011) also argue that there is a clear correlation between engage- ment and positive word-of-mouth as well as increased profitability. Bowden et al. (2018) state that positive online brand engagement can be leveraged to create brand loyalty and thus increase the number of loyal customers, which in turns 18 ultimately benefits the brands financial performance. According to Bowden et al. (2018) customers experience brand engagement through not only the brand’s marketing activ- ities and interactions but also through user generated content on social media platforms. Online customer engagement therefore plays a crucial role in effective brand engage- ment. However, even though online engagement offers a possibility to increase brand awareness and positive word-of-mouth, it similarly creates a platform for the spread of negative word-of-mouth. Therefore, understanding how to achieve brand loyal custom- ers through positive virtual brand engagement is a vital for companies. 2.3 Online customer engagement The importance of building interactive relationships with customers on social media has increased significantly within the last decade and as Khan et al. (2017) describe, online environments have allowed for the growth of more dynamic and real-time brand inter- actions. Casaló et al. (2008) and Bowden et al. (2018) state, that through digital innova- tion, the ways in which consumers interact and connect with brands has transformed significantly. Customers are no longer simply passive receivers of brand related market- ing but instead, they have acquired an active role of participating in brand related con- tent and co-creating value and brand image. According to Yoshida et al. (2018) the pos- sibility for personal communication between customers and with the company itself builds strong customer relationships, which in turn increases brand loyalty. Brodie et al. (2011) define that online consumer engagement as interactive experiences between either the customer and the brand or between customers within the brand community. They also add that consumer engagement consists of cognitive, emotional, and behavioral dimensions. Rather than focusing directly on increasing sales, online cus- tomer engagement emphasizes building collaborative relationships with customers and engaging them in brand related social media activities such as sharing feelings and thoughts, connecting, socializing, contributing, and co-creating with the brand and other customers (Apenes Solem, 2016; Malkan & Klaus, 2011; Muntinga et al., 2011). 19 Online engagement creates both an opportunity and risk for companies as both positive and negative word of mouth spreads faster than ever before and therefore being able to manage the brands online narrative is extremely vital (Bowden et al., 2018; Breidbach et al., 2014). Dessart et al. (2016) therefore highlight the importance of managers under- standing how consumers engage with brands in online environments as these brand cus- tomer relationships can impact the overall success of the brand. Loureiro et al. (2017) similarly emphasize this by stating that online brand engagement leads to positive e- word of mouth. Loureiro et al. (2017) state that online brand engagement should aim to create opportu- nities for meaningful interactions to exchange information with both the brand and among other customers. For successful customer engagement, it should be the priority of managers to enable purposeful contacts with customers. This includes rapid answers to questions, encouragement of reviews and listening to customers inputs on products and improvements. Muntinga et al. (2011) emphasize that in order to effectively engage customers, it is first vital to understand customer’s motives for engaging with the brand’s content. They cat- egorize customers’ brand-related activities into three categories, consuming, contrib- uting and creating. Consuming refers to viewing, reading or watching brand related con- tent such as photos, videos and music, following brand community forums as well as reading comments and reviews. Contributing takes brand engagement one step further and consists of sharing your experiences by rating products, being a part of a brand re- lated social community or group, interacting in conversations on social groups or forums and commenting on brand content such as videos or videos. Creating is when a customer produces user-generated brand related content such as videos, photos, blogs, articles or writes product reviews. Creating can thus be seen as co-creation of content for a brand. The creating stage of customer engagement is often related to a high level of brand loy- alty. 20 2.4 Engagement in online brand communities While brand communities have been present for already a long time, the emergence of social media platforms has allowed the development of online brand communities (OBCs) that act as meaningful engagement platforms encouraging interaction between a focal brand and a customer as well as among customers. Online brand community is defined by Muniz and O'guinn (2001) as “a specialized, non-geographically bound online com- munity, based on social communications and relationships among a brand’s consumers”. OBCs allow customers to communicate on brand related and personal matters as well as form relationships with other likeminded customers. According to de Valck et al. (2009) the technological development of social media has shifted the role of customers from being more passive recipients of company information, to now being significant messen- gers of brand related knowledge and opinions. Through social media customers are able to directly communicate with each other as well as create friendships between one-an- other on the basis of their shared values and interests towards a specific brand. Wirtz et al. (2013) describe OBC engagement as both an attitude, thus an interest to participate as well as the action to actually act and participate in the community. Muniz and O'guinn (2001) outline the tree main characteristics of a brand community to be a shared connection and feeling of “we-ness” between members, community specific tra- ditions or rituals and a sense of moral responsibility towards the community and its members. Similarly, Algesheimer et al. (2005) have found, that in OBCs community mem- bers are actively eager to participate and help each other out, which increases the per- ception of togetherness. Online brand community engagement can be divided into two categories: interactions between community members within a OBC as well as interactions between the com- munity and the brand itself (Dessart et al., 2015). However, in some cases the brand itself is not active in the online brand communities and engagements in these communities are rather initiated by different individuals within the brand community. Nevertheless, Dessart et al. (2015) state that engagement with both the brand and the community are 21 highly connected to each other. According to Wirtz et al. (2013) companies benefit from engaged OBCs through increased levels of brand commitment, brand satisfaction and brand loyalty. According to Bowden et al. (2018) customers interactions with brands have transformed as a result of online brand communities. Dessart et al. (2015) have found that engage- ment in OBCs originates as result of existing brand knowledge, satisfaction, and trust. In addition, Brodie et al. (2011) state, that the more satisfied customers are with the brand, the more likely they are to engage with them. Schau et al. (2009) add, that a virtuous cycle develops when customers are engaged with a brand and spread positive word of mouth, which attracts new customers to the brand community. Through OBCs, custom- ers have become significant co-creators of brand value and meaning and OBCs have be- come an important part of customers’ overall brand experiences. In addition, Wirtz et al. (2013) highlight the numerous positive consequences of OBC’s such as brand commit- ment, satisfaction and loyalty as well as co-creation and eagerness for idea generation for future products. According to de Valck et al. (2009) the growth of online brand com- munities has also transformed the scope, speed and the importance of word-of-mouth. Muniz and O’Guinn (2001) argue, that a strong brand community can be utilized as an effective marketing asset. According to Wirtz et al. (2013) and Bowden et al. (2018) pas- sionate and active customers in OBCs can strengthen a brands business performance as customers communicate through activities such as engaging in brand related discussions, sharing information and helping others in the community, spreading positive experi- ences as well as integrating new members into the community. Engaged customers thus create value for community members through brand related discussions. 