CHAPTER 2 THEORITICAL FOUNDATION 2.1 Theoretical...

CHAPTER 2

THEORITICAL FOUNDATION

2.1 Theoretical Foundation

The theoretical foundation will discover comprehensively about both the Twitter

uniqueness as social media site and the essential philosophy of Customer Relationship

Management. Furthermore, the reason of Twitter is the right platform to succeed in

Customer Relationship Management will be deliberated in details.

2. 1. 1. Definition of Twitter as a Social Media Site

In February 2012, Twitter.com had rapidly evolved to reach its 500 million users

worldwide and they are targeting to reach 600 million users [3] at the end of the year

based on its current growth rate to meet and answer their customers current needs.

Moreover, at every day average 175 million tweets and interactive communication

dialogue are occurring on Twitter [4].

The great things about Twitter are it fundamentally speaks people’s voice, be the

first choice of social media site to both launch and find news for companies and

customers, also Twitter is the only effective social media site which able to create

business deals without infringing the unwritten rules in the global society.

Figure 2.1 : Twitter’s 2012 Statistics. [3]

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2. 1. 1. 1. Twitter Background

Twitter was started with a superbly simple concept as a micro blogging site,

launched in 2006 [2], which functions perform efficiently as replacement of free short

text messages in 140 characters which known as tweets, that intelligently revolutionize

the communication shape between people, companies and its customers by allowing

tweets sent all around the world, breaking across the geographical boundaries. In addition,

in July 2011, based on research on Bloomberg.com, Twitter was worth valued as 7

million US$ and its revenue come from advertisement on its website which priced at

US$ 150 million [5]. Furthermore, at this moment, Twitter has became the leading social

media site which has the competitive advantage in reaching out people, especially for

companies & its communication professionals.

The attractiveness of Twitter can be proved from not only its unique ability to

communicate, exchange, and broadcast ideas about life issues online, but also it has the

capability to share URL links immediately without the requirement neither to write blog

posting or article. The beauty of 140-characters of Twitter ensure that tweets can contain

longer blog posting or online articles on its links but Twitter will made it the post are in

incisive condition, being published at real time, and being easy to retweeted [6] to its

followers [2].

Another main strength of Twitter is it’s a multi lingual site, in 2012, it has

implemented 23 countries languages on it website and Twitter efficiently accessible from

multi platform devices (available on Android, Apple, Blackberry devices).

Twitter at its best intention to protect and enhance the security of its users, at

November 2011, had purchased acquisition of Whisper Systems, an IT leading security

company which specialized on encryption technology. It shown the great depth

commitment of Twitter to nurture innovation & dedication to its loyal customers.

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Figure 2.2 :Twitter.com interface & its 23 languages choices. [7]

Figure 2.3 : Twitter official account & its more than

7 million followers. [8]

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2. 1. 1. 2. Characteristic of Twitter

The prominent influence power which made Twitter became strongly valuable is it

micro-messaging revolution technology that integrate connection, communication, and

immediacy on 140 characters at a time. In addition, for most corporations, behavior

modeling of customers can be augmented by micro-blogging on Twitter[9]. Rapidly

growing corporations, which had been successful, implemented Twitter due to its reliable

capability to strengthen the communication between the customers & employees.

Furthermore, Zappos.com, an international online shoe seller captured the heart of their

customers by changing their corporate culture by consistently involving Twitter in their

daily services and interactions with their clients. The attractiveness and remarkable

characteristic of Twitter which is the micro-messaging technology that constantly

innovate to be the appropriate platform for customer relations and clients owing to the

fact not only it’s ability to catch and get results being returned immediately after

broadcasting messaging to a person’s entire group of followers rather than sending to

people individually.

Twitter provide the first mover advantage and opportunity for companies to create

profit by answering one of the biggest question in social media marketing : to be able to

acquire deals without altering the unwritten rules of society and still being

communicative at the same time. The increasing rapidly third-party services such as

Ad.ly, TwittAd, & twtMob, supplying pay-per-clicks ability for anyone who has Twitter

account to cash in for their sponsored tweets. Moreover, the co-founder of Innovative

Thunder, a creative shop, stated based on his true experiences with Twitter, that the reach

per person ability maybe smaller, but the quality of recommendation & the number of

person being reached in the end much higher [10]. Twitter made corporations, marketers,

customers, even society realized intrinsic lesson of business which is in global world,

where everyone has media platform, every single of it has monetary value.

The most crucial functions of Twitter services is key-content sharing option which

generated brands transforming into social brands. Twitter altered from its purpose from

personal activity broadcasting into the actual time informant of recommendations from

one customer to another customers. One significant prove of this, on Twitter site, they

refine Twitter’s tagline to “What’s happening?” instead of “What are you doing?” [11].

