Cool comm hoh@skbc_2011_0217

"Why we need to be 'cool'? How social media is changing consumers vs.

How corporate executives still stick to the old paradigm

Prepared for Swiss-Korean Business Council

February 17, 2011

Hoh Kim

THE LAB h®

Conclusion after more than a decade of strategic communication consulting:

Whose mouth is better?

“My”mouth

“Their” mouths

My strengths

OMy weaknesses (mistakes, wrongdoings) O

Hoh Kim 2010 2

Context: Why?

Copyright 2011 THE LAB h 3

Social media is changing consumers‟ attitudes & actions

towards companies…how?

Corporate leaders need to change their attitudes & actions

towards consumers… how?

Three Questions

• “Every company = Media company”: What does it mean to my business?

• “Be cool”: Do I know how to communicate my weaknesses?

• “Socialize”: Does my company publicize or socialize?


Three Conclusions (in advance)

• “How are we doing as a „media company‟?”: You

should ask & answer this question within your organization.

• “We need to be cool”: You need to be cool with „bad news‟ in

social media, and deal with it by adding your position, rather than trying to

take the bad news off. Don‟t try to test the „Streisand effect‟!

• “Socialize, not just publicize”: You need to identify and build

stories around your leadership and business, and try to socialize, not

publicize in social media.


1. Some Stories

“Streisand Effect”

“The Streisand effect is a primarily online phenomenon

in which an attempt to hide or remove a piece of information

has the unintended consequence of perversely causing

the information to be publicized more widely and

to a greater extent than would have occurred

if no contrary action had been attempted.” (wikipedia)


“Streisand Effect”

• Unsuccessful lawsuit by Barbra

Streisand against photographer

Kenneth Adelman and

Pictopia.com for US$50 million

• from “unknown picture”

over 420,000 visits the

following month


Photo source: http://en.wikipedia.org/wiki/File:Barbrahouse1.jpg

http://en.wikipedia.org/wiki/File:Barbrahouse1.jpg



Streisand Effect and

Dunkin‟ Donuts in Korea(April 2007)


What were they thinking?

10

Mass Media

Bad News

Public Relations

Consumer Media

Mass/News Media

Corporate Media

Bad News Bad News

Good Response on Bad News

“Minus” paradigm “Plus” paradigm

Copyright 2009 THE LAB h

from „Silence and Denial‟

to „Disclosure and Apology‟

• “Paradox of Transparency”

• Trust and Weaknesses (Dr.

Robert Cialdini)

11

출처: 조선닷컴http://news.chosun.com/site/data/html_dir/2009/06/02/2009060201586.html?srchCol=news&srchUrl=news1

Avis 이미지 출처: 구글 이미지http://images.google.co.kr/images?sourceid=navclient&hl=ko&rlz=1T4ADBR_koKR279KR289&q=avis,+we+try+harder&um=1&ie=UTF-8&ei=ouafSveVNpeEngfh6d3tDQ&sa=X&oi=image_result_group&ct=title&resnum=1

Copyright 2009 THE LAB h

Anything common?

Hoh Kim 2010 12

0

1000

2000

3000

4000

5000

Chosun.com

NYT.com

Data gathered: 1) “Public apology (Kong-gae-sa-gwa)” in chosun.com; 2) “Public apology, apologize, and apology” in nyt.com

13Hoh Kim

Trend: Public apologies

in Korea and the U.S.

0

100

200

300

400

김영삼 김대중 노무현 이명박

News

Blog (x 00)

14

News (headline search only) and blog post search by Naver using “사과,김영삼,” “사과, 김대중,” “사과, 노무현,” and “사과, 이명박” were conducted April 18, 2010

Hoh Kim

Trend (Korea): “Presidential” apologies

0

500

1000

1500

2000

Clinton Bush Obama

News

Blog (x000)

15

News and blog search by Google using “apology, clinton,” “apology, bush,” and “apology, obama” were conducted April 18, 2010

Hoh Kim

Trend (the U.S.): “Presidential” apologies

Use of Youtube for „one to many‟

public apologies on social media

Hoh Kim 2010 16

Domino pizza: Patrick Doyle (2009. 4) – 750,000 viewed on Youtube

jetBlue: David Neelman, (ex-) CEO (2007. 2) – 360,000 viewed on Youtube

Benefits of video apologies

• Editing (production)

• Timing (release)

• Search (attention)

Hoh Kim 2010 17

MATTEL Bob Eckert CEO (2007. 8)

Before video apologies

After video apologies

Purchase intention 71% 76%

Trust 75% 84%

Source: HRD Research (August 2007)http://www.mediacurves.com/nationalmediafocus/J6482/

“The Pizza Turnaround” campaign

by Domino‟s Pizza(stock price of the first half of 2010 went up 70% compared to 2009)

Hoh Kim 2010 18

2. Some Statisticsfrom THE LAB h® Cool Communication Studies

Context of the Study

2010 (c) THE LAB h 20

Background & Motivation

• Opinion leaders‟ engagement: blog vs. twitter

• Opinion shaping: one-way promotional message driven

corporate campaign (AD/PR) vs. two-way conversation

between corporate person and individual consumer/individual

consumer and individual consumer

• Perception gap: general public vs. twitter users

2010 (c) THE LAB h 21

What is “cool” communication?