2.4.1 Online brand community from the customer’s point of view From the point of view of the customer, OBCs are an important social network for cus- tomers throughout their customer experience. De Valck et al. (2009) argue, that OBCs 22 provide consumers with knowledge and companionship, which has significant implica- tions on their consumer behavior. In addition, they found that engaging in OBCs by re- trieving product or service-related information has a positive influence on the purchase decision process. In pre-purchase scenarios customers trust OBCs to discuss and attain information, advice and reviews regarding a product or a service. Similarly, in post-pur- chases scenarios customers discuss their opinions and experiences together with the community. Sharing experiences with likeminded customers in OBCs creates trusting re- lationships between community members as well as a sense of belonging. In addition, Bowden et al. (2018) argue that these interactions are mutually beneficial to both, the members of the community and the brand itself, as the positive OBC experiences brings customers closer to the brand and therefore create stronger brand loyalty. OBCs generate value for customers in multiple ways, which motivates customers to be and stay engaged in their brand communities. Through their research Wirtz et al. (2013) have found the three most significant motivations for customers’ OBC engagement. The first of these is brand-related drivers, which includes brand identification and the brand’s symbolic function. Brand identification refers to the way in which customers integrate parts of the brands identity to their own self-identity. According to the authors, custom- ers who identify with the brand are more likely to seek out and engage with like-mined customers in brand communities. The second driver identified by Wirtz et al. (2013) is social divers, more specifically social benefits and social identity. The authors identify social benefits from OBCs as being ac- tivities such as bonding through discussing and seeking help from members of the com- munity. Similarly, Hollebeek et al. (2017) and Muntinga et al. (2011) have found that en- gagement in OBCs generates value in the form of interpersonal connectivity and a sense of belonging through meeting like-minded individuals and connecting with society. In addition, OBCs create value in the form of entertainment value through engaging in the community and the social enhancement from being accepted within the community. These community engagement practices result in members to identify stronger with the 23 community. According to Muniz and O’Guinn (2001) members are not only more con- nected to the brand through OBCs but they also feel a strong connection towards other community members even if they have never met them before. This sense of social be- longing and interaction is an important motivation and benefit of being a part of an OBC. In addition, for some members being a part of a brand community is a way for them to strengthen their personal identity as well as their consumer identity (Wirtz et al., 2013). The third driver Wirtz et al. (2013) identified is functional drivers, which is composed of functional benefits, uncertainty avoidance and information quality. OBCs offer members with functional benefits such as assistance on purchase decision, community recom- mended products and tips for possible issues with products. The authors argue that in a trusting online brand community, members are able to retrieve brand-related infor- mation that is highly valuable for them and allows members to be more confident with making purchase decisions. Dessart et al. (2015) similarly found OBC members to be ea- ger to participate, support and share information with their community. In addition, ac- cording to Wirtz et al. (2013) companies might benefit from encouraging customers to engage through incentives such as loyalty points or price promotions, which benefit ac- tive customers. Dessart et al. (2015) similarly argue that members engage in OBCs due to the benefits or value they gain from the community. The value can for example be seen as the enter- taining value of the content and discussion in the community, the information shared about the products or services or special incentives, such as deals or coupons. According to the findings of their research engaging with OBC members is seen as an essential part of a complex purchase process. Members gain important knowledge of the products or services through the discussions and reviews of other community members, which is highly valuable in their purchase decision process. This reinforces the argument, that it is beneficial for companies to be present or at least aware of the discussions going on in their OBC’s as they are an important factor for customers in their purchase process. 24 Dessart et al. (2015) and Hollebeek et al. (2017) have found that the development of strong bonds between community members is common in an OBC environment. These bonds between members create a sense of belonging, which in turn can similarly deepen their relationship with the brand itself. Hollebeek et al. (2017) add that engaging in brand communities often leaves members feeling empowered and connected to the OBC. 2.4.2 Online brand community from the company’s point of view From the point of view of the company OBCs are a great way to strengthen the com- pany’s relationship with its customers and to gain a deeper insight into their thoughts, browsing habits and other purchase related behaviors (Henning-Thurau et al., 2010). OBCs provide highly valuable knowledge to companies in terms of having a better un- derstanding of their customers wants and needs when planning future brand products, content and strategy. According to Wirtz et al. (2013) OBCs are an opportunity through which companies can effectively influence and increase customers’ brand engagement, satisfaction and loyalty. The findings of Algesheimer et al. (2005) indicate, that it is highly beneficial for compa- nies to engage customers to participate in their OBC, as a higher levels of engagement in the OBC have a positive correlation on the community members’ brand loyalty and overall brand satisfaction. Wirtz et al. (2013) argue, that to maintain committed long- term members in the OBC regular engagement practices are necessary. Bowden et al. (2018) and Schau et al. (2009) both advice managers to actively build interactive engage- ment practices that aim to enhance trust, social bonds and create shared rituals. Simi- larly, to build a sense of belonging company community members ought to be encour- aged to share their experiences and communicate within the OBC. This positive engage- ment simultaneously builds relationships between members and with the company and therefore is mutually beneficial. 25 According to Algesheimer et al. (2005) positive engagements such as giving and receiving recommendations in an OBC significantly strengthen customer’s brand loyalty. To the brand this is especially important during new product or service launches, as according to Thompson and Sinha (2008) customers with higher levels or participation and long- term brand loyalty are more likely to adapt new products from the brand. In addition, these customers are less likely to try similar products from competitors. These brand loyal customers therefore tend to create sustainable value for companies. Wirtz et al. (2013) summarize the benefits OBCs offer to companies to four main objec- tives. Firstly, OBC members are a significant resource for ideas and inputs for improved products and the creation of new products as they openly discuss their opinions within the community. Open discussion in an OBC allows companies to understand their prod- ucts or services strengths and weaknesses, which can then be used as a significant insight when creating new products. Secondly, OBCs are a tool to enhance company culture. Thirdly, the authors highlight that OBCs improve companies’ relationships with custom- ers and therefore strengthen brand image and brand commitment. Finally, customers that are