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Furthermore, the core of customers loyalty program is the efficient and unexpected way

of implementing Twitter being founded and applied by Tasti D Life, which gave

customers additional reward points for announcing their purchasing activities on Twitter.

It created an unique Customer Relationship Management buzz and effective online viral

marketing for the company.

Twitter has become crucial elements of Internet infrastructure especially for

companies to distinguish their brands to be more centralized on customer relations

&services. In addition, Twitter not only allowed companies to integrate its Twitter to

their brand campaigns through open application programming (API) but also Twitter

itself has been well-known as culture icon and actual-time references for society.

2. 1. 1. 3. Features of Twitter

Twitter not only has its own worthy and captivating features, but also unique

terms which its users well known to engage in contributing in Twitter’s dialogue

communication and revolutionize the way society interacting worldwide. Here are the

glossaries of remarkable Twitter terms and its details:

Glossary Description

#(Hashtags) The # icon applied for identify topics or keywords in Tweet.

Twitter’s users were the ones who make the hashtags

inherently.

@ The purpose of @ icon in Tweets meant to give a call to

usernames. All usernames in Twitter begin by @, and its

being immediately link to the user’s profile.

Activity The actual time dashboard for checking out what’s

happening around the world and other users which you

follow on Twitter. It can be found on “Connect” tab.

API (Application

Programming Interface)

Its including not only access for third-party applications to

link directly to Twitter but also contains of all Twitter data.

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Application (Third Party) A product which being produced by another company beside

Twitter which has access to Twitter data and Tweets.

Avatar Can be found on Settings tab, and contained of personal

image that being uploaded to Twitter user’s account.

Bio A concise 160 characters explanation for users on Twitter to

describe who they are.

Cache A rapid access to assembly of data which being classified on

user’s computer and might be beneficial for use in the

future.

Connect By retrieving this tab, users can view recent Retweet,

Mentions, recent Follows and also Interactions. Also users

will know all mentions & replies, and which other users who

favorite their tweets.

Connections An application tab which granted invoke and revoke access

to all third party websites & applications on user’s Twitter

profile.

Deactivation An option on Twitter to delete user’s account. However, the

user’s details will keep remained for 30 days on Twitter’s

system.

Developers Engineers who created third party-applications and

implementing Twitter’s API but don’t work on Twitter

officially.

Direct Message (DM) Private tweets between one sender and one recipient on

Twitter who only them can read it. To get started, sender

select @username to person who he/she dedicated the

message to.

Discover To capture and find out new things on Twitter tab by

providing Browse Categories, Stories, Activity, Who to

Follow, and also Find Friends options.

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Email Notifications Twitter preferences to set notifications about user’s accounts

events like new direct messages or new followers via email.

Favorite Yellow star icon option on tweets can be click to mark it as

user’s favorite on Twitter.

FF Users on Twitter recommend other users to being followed

every Friday, due to FF stands for “Follow Friday.”

Follow To receive regular tweets updates from certain user’s

accounts is the meaning of following people on Twitter.

Follow Count Can be found on user’s profile and keep track updates on the

number of people who we follow and who follow us back

also.

Follower Another Twitter’s user who follow other Twitter user being

named as his/her follower.

Geotagging (Geolocation) Enabling tweets on Twitter with location based data (actual

time).

Home An actual time directory of tweets from all people who users

follow on Twitter which first shown on homepage.

Interactions A worthy timeline to involve in conversations with other

users & can be found in the Connect tab such as listing your

user accounts, or retweeting your tweets.

Listed To be incorporated in other Twitter’s user lists who follow

you and can be found all the comprehensive statistics of the

number and details on user’s profile.

Lists Group of classified Twitter’s users account & located on the

right side on Twitter’s homepage.

Log in The sign in action to user’s Twitter account either by third

party application or on Twitter homepage.

Mention By incorporating @ icon with usernames after it, means

mentioning user on Twitter.

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Mobile Web Mobile devices enable mobile version of Twitter.

Name A 20 characters or less name to locate user on Twitter,

which can be same or different from its username.

Over Capacity Page Overload and hectic traffic at Twitter site, which represented

by whale icon and over capacity message.

Profile Specific user’s information on a Twitter page and all the

tweets being posted from that user’s account.

Promoted Tweets Business sponsored tweets and being included in trending

topics on Twitter.

Private (Protected)

Accounts

Twitter accounts which protected means the tweets from the

user will only can be viewed by the followers that have been

approved by that user.

Query Database which contains valuable information that can be

searched through query.

Reply The reply icon used to answer other user’s message and

started by @username.

Reactivation (Restoration) The action to restore the deactivate Twitter’s user accounts.

Retweet/ RT (noun) Tweet which being forwarded to other users to disseminate

crucial information and rapid news on Twitter.

Retweet/RT(verb) The action to forward tweets from other users to our

followers.

