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” “Their”
mouth mouths

O
My strengths

O
My weaknesses
(mistakes, wrongdoings)

Hoh Kim 2010 2

Context: Why?

Social media is changing Corporate leaders need to
consumers‟ attitudes & actions change their attitudes & actions
towards companies… towards consumers…
how? how?

Copyright 2011 THE LAB h 3

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.


“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


Streisand Effect and
Dunkin‟ Donuts in Korea
(April 2007)


What were they thinking?

“Minus” paradigm “Plus” paradigm

Mass Media Mass/News Consumer
Media Media
Bad News Bad News Bad News

Good Response on Bad News

Public Relations
Corporate Media


from „Silence and Denial‟
to „Disclosure and Apology‟
• “Paradox of Transparency”

• Trust and Weaknesses (Dr.
Robert Cialdini)

출처: 조선닷컴
http://news.chosun.com/site/data/html_dir/2009/06/02/200906020
1586.html?srchCol=news&srchUrl=news1

Avis 이미지 출처: 구글 이미지
http://images.google.co.kr/images?sourceid=navclient&hl=ko&rlz=1T4ADBR_koKR27
9KR289&q=avis,+we+try+harder&um=1&ie=UTF-
8&ei=ouafSveVNpeEngfh6d3tDQ&sa=X&oi=image_result_group&ct=title&resnum=1

Anything common?

Hoh Kim 2010 12

Trend: Public apologies
in Korea and the U.S.
5000

4000

3000

2000
Chosun.com
1000 NYT.com

0

Data gathered: 1) “Public apology (Kong-gae-sa-gwa)” in chosun.com;
2) “Public apology, apologize, and apology” in nyt.com
Hoh Kim 13

Trend (Korea): “Presidential” apologies

400

300

200 News
Blog (x 00)
100

0
김영삼 김대중 노무현 이명박

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 14

Trend (the U.S.): “Presidential” apologies
2000

1500

1000 News
Blog (x000)
500

0
Clinton Bush Obama

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

Hoh Kim 15

Use of Youtube for „one to many‟
public apologies on social media

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

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

Hoh Kim 2010 16

Benefits of video apologies
• Editing (production)

• Timing (release)
MATTEL Bob Eckert CEO
(2007. 8)
• Search (attention)

Before video After video
apologies apologies
Purchase intention 71% 76%
Trust 75% 84%

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

Hoh Kim 2010 17

“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 Statistics
from 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

2010 (c) THE LAB h 22

Cool Communication Study:
How was the study conducted
General Public* Study Twitter User Study

Subjects Nationwide men/women 19 Korean Twitter users
years old and above
Subject Size 500 305

Sampling Error +/- 4.38% +/- 5.61%
(95% Confidence Level)
Method CATI (Computer Assisted Online research
Telephone Interviewing)
Sample Extraction Quota sampling based on Random participation through
region/gender/age 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.

2010 (c) THE LAB h 23

Corporate Reputation:
trustworthy
self-promotion
listening
responsible
communication
purchase intention

2010 (c) THE LAB h 24

“most trustworthy”:
Samsung vs. Posco

Samsung 54%
27.20%

POSCO 13.20%
41.30%

LG 10.50%
11.10%

Hyundai Kia Automotive 6.10%
2.60%

SK 5.90%
6.20%
General public
Hyundai Heavy Industries 5%
2.30% Twitter users

Lotte 1.90%
2.30%

Kumho Asiana 1.90%
2.60%

Hanjin 0.80%
0.70%

GS 0.70%
3.60%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%
2010 (c) THE LAB h 25

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

Samsung 57.10%
61.60%

Hyundai Kia Automotive 12%
3.90%

SK 7.80%
17.40%

LG 6.50%
4.90%

Hyundai Heavy Industries 5.00%
0.70%
General public
Lotte 4.50%
2% Twitter users

POSCO 4.00%
6.20%

Kumho Asiana 1.50%
1.30%

GS 1.00%
1.60%

Hanjin 0.60%
0.30%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%
2010 (c) THE LAB h 26

“most engaged in listening to customers‟ opinions”:
Samsung vs. LG

Samsung 46.0%
17.4%

LG 16.6%
23.3%
Very active in corporate
Hyundai Kia Automotive
4.9%
9.3% blogging; the first for a top
7.1%
30 company to share the
SK
17.0% customers’ comments
POSCO 6.9% without screening
12.1%
General public
Lotte 3.9%
3.0% Twitter users

