The importance of Social Media on Corporate Reputation
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Transcript of The importance of Social Media on Corporate Reputation
The Importance of Social Media on
Corporate Reputation
Master Thesis Defense
Dilara ADAYLARMay.2011
Agenda
1. Introduction
2. Structure of Thesis
3. Summary of chapters
4. Conclusions
Objectives & Methodology
The main goal:To analyze and to emphasize the importance of social media on corporate reputation, considering both positive & negative aspects
To realize this goal:
▫Conceptual study + Examples from different companies
▫ Qualitative research on young consumers in Turkey
Structure of master thesis
%11 • Introduction
%24 • Concept of Corporate Reputation
%27 • Concept of Social Media
%35 • The Importance of SM on CR
%3 • Conclusion
Concept of Corporate Reputation (I)
Corporate Identity
Customer image
Names, Self-Representation
CORPORATE REPUTATION
Community image
Investor image
Employee image
Fombrun, C. J. (1996) Reputation: Realizing Value from the Corporate Image, p.39.
• Relationships with other terms
▫ Perception
▫ Communication
▫ Brand
▫ Innovation
▫ Trust
▫ Transparency
▫ PR
• Measurement of Corporate reputation
Concept of Corporate Reputation (II)
Types of Social Media
Social presence / Media richness
Low Medium High
Self-
presentation
/
Self-
disclosure
HighForums,Blogs
and microblogs
Social
networks
Virtual
social worlds
LowCollabarative
projects
Content
communities
Virtual game
worlds
Concept of Social Media (I)
Kaplan, A.M & Heinlein, M. (2010) Social media-Theoretical Module.
• Corporate functions of social media
▫ Marketing function
▫ Online Sales function
▫ Advertising function
▫ Communication function with consumers
▫ Public relations function
Concept of Social Media (II)
Listening Intreacting MeasuringEngaging
Importance of Social Media on Corporate
Reputation
• SM is important for corporate reputation because…
▫ Changes in consumer behavior
▫ SM enables stakeholders to communicate among each other without time & geographicalrestrictions.
• But there are also some risks:• Cyberactivism, Cyber rumor& online defamation,
Cyber quoatting, Cyber Terrorism & Hacking, Phishing
• Online survey has two main parts:
▫ Behaviors & Opinions towards SM in general
▫ Behaviors & Opinions towards Corporate SM
activities
• 553 young consumers between 16-35 years old
in Turkey
Analyzing the importance of Social media
Conclusions (I)
• High involment with social media platforms
• To get information about companies is
thirdly important activity
• Opinions are influenced by the
information/comments shared in social
media.
• No doubt that SM is an effective tool to
influence large groups
Conclusions (II)
• High percentage for following companies & get influenced
by information/comments shared by companies.
• Trust more in corporate information
• Companies use SM for Increasing awareness
• Consumers want Communication function
• Traditional WoM keeps its power on consumers
• Big tendency to comment about companies
• 3 clusters: Nonbelievers, Conscious users and Suggestible
users
Conclusion & Suggestions
• In general, companies must exist in SM with a consistent
strategy, based on honesty.
• Most popular corporate platforms in Turkey: SN,
Forums, Microblogs.
• Corporate platforms for customers’ pleasure &
complaints
• Suggestible users: 54%Huge Potential for
strengthening corporate reputation
• Suggestion for further researches: Analyzing the point of
view of different stakeholders & companies
Thank you very much for your
attention!
Any questions?
Appendix
• Online survey has two main parts:
▫ Behaviors & Opinions towards SM in general
▫ Behaviors & Opinions towards Corporate SM activities
• 553 young consumers between 16-35 years old in Turkey
Analyzing the importance of Social media
• Difficulties:• To reach people younger than 20 years old• Lack of similar previous researches to make
comparison
Sample Selection
% of people use internet 2008 2009 2010
Age 16-24 59% 64% 66%
Age 24-34 44% 49% 54%
Age 35-44 31% 32% 37%
Age 45-54 21% 20% 24%
Age 55-64 7% 7% 9%
Age 64-74 2% 2% 3%
Eurostat (2011) Individuals - Internet use, Available at: http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=isoc_ci_ifp_iu&lang=en
Behaviors & Opinions towards SM in general
Behaviors & Opinions towards SM in general
Max. Values
Min. Values
Behaviors&Opinions towards Corporate
Social Media activities
Cluster Analysis (for Corporate Social Media)
CLUSTERS
Cluster Analysis (for Corporate Social Media)