• Disclosure: Communicating Weakness too vs. Strengths only

• Apology: Accept vs. Avoid your responsibility in front of your

mistakes or wrongdoing

• Actions: Improvements made vs. Rhetorical apology after

your mistakes/wrongdoings

• Listening, trustworthiness, responsible, (two-way)

communication

222010 (c) THE LAB h

Cool Communication Study:

How was the study conducted

General Public* Study Twitter User Study

Subjects Nationwide men/women 19 years old and above

Korean Twitter users

Subject Size 500 305

Sampling Error(95% Confidence Level)

+/- 4.38% +/- 5.61%

Method CATI (Computer Assisted Telephone Interviewing)

Online research

Sample Extraction Quota sampling based on region/gender/age

Random participation through Twitter announcement + Twitter users on the Research and Research panel

Duration April 1, 2010 10:00 – 21:00 May 1 – 17, 2010

* Some Twitter users among the general public group may have been included. Therefore, this study should be understood not as a comparison of Twitter users vs. Non- Twitter users but of Twitter users vs. the general public in Korea.

The following 10 conglomerate companies were given as options in the questionnaire – Kumho Asiana, Lotte, Samsung, POSCO, Hanjin, Hyundai Heavy Industries, Hyundai Kia Automotive Group , GS, LG and SK. The order of these options was rotated in order to minimize respondent bias.


Corporate Reputation:trustworthy

self-promotion

listening

responsible

communication

purchase intention

2010 (c) THE LAB h 24

“most trustworthy”:

Samsung vs. Posco

3.60%

0.70%

2.60%

2.30%

2.30%

6.20%

2.60%

11.10%

41.30%

27.20%

0.70%

0.80%

1.90%

1.90%

5%

5.90%

6.10%

10.50%

13.20%

54%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

GS

Hanjin

Kumho Asiana

Lotte

Hyundai Heavy Industries

SK

Hyundai Kia Automotive

LG

POSCO

Samsung

General public

Twitter users


“most competent in self-promoting”:only category (twitter > general public) for Samsung

0.30%

1.60%

1.30%

6.20%

2%

0.70%

4.90%

17.40%

3.90%

61.60%

0.60%

1.00%

1.50%

4.00%

4.50%

5.00%

6.50%

7.80%

12%

57.10%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%

Hanjin

GS

Kumho Asiana

POSCO

Lotte


LG

SK


Samsung

General public

Twitter users


“most engaged in listening to customers‟ opinions”:

Samsung vs. LG

2.3%

0.7%

9.8%

9.5%

3.0%

12.1%

17.0%

4.9%

23.3%

17.4%

1.8%

1.8%

2.9%

3.6%

3.9%

6.9%

7.1%

9.3%

16.6%

46.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

Hanjin


GS

Kumho Asiana

Lotte

POSCO

SK


LG

Samsung

General public

Twitter users

Very active in corporate blogging; the first for a top 30 company to share the

customers’ comments without screening


“most responsible”:

Samsung vs. Posco

2.60%

3.90%

0.70%

1.60%

7.20%

5.60%

7.20%

9.20%

40.30%

21.60%

0.80%

1.30%

1.60%

1.80%

3.90%

5.40%

7.60%

10.10%

14.80%

52.70%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

GS

Kumho Asiana

Lotte

Hanjin

SK



LG

POSCO

Samsung

General public

Twitter users


“most skilled in communication”:

Samsung vs. SK

2010 (c) THE LAB h 29

6.60%

1.30%

4.60%

1.00%

11.10%

2.30%

4.90%

31.50%

23.30%

13.40%

1.70%

2.00%

3.20%

4.20%

6.40%

7.00%

9.90%

10.60%

13.60%

41.30%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00%

Kumho Asiana

Hanjin

GS


POSCO

Lotte


SK

LG

Samsung

General public

Twitter users

SK Telecom was the first company among the top 30 Korean companies to open a corporate blog and directly

communicate with consumers

“most desirable to purchase”:

