Social Media and Brand Reputation Dissertation

Social Media and Brand Reputation - Dissertation Example Reputation risk has been considered the primary threat to business operations and the market value of their organizations. Despite this, organizations have been neglecting reputation risk management strategies. Thus with the aim to educate businesses on the ways in which brands might deal with ‘viral’ social media events to ensure they do not damage the reputation of the brand, three objectives were set in Chapter I. This was a qualitative study based on secondary data and after extensive literature in Chapter Two the study has achieved its objectives. The study finds that social media has changed how businesses function. Social networking applications create and manage a digital expression of people’s personal relationships or links. Social networking has the ability to expand social contacts, accelerate business processes, improve customer relations, reduce cost of recruitments, improve staff morale, motivation and job satisfaction among employees. It also provi des a collaborative learning environment where knowledge workers can be grouped together. Social media can be termed as an alternative communication tool which supports existing relationship and enriches the users’ experience. ... Web 2.0 technology presents opportunities for companies to be closer to their customers, to their markets, to observe and collect information. Companies form online brand communities where consumers can have direct but non-intrusive connection with the brand which generates a sense of belonging to the group. However, the same social media platform can also damage the brand reputation. Social software is susceptible to intentional attack when groups or an individual can bend the system to suit its purpose. Users have the freedom to express strong emotions and incidents soon go ‘viral’ which negatively affects the reputation of the organization. Social media fuels new expectations about the organization and it becomes essential for the organization to respond to it. Corporations have little control over information flow and information posted with malicious intentions can damage corporation’s reputation that may have taken years to build. Social media crises have oc curred because social business readiness is lacking even in the most advanced companies. Thus, the study concludes by presenting a model to educate businesses on the ways in which brands might deal with ‘viral’ social media events. Imitations to the study have been highlighted and recommendations for further research in this sector have been made. Table of Contents Chapter One: Introduction 1.1 Background 1 1.2 Problem statement 2 1.3 Research aims and objectives 3 1.4 Structure of the study 3 Chapter Two: Literature Review 2.1 Chapter Overview 5 2.2 Definition – social media and social networking 5 2.3 Potential of Web 2.0 technology and social networking sites (SNS) 5 2.4 Benefits of social media