actively engaged are more satisfied, committed and loyal to the brand, which results in an increase of sales. According to Muniz and O’Guinn (2001) a strong brand community creates important value to a company. It is important to acknowledge that attitudes in OBCs are not nec- essarily always constant and they might fluctuate over time. In addition, discussion in these communities can be positive towards the brand but negative conversation can also simultaneously be present. The strong community can, however, also turn into a threat in a scenario where community members, for example reject or do not align with the company’s new products or services and use the OBCs platform to spread negative word of mouth. Therefore, even though brands themselves cannot always directly influence the discussions going on in OBCs it is still essential to recognize the tone of voice in the discussion going on. It is valuable for companies to gather feedback and input from loyal 26 brand community members and to stive to keep the community positively engaged. Pos- itive discussion can be leveraged in product, communication, and marketing strategies, while being aware of the negative discussion can help conquer the issues discussed through future company strategies (Bowden et al., 2018). 2.5 Virtual brand community engagement practices Hollebeek et al. (2017) have studied virtual brand community engagement practices to build an in-depth understanding of the practices taking place in online brand communi- ties. The authors describe virtual brand community engagement practices or in short, VBCEPs, to be specific brand-related practices or behaviors which are repeated and rou- tinized and create a “shared meaning among community members, generate consump- tion-related opportunities or (co-)create value with/for other members.” (Hollebeek et al., 2017, p. 205) VBCEPs are thus, repeated engagement practices that create value within the online brand community. According to Hollebeek et al. (2017) VBCEPs help managers with identifying the engage- ment practices that are relevant in their virtual brand community to further engage with members. The knowledge and understanding of virtual brand community’s engagement practices is a significant asset to managers in terms of managing and building discussions with customers as well as building customers relationships and trust in the OBC. The authors indicate that VBCEPs are an important factor in the development of the online community’s purpose and vision. In addition, the engagement practices significantly in- fluence to the community members’ commitment and sense of belonging to the com- munity. According to Schau et al. (2009) engagement practices create value to both con- sumers and the company. The engagement practices identified by Hollebeek et al. (2017) are a continuation from the four-component model of community engagement practices created by Schau et al. 27 (2009). Based on their findings Hollebeek et al. (2017) created an eight-component ty- pology describing the engagement practices found in online brand communities. Build- ing on Schau et al.’s (2009) model, the authors place emphasis on the members’ sense of belonging in OBCs. The eight VBCEPs identified by Hollebeek et al. (2017) are: greeting, regulating, assisting, appreciating, empathizing, mingling, celebrating and ranking. The engagement practices are arranged in the order in which they usually occur when joining a virtual brand community and the flow between the eight VBCEP’s is visualized in Figure 2. Figure 2. VBCEP process model. (Adapted from Hollebeek et al., 2017) The first engagement practice greeting is seen when new members join an online com- munity and refers to the activity of welcoming the members in a positive and warm man- ner to make them feel welcomed and a part of the community. Greeting is an essential engagement practice in encouraging the new member to become a frequent participator of the community. The second VBCEP regulating usually occurs similarly as greeting once a new member joins the community. During regulating excising members’ share im- portant information regarding the common rules and guidelines of the community. This helps new members to understand the norms and customs of the community and thus engage aligned to them. Together the first and second VBCEPs compose a new member’s community integration phase, which Hollebeek et al. (2017) refer to as an VBCEP sub-process. According to the 28 authors, both greeting and regulating reflect the members behavioral and emotional en- gagement towards the community and this can be seen through common guidelines to be kind and respectful towards other community members. The first sub-process is de- scribed as being a short phase after which members are familiar with the expected guidelines and are ready to fully emerge into the community. This first sub-process is influential in terms of integrating new members into active and engaged members of the OBC. The third VBCEP Hollebeek et al. (2017) have identified is assisting which is the action of OBC members helping each other with specific brand related questions. Assisting is often done by more established and confident community members and the practice also in- cludes actions of helping others navigate the company’s products or services in a similar why that the company usually would. Assisting is an engagement practice that is highly valuable to both the company and the consumers, as according to Dessart et al. (2015) consumers rely on and trust OBCs for brand related information and reviews, which in turn also has an influence on their purchase decisions. The fourth engagement practice appreciating includes the actions of expressing thank- fulness and gratitude to either specific members of the community or the community as a whole. This can either be seen as a result of being assisted by another member or as a separate appreciation post. Appreciating demonstrates the appreciation members have for the OBC. Displaying appreciation for the community can be linked to feelings of sat- isfaction and loyalty towards the community and enforces the feeling of togetherness (Hollebeek et al., 2017). The fifth engagement practice is empathizing which is seen through acts of empathy and emotional support in discussions. These discussions may be community or brand-related, however they might also extend outside of brand related discussions to more personal discussions or issues. According to Hollebeek et al. (2017) empathizing has a significant effect on building and reinforcing the bonds between members in the OBC as well as 29 their connection with the community as a whole. Dessart et al. (2016) argue that the relationships between customers and with the brand are significant for brand success. Similarly, Yoshida et al. (2018) highlight how the strength of the bond between a com- munity member and the company translates into increased brand loyalty. Similarly, to empathizing, the sixth component mingling extends the relationship be- tween members beyond discussing simply brand or community related topics. Hollebeek et al. (2017) characterize mingling as socializing and forming personal friendships with members in the community. These practices can extend beyond discussions in the OBC through for example online or in person meet ups or events. Assisting, appreciating, empathizing and mingling are identified to form the second VBCEP sub-process. Hollebeek et al. (2017) have named it the social sub-process and its practices are characterized as actions done by fully integrated community members. Therefore, the practices in the second sub-process are moving one step further from the first sub-process, new member community integration phase, into practices of more committed and engaged OBC members. According to Hollebeek et al. (2017) all of this sub-process’ components are essential in creating and sustaining engaged OBC’s and therefore they should specifically be paid attention to. The authors state, that this can for example be done through interactive marketing activities such as personalized prod- ucts or involving the community in new product creation processes, which in turn en- courages OBC members to mingle and share the brand’s products on their own social media. The seventh VBCEP identified by Hollebeek et al. (2017) is celebrating, which is seen in online brand communities relating to specific accomplishments, events or milestones. The subject of