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The Impact Associated with Social
  Media on Corporate Brand in
       Malaysia Market

            Prepared by:
      Kharisma Adhie Nugraha
            1101601147
The Impact Associated with Social Media on Corporate Brand
                        in Malaysia Market




Presentation Flow                                Background of Study

                                                  Research problem

                                          Research Questions And Objectives

                                         Literature Review  Thesis Framework


                                                 Research Hypothesis

                                                   Research design

                                                      Pilot Study
The Impact Associated with Social Media on Corporate Brand
                        in Malaysia Market




                    Traditional advertising is slipping, companies display a
                                 rising interest in social media


Background           Using social media in a company’s marketing mix is
     of              beneficial to its brand among Malaysian company


   Study
                        Negative comments are harmful to the brand.
Background of Study

          The term ‘social media’, sometimes also referred to as ‘consumer-generated media’
          (CGM), “describes a variety of new and emerging sources of online information that are
          created, initiated, circulated and used by consumers intent on educating each other
          about products, brands, services, personalities and issues”
What is
Social    Categories of Social Media (Constantinides & Fountain, 2007; Kaplan & Haenlein, 2010):
Media?    • Collaborative projects (e.g. Wikipedia,comparison shopping sites)
          • Blogs
          • Content communities (e.g. Youtube)
          • Social networking sites (e.g. Facebook)
Background of Study


    What is        One of the most important assets you can develop for your business is a powerful brand.
                   Brands are not just logos or tag lines, they are the culmination of who you are, how
Corporate Brand?   you’re different from your competition, and why a buyer should do business with you



                   Fundamentally, branding online is pretty similar to branding offline. The palette is
                   different because the medium is reduced to a screen instead of a billboard or a print
                   advertisement, but the opportunity for messaging is the same.

 What is online    With Online brand management, we have learned that sometimes the best way to say
  Corporate        something on the social web is to, “have someone else say it.”In today's world an online
                   or social media brand manager has more than a single audience to worry about. There’s
   Brand?          the company website, corporate blog, Twitter account, Facebook Page, YouTube channel,
                   Foursquare presence and so on and so forth. Staying competitive in today’s social media
                   landscape means setting up shop where your fans are. An online business has a greater
                   chance for success if those who buy its products and services recognize its brand
The Impact Associated with Social Media on Corporate Brand
                        in Malaysia Market




                social media is “a hybrid element of the promotion mix in that it combines some of
                the characteristics of traditional IMC tools with a highly magnified form of word-of
                 mouth communications in which marketing managers cannot control the content
                                          and frequency of such information


Research                     ‘web 2.0 experience’ also influences consumer decisions
Problem
                   Yet, there exist no broadly accepted theory to be implemented in Malaysia.
Is there any link which is determining the relationship
             between the uses of social media in company’s online
             communication mix, with the success of the corporate brand?

Research     What account for using social media effectively in company
Questions    online communication to create successful corporate brand?



             What are the degree allowing consumers to read comments of
             other consumers will impact on their purchase behaviour?




             To determine whether the use of social media in a company’s
             online communication mix positively influences the corporate
             brand.

Research     To examine the effectiveness of using social media in a
Objectives   company’s online communication mix


             To Investigating the degree allowing consumers to read
             comments of other consumers will impact on their purchase
             behaviour.
Thesis Framework



    The central assertion of this thesis is that the use of social media in a
     company’s communication mix positively influences the corporate
     brand. This paper suggests that ‘credibility’ , ‘embeddedness’, and
       ‘user interaction’ mediate the influence of social media on the
                               corporate brand




Embeddedness                      Credibility                  User Interaction
Thesis Framework



                                People actively chose organizations they can identify with, even if
   Embeddedness                 they are not formal members (Bhattacharya & Sen,2003)




is the degree to which          ‘embedded relationships’ between customers and
                                companies. These relationships are likely to be “strong,
individuals enmeshed            intricate, and trusting, resulting in consumers feeling more
 with particular firms          like insiders than outsiders” (Bhattacharya & Sen, 2003).


                                Thorson and Rodgers (2006) confirm that the ability to
                                interact induces consumers to engage in positive word-of-
                                mouth and fosters the creation of an intimate relationship
                                between organization and customer, i.e. causing feelings of
                                embeddedness.
Thesis Framework


      Credibility                Bickart and Schindler (2001) suggest that information presented in
                                 social media has a higher credibility than marketer-generated
                                 information.