Screencast A computer screen’s output of digital video recording.

Search (Integrated Search) Public tweets can be search through keywords, subjects,

hashtags or usernames on box shape of Twitter homepage.

Short Code Tweets will be received in form of text message and being

sent as five digit phone number with additional country

codes on it.

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Sleep Time Can be found on settings tab and it’s describing the hours

where all Twitter updates will be halt for certain time to

user’s mobile phone & devices.

SMS A 140 characters text message being sent as Short Message

Service.

Stories The most related link, images, and videos with Trending

Topic and induced from Twitter’s web content.

Timeline Actual time list of tweets which can be found on Twitter.

Top tweets The most in demand and well-liked tweets at any time

decided from Twitter’s algorithm.

Trending topic Most in-demand subject on Twitter being determined from

the algorithm behind all tweets.

Tweet (noun) A 140 or less character as message being published on

Twitter.

Tweeter/ Twitterer Nicknames for Twitter user who has accounts, post and read

tweets on Twitter.

Unfollow To halt from subscribing to another Twitter’s user updates &

tweets.

URL Shorterner Concise online version of long URLs.

Username A 15 or less characters unique identity name to identify each

Twitter’s user accounts.

Verification The official process to authorize Twitter’s user accounts &

to avoid confusion of user’s identity.

Who to Follow Recommendation of Twitter’s user accounts based on

interests, contact address book, or circle of friends &

relatives.

Widgets Actual time codes which embedded on user’s tweets on

Twitter.

Table 2.1 : Twitter Glossary & Terms Description [12]

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2. 1. 2. Definition of CRM (Customer Relationship Management)

Customer Relationship Management (CRM) from the corporate business world

can be defined as the prudent process of a company to determine the most rewarding

customers, and has the objectives to maximize both the future & present value of the

clients for the company by developing the interactions between the customers & the

company [13].

While on the operation point of view, Customer Relationship Management is an

organization approach which has goal to optimize each customer’s contribution to

remunerative financial of the company, and it’s a continuous process of interactive

communication with the customers with all possible points & technology, widely diverse

from customization of company’s services & product, segmenting different allocation of

resources to varying customers groups, marketing communications, and services of

support to the customers.

2. 1. 2. 1. The Importance of CRM

In this current globalization era, no thriving company on business world

can survive without putting Customer Relationship Management into practice as their

vital core of daily operations. In addition, CRM’s famous quote well-known as raison

d’etre which fundamentally believe that corporations die or live from doing reiterate

business [14]. The essential philosophy in business is that without well-pleased

customers, there won’t be reiterate business, and it will leads to the non-existence of the

company. The need to fully grasp this concept is high priority, due to in global enterprise

application, CRM technology develop rapidly as well as its implementation.

The appropriate way to augment Customer Relationship Management

technology is by highlighting the human side of it, to intelligently be the platform to

enhance and build the heart of relationship building from companies to its customers, and

increase the interaction of people to people relationships.

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Based on research, 75 percent of customer’s purchasing decision came from human’s

emotion, its beneficial to note that customer will buy or use company’s product or

services most likely if the customers feel the bond with the company [14].

Moreover, CRM itself is a mixture of the processes, software, and business plans

which tremendously listen to the voice and the needs of the customer, and deliver the

answer to the wants of the customers. CRM transform companies more than just business

organization to be customer-center corporation. In addition, further in-depth analysis of

vital success factors of CRM can be described in details as [15] :

1. Apply an organized consumer-centric business plan.

2. Design a CRM-communicative company structure.

3. Inaugurate a CRM-witty company culture.

4. Perform a cohesive consumer knowledge environment.

5. Assure executive contributions & loyalty.

2. 1. 2. 2. Purpose of CRM

In terms of success at current fierce business market, corporations compelled to

have substantial understanding of both their own present customers & prospective

customer. Generating deeper insight of the customers characteristic and need will bring

company to have the competitive advantage than their competitors [16]. It’s a

fundamental philosophy which has been adopted by a lot of prosperous companies : A

more insightful consumer information leads to more wisely business understanding. In

the business strategy, it’s the core foundation of CRM. One peculiar objective of CRM is

to establish true relationship management, hereby means that every delivery steps of

CRM has worthy value to each of the costumer, from first initial intercourse until the

continuous services and sales.

Not only CRM can provide authorization for companies to assess and keep an eye

on the returns of delivering to each of customers personally, but also it gave them the

capability to skillfully distinguish which services, accounts & product that beneficial and

which one that has immense pressure on assets and supplies. Moreover, by being

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equipped with the comprehensive inside, it enable companies to answer prudently and

will have immediate influence on companies business line.

