Role of social media in improving reputation management of Amazon USA

This research investigates the relationship between Amazon USA use of social media and its reputation management. It is a longitudinal study that investigates 10 years of recorded data in the social media channels analytics of Amazon open-review platforms, Facebook, Twitter and YouTube.

1Social media and reputation management
Running head: SOCIAL MEDIA AND REPUTATION MANAGEMENT
Role of social media in improving reputation management of Amazon USA
Name:
Course:
3750 words

2Social media and reputation management
Abstract
This research investigates the relationship between Amazon USA use of social media and
its reputation management. It is a longitudinal study that investigates 10 years of recorded data in
the social media channels analytics of Amazon open-review platforms, Facebook, Twitter and
YouTube. It considers users' data about their engagement and reviews and the company
reputation management concerning, number of posts and response rates. Also, Amazon USA
financial performance data will be investigated to measure the progress of the relationship
between the two variables to be able to judge the research hypotheses. The independent variable
will be measured by (people engagement and reviews) and the dependent variable will be
measured by (number of posts, response rates and financial performance).

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Contents
Introduction......................................................................................................................................4
1.Research purpose…………………..............................................................................................5
2. Literature review..........................................................................................................................5
3. Hypotheses and Research questions………………..................................................................12
4. Methodology……………………..............................................................................................12
5. Significance of the study………………...................................................................................16
Conclusions....................................................................................................................................17
References......................................................................................................................................19

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Introduction
The social technologies era provides various opportunities for organizations in terms of
connecting people and sharing ideas. The social media platforms are highly adopted by
contemporary organizations to enhance their reputation and gain customer satisfaction and
loyalty. The matter that led large and multinational organizations who are heavily dependent on
social media to use mashups to manage their various social media accounts and satisfy the needs
of their customers and facilitate the social media reputation management (Wu & Shenghua,
2014).
Amazon started its business in the 1990s by acting as an online bookstore. Currently,
Amazon is a multi-business company; it is an asset builder, service provider and technology
creator. Since the emergence of Amazon.com, it is used to be a business to customer (B2C)
platform, today people can use business to business (B2B) portals at Amazon Business and
customer to customer (C2C) on Amazon.com. Despite this, B2C is its core business. Most of the
company business depends on e-commerce, where Amazon Web Services (AWS) significantly
contributes to its total revenues. Amazon.com represents a retail business platform that connects
sellers and buyers in one place. AWS represents a platform for platforms that provides tools to
build other platforms, where Amazon Mechanical Turk represents a mediating platform that
allows companies to crowdsource certain tasks. Its AWS grows by 43% annually and its total
international sales increases by 23% annually. Amazon acquired the chains of grocery stores of
Wal-Mart and Whole Foods in 2017, their sales accounted for $11.5Billion. (Wu & Gereffi,
2018).
This research is meant for investigating the role of social media in improving reputation
management of Amazon USA depending on a longitudinal study. The following section declares

5Social media and reputation management
the importance of the research, relative literature review of the phenomenon of investigation,
research questions and hypothesis and significance of the study.
1. Research purpose
This research investigates a highly important issue for contemporary organizations that
seek to respond to the customer needs, build a huge base of customers and gain their loyalty.
From another side, it focuses on company success through improving its reputation by utilizing
social media platforms. Organization reputation is an intangible asset, which is more difficult to
be managed compared to tangible assets. Reputation significantly contributes to organizational
financial growth and success. The increase of the user-generated content (UGC) platforms
resulted in a high dependency on organizations' reputation on the content and reviews that
customers share online. The emergence of the internet second generation (Web 2.0), enabled
customers to share their opinions in cyberspace the matter that resulted in a power shift from the
market to the customers. Therefore, reputation management became vital for business success
and growth (Alrawadieh & Dincer, 2019).
Amazon USA represents an excellent example of a successful organization in reputation
management by utilizing social media, the matter that reveals the importance of investigating it
as an ideal case.
2. Literature review
2.1 Organizational reputation
The organizational reputation represents the knowledge of an organization characteristics
that are recognized by its stakeholders. The past actions of the organization and its direct and
indirect experiences collectively represent its outcomes that result in its image of being good,

