Ambient Reputation Management©

Defining Goals and Audiences

Feb 2011 @ UKAIS, OxfordDr. Pasi Tuominen

Ambient Reputation Management

Ambient [the immediate surroundings of something] – [denoting advertising that makes use of sites or objects other than the established media] (OED, 2012)

Reputation [the beliefs or opinions that are generally held about someone or something] (OED, 2012)

Management [the process of dealing with or controlling things or people] (OED, 2012)

Significance of Reputation

Building and sustaining a favourable corporate reputation is vital in the creation of corporate competitive

advantage enhancing an organisation’s financial valueassuring product/service qualityinfluencing customer and employee loyaltyoffering inimitability to the organisation

(Tuominen, 2011b. p.73).

Multidimensional construct

Economic perspective reputation is perceptions about an organisation’s strategy (Rindova

et al., 2010, pp.613-614).

Sociological perspective a broad collective knowledge and recognition (Rindova et al., 2010,

p.614).

Scholars from all disciplines unite on two points: the term reputation refers to social cognitions, such as

knowledge, impressions, perceptions, and beliefs, and these social cognitions reside in the minds of external observers

(Tuominen, 2011b, p.71).

ARM - Strategy

Management and the whole organisation are closely involved in ambient reputation management.

Nebulous boundaries between privacy and publicity, and the content origin are accepted.

Reputation management is based on the continuous and overlapping interaction and entertainment exchange with all stakeholders. (Tuominen, 2011b p.262)

ARM - Vital Attributes

Corporate GovernanceShareholder valueInnovationCorporate responsibility (CSR)Role and leadership of CEOSatisfied employees!Sustainable Value Creation

Measurable Reputation drivers

Customers

• Satisfaction survey

• Customer complaints

• Third-party ratings and awards

• Volume of discussion

• Sentiment of discussion

Employees

• Employee turnover

• Employee profiles (ability, gender, race)

• Employee satisfaction

• Volume of discussion

• Sentiment of disc.

Society

• Boycotts, marches, incidents

• License to operate

• Direct action

• Media reports

Partners

• Quantity of partnerships accepted, sanctioned or rejected on basis of stewardship criteria

• Health and safety records of partners

Shareholders

• Number of shareholder resolutions

• Results of shareholder satisfaction survey

Financial Indicators

• Cash flow

• Earnings

• Costs• Capital

expenditure

ARM – Bonded Loyalty

Buy

Experience

Enjoy

Satisfaction

Bond

Emotion

Loyalty

Trust

ARM – Framework

ARM – Tribal Loop

Ambient Reputation Management

Major change for the service providers Shift from a world of careful planning to one of continuous uncertainty and risks.

Loyalty of intangible brands and services is built up of attitudinal loyalty (consisting of commitment, trust, and satisfaction)• Leading to repeat patronage intentions, advocacy and tribalism

ARM Results

Fewer customers become dissatisfied and leave

Increases the probability that existing customers form a bonded loyalty

Accelerates the delivery of positive word-of-mouth

Intensifies the advocacy of the brand excellence

Provides opportunities for expanding the clientele. (Tuominen, P. 2011b)

Thank You