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ROLE OF PUBLIC RELATIONS IN IMAGE BUILDING AND CRISIS MANAGEMENT

ROLE OF PUBLIC RELATIONS IN IMAGE BUILDING AND CRISIS MANAGEMENT

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ROLE OF PUBLIC RELATIONS IN IMAGE BUILDING AND CRISIS MANAGEMENT

Chapter One: Introduction

1.1 Background of the Study
The complicated nature of the business sector, combined with economic, social, and environmental inequities, has prompted discussions about community relations and company image. Organisations have strived in some way to be recognised by the community in which they operate from the beginning of time.

This demand for identification and communication prompted the formation of public relations, which includes community relations. Public relations is an important strategy for fostering excellent relationships with an organization’s many publics (community) by gaining favourable publicity, developing a positive corporate image, and handling or avoiding unfavourable rumours, stories, and events (Kotler and Armstrong, 2006).

To be successful, an organisation or company must have good community relations. As a result, the goal of public relations practice in community relations is to construct a two-way communication channel that will aid in the development and maintenance of reciprocal relationships and understanding between the organisation and the community.

Communities are the primary component of a business strategy that contributes to the long-term development of a corporation’s business activities through partnership activities that assist people in realising their potential to live a better life and prepare for future generations.

Respect for our community’s culture is part of the worldwide plan for a symbiotic interaction between mankind and society for everyone’s benefit (Chiejina, 2001).

Corporate image is intimately linked to brand equity. In general, corporate image is viewed as an asset that allows an organisation to differentiate itself in order to maximise market share, profits

attracting new customers, retaining existing ones, neutralising competitors’ actions, and, most importantly, success and survival in the market (Bravo et al., 2009; Sarstedt et al., 2012).

Customer satisfaction has two definitions: as an outcome or as a process. According to the outcome definitions, satisfaction is the ultimate consequence of the consumer experience.

Customers’ propensity to sustain a relationship with an organisation is determined by their assessment of the benefits of high relationship quality, relationship happiness, and the benefits of a relationship that provides a continual flow of value (Zeithaml, 2000).

One of the most difficult issues that businesses face today is gaining a competitive advantage in meeting the needs of their customers. This is mostly driven by more demanding customers (Herington, Johnson, and Scott 2006).

Attracting new clients is still an important marketing management effort. However, today’s businesses must also focus on retaining existing consumers and developing profitable, long-term relationships with them.

Customer retention requires excellent customer value and satisfaction (Khodarahmi, 2009). Loyal customers are more likely to repurchase the same service or brand, spread favourable word-of-mouth, and pay a higher price (Kwon & Lennon, 2009).

Modern businesses are becoming more customer-centric, embracing marketing activities that aim to understand, attract, keep, and create close long-term relationships with profitable consumers (Kotler, 2006).

Customer-centric businesses are concerned in retaining existing clients through customer pleasure and loyalty, rather than just acquiring new ones. In many service industry situations, competition encourages firms to shift away from competing on price and towards competing on higher quality that meets and surpasses client expectations (Lovelock & Witz, 2007).

The concept of public relations as the management of an organization’s connection with its major stakeholders has been well explained in public relations textbooks and research literature.

According to the relationship management approach, public relations is an organisational function whose major goal is to establish, create, and sustain relationships between an organisation and its important stakeholders (Amponsah, Asamoah, and Isaac, 2015).

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