Another essential purpose of CRM is to transform relationships into sales. It’s

about the comprehension of customer-centralized approach & managing the consumer

relationships at the same time. The right approach for companies is not by prioritized on

sales, instead they should set their focus on proactive communication engagement with

the customers. Furthermore, continuous interactions with customers will gain customer’s

trust and loyalty by proving sophisticated & thoughtful customer services, and it’s also

prodigious opportunity to discover new earnings potential.

The crucial thing for companies to prioritized is ongoing actions on preserving &

creating customer relationships, and developing with insightful knowledge about

consumer’s desire, occasion, and growth. Beside creating well-satisfied customers, loyal

customer relationship management is rewarding. Consumers who have strong

relationship with the companies are more promising to take up company for further

services & product, speak favorably of company to another potential customers, and will

likely to recommence their contracts with company. In conclusion, Customer

Relationship Management practice has transformed into the most valuable assets &

capability for many companies.

2. 1. 3. Twitter is The Right Platform For Succeeding in CRM

Twitter is not only a powerful influence platform as social media site but also an

answer for most of company’s corporate relationship especially focusing on Customer

Relationship Management to create meaningful brand images and gain customer trust and

loyalty. Furthermore, in Indonesia, which has large base of target consumer market, it

will be beneficial for most of companies to implement Twitter in CRM as a valuable

marketing tool. In addition, in further details there will be effective and best strategy to

listen via Twitter for companies to acquire customer needs.

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2. 1. 3. 1. Indonesia is One of Twitter’s Biggest Users in the World

In this digitalized era, emphasizing on social media sites, Twitter has become

strong platform for online users to express their thoughts, opinions, and especially being

involved in impactful life issues & discussions. In addition, based on research study

conducted by comScore, Inc. , a measurement company for digital world, proved that in

June 2010, Twitter had significant increase 109% in terms of users from 2009, and the

first rank country who positively contributed to that growth is Indonesia with 20.8% of

online users with biggest trenchancy [17].

Twitter saw the rapid growth of its prospective users in Indonesia, and as their

innovative business move, in 2011 they had confirmed Indonesian language as one of it’s

official language on Twitter’s website and mobile device application. Furthermore, more

than 200.000 translators of Indonesian language has contributed actively did freelance

work on Twitter Translation Center based on Twitter validated statement.

Indonesia successfully provided 15% from all tweets worldwide, on January 2011,

there were 4.883.238 Twitter accounts from Indonesia. The prime time of tweets is

around 6 PM until 10 PM, during those 4 hours, there were statistically average

1.400.000 until 1.600.000 tweets. In addition, Indonesia’s online user accessed Twitter

frequently43 % from UberTwitter application, 16% from API, and 11% from Twitter

from Blackberry[18].Indonesia’s online users has predominantly implemented Twitter as

a daily part of their communication life.

One of Indonesia’s tremendous media company, Kompas, decided to diversify its

business to television industry and in September 2011, they launched its first official

KompasTV which became huge trending topic on Twitter due to Indonesia’s twitter users

live tweet about Kompas TV. The prominent keywords for Kompas TV on twitter were

“kompastv” and “launching”[19]. In conclusion, Twitter can provide advantageous

marketing and proficient CRM approach even for startup business especially in

Indonesia with big target market opportunity.

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2. 1. 3. 2. The Critical Success Factors of Twitter Worldwide

In 2006, Jack Dorsey founded a micro-blogging site[20] which know has

transformed into the global online social media platform for the first choice to being

informed with current world issues & creating multi-communication way particularly on

dialogue communication, and this eminent site called as Twitter. On top of that, an

Information Technology columnist on United Kingdom Guardian site, Alan Rusbridger,

stated 15 firm facts and strong appeal reasons of Twitter, described as :

1. Voice agent of change.

The issues which being Trending Topic1on Twitter has strong social influence that

powerful enough to change government or official institution regulations.

2. Impressive delivery of message.

Viral marketing on Twitter enable rapid online share about current issues worldwide,

especially due to its capability to concise and shorter link in 140 character and connect

it immediately to the website on the link. The importance of this Twitter features, can

be seen on numerous websites which enable “Share on Twitter” features.

3. First source of world latest news.

Breaking news can be found on Twitter, even before journalist publicize it on their

website, but in this digitalized era, Twitter has became the first supreme choice to

announce the latest news both global and local.

4. The new online engine search.

Twitter now has been a strong competitor for Google in terms of search engine options

for crowds of online users. In addition, Twitter which has reach 200 millions number

of users not anymore look for information on Google, but they got the inside story &

knowledge from million of tweets.

1Most in-demand subject on Twitter being determined from the algorithm behind all tweets.[12] Twitter.com. (2012, The Twitter Glossary. Available: http://support.twitter.com/articles/166337-the-twitter-glossary

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Figure 2.4 : Share on Twitter Bookmark on web browser which straightforward

to use. [21]

5. Remarkable form of marketing.

Various postings on company’s websites will be more quickly distributed if being

shared on Twitter due to Twitter’s viral marketing ability that made it feasible to

easily to spread the information.