Samsung vs. Samsung

2010 (c) THE LAB h 30

1.00%

1.30%

3.00%

5.90%

7.50%

3.60%

14.80%

12.80%

23.30%

26.90%

0.20%

0.60%

0.70%

1.60%

2.20%

3.00%

3.10%

9.10%

25.10%

54.60%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%


Hanjin

Kumho Asiana

GS

SK

Lotte

POSCO


LG

Samsung

General public

Twitter users

Reputation Quotient (RQ):

Samsung, Posco, LG, Hyundai-Kia, SK

in both categories

2010 (c) THE LAB h 31

Rank General Public Twitter Users

No. 1 Samsung 50.9 Samsung 28.0

No. 2 LG 13.7 (-37.2) POSCO 21.0 (-7)

No. 3 Hyundai-Kia 9.0 (-41.9) LG 15.9 (-12.1)

No. 4 ~

No. 10

POSCO

SK

Lotte

Hyundai Heavy

Kumho Asiana

GS

Hanjin

8.1

6.2

3.7

3.6

1.8

1.7

1.2

SK

Hyundai-Kia

GS

Kumho Asiana

Lotte

Hyundai Heavy

Hanjin

14.5

6.1

4.7

4.5

2.3

1.9

1.3

Samsung among Twitter users:

In “corporate communication 2.0” categories, Samsung

is NOT #1

2010 (c) THE LAB h 32

General Public Twitter Users“Most trustworthy” Samsung (54.0%)

Difference with No. 2 POSCO (12.2%): 40.8%

POSCO (41.3%)Difference with No. 2 Samsung (27.2%): 14.1%

“Most competent in self-promotion”

Samsung (57.1%)Difference with No. 2 Hyundai/Kia (12.0%): 45.1%

Samsung (61.6%)Difference with No. 2 SK (17.4%): 44.2%

“Most engaged in listening to customers’ opinions”

Samsung (46.0%)Difference with No. 2 LG (16.6%): 29.4%

LG (23.3%)Difference with no. 2 Samsung (17.4%): 5.9%

“Most responsible” Samsung (52.7%)Difference with No. 2 POSCO: 37.9%

POSCO (40.3%)Difference with no. 2 Samsung (21.6%): 18.7%

“Most skilled in communications”


SK (31.5%)Difference with No. 2 LG (23.3%): 8.2%

“Most desirable to purchase”



Cool Crisis Communication:disclosure

apology

actions

2010 (c) THE LAB h 33

Transparent/candid disclosure of wrongdoing

2010 (c) THE LAB h 34

2.00%

0.70%

7.90%

3.90%

9.50%

11.50%

19.70%

32.80%

5.20%

6.90%

1.30%

2.70%

3.10%

4.00%

4.40%

9.70%

13.90%

14.20%

14.70%

32.00%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

Hanjin


GS

Lotte

Kumho Asiana

SK

LG

POSCO


Samsung

General public

Twitter users

“Genuine Apology for Wrongdoing”

2010 (c) THE LAB h 35

3.00%

7.50%

7.50%

1.60%

1.60%

9.50%

5.20%

32.50%

22.60%

8.90%

2.00%

2.30%

3.00%

3.30%

5.00%

7.40%

12.80%

14.40%

16.20%

33.70%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00%

Hanjin

Kumho Asiana

GS


Lotte

SK


POSCO

LG

Samsung

General public

Twitter users

“Make Improvements and Go Beyond a

Rhetorical Apology”

2010 (c) THE LAB h 36

1.00%

2.00%

7.90%

5.90%

10.50%

3.30%

26.90%

6.90%

20.70%

15.10%

0.90%

2.30%

2.80%

3.50%

4.50%

4.60%

10.70%

14.10%

14.30%

42.10%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00%

Hanjin


GS

Kumho Asiana

SK

Lotte

POSCO


LG

Samsung

General public

Twitter users

Cool Crisis Communication Quotient:

Samsung vs. POSCO

2010 (c) THE LAB h 37

Ranking General Public Twitter Users

No. 1 Samsung 35.9 POSCO 30.7

No. 2 LG 14.8 LG 21.0

No. 3 Hyundai/Kia 13.9 SK 10.5

No. 4 ~ No. 10

POSCOSK

LotteKumho Asiana

GSHyundai Heavy

IndustriesHanjin

13.17.24.53.43.02.71.4

SamsungGS

Kumho AsianaHyundai/Kia

LotteHanjin


10.37.87.65.82.92.01.4

Samsung vs. POSCO

2010 (c) THE LAB h 38

General Public Twitter Users

“Company to officially disclose its wrongdoing”

Samsung (32.0%)Difference with No. 2 Hyundai/Kia (14.7 %): 17.3%

POSCO (32.8%)Difference with No. 2 LG (19.7%): 13.1%

“Company to genuinely apologize”



“Company to make efforts for improvement”