6Social media and reputation management
trustworthy and reliable. Therefore, reputation is considered to be an intangible asset for any
organization. The desired and favorable reputation is related to significant outcomes, like
attracting clients, gaining investors' interest and retaining talented employees, contributing to
positive media coverage, being trustworthy with a good word of mouth. In addition, a good
reputation can create a halo effect that influences the stakeholders to trust the organization
despite negative claims and help in fixing its reputation. Therefore, effectively managing a good
reputation gains the attention of organizations and scholars as well. Effective reputation
management involves creating a positive perception to the public. The stakeholders develop a
positive image of an organization through communication (Ye & Cheong, 2017).
According to Hutton, as cited in Dutot, Galvez, & Versailles (2016), the Fortune 500
companies customers believe that corporate communication and spending on it is positively
linked to organizational reputation.
2.2 Social media and organizational reputation
Social media refers to the manipulation, use and information exchange across social
interaction platforms. The highly attracted generation to these tools is generation Y customers,
who range between 15 and 25 years old (Dutot, Galvez, & Versailles, 2016).
The establishment of MySpace, Facebook and LinkedIn in the 2000s has witnessed a
rapid acceleration. Social media platforms witness an increasing use; Facebook accounted for
1.59 billion on a monthly basis, Instagram had 400mn active users and Twitter s 320mn users by
the end of 2015. The social media channels provide online platforms that enable organizations to
communicate with their stakeholders, know their feedback and reply to their inquiries. The
increasing importance of social media is due to its ability to build good relationships between
organizations and their stakeholders that represent a reputation capital. Also, it is a low-cost

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method to reach customers compared with traditional media. According to Stelzner (2015), as
cited in Ye & Cheong (2017), about 96% of marketers participated in the social media channels
by 2015. Also, the Fortune 500 companies use of Facebook represented 74% and Twitter 78%.
In addition, social media spending is expected to increase by 23.8% of the marketing budgets.
Organizations that publish blogs succeed in creating positive customers' thoughts.
Accordingly, creating effective content strategies should focus on the type of content that attracts
the attention of the stakeholders. Stakeholders' engagement via social platforms succeeded in
building strong relationships. High public engagement influences the stakeholder's perception
and guides them to recognize the organization to be transparent, trustworthy and authentic (Ye &
Cheong, 2017).
According to Floreddu & Cabiddu (2016), organization reputation comprises that:
● Reputation intangible nature contributes to the organization achieving sustainable competitive
advantage.
● Reputation represents the stakeholder's collective perception that develops over the time
through organization communication.
● Reputation accumulates the organization past actions and stakeholder's perception, either
directly or indirectly that influence the company's future expectations.
2.3 The relationship between corporate reputation and organization communication
Organizations can use communication to stimulate their holders and build strong
relationships. The organization communication affects its reputation through its selected
messages that enable stakeholders to realize the organization operations that contribute to the
organization overall evaluation. Organization communication creates a dialog with the
stakeholders to enable the organization to better understand their interests. There are three

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different communication types that organizations can use; the primary communication that
represents the different effects of product and service, the secondary communication represents
the formal communication that uses traditional communication channels, like advertising and
finally, the tertiary communication, including the word of mouth and media interpretation. The
three types of communication affect the organization reputation with various degrees. The
widespread of the internet succeeded in transforming the unidirectional communications that
organizations used to disseminate information to their stakeholders into two-way
communication. Interactive social media enables stakeholders to communicate with each other
and express their message about the organization the matter that could enhance the organization
reputation or threatens it. The negative word of mouth of an organization spreads more rapidly
around the world compared to a good word of mouth. Therefore, “a complex narrative web of
meaning” determines the organization reputation in social media. Organizations should play a
proactive role to use social media channels to disseminate information (Floreddu & Cabiddu,
2016).
2.4 e-Reputation
The organization identity is considered to be its personality, it refers to the basic features
of organizations. Identity has to be defined internally within the organization and externally to
the public. The organization image could be positive or negative. The e-reputation is created
form various perceptions that stakeholders create from the information circulating the internet
(Dutot, Galvez, & Versailles, 2016).
2.5 The challenge of online reputation management
Trust plays an important role in virtually mediated transactions, where consumers depend
on online peers' reviews posted on social media platforms. The fellow customers have direct