6. A journalism tool.

It’s a fact that many journalists or reporters not only found out about news & the

compelling issues in society but also being updated with society’s opinions & needs

from Twitter.

7. The appropriate place for dialogue communication.

Twitter give their users freedom of opinion to actively discuss & interact about their

interests & needs in meaningful and engaging dialogue communication.

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8. Diversity option & freedom of opinion for its users.

In another social media sites, people are being limited to utterly expressing their

thoughts and opinions, on the other hand Twitter provide the liberty in every respect to

tweet about every subjects & issues which matter for its online users.

9. The change platform of the way people express their thoughts & opinions.

A lot of people are being courageous due to Twitter to express their opinions &

thoughts. Twitter changed people who usually just listen & afraid to speak their

thoughts to starting tell their mind & point of view by their tweets.

10. The disposition of social structure hierarchy.

Twitter made voice of people & society being heard and take into account to official

institutions, successful companies, governments, and organizations. Moreover,

Twitter proven that the strong influence from online dialogue communication are

capable to change the social structure hierarchy.

11. Different value of information.

For insightful information & knowledge, online users at this moment not relying

anymore to journalism media instead they count and put trust on the numerous number

of million of tweets because the tweets are the real source representative of journalism

which ready to share information at anytime.

12. Made for both global and local community.

Twitter is the online platform for developing communities based on mutual interests,

or needs. Furthermore, the attractive appeal about it, Twitter can gather people online

across global boundaries & from Twitter the community can expand ideas and meet in

places.

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13. The capability to search extensively for information.

Twitter create a new awareness for its users especially with TweetDeck application,

users are able to manage specified information based on list of users, the subjects, &

the relationships on Twitter.

14. Shift the rights from experts to peer to peer community.

In this digitalized era, rather than waiting for the recent updates from experts in

journalism media, society preferred to create a shift of balance which well known as

“peer to peer”2

15. Strong curator of information.

Twitter provide options for its users to manage their timeline based on their needs &

wishes. In addition, it enable user to track back where the saved information or news

can be open immediately.

What’s more the strong power of Twitter as CRM can been proved by the trust given

from Japanese government which promotes & sell Japanese obligation on their Twitter

account, @Kokusai_Sensei, made by Japanese Ministry of Economy in purpose to

increase investor trust & personally deliver the obligation value to their consumers. In

2011, Dr. Kobayashi, the Director of Financial Debt Management of Japanese Ministry

of Economy, stated that the huge positive feedback from the @Kokusai_Sensei 200

followers on Twitter and still growing at this moment [23].

2Peer-‐to-‐peer is the model of communication which each person has the similar ability and every person can establish a communication discussion. [22] D. Wolff. (2000, Peer-‐to-‐peer. Available: http://searchnetworking.techtarget.com/definition/peer-‐to-‐peer

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2. 1. 3. 3. Analysis of Companies Implementing Twitter for CRM

The CRM worthy value of Twitter has been validated by top Fortune 50

companies which 54% of them implemented Twitter for marketing (promotions) and

customer services [24].

Table 2. 2: Overall Twitter Usage by Top 50 Fortune Companies[24]

For instances, JetBlue applied Twitter as vital part of its company’s communication to

listen and figure out market research trend. Dell Company also publicize discount for

their customers on Twitter prioritizing online procurement. Moreover, Twitter is a

valuable tool for companies such as Dell, Kmart, and Sears to respond to their customer’s

questions and as a rewarding CRM platform too. On top of that, Zappos.com, the

international shoes seller company engage their consumers purchases by offering non-

charged shipping at overnight time on Twitter.

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Table 2.3 : Participation in Twitter by Industry Sector of Top 50 Fortune

Companies[24]

Based on research on Top 50 Fortune Companies, a comprehensive 100% use of

Twitter were being actualized by financials, Information Technology, constructions,

freight, and telecommunications sectors.

Furthermore, 50% or more implementation of Twitter came from food and drug, retailer,

insurance, motor vehicles, and commercial bank industry sector. Even for healthcare

sector, 42% of them contributed in Twitter, and also 33% from petroleum refining sector.

Table 2.4 : Twitter Usage By Type Of Top 50 Fortune Companies [24]

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Human resources, marketing, news, and customer services were the purpose of Top 50

Fortune Companies on contributing in Twitter. In 2009, 85% of the companies

distributing news by Twitter. On the other hand, both the interests of marketing shown by

30% of Twitter usage and 19% of customer services purpose on Twitter which grown

rapidly representing of Customer Relationship Management value. In addition,

companies did the remaining 11% of Twitter implementation for recruiting & managing

human resources.

