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Credibility

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Most important intangible asset: Credibility

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Credibility

  1. 1. MOST IMPORTANT INTANGIBLE ASSET: CREDIBILITY S T E P H A N E P R U D ’ H O M M E A L L R I G H T S R E S E RV E D - © 2 0 1 5
  2. 2. STEPHANE PRUD’HOMME • MA (Canada), MBA (China), PhD ABD (Macau) • 21 years of experience in public relations and marcom, including: – 8 years in China and SouthEast Asia – 13 years of studying and working with credibility and reputation constructs • Managing Director and Credibility Engineer at Credibility Institute – www.credibilityinstitute.com | www.credibilityacademy.org
  3. 3. WHAT IS CREDIBILITY? 3
  4. 4. PUBLIC RELATIONS STRATEGY
  5. 5. R = Research A = Action planning C = Communication E = Evaluation 4-STEP R.A.C.E. MODEL John Marston 5
  6. 6. STAGES OF COMMUNICATION 1. Awareness building A person must be aware of a company and its products/services before building an opinion. 2. Change of opinion / attitude | Acceptance Once a person is aware of a company and its products/services, he/she can build an opinion.This is the stage where the company can try to influence his/her opinion. 3. Change of behavior | Action Once a person has an opinion on a company and its products/services, he/she can decide to buy or not buy, to sign a contract or not to sign. Multiple sources: Smith, 4th ed.; Maisonneuve, 2010; and others
  7. 7. FISHBEIN MODEL h t t p : / / b i t . l y / 2 m j B r j R 7
  8. 8. STAKEHOLDERS AND PUBLICS 8
  9. 9. WHAT IS A PUBLIC? A STAKEHOLDER? • Public: – Any group whose members have a common interest or value in a particular situation. – Must be a group. • Stakeholder: – A person, or public, that has a stake or an interest in an organization, or in an issue that involves the organization.As a result, they affect the organization and at the same time are affected by it. – Could be only one person. – Stakeholders are individuals, groups or organisations that are affected by the activity of the business. – All stakeholders are publics, but not all publics are stakeholders. James Grunig 9
  10. 10. STAKEHOLDERS VS. PUBLICS • Grunig and Repper in 1992 differentiated the terms “stakeholder” and “public” in the following way: Organizations choose stakeholders by their marketing strategies, recruiting, and investment plans, but “publics arise on their own and choose the organization for attention.” • The type of public determines how and what you communicate to the public.This theory then, points out that an organization should communicate with its latent and aware publics to solve any problems or issues before the situation escalates and the publics decide to take action. • A public is distinct from a stakeholder or a market. 10 James Grunig
  11. 11. PUBLICS 11
  12. 12. 4 CATEGORIES OF PUBLICS • Nonpublic – No problem is recognized or exists, Low problem / Low constraint recognition – No consequences, Communication not necessary • Latent public – Problem is there, but public is not aware, does not recognise it – Low problem recognition, High or Low constraint recognition – Communication not sought so message must be creative and attention-getting • Aware public – Group recognizes the problem, that a problem exists – High problem recognition – High constraint recognition – Communication may or may not be processed by these publics • Active public – Group organizes to respond to the problem – Group is aware of the problem and organises to respond to it – High problem recognition, High or low constraint recognition – Organization must actively communicate with active publics and maintain a high public profile JamesGrunig
  13. 13. FACTORS DETERMINING THE TYPE OF PUBLIC • Problem Recognition • Constraint Recognition • Level of Involvement James Grunig
  14. 14. Problem Recognition High Low Problem Recognition High Constraint Recognition Low Constraint Recognition Active Public Active Public Latent & Aware Public Latent PublicLatent Public Nonpublic James Grunig
  15. 15. EVALUATION AND MEASUREMENT 16
  16. 16. MEASURING COMMUNICATION Quantitative • PR/CC outputs, which are usually short-term and surface (e.g. the amount of likes received or exposure of a particular message) AWARENESS Qualitative • PR/CC outtakes, which are usually more far-reaching and can have more impact (e.g. determining if those to whom the activity was directed received, paid attention to, comprehended and retained particular messages) AWARENESS/ACCEPTANCE/OPINION • PR/CC outcomes, (e.g. did the messages or activities change opinion and attitude levels, and even behavior patterns?) CHANGE OF BEHAVIOR/ACTION