Kumho Asiana 3.6%
9.5%

GS 2.9%
9.8%

0.7%

Hanjin 1.8%
2.3%

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

2010 (c) THE LAB h 27

“most responsible”:
Samsung vs. Posco

Samsung 52.70%
21.60%

POSCO 14.80%
40.30%

LG 10.10%
9.20%

7.20%

5.60%
General public
SK 3.90%
7.20% Twitter users

Hanjin 1.80%
1.60%

Lotte 1.60%
0.70%

Kumho Asiana 1.30%
3.90%

GS 0.80%
2.60%

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

2010 (c) THE LAB h 28

“most skilled in communication”:
Samsung vs. SK

Samsung 41.30%
13.40%

LG 13.60%
23.30%

SK 10.60%
31.50%

4.90%

Lotte 7.00%
2.30%
General public
POSCO 6.40%
11.10%
Twitter users
1.00%

GS 3.20% SK Telecom was the first company
4.60%
among the top 30 Korean companies
2.00%
Hanjin
1.30% to open a corporate blog and directly
Kumho Asiana 1.70%
6.60%
communicate with consumers

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

2010 (c) THE LAB h 29

“most desirable to purchase”:
Samsung vs. Samsung

Samsung 54.60%
26.90%

LG 25.10%
23.30%

12.80%

POSCO 3.10%
14.80%

Lotte 3.00%
3.60%
General public
SK 2.20%
7.50% Twitter users

GS 1.60%
5.90%

Kumho Asiana 0.70%
3.00%

Hanjin 0.60%
1.30%

1.00%

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

2010 (c) THE LAB h 30

Reputation Quotient (RQ):
Samsung, Posco, LG, Hyundai-Kia, SK
in both categories

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 ~ POSCO 8.1 SK 14.5
No. 10 SK 6.2 Hyundai-Kia 6.1
Lotte 3.7 GS 4.7
Hyundai Heavy 3.6 Kumho Asiana 4.5
Kumho Asiana 1.8 Lotte 2.3
GS 1.7 Hyundai Heavy 1.9
Hanjin 1.2 Hanjin 1.3

2010 (c) THE LAB h 31

Samsung among Twitter users:
In “corporate communication 2.0” categories, Samsung
is NOT #1
General Public Twitter Users
“Most trustworthy” Samsung (54.0%) POSCO (41.3%)
Difference with No. 2 POSCO (12.2%): Difference with No. 2 Samsung
40.8% (27.2%): 14.1%
“Most competent in Samsung (57.1%) Samsung (61.6%)
self-promotion” Difference with No. 2 Hyundai/Kia Difference with No. 2 SK (17.4%):
(12.0%): 45.1% 44.2%
“Most engaged in Samsung (46.0%) LG (23.3%)
listening to Difference with No. 2 LG (16.6%): Difference with no. 2 Samsung
customers’ opinions” 29.4% (17.4%): 5.9%
“Most responsible” Samsung (52.7%) POSCO (40.3%)
Difference with No. 2 POSCO: 37.9% Difference with no. 2 Samsung
(21.6%): 18.7%
“Most skilled in Samsung (41.3%) SK (31.5%)
communications” Difference with No. 2 LG (13.6%): Difference with No. 2 LG (23.3%):
27.7% 8.2%
“Most desirable to Samsung (54.6%) Samsung (26.9%)
purchase” Difference with No. 2 LG (25.1%): Difference with No. 2 LG (23.3%):
29.5% 3.6%

2010 (c) THE LAB h 32

Cool Crisis Communication:
disclosure
apology
actions

2010 (c) THE LAB h 33

Transparent/candid disclosure of wrongdoing

Samsung 32.00%
6.90%

5.20%

POSCO 14.20%
32.80%

LG 13.90%
19.70%

SK 9.70%
11.50%
General public
Kumho Asiana 4.40%
9.50% Twitter users

Lotte 4.00%
3.90%

GS 3.10%
7.90%

0.70%

Hanjin 1.30%
2.00%

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

2010 (c) THE LAB h 34

“Genuine Apology for Wrongdoing”

Samsung 33.70%
8.90%

LG 16.20%
22.60%

POSCO 14.40%
32.50%

5.20%

SK 7.40%
9.50%
General public
Lotte 5.00%
1.60% Twitter users

1.60%

GS 3.00%
7.50%

Kumho Asiana 2.30%
7.50%

Hanjin 2.00%
3.00%

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

2010 (c) THE LAB h 35

“Make Improvements and Go Beyond a
Rhetorical Apology”