Table 2.5 : Top 50 Fortune Companies with Multiple Twitter Accounts[24]

Different companies in variety of industry sectors have each own purpose of CRM in

Twitter. Even, one company can have multiple number of Twitter accounts for divergent

business matters, for instance AT&T, a telecommunications company, differentiate it’s

Twitter accounts separately, each of it prioritizing on consumers, small business,

community, corporates, news, enterprises, and yellow pages to entirely capture the CRM

value in Twitter.

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Table 2.6 : The Twitter Profile Descriptions of Top 50 Fortune Companies [24]

News about company’s culture is the aim of Wal-Mart Twitter’s account, while

for Dell company the purpose of their Twitter’s account is to create an online community

and engage customers to purchase their products. Moreover, the guarantee of privacy

trust to customers is the aim of Bank of America Corporations Twitter’s account.

In conclusion, each of company’s Twitter profile resemblance their value which

can attract and retain both old and new potential customers to use their product &

services by performing the best dialogue communication with customers via Twitter.

2.2 Theoretical Frameworks

The purpose of theoretical frameworks in this context is to provide essential,

fundamental, and comprehensive model to examine in-depth online relationship between

company and it’s customers especially focusing via Twitter. On top of that, it’s the

crucial model to be appraised and acquired for the improvement and innovation of

Customer Relationship Management of the company to engage in meaningful dialogue

communication with the customers.

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2. 2. 1. Grunig ’s Four Models of Public Relations Framework

Model

Description

Press Agentry

(Publicity) Model

Public

Information

Model

Two-way

Asymmetrical

Model

Two-way

Symmetrical

Model

Characteristic Implement

persuasion &

manipulation to

influence customers

as the company

desires.

Implement

publication&

another one way

communication

method to

disseminate

company

information.

Implement

manipulation &

persuasion to

impact consumers

as the

organization wish

for. However, it

doesn’t applied

research to find

out how

stakeholders feel

about the

company.

Implement

communication

to talk with

public, find

solution to

conflict, and

encourage

mutual

understanding&

respect between

public and the

company.

Goal of

Communication

Provide information

to the public.

Convince public

to use &

purchase

company’s

products and

services.

Interact with

public to

prioritize on

general company

goals, which

beneficial to

company more

than to the public.

Interact with

public to create

long-lasting

mutual

rewarding

relationships

both for the

public & the

company.

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Research No research being

conducted.

No research

being conducted.

Research

conducted to be

more

advantageous to

the company, not

to the public.

Research

conducted to be

valuable goals

for both public

and the

company.

Flow of

communication

*One-way

Communication.

*Truth is not

essential.

*One-way

Communication.

*Truth is

essential.

*Two-way

Communication.

(Imbalanced)

*Two-way

Communication

(Balanced)

Purpose Promotion and

advertising.

Distribution of

information.

Knowledge-based

persuasion.

Mutual

understanding.

Table 2.7 : Description of Grunig’ s Four Models of Public Relations [2] [25] [26]

2.2.1.1 Press Agentry Model (Publicity Model)

A one way communication model from company to it’s customers which

implemented influential language. Furthermore, a publicity or press agentry posting most

likely to convince it’s target consumers to utilize or purchase their products and services,

which can be proven from it’s promotional offers.

In addition, the company signify intense publicity of themselves and

communicating it with biased language which indicating their company is the best one

among their competitors. In the Twitter context, this post contains of communication

which doesn’t show effort to engage discussion with customers using @replies. For

instance, “@AirasiaID : 6 last hours of Air Asia Big Sale in www.airasia.com. Go for

booking if you haven’t get one!” [27]

The codes which represented characteristic of Publicity Model of Grunig’s Four

Model Of Public Relations such as :

• Promotional offers

• Advertising to customers

• Influential (Biased) Language

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2.2.1.2 Public Information Model

An objective and straightforward one way communication model based on facts

from company to it’s costumers. It’s an insightful posting of public information without

biased explanation. Moreover, current events, scores from sports game, information about

flights, or directions to a place can be considered under this public relations model.

Likewise with publicity model, this post of communication will not use @replies, due to

it’s characteristic of one way communication, but it’s an objective and unbiased posting.

For example : “@KompasTv : Education : This year in 2012, 61 thousand primary school

being renovatedhttp://t.co/1dedZRvu .” [28]

The codes which represented characteristic of Public Information Model of

Grunig’s Four Model Of Public Relations such as :

• Distribution of information

• Facts

• Current events

• Objective posting about company’s product & services

2.2.1.3 Two-way Asymmetrical Model

A two-way communication model which not only advise comments and reviews

but also recommend specific product to help the company, especially in Twitter the

posting will incorporate @replies at most time. The purpose of this type of

communication is to interact with consumers which highlight the general company’s

goals, and set aside the customer’s needs.

