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The importance of Social Media on Corporate Reputation

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Master Thesis defense of Dilara ADAYLAR

Published in: Business, Technology
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The importance of Social Media on Corporate Reputation

  1. 1. The Importance of Social Media onCorporate Reputation Master Thesis Defense Dilara ADAYLAR May.2011
  2. 2. Agenda 1. Introduction 2. Structure of Thesis 3. Summary of chapters 4. Conclusions
  3. 3. 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
  4. 4. 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
  5. 5. 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.
  6. 6. Concept of Corporate Reputation (II) • Relationships with other terms ▫ Perception ▫ Communication ▫ Brand ▫ Innovation ▫ Trust ▫ Transparency ▫ PR • Measurement of Corporate reputation
  7. 7. 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.
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. Thank you very much for your attention!
  15. 15. Any questions?
  16. 16. Appendix
  17. 17. 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
  18. 18. 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
  19. 19. Behaviors & Opinions towards SM in general
  20. 20. Behaviors & Opinions towards SM in general Max. Values Min. Values
  21. 21. Behaviors&Opinions towards CorporateSocial Media activities
  22. 22. Cluster Analysis (for Corporate Social Media)
  23. 23. Cluster Analysis (for Corporate Social Media)CLUSTERS

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