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knowledge of the business, its products and services. The customers' reviews directly impact
online sales that increase the importance of their evaluation and judgment. The rapid spread of
bad word of mouth led organizations to lose customers and generate losses, the matter that led
them to create reputation management systems. The technological advances, like file sharing,
web-based profiling and web portals suggest that ethical activities might influence business
norms. The online customer reviews shared across the reputation management systems affect the
customer decision to purchase (Kuratko, Brown, & Wadell, 2015).
2.6 A brief review of mashups
Mashup represents a website or an application that mixes internal and external data
sources. The set of combined data is likely to produce an interesting web application or new
online services. The architecture of a mashup composes of mashup site, content providers and
the web browser that the user can access. The mashup services could be flexibly combined
through application programming interfaces (APIs) to match certain needs. Amazon has
published APIs according to web standards and allowed them for end users to be able to develop
various mashups (Wu & Shenghua, 2014).
2.7 Managers' readiness for the B2B
People are becoming rapidly adapted to social media. Despite this many B2B companies are
still highly tentative about using social media for many reasons that will be identified according
to Bernard (2016), as follows:
 They consider it to be irrelevant to the buying decision of their customers.
 They are influenced by their employees' opinions.
 Fear of negative feedback, where organizations seek avoiding the risk of the circulating bad
word of mouth.

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 Lack of skills that can interact with customers across social media channels.
 It is perceived to be a tool for B2C marketing.
According to the situational crisis communication theory, when organizations face a
crisis situation, they tend to use several strategies to effectively respond to the crisis. The crisis
outcome is a factor of how the situation is circulated. The organization repetition is insulted in
the case that the organization succeeded in building a good and ethical relationship with the
public for a long time before the occurrence of the crisis. The external stakeholders are likely to
express negative reaction on the corporate statement in the case of an unusual crisis, ambiguity
or decision making or declaring unfair decisions (Sisson & Bowen, 2017).
2.8 Managerial response to online review
Reputation management represents the organization web care. They devote managerial
efforts to manage online stakeholders and interact with them. Therefore, providing a timely
managerial response to the negative reviews represents an essential strategy in reputation
management. The positive management response increases the customer satisfaction level.
Accordingly, a positive response is likely to result in enhanced financial performance. The online
reputation management strongly associated with e-complaints rather than e-compliments.
Managers can use generic responses to the clients' reviews that represent little attention to them,
while the specific response reveals personalized responses that significantly impact customer
satisfaction (Alrawadieh & Dincer, 2019).
2.9 Bolstering e-reputations
Many companies tend to improve their public image by providing false information about
their interest in environmental issues, aiming by this to improve their reputation through the
open-review platforms. This process is called "green washing" that involves high risk if people

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discovered it. The corporate social responsibility communication with the public positively
affects the company reputation and e-reputation when communicated through the open-review
platforms and social media platforms (Emerald Group Publishing Limited, 2016).
2.10 Amazon US e-reputation management
Person-oriented platforms allow individual communication that is also public in nature.
The social media platforms, like Facebook, enable users to communicate, but their conversations
can be published to the public. Amazon has its own open-review platforms that share the aspects
of the person-oriented platform. Therefore, Amazon is devoted to uncontrollable communication
of various opinions, where the combination between the content individually generated and
publicly displayed resulted in high spillover effect. The quantity and quality of people
contribution to open-review platforms and social media channels are related to the individual
users' motivation.
Amazon reviews are limited to the individuals who search for a certain book or similar
content. This represents the community that is close to purchasing and hence other people
opinions significantly affects their purchasing opinion (Greve & Song, 2017).
Amazon USA new and changing trend helped to gain huge reputation and popularity. The
social media platforms spread and heavy usage by customers played a significant role in Amazon
USA growth. Also, Amazon succeeded in utilizing the spark platform to boost its business
through facilitating product discovery, increasing engagement rate through attracting reliable
reviews and product recommendation (Marvin, 2017).
Amazon USA is effectively using innovative ways to enhance its e-reputation; it tends to
add every representative name in each tweet to personalize the tweet and effectively
communicate (Simplify 360, 2016). The company customer orientation succeeded in enhancing

