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, to educate businesses on how 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 relationships or links. Social networking has the canonical contacts, accelerates business processes, improves customer relations, reduces the cost of recruitments, proves staff morale, motivation job satisfaction among employees. It also provides a collaborative learning environment where knowledge workers can be grouper. Social media can be termed as an alternative communication tool which supports existing relationship and enriches the users’ experience. Web 2.0 technology and teal media have the potential to enhance brand value ue.  Organizations use it to establish rapport with the end and potential clients, to promote their product or products, to post-sales information, or even announce new products. Social media platforms allow companies to gather information about their fans, create communities and encourage participation and encourage loyalty-driving conversations. 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 a 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's 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.