The Importance of Social Media onCorporate Reputation Master Thesis Defense Dilara ADAYLAR May.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 Names, Self-Representation Customer Community Investor Employee image image image image CORPORATE REPUTATION Fombrun, C. J. (1996) Reputation: Realizing Value from the Corporate Image, p.39.
Concept of Corporate Reputation (II) • Relationships with other terms ▫ Perception ▫ Communication ▫ Brand ▫ Innovation ▫ Trust ▫ Transparency ▫ PR • Measurement of Corporate reputation
Concept of Social Media (I) Types of Social Social presence / Media richness Media Low Medium High Self- Forums,Blogs Social Virtual presentation High and microblogs networks social worlds / Self- Collabarative Content Virtual game Low disclosure projects communities worlds Kaplan, A.M & Heinlein, M. (2010) Social media-Theoretical Module.
Concept of Social Media (II) Engaging Listening Intreacting Measuring • Corporate functions of social media ▫ Marketing function ▫ Online Sales function ▫ Advertising function ▫ Communication function with consumers ▫ Public relations function
Importance of Social Media on CorporateReputation • SM is important for corporate reputation because… ▫ Changes in consumer behavior ▫ SM enables stakeholders to communicate among each other without time & geographical restrictions. • But there are also some risks: • Cyberactivism, Cyber rumor& online defamation, Cyber quoatting, Cyber Terrorism & Hacking, Phishing
Analyzing the importance of Social media • 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
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
Analyzing the importance of Social media • 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 • 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