celebration can for example be the brand and its achievements such as new product launches, milestones or brand anniversary’s. The subject of celebration can however also be individual community members achievements or the online brand com- munity as a whole. These celebrations often revolve around milestones such as reaching 30 a specific amount of community members or posts. Celebrating can also be seen as OBC members excitement and celebration of purchasing items or services from the focal brand. The final and eighth engagement practice is ranking refers to OBC members different social ranks in the community and the intent on increasing one’s rank. The different ranks in most online communities may for example be moderators, who are in charge of mon- itoring many of the VBCEPs discussed. Moderator’s welcome new members to the com- munity, make sure that everyone is behaving according to the community’s guidelines and demonstrate their leadership through the use of multiple VBCEPs such as regulating, celebrating and organizing community mingling activities. The eighth VBCEP thus brings the previous seven engagement practices together (Hollebeek et al., 2017). Together, celebrating and ranking form the third VBCEP sub-process, achievement-based engagement practices. According to Hollebeek et al. (2017) this group of engaged mem- bers take responsibility and charge in the community over common guidelines, welcom- ing new members and celebrating common accomplishments. This is vital for the com- munity’s atmosphere, attractiveness to new members as well as the feeling of together- ness, which all in turn create more engaged members. According to the authors achieve- ment-based engagement practices can also be utilized in the co-creation of value due to for example sharing brand related achievements also outside of the OBC in personal so- cial media. This sharing of OBC related information helps to build awareness of the OBC to non-members as well (Hollebeek et al., 2017; Muniz & O’Guinn, 2001). Hollebeek et al. (2017) state, that to companies, the insight of understanding the OBC member’s engagement practices and the ability to successfully utilize and encourage them is beneficial in growing, sustaining and managing their online brand community. The eight VBCEP’s gives managers a framework into understanding and managing en- gagement in OBC’s and thus enables them to systematically gain more of the potential and brand value offered by OBC’s. The identification of the different VBCEP’s in a brand 31 community is vital for the creation of brand image, meaning and loyalty (Muniz & O’Guinn, 2001). Hollebeek et al.’s (2017) framework of eight virtual brand community practices provides a framework through which we can assess the specific engagement practices present in a specific online brand community and thus estimate how these en- gagement practices translate into brand loyalty. 2.6 Theoretical framework The theory discussed in this sub-chapter answers to the first sub-objective of this study, which was to define and create an understanding of brand loyalty and customer engage- ment and to examine the different customer engagement practices are present in online brand communities. This sub-chapter aims to bring together the most relevant theoret- ical concepts discussed earlier in this chapter to create a theoretical framework for an- swering the second and third sub-objective of this study. The theoretical framework created based on the literature review (Figure 3) illustrates the eight virtual brand community engagement practices and their relation to a mem- ber’s timeline and journey as an online brand community member, starting from the new member initiation phase leading up to a full member phase. In addition, the framework illustrates the increase in customer engagement and brand loyalty through the members journey through the framework as a result of the engagement practices. It can be ex- pected that once a customer moves into the full member phase of the VBCEP framework, they become a more engaged and loyal community member. As a result, a more engaged and loyal community member develops true brand loyalty, which according to Russell- Bennett et al. (2007) consist of a combination of behavioral and attitudinal brand loyalty. Finally, the Figure 3 illustrates the gained benefits of being an engaged and loyal online brand community member from the point of view of the company and the customer. 32 Figure 3. Theoretical framework. The theoretical framework is used in the next chapters to define the themes for the the- matic interviews. These themes will be used in the empirical part of the research in order to answer to the second and third sub-objectives of the study. The second sub-objective of this study is to through empirical research identify which kinds of virtual brand com- munity engagement practices (VBCEPs) can be found in the Djerf Avenue brand commu- nity, while the third sub-objective is to analyze how the brand community members ex- perience the engagement practices from the viewpoint of behavioral and attitudinal brand loyalty. 33 3 Methodology This chapter outlines the methodology of the study and explains the reasoning for the chosen empirical research method. The chapter begins with an introduction to the meth- odological approach followed by the research method of the study. The chapter also presents the data collection methods and the data analysis methods. In addition, the reliability and validity of the chosen methodology are discussed. 3.1 Methodological approach This study is constructed as a case study of a chosen online case community. The chosen case is of the clothing brand Djerf Avenue’s online brand community operating in Insta- gram. The study is based on a qualitative research design and the first part of the data is collected through observations in the online brand community. This observational data is used to supplement the interview data, which is collected through semi-structured thematic interviews. A qualitative research approach was chosen for this research as ac- cording to Hirsjärvi et al. (2009, p. 161) qualitative research aims to examine people’s personal and real experiences with the object of the study. This is therefore a good fit for this study as it aims to observe and understand the real-life experiences of the indi- viduals within the case community. The study is done from a phenomenological hermeneutical perspective. A phenomeno- logical hermeneutical research method is used to research and understand the real-life meanings and lived experiences of the research participants (Lindseth & Norberg, 2022). This research is a phenomenological hermeneutical study due to its nature of creating understanding of the lived experiences of the research participants from the case com- munity of Djerf Avenue. The study is done from the perspective of the case community of Djerf Avenue. The case community is used as a way to examine the studied phenomena and to test or extend a 34 theory in a real-life business environment (Eriksson & Kovalainen, 2015, p. 136). The case study is done as an intensive case study, which aims to gain a deep understanding of the studied subject, while simultaneously testing existing theory. In this research, the case community is studied as a means to examine the theory of Hollebeek et al. (2017) and test its impact on brand loyalty in the context of the case community. Table 2 below shows the purpose of the study, its sub-objectives and illustrates the tools and research methods through which the objectives are answered. The first objective was answered in the first part of the study, the literary review, from which the theoretical framework for this research was created. The empirical part of the study aims to answer to the purpose of the study with the support of the second and third sub-objective through the observations and the thematic interviews. The purpose of Table 2 is to illus- trate the structure of the study and thus help the reader better understand how the different parts of the study correspond to answering the research question. Table 2. Research question and sub-objectives. Research question Sub-objectives Indicators Define brand loyalty, cus- tomer engagement and online brand communities and discuss them in the framework of virtual brand community engagement practices. Literary review How can virtual brand community engagement practices increase brand loyalty among customers Identify which kinds of virtual brand community engage- ment practices can be found in the Djerf Avenue brand community. Literary review Observations Thematic interviews 35 Analyse how the brand com- munity members experience the engagement practices from the viewpoint of behav- ioral and attitudinal brand loyalty In-depth analysis of the in- terview data Through the combination of interviews and observations the aim is to gather a real life understanding of the virtual brand community engagement practices that are visible in the community as well as understand the feelings and emotions those create in commu- nity members. According to Moisander and Valtonen (2006) as a part of an ethnographic research method, observations are used as a way to closely monitor and collect data from the daily activities of the studied subject. Instead of looking at individual experi- ences, observations focus on the activities and practices within the community as a whole. Therefore, the combination of observations and individual interviews allows this research to gather a thorough understanding of the case community as a whole com- bined with the experiences of individuals within the community. 