In addition, the only posting in Twitter that considered as this model when not

including reply is when the company extensively ask response from all Twitter costumers

(users) about company services or products.

For instance, “@nutrifood : This afternoon there will be Nutritious Soul class

about various fun facts #FunWork taught by @Graces1ana. Who’s will join? #NoFear.”

[29]

30

The codes that represented characteristic of Two-way Asymmetrical Model of


• Knowledge-based persuasion

• Advise comments

• Advise reviews

• Recommend specific product

• Recommend specific services

2.2.1.4 Two-way Symmetrical Model

A two-way communication model which encourage deeper understanding

between company and the customers and resolve conflicts. In Twitter, the posting

categorized in this model most likely using @replies. On top of that, the posting will

signify desire to create mutual rewarding and long lasting relationship with customers.

Direct messages to customers in Twitter, insightful advice given of company’s

products, an effort to resolve a problem which customer may have with the company, and

engaging dialogue communication with customers are belong to two-way symmetrical

model posting in Twitter.

For example, “@Telkomsel :@tika_pram : Thank you for being our loyal

customer. Hope we can give the best. Thanks.” [30]

The codes which represented characteristic of Two-way Symmetrical Model of


• Mutual understanding

• Insightful advice on company’s products

• Resolve conflict with customer

• Direct message to customer

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2. 2. 2. Hon & Grunig’s Public Relations Online Relationship Indicator Framework

Online Relationship

Indicator

Definition As Implemented In Company And Customer

Relationships

Commitment The degree where both the company & the customers dedicate

efforts to preserve relationships, and it has two magnitudes :

affective commitment (emotion) and continuance commitment

(action).

Interactivity

The level of depth of the relationships between the company and the

customers which can be categorized as low, medium, or high.

Control Mutuality Determine the power of relationship between the company & the

customers which sometimes an imbalance power of relationship

considered as natural thing.

Customer Satisfaction The extent which both the company & the customers feel

affirmative towards one another and can be proven by value &

profit outweigh the costs.

Customer Trust The customer’s confidence in a company & the willingness of those

customers to create a relationship with the company (can be vice

versa). It depends on competence, integrity, and dependability as

representative of the company.

Communal

Relationship

Mutually rewarding relationship which both the company &it’s

customers provide benefits to one another even when they don’t

receive something in return. It’s the most ultimate relationship

between company and it’s customers.

Exchange Relationship The company provide benefits to the customers only due to the

customers gave contribution to the company in the past or expected

to do the same for the company in the future.

Table 2.8 : Description of Hon & Grunig’s Public Relations Online Relationship

Indicator [2] [3] [4]

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2.2.2.1 Commitment

Twitter posting from the company which exhibit determination to build long lasting

relationship with the customers. Moreover, committed posting usually provide helpful

insight & information in order for the customers to preserve relationship with the

company. Efforts to build valuable experiences for the customers, response to customer’s

questions, insightful information, piece of advice from the company, or statement that

company enjoy with discussion with it’s customers on Twitter categorized under

commitment indicator.

In addition, emotional feedback from the customers which profess connection &

appreciation also classified as commitment posting. For instance, “@aditya23perkasa :

It’s feel fun to go to @beergarden_jkt after go back from the office.” [31]

The codes which represented characteristic of Commitment of Hon & Grunig’s Public

Relations Online Relationship Indicator consisted of :

• Appreciation from customers

• Connection felt by customers

• Efforts to build valuable experiences with customers

• Insightful information (advice) from company

2.2.2.2 Interactivity

The in-depth level measurement of interactions of online relationships between

the company and the customers, which can be categorized in details such as [2] :

1. Low Interactivity : Tweets with no retweet, @replies, or no links, or any

additional features rather than the original posting only.

Example :“@holycowsteak : Honesty is always the best policy. Morning

Carnivores!”[32]

2. Medium Interactivity : Tweets which contains links to another website, images,

videos or extra extensive information to tag along the original posting. Furthermore, any

33

retweet that doesn’t involve a feedback or reply to the original posting from other user

will be categorized as medium interactivity. Moreover, mentions (not replies) using the

@ icon also considered under this category.

Example : *“@SbuxIndonesia RT @asmiputrii : Raffle card 10th anniversary

@SbuxIndonesia. Not bad flying free to Seattle USA.”[33]

* “@BINUSUNIV : Prepare yourself to be the IT leader in the future with ICT leader,

SuryoSugwignjo, President Director of IBM Indo. http://pic.twitter.com/YQnBhmFW ”

[34]

3. High Interactivity : Tweets which respond or reply to another users will

categorized under high interactivity. On top of that, the posting should be a feedback to

other users and different from mentions at Twitter. In addition, a condition when

company retweet another posting with comments before the retweet (RT), that tweet will

go under high interactivity category.