12Social media and reputation management
its rating and reviews and gaining customer loyalty (Miller, 2018). The matter that enabled it to
gain most of its revenues from social media. The social media channels enabled Amazon USA to
increase its revenues on an annual basis. According to Perrin (2019), the company will increase
its brand reputation and revenues in the coming year by using social media channels effectively.
This argument could be supported by Boston (2019), who claims that Amazon USA is able to
gain a high level of customer engagement across social media platforms in every stage.
Indicators of Amazon US success in reputation management could be driven from Twitter,
Facebook, and YouTube published metrics (Colicev, et al., 2018).
These arguments reveal the fact that e-commerce is not only devoted to buying and
selling products and service, but it is also meant for innovation, collaboration, communication
and reputation management (Turban, et al., 2017).
3. Hypotheses and Research questions
Based on the literature, the following research questions were posed:
H1: Amazon USA has efficiently used social media platforms in reputation management
H2: Amazon USA engagement rates on social media platforms are efficient to its reputation
management.
H3: The presence in an evaluation platform improves Amazon reputation management
H4: The rating in an evaluation platform improves Amazon reputation management
4. Methodology
4.1 Research philosophy
The research paradigm refers to applied scientific philosophies and assumptions about the
world phenomenon of investigation. It indicates the scientific way that research should follow.

13Social media and reputation management
There are two major philosophical paradigms, positivism and non-positivism
(phenomenological) paradigms. This research follows the positivism paradigm, it assumes that
the researcher seeking to know the reality that exists around him in the outside world. This
reality is objective that requires quantitative methods of data analysis. The positivist assumes that
observable, quantifiable and measurable phenomena are valid and accepted to be investigated.
Therefore, the researcher tries to keep objective. In this research, the researcher is interested in
investigating the interrelationship between the Amazon USA use of social media and its
reputation management. The researcher believes that these objects exist before taking an interest
in them. Moreover, the researcher investigation will not affect the current activities that will
continue to present after completing the study (Keele, 2012; Schlegel, 2015; Saunders, Lewis, &
Thornhill, 2009). The researcher used the existing theoretical assumption of social media impact
on organization reputation with an application on Amazon USA.
4.2 Research design
The research design shows how people or objects selection contributes to the
appropriateness and reliability of data. The collected data should be representative of the
phenomenon of investigation. The positivism methodology requires data collection to test the
theory. longitudinal study is meant for investigating variables behavior over time. It aims to
research the problem dynamics of the research variables over the period in which the
phenomenon of investigation occurs (Paradis, et al., 2016). This research considers Amazon
USA, it describes the relationship between Amazon USA use of social media and its reputation
management. It uses the existing theory to understand and describe the relationship between the
two variables.

14Social media and reputation management
4.3 Data collection method
Data represent the facts by the researcher to be used in investigating the phenomenon of
interest. The researcher can use different methods in data collection, including the secondary
data collection method. It refers to the data collected from databases, organization annual reports
and previous research. Data is required to test the research hypotheses (Paradis, et al., 2016).
This research will consider the data recorded in the social media channels analytics of
Amazon open-review platforms, Facebook, Twitter and YouTube to gather information about
people engagement and positive versus negative reviews. The data about reputation management
will be gathered from social media channels analytics concerning, number of posts and response
rates. Also, Amazon USA financial performance data will be gathered from the company annual
reports. The data will be gathered over the last 10 years to be able to monitor the progress of the
relationship between the two variables, the independent variable (use of social media) will be
measured by (people engagement and reviews) and the dependent variable (Amazon USA
reputation management) will be measured by (number of posts, response rates and financial
performance).
4.4 Research type
The quantitative research will be used to help in addressing specific questions that clearly
examines the relationship between the research variables (Greasley, 2008). It will be adopted to
test the relationship between the dependent variable and the independent variable (use of social
media) and the dependent variable (Amazon USA reputation management; Dssa & Arends,
2012). The quantitative research is advantaged for its ability to provide properly structured