3.2 Research method The empirical data for this study was collected through both observations and interviews. The observations made in Djerf Avenue’s Instagram community were done through non- participant observation where the observer is not participating or becoming a member of the community that is being studied but is rather observing the activities from the community from the outside. In addition, the aspects that were going to be observed were already known and defined through the theoretical framework of the study (Eriks- son & Kovalainen, 2016, p. 99-100). The advantage of collecting data through observa- tions is that it obtains the engagement practices as they take place. Observations how- ever do not provide deeper understandings of the thoughts and feelings of the people in the community, which is why interviews were also used to collect empirical data. 36 The method of thematic interviews was chosen for this study as it allows more flexibility during the interview. The flexibility is an important factor as it allows each of the partic- ipants to discuss their own individual experiences within the brand community. Accord- ing to Galletta and William (2013, p. 2) semi-structured interviews leave space to exam- ine the interviewees genuine experiences and allows them to bring new interpretations to the subject. In thematic interviews the studied subject, thus in this study online cus- tomer engagement, is examined through different themes which aim to increase the knowledge of the subject from various point of views. According to Puusa et al. (2020) the themes of thematic interviews are typically based on the theoretical framework of the study. By nature, semi structure interviews include open-ended as well as more theoretically based question. A semi structured interview procedure assures that all the interviews to go through all the same sets of defined themes, while simultaneously giving the oppor- tunity to focus on specific topics based on the individuals’ experiences (Puusa et al., 2020). According to Puusa et al. (2020) thematic interviews enable the researcher to discover information on the initially decided themes as well as any personal additions or observations that the interviewee presents. The interviews for this study were done as individual interviews to allow the personal experiences of the interviewee to come across without influence of biases from the other interviewees. As, according to Puusa et al. (2020), qualitative research aims to re- search the individual experiences of the person being interviewed and thus it is im- portant to individually interview each person instead of using a group interview. According to Puusa et al. (2020) it is important that the researcher has a good under- standing of the subject before defining the themes in the thematic interview. This un- derstanding of Hollebeek et al. (2017) VBCEP’s was built through the literary review part of this research. In addition, knowledge on the case company and its community was 37 known through personal experiences within the community. The themes for the inter- view were however build based upon the observations made in the brand community in the first part of this empirical research. 3.3 Data collection This part of the methodology chapter goes into depth on the processes of how the data for the research is collected. As the empirical research is divided into two parts, first the observations are discussed and then the thematic interviews. Finally, the last sub-chap- ter 3.3.2 looks at the individuals that were chosen to be interviewed for the study. 3.3.1 Observations The research process started with observations of the online brand community environ- ment. These observations aimed to lay out a foundation into the understanding of which types of virtual brand community engagement practices are visible in the brand commu- nity of the case company Djerf Avenue’s Instagram community. The community operates on a public Instagram page and therefore it is open for everyone to follow and observe. The observations were made during a 4-month period (13.11.2022-13.3.2023). As the community is very active daily, a four-month period was seen as a suitable period to get enough individual observations. The Instagram community of Djerf Avenue is a public platform and to collect the obser- vations, the page was visited periodically within the observation period to collect rele- vant observations. The observations were collected into an excel sheet where they were coded based on the type of engagement practice they represented. During the 4-month observational period Djerf Avenue posted a total of 333 pictures with a caption to their Instagram page. All of these photos were observed and the posts with virtual brand com- munity engagement practices visible were noted down to the excel. In addition to posts 38 and captions, the observational data included Instagram stories, which the brand posted daily. Also, comments made by the brand and comments made by community members were observed. Similarly, the data included engagements in community members’ own posts in which they had tagged Djerf Avenue. Since Djerf Avenue is tagged, these posts are also visible on their Instagram page and thus the comments made by the brand and community members on these posts were also used as observations. 3.3.2 Thematic interviews The thematic interviews were done after collecting the observational data. This enabled using the observations as an empirical grounding for formulating the interview question- naire. Overall, the interview questionnaire included three different themes that were identified on the basis of the theoretical framework and the observational data. The in- terview questionnaire is presented in the Appendix 2. The first section of the interview questionnaire included background questions covering the socio-demographic variables, the individual’s relationship with the brand community and a few more general questions on how the informant views the brand community’s engagement practices. The second section of the questionnaire focused on engagement practices. Based on the observations, six engagement practices out of eight (Hollebeek et al. 2017) were chosen to the interviews, due to their relevance in the online brand community. These engagement practices were assisting, empathizing, mingling, appre- ciating, celebrating and ranking. The final section focused on brand loyalty. All of themes and questions were discussed in each of the interviews, however the emphasis on dif- ferent themes varied based on the experiences of the individual. The interview informants were carefully chosen based on their involvement and knowledge of the online brand community. All of the 10 individuals interviewed for this study had been a part of the online community for at least two years. The chosen indi- viduals were either previously known by the researcher as active community members 39 or active members found within the online brand community. The ten individuals were interviewed between the 14th of March and 21st of March 2023. Out of the ten interviews, three of the interviews were conducted face to face and the rest, seven were done online in Zoom. All of the interviews were transcribed into text, which resulted to a total