  17. 17. CREDIBILITY
  18. 18. WHAT IS CREDIBILITY? 19
  19. 19. ARISTOTLE: ETHOS, PATHOS, LOGOS • Ethos means to convince an audience of the author’s credibility or character. An author would use ethos to show to his audience that he is a credible source and is worth listening to. Ethos can be developed by choosing language that is appropriate for the audience and topic (also means choosing proper level of vocabulary), making yourself sound fair or unbiased, introducing your expertise or pedigree, and by using correct grammar and syntax. • Pathos means to persuade an audience by appealing to their emotions.Authors use pathos to invoke sympathy from an audience; to make the audience feel what what the author wants them to feel. Pathos can be developed by using meaningful language, emotional tone, emotion evoking examples, stories of emotional events, and implied meanings. • Logos means to convince an audience by use of logic or reason.To use logos would be to cite facts and statistics, historical and literal analogies, and citing certain authorities on a subject. Logos can be developed by using advanced, theoretical or abstract language, citing facts (very important), using historical and literal analogies, and by constructing logical arguments. 20 pathosethoslogos.com
  20. 20. BRANDING, IMAGE, REPUTATION 21
  21. 21. BRANDING • Brand awareness • Brand recognition • Brand recall • Stage when we build an image • Publicity • Advertisement • Repetition 22
  22. 22. BRAND IMAGE • Publicity and Advertisement • Repetition • Image is what we see, what we hear • Brand image is the current view of the customers about a brand. It can be defined as a unique bundle of associations within the minds of target customers. It is a set of beliefs held about a specific brand. • It is nothing but the consumers’ perception about the product. Brand image conveys emotional value and not just a mental image. Brand image is nothing but an organization’s character. It is an accumulation of contact and observation by people external to an organization. It should highlight an organization’s mission and vision to all. • Brand image is the overall impression in consumers’ mind that is formed from all sources. Consumers develop various associations with the brand. Based on these associations, they form brand image. 23 www.managementstudyguide.com
  23. 23. BRAND/CORPORATE IMAGE • The brand and the corporate image include: – Brand positioning – Brand personality – Brand identity – Brand legitimacy 24
  24. 24. CORPORATE PERSONALITY 25
  25. 25. BRAND IDENTITY VS BRAND IMAGE h t t p : / / b i t . l y / 2 n q k C V R 26
  26. 26. 27www.studiowide.co.uk
  27. 27. TRUST • Professor Cabral: – Expectation to do something – Repetition • Trust: it’s about an action (Bohnet et al.) • I gave you money because I trust you and I know that you will give it back to me. 28
  28. 28. FROM TRUST TO CREDIBILITY 29
  29. 29. CREDIBILITY • Reception and perception, consistency • Doing what has been said to be done • Believe in a message • Credibility: it’s about a message (Bohnet et al.) • I believe a message:The wall is white because you told me and I believe you. • Difference between trust and credibility is that trust is confidence in or reliance on some person or quality while credibility is reputation impacting one's ability to be believed. (wikidiff.com) 30
  30. 30. AN INTIMATE RELATIONSHIP • The intimate relationship between a spokesperson and his/her credibility • Credibility is not only related to influence and persuasion, but also to the act of informing, communicating, having a dialog with an audience, receiving feedback.That is to create and maintain a relationship of trust and sharing between a spokesperson or a corporation and their publics and stakeholders. • We must understand that credibility exists only in function of a reflection or a perception, it does not exist by itself, it starts in the mind of every member of an audience.A spokesperson is not credible because he/she thinks that he/she is credible, it is only how the audience perceives his/her credibility. • A credible spokesperson sincerely wishes to establish and maintain a relationship of trust and mutual understanding with his/her publics rather than being effective. A credible spokesperson always demonstrates a great flexibility and a mindset of openness along with a constant authenticity. 31Prud’homme, 2004