Samsung 42.10%
15.10%

LG 14.30%
20.70%

6.90%

POSCO 10.70%
26.90%

Lotte 4.60%
3.30%
General public
SK 4.50%
10.50% Twitter users

Kumho Asiana 3.50%
5.90%

GS 2.80%
7.90%

2.00%

Hanjin 0.90%
1.00%

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

2010 (c) THE LAB h 36

Cool Crisis Communication Quotient:
Samsung vs. POSCO

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 ~ POSCO 13.1 Samsung 10.3
No. 10 SK 7.2 GS 7.8
Lotte 4.5 Kumho Asiana 7.6
Kumho Asiana 3.4 Hyundai/Kia 5.8
GS 3.0 Lotte 2.9
Hyundai Heavy 2.7 Hanjin 2.0
Industries 1.4 Hyundai Heavy 1.4
Hanjin Industries

2010 (c) THE LAB h 37

Samsung vs. POSCO

General Public Twitter Users

“Company to officially Samsung (32.0%) POSCO (32.8%)
disclose its Difference with No. 2 Difference with No. 2 LG
wrongdoing” Hyundai/Kia (14.7 %): 17.3% (19.7%): 13.1%

“Company to Samsung (33.7%) POSCO (32.5%)
genuinely apologize” Difference with No. 2 LG Difference with No. 2 LG
(16.2%): 17.5% (22.6%): 9.9%

“Company to make Samsung (42.1%) POSCO (26.9%)
efforts for Difference with No. 2 LG Difference with No. 2 LG
improvement” (14.3%): 27.8% (20.7%): 6.2%

2010 (c) THE LAB h 38

The most used channel for obtaining the news

TV 61.9%
17.7%

online newspaper 15.8%
25.9%

newspaper 10.2%
5.9%

portal sites 9.1%
35.1%
General public
radio 1.1%
0.0% Twitter users

mobile 0.5%
13.1%

others 0.7%
2.3%

don't know/no response 0.7%
0.0%

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

2010 (c) THE LAB h 39

Experience of Posting an Online Review
over the Past Year

15.90%

online review over the past year
General public

67.20% Twitter users

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

2010 (c) THE LAB h 40

Contents for Respondents with Online Review Posting
Experience

19.70%
positive
25.40%

41.80%
negative
General public
19.50%
Twitter users

37.00%
positive/negative
55.10%

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

2010 (c) THE LAB h 41

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.

• 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: Respondents Demographics
Category Sub-categories General Public Twitter Users
By Region Seoul 106 (21.2%) 183 (60.0%)
Incheon/Kyonggi 140 (28.0%) 67 (22.0%)
Daejon/Chungchong 50 (10.0%) 13 (4.3%)
Gwangju/Jeolla 52 (10.4%) 8 (2.6%)
Daegu/Gyeongbuk 52 (10.4%) 8 (2.6%)
Busan/Ulsan/Gyeongnam 79 (15.8%) 25 (8.2%)
Gangwon/Jeju 21 (4.2%) 1 (0.3%)

By Gender Male 248 (49.6%) 200 (65.6%)
Female 252 (50.4%) 105 (34.4%)
By Age 19-29 97 (19.4%) 126 (41.3%)
30s 107 (21.4%) 135 (44.3%)
40s (Twitter users until here) 114 (22.8%) 44 (14.4%)
50s and above 182 (36.4%)

By Education Level Below middle school graduate 71 (14.3%) 0 (0%)
High school graduate 175 (35.6%) 10 (3.3%)
Current college student & graduate 247 (50.1%) 295 (96.7%)
By Income Below 2mil Korean Won 126 (29.9%) 25 (8.2%)
2mil.-2.99mil. Korean Won 85 (20.1%) 47 (15.4%)
3mil.-3.99mil. Korean Won 93 (22.1%) 62 (20.3%)
Over 4mil. Korewan Won 118 (27.9%) 171 (56.1%)

By Occupation Self-employed 72 (14.6%) 0
Blue collar 63 (12.8%) 40 (13.1%)
White collar 81 (16.4%) 184 (60.3%)
Housewife 139 (28.0%) 0
Student 59 (11.9%) 55 (18.0%)
Unemployed/Others 80 (16.2%) 26 (8.5%)

Total 500 (100%) 305 (100%)

2010 (c) THE LAB h 50

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 @ hoh.kim@thelabh.com

2010 (c) THE LAB h 51

Cool comm hoh@skbc_2011_0217

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Cool comm hoh@skbc_2011_0217