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Reputation Management: Misuse of social media by customers and consequences on the marketing strategies of firms

Erdogan, K.D. (2015) Reputation Management: Misuse of social media by customers and consequences on the marketing strategies of firms.

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Abstract:The misuse of customer power by means of posting in social media platforms (SMP) is a reality that a company is confronted with. Literature suggests that organizations have to rethink their marketing strategies with regards to SMPs. SMPs enable consumers to share their thoughts and opinions about a company and their products with millions of others within seconds. Since customers do not only share good experiences, corporations are faced with different types of misuses such as negative comments or unfavorable rankings. Consciously or unconsciously the abuse of SMPs by customers can lead to problems for companies, for instance it can cause a bad reputation. This research aims to identify various types of misuse of SMPs by customers and the consequences on marketing strategies. The research is based on a critical literature review. Additionally, case studies with different companies from various industries were conducted. First the threats were diagnosed, followed by the classification of the types of abuse. Apart from that, opportunities to prevent bad reputation and actions that are possible after forfeiting reputation were identified. Lastly, the literature and the practice were compared in order to show similarities and differences between them both. Literature and case studies indicate that the misuse of SMPs by customers can lead to reputational problems. Furthermore, companies claim that there is still no strong motive to change their marketing strategies since the customer abuses faced so far were manageable.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/67320
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