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numerical data that could be statistically analysed by using the appropriate statistical techniques.
Data reliability and validity define its generalizability to the population (The Open University,
2014).
4.5 Sample
A convenience sampling method will be used to facilitate the selection of users with
complete information. The sample size will be large (>30) to enable in generalizing the results
(Osorio, 2014). It will consider the social media users of Amazon USA social accounts to be the
sample unit.
4.6 Data analysis techniques
The researchers can use various data analysis techniques to the problem of investigation.
The researcher is required to select the appropriate technique to match the requirements of the
solution (Onwuegbuzie & Combs, 2011). Data should be prepared before it is set to be ready for
the analysis. Missing data should be treated and the wrongly entered data should be traced and
corrected. Also, the extreme values should be excluded. Data analysis involves data validity and
quality tests. Data visualization is useful in errors detection (Kandel, et al., 2012).
The analysis technique could be described according to (Bihani & Patil, 2014), as
follows:
 Descriptive analysis: It is concerned with the description of the current situation that reveals
the trend, pattern and expectations.
 Inquisitive analysis: It analyses the data to be able to judge the hypotheses of the research.
The result is the acceptance or rejection of the hypotheses.
 Predictive analysis: it is helpful in defining the possibilities in the future.

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 Prescriptive analysis: It combines the three described analysis techniques.
This research will depend on the inquisitive analysis to judge the research hypotheses.
The multiple regression analysis will be used for its widely accepted results as multivariate
dependence technique of investigation (Namestnikova, 2011).
4.7 Ethical issues
The ethical issues and considerations should be involved in social research to ensure trust
in the research results. Ethical issues emerge in every stage in social research. There are six
principles to ensure providing ethical research, they are discussed according to Houston (2016),
as follows:
 The researchers have to consider the right and dignity of people, either individuals or groups
that are involved in the research.
 The research should minimize the risks and capitalize benefits for both of the individuals and
societies.
 The research purpose should be declared to the participants and their personal information
should be treated in confidentiality.
 The researcher should ensure accountability and responsibility for the research results.
 Integrity and transparency of the research are essential.
 The researcher should consider the research objectivity and independence
5. Significance of the study
This study investigates an issue that highly impacts customers as well as companies. The
social media networks have become significant communication and meeting platforms. The wide
range of activities supported by social media highly affects consumers and companies including
Amazon USA. The company use of reviewing platforms, YouTube, Facebook and Twitter

17Social media and reputation management
allows two-way communications, provides the opportunity for customers and its business to
capitalize on the social networks and use the digital space to spread e-word of mouth. Using an
additional and effective marketing channel that allows timely response and personalization of
communication is highly appreciated from Amazon USA. According to the company figures,
such new marketing channels contributed to the company better reputation and enhanced its
financial performance. Amazon B2C significantly changed the strategies that companies utilize
in their communication and marketing efforts (Cawsey & Rowley, 2016). Despite this, social
media is a double edged weapon that involves high risk in case of a bad e-word of mouth spreads
across social media.
Conclusions
Organization reputation is an intangible asset, which is more difficult to be managed
compared to tangible assets. The increase of the UGC platforms resulted in a high dependency
on organizations' reputation on the content and reviews that customers share online. a good
reputation can create a halo effect that influences the stakeholders to trust the organization
despite negative claims and help in fixing its reputation. The social media channels provide
online platforms that enable organizations to communicate with their stakeholders, know their
feedback and reply to their inquiries. The increasing importance of social media is due to its
ability to build good relationships between organizations and their stakeholders that represent a
reputation capital. Creating effective content strategies should focus on the type of content that
attracts the attention of the stakeholders.
The widespread of the internet succeeded in transforming the unidirectional
communications that organizations used to disseminate information to their stakeholders into
two-way communication. Trust plays an important role in virtually mediated transactions, where

18Social media and reputation management
consumers depend on online peers' reviews posted on social media platforms. The mashup
services could be flexibly combined through APIs to match certain needs. Amazon has published
APIs according to web standards and allowed them for end users to be able to develop various
mashups. Reputation management represents the organization web care. They devote managerial
efforts to manage online stakeholders and interact with them. The positive management response
increases the customer satisfaction level. Amazon has its own open-review platforms that share
the aspects of the person-oriented platform. Therefore, Amazon is devoted to uncontrollable
communication of various opinions.
Amazon USA new and changing trend helped to gain huge reputation and popularity. The
social media platforms spread and heavy usage by customers played a significant role in Amazon
USA growth. The social media channels enabled Amazon USA to increase its revenues on an
annual basis.

19Social media and reputation management
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