 How reliable and valid          A major mediating factor between perceived interactivity and attitude
information that can be          is trust (Thorson & Rodgers, 2006), which in turn is a part of credibility
                                 (Newell & Goldsmith, 2001).
      delivered

                                 Gruen et al. (2006) find a significant correlation between the
                                 knowledge exchange between consumers and the intentions to engage
                                 in word-of-mouth. Electronic word-ofmouth, in turn, is more credible if
                                 found on an interactive website, where consumers exchange
                                 information and opinions.
Thesis Framework


    User Interaction               Obermiller and Spangenberg (2000) find that consumers are less
                                   sceptical toward nformation presented in consumer reports or told by
                                   a friend than advertisements or sales persons.

Global interaction which
a user has direct contact          Duan et al. (2008) reach a conclusion and suggest that online reviews
                                   increase consumer awareness instead of directly influencing public
  and with which they              opinion. They find that the rating of reviews has “no persuasive effect
   interact to conduct             on consumer purchase decisions” (Duan et al., 2008).
        activities

                                   East et al. (2008) find that positive wordof-mouth has a stronger
                                   impact on brand purchase probability than negative publicity.
Thesis Framework



Social Media
 Embeddedness




   Credibility             Corporate Brands




User Interaction
Hypothesis


    Embeddedness                         Corporate communication messages appearing on social media
                                         channels evoke higher feelings of embeddedness than messages
                                         appearing on traditional online channels.



                                         Feelings of embeddedness among consumers positively influences
                                         corporate brands.




Corporate communication messages appearing on social media
channels are more credible than messages appearing on traditional
online channels.




Message credibility has a positive influence on the corporate brand
                                                                                   Credibility
Hypothesis


User Interaction   Pre-exposure word-of-mouth, even when partially negative, has a
                   positive impact on the credibility of the message.




                   Feelings of embeddedness foster the creation of post-exposure word-
                   of-mouth.
Research Design

                       developing a framework that can generate research
Purpose of study       hypothesis, and then test the reliability and validity of
                       the hypothesis.


     Type of           correlation type of investigation : The researcher
                       investigates the measure of the association, or co-
  Investigation        variation of two or more dependent variables

                       Minimal : correlation study, explained the researcher findings from
extent of researcher   how researcher develop a thesis framework, collect the relevant
    interference       data, until analyze the data to come up with the findings.



                       non-contrived : researcher is simply observing his subjects in
   Study Setting       the "real life" environments. Because researcher have no way
                       of influencing what researcher subjects are doing
Research Design


 Data Collection   Primary : Questionnaire
                   Secondary : company record and publication journal
    Method

                   scaling measurement : using scale answer questionnaire.
Measurement and    Interval Scale : The participants answered each question with the degree of
   measure         what they believes (for example 1 = strongly disagree... 5 = strongly agree).
Pilot Study



            check the consistency of the
Gathering   distribution of participants’   check the consistency of the
  Data          gender, nationality,             Control question
                 education and age




                                             Scaling the main data to
                                            examine the three entity in
                                                      the TF



