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)