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Public Relations > Lecture 4/5: Media effects > Flashcards

Lecture 4/5: Media effects Flashcards

1
Q

What are the 3 dimensions of reputation?

A

being known
being known for something
generalized favourability

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2
Q

What are the consequences of positive corporate reputation?

A

Positive:
- Attracting customers
- Attracting employees
- Economic outcomes
- Mergers and acquisitions
- Strategic flexibility
- Benefit of the doubt when new negative
information comes to light

Negative:
- Burden of celebrity: stakeholders hold well-
known and well-liked firms to especially
intense scrutiny

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3
Q

Media reputation | Deephouse, 2000: Business performance is determined by the organization’s resources. In order to make a difference, resources need to be…

A

o be valuable
o be rare
o have low imitability
o be non-substitutable

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4
Q

Media reputation | Deephouse, 2000: Explain Rare resource

A

not every company has a good reputation

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5
Q

Media reputation | Deephouse, 2000: Explain Valuable resource

A

signal for exchange partners, making higher prices and lower costs possible

enhance efficiency or effectiveness

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6
Q

Media reputation | Deephouse, 2000: How are business performance and media reputation linked?

A

Business performance is determined by a company’s resources, e.g. skills, location, structure, culture, customer loyalty, knowledge, etc.
In order to make a difference, resources need to…
o be valuable: enhance efficiency or effectiveness
o be rare
o have low imitability
o be non-substitutable

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7
Q

Media reputation | Deephouse, 2000: Explain Low imitability resource

A

media reputation is difficult to imitate due to complex media dynamics

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8
Q

Media reputation | Deephouse, 2000: Explain Non-substitutable resource

A

it is difficult to find an alternative to media reputation (e.g. real contracts rather than a “psychological contract”)

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9
Q

Measuring reputation: How is reputation often measured?

A

Fortune’s survey of World’s Most Admired Corporations

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10
Q

What is the starting point of Fortune’s survey?

A
  • reputation comes from interaction with and (specialized) information about the organization
  • result of competence (+ noise)
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11
Q

What are the shortcommings of Fortune’s survey?

A
  • High correlation with financial performance. Reputation based on that alone?
  • Directors, etc, only
  • USA only (until some time ago)
  • Intended to sell magazines
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12
Q

Media reputation as alternative way: what is media reputation?

A

the overall evaluation of a firm presented in the media.

Media are selective and biased, but also a reflection of interest in, knowledge of and opinion on topics/actors by public

Media coverage based on many different sources

Media influence what audience think about, and sometimes how they think about something

Media reputation serves as signal for stakeholders

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13
Q

Media reputation | Deephouse, 2000: What was the research about?

A

Dependent variable: Relative return on average assets (ROA) for each bank year
- Return on assets
- Relative: compared to other banks

Independent variable: Media reputation in 2 newspapers

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14
Q

Media reputation | Deephouse, 2000: What are the results?

A

Media reputation predicts change in ROA

Media reputation was indeed a resource. Thus, media reputation may be useful in reputation research and the resource-based view of the firm

  • Small but relevant effect
  • Simple model, simple measurement of reputation -> too simple?
  • Theory: concept difficult to fit into some facets of resource theory
  • Time between measurement too long?
  • Most posts discussed in discussion
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15
Q

Media reputation 2.0 | Etter et al. 2019: What is media reputation 1.0?

A

Media coverage of an organization as a proxy for an organization’s reputation
- Homogeneous
- Static
- Factual
- Influence by organization

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16
Q

Media reputation 2.0 | Etter et al. 2019: What are the conclusions?

A
  • Less facts, more emotion
  • Media stories as co-productions
  • Multiple issues arenas
    ->Where opinions reinforce each other
  • Less corporate influence
17
Q

Jonkman et al. 2020 | Buffering negative news: what was the RQ?

A

What is the effect of visbility (amount of corporate news) on public reputation?

18
Q

Agenda setting: explain how this works

A

The concept of Agenda setting refers to the idea that there is a strong correlation between the emphasis that mass media place on certain issues and the importance attributed to these issues by mass audience – McCombs & Shaw, 1972

Media don’t tell their audiences what to think, but they can influence what they think about
Agenda setting works on how salient an issue is for the public, i.e. how quickly such issues comes to the public’s mind

19
Q

How does the circle of agenda setting and public agenda setting looks like?

A

Reality has impact on ‘Agenda building’; selection by journalists, Political PR, Public affairs

Agenda building leads to ‘Media reality’/’Media agenda’

The media agenda influences the public perception of reaility: Public Agenda
- But public agenda is also immediately affected by the Reality

20
Q

Media exposure: Why is it a double edge sword?

A

Structural negativity bias news coverage: most of the news have a negative tone, but also the possibility that News coverage may carry positive object attributes and increase familiarity

It is unclear how the salience of corporations in the news will influence their reputation

so, visibility has positive and negative effects on reputation
- positive = mere exposure, familarity = better reputation
- negative = association with more news, negative news = worse reputation

21
Q

What is the negativity bias?

A

most of the news are negative AND people attach more value to negative than to positive news (or information, in general)

22
Q

What is the buffering effect?

A

“(T)he reduction of dissonance is accomplished by selectively paying attention to information that is consistent with previously held beliefs and weighing unequal values on different pieces of information” – Coombs & Holladay, 2006

A favorable previous reputation lessens the effect of negative cues to the extent that these cues do not harm one’s opinion of a corporation or, in extreme cases, even lead to a more positive evaluation of a corporation
People tend to interpret news coverage in ways that accord with their existing beliefs

e.g. airbag, it reduces the impact

23
Q

Jonkman et al. 2020 | Buffering negative news: what are the hypotheses?

A

H1: the more positive the tone of news, the more positive the reputation
H2: the negative effect of negative news on reputation is stronger than the postive effect of positive news
H3: the more positive the individual’s initial opinion is, the weaker the negative effect of negative news on reputation will be

24
Q

Jonkman et al. 2020 | Buffering negative news: what was the method?

A

Panel survey combined with automated content analysis
media consumption and corporate reputation was measured

25
Q

Jonkman et al. 2020 | Buffering negative news: what were the results?

A

The more positive respondents were before, the higher they ranked corporate reputation

RQ:More exposed to more articles -> the more negative corporate reputation

H1:More exposed to more positive news, the more positive corporate reputation

H2: effect of tone is conditional of valence. The effect of negative news is 3 times as strong as the effect of positive news

H3: there is a buffering effect of previous reputation: the negative effect of visibility weakens for individuals who hold more positive opinion about a corporation

summary:
- The more in the news, the more negative reputation
- The more negative in the news, the more negative reputation
- The more positive in the news, the more positive reputation, But effect of negative news is stronger
- Prior reputation moderates effect of negative news, No negative effect with positive reputation beforehand

26
Q

Conversation Human Voice; What is this?

A

An engaging and neutral style of organizational communication as perceived by an organization’s publics, based on interactions between individuals in the organization and individuals in publics – Kelleher, 2009

27
Q

Dijkmans et al. 2015 | Exposure social media activities and reputation: What was the method?

A

KLM as object of study
Longitudinal survey-study
- Both customers and non-customers
- One year in between the measurements
Measures
- Conversational human voice
- Reputation
- Social media exposure (knowing, following)

28
Q

Dijkmans et al. 2015 | Exposure social media activities and reputation: What are the results?

A

Exposure social media activities, mediated by CHV, leads to a higher perception of corporate reputation

Public Relations (6 decks)

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