Class 17: Community 11/5

1. What is the definition of community? A set of interwoven relationships built upon shared interests, which satisfies members’ needs otherwise unattainable individually.
2. What are the criteria that define successful community?
a. Membership is a conscious choice.
b. Member base has achieved critical mass and sustainability.
c. Members feel a great sense of trust.
d. Members achieve benefits in scale.
e. Roles are not hierarchical or imposed.
f. Effective facilitation and site structure keeps community activities on track.
g. A spirit of participation and feedback is clearly cultivated.
h. A sense of affiliation is achieved through ownership of equity in the community.
i. Efficiency in interaction is maximized.
j. The community is easily navigable.
3. What are the different types of interest that form the foundation of community?
There are three broad types of Communities, differing by their foundation of shared interests: 1) Information-driven communities, 2) Activity-driven communities, 3) Commonality-driven communities
4. What are the different ways in which communities’ function?
a. Real-time systems > Internet Relay Chat (IRC), Web-based chat, Virtual worlds and MUDs (Multiuser Dimensions)/ MOOs (MUDs Object Oriented)
b. Activity-driven communities- Shared interests in activities. (ex games, shopping)
c. Commonality game- shared interest through professions, lifestyle stages, and ethnicity.
d. Information-driven communities- shared their interests in information and they seek to exchange this information. (ex Wikipedia)
e. Asynchronous systems – Mailing lists, Newsgroups (Usenet groups), Web-based message boards (bulletin board systems [BBS])
5. What are the three primary ways in which value is created within a community?
a. User to user- the user makes content.It can be through sharing ideas, information, etc)
b. administrator to user- the firm creates the content like reports, exclusive research, etc…
c. User to administrator- the customer makes money for the firm by the purchase of products. Usage fees, content fees, advertising sales and also through commissions
6. What are the benefits that community can generate for a parent firm?
• Cost Benefits
– Reduced Customer Service Costs
– Reduced Customer Acquisition Costs
– Reduced Costs from Decreased Product Flaws and Marketing Mistakes
– Reduced Marketing Costs
• Revenue Benefits
– Increased Customer Segmentation and Customization
– Increased Branding
– Deepened Customer Relationships
7. What are the different levels of community?
Nascent level – run by community founders and a small portion of main participants (the start up)
Formative level – marked by growing membership and evolving goals (development)
Mature level – In this stage it to ensure feedback and maintain it (change and maintenance of the site)
The additional levels include: awareness, exploration, expansion, commitment, & dissolution.
Awareness- the user becomes aware of the community.
Exploration/expansion- this happens when the user starts to become involve they become a part of the novice stage.
Commitment- In this stage the user makes the most value.
Dissolution – there is a possibility to satisfy the customer dissatisfaction if the customer is treated with the same attention when they entered.