of 64 pages. Below, Table 3 summarizes some background information on the interviewees. In addi- tion, it should be noted that nine interviewees were from Europe, eight from Finland, one from France and the 10th was from Australia. All of the individuals that were inter- viewed identified as females. As the company of the case community, Djerf Avenue pro- duces clothing directed primarily to women this homogeneity in the sample could be expected. Table 3. Summary of interviews. Interview Age Gender Occupation Duration Date Execution Int1 25 Female Student 34min 14.3.2023 Face to face Int2 25 Female Student 41min 14.3.2023 Zoom Int3 20 Female Student 31min 15.3.2023 Zoom Int4 26 Female Student 35min 15.3.2023 Zoom Int5 26 Female Working 26min 15.3.2023 Zoom Int6 24 Female Working 24min 15.3.2023 Zoom Int7 23 Female Student 31min 16.3.2023 Face to face Int8 22 Female Student 28min 16.3.2023 Zoom Int9 24 Female Working 1h10min 18.3.2023 Face to Face Int10 24 Female Studying 44min 21.3.2023 Zoom 40 3.4 Data Analysis The objective of the analysis is to transform the vast amount of empirical data collected through the observations and interviews into an understandable and summarized set of information, which can then be used interpret the subject and to draw conclusions (Eriksson & Kovalainen, 2016, p. 120; Puusa et al., 2020). The analysis of the data from the interviews was done through a content analysis. The data of the empirical research is in the form of transcribed interviews and therefore a content analysis is a good fit for analyzing it (Puusa et al. 2020). More specifically, a categorization approach was used to analyze the data. According to Eriksson and Ko- valainen (2016, p.122) categorization works best when the aim of the research is to form a comprehensive understanding of the subject. In categorization the data is coded into categories according to different themes. Analysis of the data proceeded through cate- gorization of the different themes. According to Puusa et al. (2020) these themes can for example be the different topics that were similar in multiple interviews. The aim of this method is to find similarities or patterns between the interviews. The identified themes can either be already defined themes based on the theoretical framework of the study or completely new themes that were identified in the interviews. In this study, the themes were primarily based on the themes created for the thematic interviews, which were the relationship with the brand community, the virtual brand community engage- ment practices and the connection to brand loyalty. Puusa et al. (2020) highlight that the identification of the different categories is one of the most important steps in the analy- sis. 3.5 Reliability and validity of the study Assessment of the reliability of the study is vital and should be done continuously throughout the process of the study (Eriksson & Kovalainen, 2016, p. 303). According to Puusa et al. (2020), the main concepts that are used to evaluate this are reliability and 41 validity and ethics. However, Eriksson and Kovalainen (2016, p.308) point out that in the case of qualitative research, also other aspects of dependability, transferability, credibil- ity and conformability should be considered. To ensure a trustworthy research it is important that the research provides the reader with evidence of a logical, traceable and clearly documented research. This is also re- ferred to as the dependability of the study. The dependability of the study can for exam- ple be portrayed through clear indicators of the different steps of the research (Eriksson & Kovalainen, 2016, p. 308). The dependability of this study was ensured through a clear and coherent description of the structure and objectives of the study, which were pre- sented to the reader both in the text and visually through figures and tables and which stayed consistent throughout the study. In addition, the dependability of the study can be seen in the coherence of the themes discussed in the literary review, the theoretical framework that was created based on the findings of the literary review as well as the themes defined for the interviews based on the theoretical framework. In addition, all of the 10 interviews are saved as recordings and as transcribed text, which also adds to the dependability of the research. Transferability indicates how the connection between this study and previous research on the subject is shown through the study (Eriksson & Kovalainen, 2016, p. 308). The transferability of this study can be indicated in the fact that the thematic interviews are based on the theoretical framework which was created on the findings of previous re- search on the literary review part of the study. Therefore, previous research such as Hol- lebeek et al.’s (2017) virtual brand community engagement practices was clearly visible both in the literary review as well as the thematic interviews and findings of this study. The credibility of a research is according to Eriksson and Kovalainen (2016, p. 308) based on the notion of whether the researcher is familiar enough with the topic and whether there is enough sufficient data to back the claims made in the research. In addition, it 42 takes to account the question of whether another researcher could come to similar con- clusions based on the same data and material. The credibility of this research was reached through an extensive literary review on the topic, which assured that the re- searcher was familiar with the topic. An extensive literary review was made through us- ing multiple and good sources of previous research. In the empirical part of the research credibility was added also through the two research methods used, observations and thematic interviews, which together formed a well-rounded sample of data. Similarly, the semi-structured nature of the thematic interviews assured that all of the same themes were discussed in all of the interviews, which further enhanced the credibility of the research. Finally, direct quotes were used in the findings chapter of the thesis, which adds to the transparency and credibility of the study. Conformability of the study is based on the notion that the findings of the study are authentic and can clearly be backed by data from the research. It is therefore important that the findings of the research are clearly linked to the data in a way that is easily understandable to the reader (Eriksson & Kovalainen, 2016, p. 308). The conformability of this study is communicated through the usage of direct quotes from all of the inter- views as well as direct quotes from the online brand community found through the ob- servations. Additionally, the brand community that was studied is an open brand com- munity and therefore anyone can access it to see the observations, which adds to the conformability of the study. To ensure the reliability of the study a combination of thematic interviews and observa- tions was chosen as the research method. Similarly, to ensure an ethical research, the identities of the people interviewed was kept anonymous. Having an anonymous study can contribute to more honest and realistic interview answers. In addition, the interview was voluntary for all participants and therefore not motivated by any external factors. 43 4 Findings This chapter presents the findings of the empirical research. The objective of this chapter is to answer to the second and third sub-objective of the study, which are to identify which kinds of virtual brand community engagement practices can be found in the Djerf Avenue brand community and to analyze how the brand community members experience the engagement practices from the viewpoint of behavioral and attitudinal brand loyalty. 