Value Co-creation Process in Small and Medium Enterprise by Utilization of Viral Marketing as a Branding Tool: A System Dynamic Approach

Abstract

Abstract People like to talk about their involvement with products and services for a variety of reasons. These include the prestige and status that may arise through ownership or a need to share their purchase experiences in order to help others. These conversations are then passed to family, friends and other people in social networks. This reference process is known as Word of Mouth (WoM) communication and is regarded as a powerful and influential form of communication, if only because of the perceived objectivity and credibility associated with the parties involved. Viral marketing has emerged as the electronic form of WoM and involves the principle of passing on or referring news, information or entertainment to another person. Viral marketing is a highly effective internet marketing communications tool, and will succeed if companies understand their online customer and providing a better value than those competitors. Unfortunately some studies have shown that SMEs may lack competence and show low level of awareness and organizational readiness for adopting innovative approaches for interaction with customers. Meanwhile, Internet technology continuously provides new research tools that enable companies to interact and participate in brand value co-creation together with customers.