                      Test the
                     hypothesis

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Presentation brm

  • 1. The Impact Associated with Social Media on Corporate Brand in Malaysia Market Prepared by: Kharisma Adhie Nugraha 1101601147
  • 2. The Impact Associated with Social Media on Corporate Brand in Malaysia Market Presentation Flow Background of Study Research problem Research Questions And Objectives Literature Review  Thesis Framework Research Hypothesis Research design Pilot Study
  • 3. The Impact Associated with Social Media on Corporate Brand in Malaysia Market Traditional advertising is slipping, companies display a rising interest in social media Background Using social media in a company’s marketing mix is of beneficial to its brand among Malaysian company Study Negative comments are harmful to the brand.
  • 4. Background of Study The term ‘social media’, sometimes also referred to as ‘consumer-generated media’ (CGM), “describes a variety of new and emerging sources of online information that are created, initiated, circulated and used by consumers intent on educating each other about products, brands, services, personalities and issues” What is Social Categories of Social Media (Constantinides & Fountain, 2007; Kaplan & Haenlein, 2010): Media? • Collaborative projects (e.g. Wikipedia,comparison shopping sites) • Blogs • Content communities (e.g. Youtube) • Social networking sites (e.g. Facebook)
  • 5. Background of Study What is One of the most important assets you can develop for your business is a powerful brand. Brands are not just logos or tag lines, they are the culmination of who you are, how Corporate Brand? you’re different from your competition, and why a buyer should do business with you Fundamentally, branding online is pretty similar to branding offline. The palette is different because the medium is reduced to a screen instead of a billboard or a print advertisement, but the opportunity for messaging is the same. What is online With Online brand management, we have learned that sometimes the best way to say Corporate something on the social web is to, “have someone else say it.”In today's world an online or social media brand manager has more than a single audience to worry about. There’s Brand? the company website, corporate blog, Twitter account, Facebook Page, YouTube channel, Foursquare presence and so on and so forth. Staying competitive in today’s social media landscape means setting up shop where your fans are. An online business has a greater chance for success if those who buy its products and services recognize its brand
  • 6. The Impact Associated with Social Media on Corporate Brand in Malaysia Market social media is “a hybrid element of the promotion mix in that it combines some of the characteristics of traditional IMC tools with a highly magnified form of word-of mouth communications in which marketing managers cannot control the content and frequency of such information Research ‘web 2.0 experience’ also influences consumer decisions Problem Yet, there exist no broadly accepted theory to be implemented in Malaysia.
  • 7. Is there any link which is determining the relationship between the uses of social media in company’s online communication mix, with the success of the corporate brand? Research What account for using social media effectively in company Questions online communication to create successful corporate brand? What are the degree allowing consumers to read comments of other consumers will impact on their purchase behaviour? To determine whether the use of social media in a company’s online communication mix positively influences the corporate brand. Research To examine the effectiveness of using social media in a Objectives company’s online communication mix To Investigating the degree allowing consumers to read comments of other consumers will impact on their purchase behaviour.
  • 8. Thesis Framework The central assertion of this thesis is that the use of social media in a company’s communication mix positively influences the corporate brand. This paper suggests that ‘credibility’ , ‘embeddedness’, and ‘user interaction’ mediate the influence of social media on the corporate brand Embeddedness Credibility User Interaction
  • 9. Thesis Framework People actively chose organizations they can identify with, even if Embeddedness they are not formal members (Bhattacharya & Sen,2003) is the degree to which ‘embedded relationships’ between customers and companies. These relationships are likely to be “strong, individuals enmeshed intricate, and trusting, resulting in consumers feeling more with particular firms like insiders than outsiders” (Bhattacharya & Sen, 2003). Thorson and Rodgers (2006) confirm that the ability to interact induces consumers to engage in positive word-of- mouth and fosters the creation of an intimate relationship between organization and customer, i.e. causing feelings of embeddedness.
  • 10. Thesis Framework Credibility Bickart and Schindler (2001) suggest that information presented in social media has a higher credibility than marketer-generated information. How reliable and valid A major mediating factor between perceived interactivity and attitude information that can be is trust (Thorson & Rodgers, 2006), which in turn is a part of credibility (Newell & Goldsmith, 2001). delivered Gruen et al. (2006) find a significant correlation between the knowledge exchange between consumers and the intentions to engage in word-of-mouth. Electronic word-ofmouth, in turn, is more credible if found on an interactive website, where consumers exchange information and opinions.
  • 11. Thesis Framework User Interaction Obermiller and Spangenberg (2000) find that consumers are less sceptical toward nformation presented in consumer reports or told by a friend than advertisements or sales persons. Global interaction which a user has direct contact Duan et al. (2008) reach a conclusion and suggest that online reviews increase consumer awareness instead of directly influencing public and with which they opinion. They find that the rating of reviews has “no persuasive effect interact to conduct on consumer purchase decisions” (Duan et al., 2008). activities East et al. (2008) find that positive wordof-mouth has a stronger impact on brand purchase probability than negative publicity.
  • 12. Thesis Framework Social Media Embeddedness Credibility Corporate Brands User Interaction
  • 13. Hypothesis Embeddedness Corporate communication messages appearing on social media channels evoke higher feelings of embeddedness than messages appearing on traditional online channels. Feelings of embeddedness among consumers positively influences corporate brands. Corporate communication messages appearing on social media channels are more credible than messages appearing on traditional online channels. Message credibility has a positive influence on the corporate brand Credibility
  • 14. Hypothesis User Interaction Pre-exposure word-of-mouth, even when partially negative, has a positive impact on the credibility of the message. Feelings of embeddedness foster the creation of post-exposure word- of-mouth.
  • 15. Research Design developing a framework that can generate research Purpose of study hypothesis, and then test the reliability and validity of the hypothesis. Type of correlation type of investigation : The researcher investigates the measure of the association, or co- Investigation variation of two or more dependent variables Minimal : correlation study, explained the researcher findings from extent of researcher how researcher develop a thesis framework, collect the relevant interference data, until analyze the data to come up with the findings. non-contrived : researcher is simply observing his subjects in Study Setting the "real life" environments. Because researcher have no way of influencing what researcher subjects are doing
  • 16. Research Design Data Collection Primary : Questionnaire Secondary : company record and publication journal Method scaling measurement : using scale answer questionnaire. Measurement and Interval Scale : The participants answered each question with the degree of measure what they believes (for example 1 = strongly disagree... 5 = strongly agree).
  • 17. Pilot Study check the consistency of the Gathering distribution of participants’ check the consistency of the Data gender, nationality, Control question education and age Scaling the main data to examine the three entity in the TF Test the hypothesis