4.1 An overview of the virtual brand community engagement practices In the literature review chapter of this thesis, eight virtual brand community engagement practices by Hollebeek et al. (2017) were explored. These eight were greeting, regulating, assisting, appreciating, empathizing, mingling, celebrating and ranking. With these and the study’s theoretical framework in mind the observations in the online community were done with the aim to identify which kinds of engagement practices could be found in Djerf Avenue’s brand community. As a result of the observation, five engagement practices were identified that were clearly visible within the Djerf Avenue online brand community. These were: assisting, empathizing, mingling, appreciating and celebrating. Examples of some of the observa- tions on each customer engagement practice is presented in Table 4 below. Table 4. Summary of observation findings. VBCEP Example Ranking the appear- ance from most com- mon to least common Assisting ”Need last minute sizing help? DM us or Chat with us via our website if you have any last- Most common en- gagement practice 44 minute questions about sizing for the drop to- morrow and we will happily help you!” Empathiz- ing Djerf Avenue: ”What did you get from today’s drop ? ❤ OBC Member 1: ”Nothing because I’m so broke :(” Djerf Avenue: ”❤ next time love, your support means the everything still! Also make sure to check out the resell page for the future where the price point is a bit lower too! Xx” Fourth most common engagement practice Mingling Djerf Avenue: ”What did you get from todays drop ? ❤” OBC Member 2: ”Grey sweater! A staple I will wear for YEARS” Djerf Avenue: ”yesss! So gorgeous ❤” Third most common engagement practice Appreciat- ing ”So thankful for all our angels 🤍” Second most common engagement practice Celebrating ”PSA! Last chance to register for tonight’s Djerf- mas Zoom Party 🤫🤍 Link in our story! X” Least common en- gagement practice Table 4 shows the most common customer engagement practices found in the Djerf Av- enue Instagram community. Each of the engagement practices will be further discussed in the next chapters. Three out of the eight VBCEP’s from Hollebeek et al.’s (2017) typology were not specifi- cally identified as being relevant within the case online brand community. These were greeting, regulating and ranking. According to Hollebeek et al. (2017) greeting and reg- ulating form a sub-process called the new member’s community integration phase. It is a short phase during which the member is welcomed to the community and introduced to their guidelines in order to become fully merged community members. The phase was 45 not visible in the brand community of Djerf Avenue as there was no visible engagement practice of introducing new members into the community or instructing them on guide- lines. This could be due to the fact that the community is an open community and there- fore the tracking of new members can be difficult. In addition, not having the new mem- ber integration phase could also indicate, that once a member joins the community they are already treated and ranked as an equal member of the community. Similarly, the absence of the engagement practice of ranking indicates that there are no specific or evident rankings of members in the community. The interview data also sup- ported the notion that ranking between community members is not visible in the com- munity: “In my eyes everyone’s equal, I think it’s just something that seems to me that eve- ryone’s equal.” - Int1 “I have a feeling, in my opinion everyone is equal, I don’t think that someone’s bet- ter or anything.”- Int2 “I very much feel that equality is a big theme for them [Djerf Avenue] that everyone has the feeling that they are equal as the way that they are and what they are represent as an individual.” - Int4 These findings indicate that the engagement practices in the online brand community of Djerf Avenue are directed towards members already in the full member phase of the VBCEP framework. Below, each of the engagement practices are discussed more in- depth based on the observational and the interview data. 4.1.1 Assisting Hollebeek et al. (2017) define assisting as the action of helping with specific brand re- lated questions. As one of the most evident engagement practices found in the observa- tions of the online brand community, assisting was similarly heavily highlighted in many 46 of the thematic interviews as one of the most prominent engagement practices of Djerf Avenue. According to Wirtz et al. (2013) customers trust and turn to online brand com- munities to receive valuable brand related information, help with purchase decisions, get insight into community recommended products as well as tips for solving possible issues with products. Similarly, Dessart et al. (2015) state, that providing customers with brand related information has an overall positive influence on their purchase decisions. During the observations, assisting was found across the online brand community on In- stagram stories, posts, captions and in the comments, thus in various forms of commu- nication. Assisting in the community is demonstrated for example by the following ob- servation quotes. ”Stuck between sizes? Here’s what you need to know ❤ ” - Djerf Avenue on the caption of a post Size comparisons of our Demin Midi Skirt Washed Gray” Customer1: ”I have no idea if I should get size S or M. All I know is that I definitely need this skirt” Djerf Avenue: ”Yay!! We are so excited 🥰 if you’re in between two sizes we recom- mend going for the smaller size, as the material is super nice and stretchy 💕 ” Customer1: ”Thank you, that’s very helpful! 😍😍 ” Djerf Avenue: ”Glad to help!! Let us know if you have any further questions xx” - A dialogue between Djerf Avenue and a consumer in the comment section of a post ”Need last minute sizing help? DM us or Chat with us via our website if you have any last-minute questions about sizing for the drop tomorrow and we will happily help you!” -Djerf Avenue on their Instagram story Assisting in the community is largely focused on helping the customers with product re- lated information such as finding the right size or assisting them with any questions re- lated to the pieces they are selling. In the case community assistance to finding the right size is provided through comparison photos, videos, personal comments to customer 47 and through videos giving the specific measurements of each item. Therefore, the assis- tance of customers is highly visible in the community. Below image 1 illustrates how Djerf Avenue showcases different body types on their Instagram posts to assist the customers on how the piece could look on them. Image 1. Illustration of assistance through showcasing different body types in Djerf Avenue’s Instagram page. (@djerfavenue, 2022, December, 1.) As demonstrated above, providing assistance to customers to help them find the right size is an engagement practice that is highly visible in the Djerf Avenue online community. In addition, in many of the observed interactions the incentive to help the customers is coming from the direction of the company itself, which makes it easier for customers to find the information. This observation and the positive impact it has on their customers is clearly supported by the interview data. The informants said that the easy access to assistance on Djerf Avenue’s Instagram has aided them in their purchase journey as well as differentiated them from their competitors with the extent to which assistance is pro- vided. “I think that on their Instagram their sizes are communicated in a good way. This maybe makes me more likely to purchase something, because often when I’m online shopping it’s hard to know if the size is right, and I think they [Djerf Avenue] have a lot of pictures of different body types and that at least could help me to make a purchase decision.” - Int1 48 “In my opinion all of the information related to sizes is super useful, which I don't think, or I haven't experienced that with other brands. The fact that they're not even just pictures, but that there are also videos, so I think it's such a user-friendly and informative way.” – Int5 “They answer quickly and very well in a personal way and then they often post these question boxes on their Instagram to ask if there are any extra questions, which shows that they are not necessarily waiting for the customer to come to them and ask questions, but they are already doing it for them and making it very easy to approach them to ask any questions.” - Int8 Among the interviewees, the engagement practice of assisting in the community has evoked feelings of being cared for, feeling like you are talking to a friend and thus created a feeling of togetherness and connection towards the brand. “I always see in their stories like “DM us if you need help with sizing or any ques- tions” or that sort of stuff so I do feel like they do well to assist in purchasing and I do appreciate the added help, I guess it does make me feel that they do want cus- tomers get something that works for them, to make sure it’s the right size for them and so that its something they’ll keep and actually use.”