The most used channel for obtaining the news

2010 (c) THE LAB h 39

0.0%

2.3%

13.1%

0.0%

35.1%

5.9%

25.9%

17.7%

0.7%

0.7%

0.5%

1.1%

9.1%

10.2%

15.8%

61.9%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

don't know/no response

others

mobile

radio

portal sites

newspaper

online newspaper

TV

General public

Twitter users

Experience of Posting an Online Review

over the Past Year

2010 (c) THE LAB h 40

67.20%

15.90%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

online review over the past yearGeneral public

Twitter users

Contents for Respondents with Online Review Posting

Experience

2010 (c) THE LAB h 41

55.10%

19.50%

25.40%

37.00%

41.80%

19.70%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

positive/negative

negative

positive

General public

Twitter users

3. Socialize? How?

Fact vs. Story

Traditional Website vs. Social Media

Don‟t tell others(consumers, journalists, even your

employees) that “integrity” is your corporate value.

Find what actual stories(experiences) of “integrity” exist

within your organization and tell them.

Some Final Thoughts

• The interest for social media among opinion leaders from

business and political circles in Korea has increased alongside

the popularity of Twitter and smart phones that enable easy

access to social media

• Companies must pay attention to how they are perceived by

social media users.

• You got to be cool: “Highlighting strengths, underplaying

weaknesses” paradigm is no longer feasible, because company

mistakes and wrongdoings are increasingly unveiled to the

public through social media.

2010 (c) THE LAB h 46

• Social media users no longer perceive a company based on a unilateral “image advertisement,” “press release or newspaper article” or “one-off promotion” but are rather influenced by conversations coming from social networks.

• The first criteria for establishing a positive relationship with social media users is enabling real people from the company to participate in social media and talking about their strengths and weaknesses in a “cool” manner.

• In such Cool Communication® , everyday trust, responsibility, listening, and communication are key elements, while in crisis situations, the disclosure of wrongdoing, genuine apology, and actual efforts for improvement are crucial.

2010 (c) THE LAB h 47

"Why we need to be 'cool'? How social media is changing consumers vs.

How corporate executives still stick to the old paradigm

Prepared for Swiss-Korean Business Council

February 17,2011

Hoh Kim

THE LAB h®

Appendix

Appendix: Respondents Demographics

2010 (c) THE LAB h 50

Category Sub-categories General Public Twitter Users

By Region SeoulIncheon/KyonggiDaejon/ChungchongGwangju/JeollaDaegu/GyeongbukBusan/Ulsan/GyeongnamGangwon/Jeju

106 (21.2%)140 (28.0%)50 (10.0%)52 (10.4%)52 (10.4%)79 (15.8%)21 (4.2%)

183 (60.0%)67 (22.0%)13 (4.3%)8 (2.6%)8 (2.6%)

25 (8.2%)1 (0.3%)

By Gender MaleFemale

248 (49.6%)252 (50.4%)

200 (65.6%)105 (34.4%)

By Age 19-2930s40s (Twitter users until here)50s and above

97 (19.4%)107 (21.4%)114 (22.8%)182 (36.4%)

126 (41.3%)135 (44.3%)44 (14.4%)

By Education Level Below middle school graduateHigh school graduateCurrent college student & graduate

71 (14.3%)175 (35.6%)247 (50.1%)

0 (0%)10 (3.3%)

295 (96.7%)

By Income Below 2mil Korean Won 2mil.-2.99mil. Korean Won3mil.-3.99mil. Korean WonOver 4mil. Korewan Won

126 (29.9%)85 (20.1%)93 (22.1%)

118 (27.9%)

25 (8.2%)47 (15.4%)62 (20.3%)

171 (56.1%)

By Occupation Self-employedBlue collarWhite collarHousewifeStudentUnemployed/Others

72 (14.6%)63 (12.8%)81 (16.4%)

139 (28.0%)59 (11.9%)80 (16.2%)

040 (13.1%)

184 (60.3%)0

55 (18.0%)26 (8.5%)

Total 500 (100%) 305 (100%)

2010 Cool Communication Study full report can be downloaded @

• http://www.slideshare.net/hohkim/2010-thela-bhcool-communication-

studyenglishfinal (English Version)

• http://www.slideshare.net/hohkim/2010-the-lab-h-final (Korean Version)

THE LAB h® specializes in executive coaching and workshop in

the area of strategic communication:

. Business Storytelling for Results (individual)

. Bad News Management Workshop (group of 12-20)

. Principles of Persuasion™ Workshop (group of 15)

For any inquiries on the Cool Communication® Study and THE LAB h®

executive coaching services, please contact Hoh Kim @ [email protected]

2010 (c) THE LAB h 51

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Cool comm hoh@skbc_2011_0217

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