Example :

* “@pastadewaraku : Itadakimasu! Enjoy your meals! @nanan_achjuman : Having lunch

at @pastadewaraku with @bebek_bengill. This is heaven.” [35]

* “@Garuda_Promo : @yossieandeim yes, the departure date and the arrival date can be

different with maximum 6 months period of date.”[36]

The codes which represented characteristic of Interactivity of Hon & Grunig’s Public

Relations Online Relationship Indicator consisted of :

• Low Interactivity

• Medium Interactivity

• High Interactivity

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2.2.2.3 Control Mutuality

Twitter posting which exhibit the determination to build dialogue communication

about company services or products with Twitter users (potential customers). The control

mutuality must accurate, relevant, and at the right time. The @replies on Twitter most of

them categorized as control mutuality.

Posts which called for information, feedback, or ideas about company services or

products and related to the company will categorized under the control mutuality online

relationship indicator due to it provide the customers a chance to create better and more

pleasant experiences with the company. For instances, “@Yes24 Indonesia :

@yulianayuchan hello we will send confirmation via email or SMS. If 1 day after you

transfer the money, you haven’t get confirmation from us, tell us “ [37]

The codes which represented characteristic of Control Mutuality of Hon & Grunig’s

Public Relations Online Relationship Indicator consisted of :

2.2.2.4 Customer Satisfaction

The tweets or posting which generated by the customers via Twitter to let

company acknowledge whether the customers feel satisfied or not with the overall

company services & products. In addition, posts which emanated or retweets from the

customers that indicated customer satisfaction should be enhanced to create positive

Customer Relationship Management with the company.

Furthermore, efforts to resolve company mistakes or communicating with the

customers to ask for feedback and correct it proven a longing for customer satisfaction. If

there are tweets demonstrating customer dissatisfaction with the company, and company

• Information about company

• Feedback from customers

• Ideas from customers

• Accurate posting about company

• Right time posting from company

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did not perform effort to improve it, then the online relationship indicator should be input

and indicated by dissatisfaction. For example, “@KCC_Indonesia : RT @shil_04 : First

time trying hanbok @KCC_Indonesia at end of last year, being greeted friendly by

Mr.Son ^^ yfrog.com/oc2doxtj ” [38]

The codes which represented characteristic of Customer Satisfaction of Hon &

Grunig’s Public Relations Online Relationship Indicator consisted of :

2.2.2.5 Customer Trust

The tweets from the company which proven company’s determination to include

insightful information to the customers, and the information can be not always related

with only company services or products issues but the fundamental thing is that online

posting on Twitter should reflect the integrity, dependability, and competence of the

company.

Moreover, the online posting, which involve casual & affirmative dialogue

communication with the customers, exhibit the company’s effort to gain customer trust.

Also efforts to resolve company’s problem, recall, or violation also categorized under

customer trust online relationship indicator due to company’s integrity to be fair.

For instance, “@bistip: There are 25 persons who already got the trusted badge. Who

is going to be the next person? Hmm. “[39]

The codes which represented characteristic of Customer Trust of Hon & Grunig’s

Public Relations Online Relationship Indicator consisted of :

• Customers feel satisfied

• Customers dissatisfaction

• Company efforts to resolve mistakes to customers

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• Customers dependability

2.2.2.6 Communal Relationship

The tweets posting which mutually rewarding for both the company and it’s

customers that provide advantages for them even though they don’t receive something in

return. On top of that, the online posting which signify communal relationship will not

only exhibit company’s efforts to perform good deeds, but also involve posting which

proven company give benefits to it’s customers due to their concern to the customers

without rewards from customers in return.

Giving insightful information and managing customers the appropriate way about

complaints categorized under communal relationship indicator. For example,

“@BINUSINTL : @AlandaKariza hi alanda , schedule will be uploaded soon, for the fix

schedule you can directly contact the student services.” [40]

The codes which represented characteristic of Communal Relatiosnhip of Hon &


2.2.2.7 Exchange Relationship

The tweets which signify exchange relationship will exhibit prominent marketing

methods. Furthermore, it will proven the company’s effort to help their customers due to

they wants rewards from customers in the future.

• Affirmative dialogue communication with customers

• Company integrity

• Competence of the company

• Company’s good deeds

• Concern to customers

• Benefits to customers

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In addition, the company provide information about their services or product, it will

considered automatically under exchange relationship due to the company assisting the

customers to pre-purchase evaluation. Also, promotion categorized under exchange

relationship online indicator. For instance, “@iBoxIndonesia: We have something you

really have to see. And touch. http://twitpic.com/8t6o1r” [41]

The codes which represented characteristic of Exchange Relationship of Hon &


• Future rewards from customers

• Pre-purchase evaluation

• Promotional offers

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