- Int3 “I have asked them last summer, about sizing, because I bought this tube top and I was between sizes and I wanted to ask which one would be better for me and they responded to me almost immediately […] I felt very like I was cared about, and they added some emojis, which was nice, just like a friend would answer to me.” – Int2 In addition, in the interviews it became evident that through the engagement practice of assisting, the customers felt more comfortable and confident in asking for assistance directly from the brand. “On Instagram I think it's really easy to reach out because they are being so they are so actively promoting that they are here to help you can just send them a DM or then answer to their story or post or comment on their post so I think there are many ways to reach out to them and they are being like active in responding.” - Int10 49 Assisting in the community also branched out further than simply assisting with pur- chase decisions. Assisting was also observed in for example guiding the customers in styling the pieces for different occasions. ”5 ways to style our Pinstripe suit 🎀 ” - Djerf Avenue on the caption of a post This type of assistance was also reinforced by the interviews through highlighting the types of assistance Djerf Avenue does outside of their assistance on purchase related actions. Assistance was thus also given on subjects that were not directly connected to the sale of items. “I feel like they have connected many themes and giving information about like styling and about cosmetics or like makeup and beauty things and also like about mental health.” - Int4 According to De Valck et al. (2009) assistance given by the company on their products has a significant impact on a customer’s behavior and can be linked to for example an increased willingness for purchases. To illustrate the importance of assisting, in the in- terviews, it was named as the most impactful and important engagement practice by many of the interviewees. “Mingling and assisting stand out to me the most because when the brand is as- sisting the customer and really hearing what their saying and trying to help them and talking with the customers it helps the brand to see what the customers re-ally want, makes the customer feel closer to the brand.” – Int1 “Assisting is for sure one of the best things for me, I love that they put like different types of bodies, actual people, normal looking people wearing their items of their websites so it’s easier to imagine what it would fit you. I think that all of them are very important, but probably assisting and empathizing. ” – Int2 50 4.1.2 Appreciating The engagement practice of appreciating is focused on expressions of thankfulness and gratitude within the community and towards individuals or the community as a whole. According to Hollebeek et al. (2017) appreciation is often connected to a feeling of to- getherness, satisfaction and loyalty for the community. In the Djerf Avenue community appreciation was very evident especially in longer posts focusing on specific milestones. In addition, smaller phrases of gratitude were also de- tected in day-to-day interactions in the community. The following observations highlight practices of appreciation which Djerf Avenue is showing to their customers. The first ob- servation is in relation to a new social feature on their website called Angels Avenue, and its launch post below highlights the appreciation the company has for its community members. ”Welcome to Angels Avenue! We have always wanted to create a space for all of you to be even closer to each other and to us. Somewhere safe and fun that could be dedicated to inspiring one another and connecting to the rest of the Djerf Ave- nue family. And today our team is finally reality!! You are all so special, so of course we needed to create an equally special place for all of us to hang out - and we think we’ve done it! We are so happy you’re here ❤ ” – Djerf Avenue Similarly, appreciation was felt by the customers in the interviews. This interview quote is supported by the observation below it: “I've noticed that on social media they comment on people’s posts and I remember them specifically saying stuff like "appreciate you".” – Int8 ”So thankful for all our angels 🤍 ” – Djerf Avenue The third observation is from the end of the year 2022 recap post, where Djerf Avenue reflects on the past year and simultaneously shows its appreciation to their customers. What stands out from this observation is the fact that Djerf Avenue is not only showing appreciation to its customers who have purchased their products in the past year, but in 51 addition they are also thanking the community members who support the brand in non- financial ways. Thus, showing appreciation also to the community members who come to the community to find inspiration or to socialize and help the community grow. ”Looking back on 2022 fills me with gratitude and butterflies in my stomach. It has been a year of growth, surprises, and most importantly - challenges. I truly believe that we wouldn’t be able to evolve as a community and brand without a few bumps on the road. I am grateful to everyone who has supported me, my team and my dream to create a safe space online. Whether you come to Djerf Avenue to shop, to find inspiration or connect with new friends - thank you. I appreciate you more than words can express. I can’t wait to continue growing together, exploring new fields together and nurturing our community.” – Djerf Avenue However, appreciation can also be shown in on OBC in ways that are not as direct as simply saying “I appreciate you”. There are different engagement practices which can be used to indicate appreciation without directly saying it. An example of indirectly showing appreciation came up in a few of the interviews. ”I remember them directly saying that they appreciate their customers […] and how this would not be possible without the customers and so I think they give these individual dedicated posts of appreciating their customer where they actually say it out lout, but in addition to that I think they do it also in other ways not maybe as directly saying “we appreciate you” but by embedding customers on their feed and presenting their posts on their stories, that gives the message that they are really appreciating the customers and wanting them to be an essential part of their story as a company.” – Int10 “Yeah…I mean they’re [Djerf Avenue] constantly posting their customers wearing their clothes and saying something like “you look so good.”… I don’t see a lot of other companies doing that, and I mean, again it makes the customer feel closer to the brand.” -Int1 These interview quotes indicate that appreciation to customers is also shown by Djerf Avenue through using a lot of user generated content, thus photos and videos of their customers wearing their clothes on their Instagram feed and stories. The fact that the customers are so integrated into their marketing and the online brand community shows a sense of appreciation to the customers. This engagement practice thus creates a sense 52 of togetherness and belonging, as customers are so heavily included in the company’s story. In addition, appreciation to each individual customer was felt in the form of inclusivity. Djerf Avenue aims to make their brand as inclusive as possible through for example hav- ing models from different ethnic backgrounds, different sizes and including people with disabilities. Image 2 illustrates how the representation and appreciation for different types of bodies and disabilities is communicated through Djerf Avenue’s Instagram com- munity. Showcasing the brand’s products on different people makes the everyday cus- tomer feel more appreciated, seen and as a part of the brand. Image 2. Examples of the appreciation shown to different disabilities on Djerf Avenue’s Instagram. (@djerfavenue, 2023, January, 21.; @djerfavenue, February, 7,; @djerfavenue, 2022, December, 30.) As showcased in image 2, the models for Djerf Avenue are regular people and often ac- tual customers of the brand. Therefore, the company aims to show representation of the everyday consumer and make the brand as inclusive to everyone as possible. Through the interviews, this inclusivity was also viewed as a form of appreciating for all different types of customers. “I think that they’re really appreciative of little things in life and they appreciate people