An important reason people join communities is to satisfy their identity needs. Firms might exploit this societal tendency to gain competitive advantages and thus stronger economic profits than rivals. By reviewing the strategic approach adopted by Kiehl’s, a U.S. cosmetic producer and retailer, this study investigates a potential mechanism by which firms interact with communities to build a product differentiation advantage. Because it adheres to and supports a well-defined set of values, Kiehl’s not only achieves community membership and gains legitimacy but also strengthens the sense of identity that the relevant communities provide to members. These investments prompt reciprocal community member behaviors, which the company channels into its customer knowledge development process. Finally, this study describes how firm–community interactions protect the firm’s differentiation advantage by turning its products into symbols of the communities to which Kiehl’s customers belong.

Building and Sustaining a Product Differentiation Advantage through a Community-focused Strategy"

Fosfuri, Andrea;Giarratana, Marco;Roca, Esther
2013

Abstract

An important reason people join communities is to satisfy their identity needs. Firms might exploit this societal tendency to gain competitive advantages and thus stronger economic profits than rivals. By reviewing the strategic approach adopted by Kiehl’s, a U.S. cosmetic producer and retailer, this study investigates a potential mechanism by which firms interact with communities to build a product differentiation advantage. Because it adheres to and supports a well-defined set of values, Kiehl’s not only achieves community membership and gains legitimacy but also strengthens the sense of identity that the relevant communities provide to members. These investments prompt reciprocal community member behaviors, which the company channels into its customer knowledge development process. Finally, this study describes how firm–community interactions protect the firm’s differentiation advantage by turning its products into symbols of the communities to which Kiehl’s customers belong.
2013
Fosfuri, Andrea; Giarratana, Marco; Roca, Esther
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/3808496
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 2
  • ???jsp.display-item.citation.isi??? 3
social impact