  31. 31. REPUTATION • Professor Cabral: – Believed to be something • Reputation is what we understand, what we remember, what we recall. • The main point is that corporate reputation has to be earned.A company can try to forge and carve their image, however, whether that image will lead to a favourable reputation (which is aligned with the image, and therefore hopefully a positive reputation), will depend on the actual activities and the tangible results, good or bad, that customers experience. (www.studiowide.co.uk) • “Reputation is the sum values that stakeholders attribute to a company, based on their perception and interpretation of the image that the company communicates over time” John Dalton, Managing Corporate Reputation. 32
  32. 32. REPUTATION REVISITED FRAMEWORK 33© 2015 Stephane Prud’homme
  33. 33. STAGES OF COMMUNICATION • Where are located the stages of communication in this model? 1.Awareness building 2. Change of opinion / attitude | Acceptance 3. Change of behavior | Action 34
  34. 34. SOURCE CREDIBILITY THEORY W W W. S O U R C E C R E D I B I L I T Y. O R G 35
  35. 35. SOURCE CREDIBILITY • “Source credibility refers to the degree to which the receiver believes the source has relevant knowledge and/or expertise and thus trusts the information offered by the source” (Ohanian, 1990) • “Source credibility is considered an important factor influencing attitudes and purchase intention” (Lutz et al., 1983) 36
  36. 36. 37 Hovlandetal.,1951 SOURCECREDIBILITY THEORY
  37. 37. THREE DIMENSIONS OF SOURCE CREDIBILITY SCALE 38
  38. 38. SOURCE CREDIBILITY KEY FACTORS 39
  39. 39. CREDIBILITY CLASSIFICATION MODEL 40 Ohanian,1990andPrud’homme,2017
  40. 40. CREDIBILITY FACTORS 41 ©2004StephanePrud’homme
  41. 41. CREDIBILITY AS AN OPEN SYSTEM 42 © 2004 Stephane Prud’homme
  42. 42. CREDIBILITY ECOSYSTEM 43 © 2004 Stephane Prud’homme
  43. 43. CORPORATE CREDIBILITY 44
  44. 44. DUAL CREDIBILITY MODEL 45
  45. 45. CREDIBILITY IS A PERCEPTION 46
  46. 46. WE BELIEVE A MESSAGE. THE SPOKESPERSON IS CREDIBLE. 47
  47. 47. WALK THE TALK 48
  48. 48. CONSISTENCY 49
  49. 49. BE VISIBLE 50
  50. 50. CREDIBILITY EVALUATION & MEASUREMENT 51
  51. 51. EVALUATION & MEASUREMENT • It is important to remember that credibility is an intangible asset • Return on Expectations (ROE) • Return on Investment (ROI) • Objectives • Very subjective but we still can evaluate variables, the credibility factors 52
  52. 52. CREDIBILITY ROI & ROE 53
  53. 53. 54
  54. 54. BALANCED SCORECARD • Reach & Engagement: These tangible process metrics demonstrate an organization’s reach and engagement with its audiences across channels, while evaluating internal and external communications efficiency. Data typically come from paid, earned, shared, and owned media tools and internal tracking systems. • Relevance & Alignment: These intangible process metrics demonstrate an organization’s internal alignment and external relevance, reflecting qualitative factors including audience understanding, market relevance, messaging consistency, and employee alignment. Data typically come from paid, earned, shared, and owned media tools and internal tracking systems. • Revenue & Financials: These tangible outcome metrics reflect financial and sales impact, including leads, lead value, revenue, profitability, market share, and other business data. Data typically come from company sales and finance teams and industry analysts. • Reputation & Brand: These intangible outcome metrics reflect longer-term stakeholder relationships, perceptions, reputation, brand advocacy, and brand equity, which may impact future revenues, brand premiums, and/or stock price. Data typically come from survey research, third-party reports, and internal tracking systems. 55 www.themeasurementstandard.com
  55. 55. EVALUATION FRAMEWORK 56© Stephane Prud’homme and Guy Litalien
  56. 56. CONCLUSION R E A D I N G : h t t p : / / b i t . l y / 2 m G 8 TO r 57
  57. 57. MERCI. www.stepru.com www.facebook.com/stepru www.twitter.com/stepru www.linkedin.com/in/stepru www.stepru.tumblr.com m.me/stepru facebook.com/groups/PRStudents AndGrads facebook.com/credibilityinstitute

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