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  1. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 SOCIAL PROOF AND PROJECTED BRAND IMAGE: REACTIONS OF CITIZENS AND GOVERNMENT IN PANDEMIC BẰNG CHỨNG XÃ HỘI VÀ HÌNH ẢNH THƯƠNG HIỆU PHÓNG CHIẾU: PHẢN ỨNG CỦA CƯ DÂN VÀ CHÍNH PHỦ TRONG ĐẠI DỊCH Ph.D, Van-Anh T. Truong; Ky-Minh Do University of Economics – The University of Danang vananhtt@due.edu.vn Abstract Since the Covid-19 epidemic appeared, consumers have tended to be involved in a digital environment such as online shopping, especially spending health care products or services to reduce virus infection risk. And this, incidentally, allows us to explore the role of social proof in the pandemic outbreak, especially in the context of the exploding 4.0 industry era. In this article, we consider the case study about how social proof may impact the way people react to brand image in the Covid-19 pandemic outbreak. In particular, we figure out the influence of social proof on forming Danang’s projected brand image. Based on the results, some recommendations for government to communicate in crisis are proposed. Besides, the managerial view focuses on opportunities and challenges regarding the impact of social proof. Keywords: social proof; crisis communication; projected brand image; pandemic; Vietnam Tóm tắt Kể từ khi đại dịch Covid-19 bùng phát, người tiêu dùng có xu hướng tham gia môi trường kỹ thuật số nhiều hơn như mua sắm trực tuyến, giải trí trực tuyến, chi trả cho các sản phẩm và dịch vụ chăm sóc sức khỏe nhằm giảm thiểu nguy cơ lây nhiễm virus. Điều này cho phép chúng tôi thực hiện đề tài nhằm tìm hiểu vai trò của bằng chứng xã hội trong đại dịch, đặc biệt trong bối cảnh cuộc cách mạng công nghiệp 4.0 đang bùng nổ. Trong bài viết này, chúng tôi xem xét tình huống nghiên cứu về cách thức bằng chứng xã hội có thể ảnh hưởng đến phản ứng về hình ảnh thương hiệu trong đại dịch Covid-19. Cụ thể, chúng tôi chỉ ra tác động của bằng chứng xã hội đối với việc hình thành hình ảnh thương hiệu phóng chiếu của Đà Nẵng. Từ kết quả phân tích, một số khuyến nghị sẽ được cung cấp cho chính quyền để truyền thông trong khủng hoảng. Bên cạnh đó, góc nhìn quản trị tập trung vào cơ hội và thách thức liên quan đến ảnh hưởng của bằng chứng xã hội.. Từ khóa: bằng chứng xã hội; truyền thông khủng hoảng; hình ảnh thương hiệu phóng chiếu; đại dịch; Việt Nam 886
  2. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 1. Introduction Covid-19 has been transforming the way of conducting marketing related to corporate so- cial responsibility (He & Harris, 2020), where internet application, health, and safety concerns are widespread. In the past, there have been many pandemics in human being’s life. Each pandemic caused dramatic changes in economics, territorial and worldwide approaches, social attitudes, social perceptions, and citizens’ mentalities as well. Due to the reclassification of viruses, new virus subtypes have been created, and pandemics assume to occur at intervals of 10-50 years (Potter, 2001). What we have been known is that the climate has changed. Like other major occasions with a global effect, Covid-19 could potentially alter the way we face the world, our way of thinking, and how we survive in this world. In spite of the human calamity of a failure of health, scarred societies, or fractured families, a pandemic-driven lockdown will impact directly on the economy, which will be a cultural legacy and exist until the end of our minds as well as those of future eras. Besides, to some extent, human beings’ lives have been absolutely reflected, which will be a cultural legacy and exist until the end of our minds and those of future eras. The short-term effect of Covid-19 is realized promptly and seamlessly by cause social distancing initiatives worldwide. In this manner, we ought to make an exertion to learn from what happened, learn from the consequences of pandemic outbreaks. Since the Great Depression of the 1930s, the effect of Covid-19 on the global economy is likely to have been unparalleled (Euronews, 2020). At the time of writing this article, however, we ourselves are living in the middle of the Covid-19 pandemic outbreak all over the world. During this pandemic outbreak, the world has observed the imposition of international travel bans, lockdowns of entirety nations, and the closure of points of service. Also, every commercial activity seems to like to be congealed, and we cannot estimate when this pandemic will play out. Moreover, in the post-pandemic era, we could not estimate how the big loss lives would be, how heavily the pandemic outbreak would damage. Nevertheless, we are witnessing extraordinary growth in many online activities such as online shopping, online entertainment, and social interaction. Vietnam is considered a fertile land with rich potentials for e-commerce development. Since the Covid-19 epidemic appeared, consumers have tended to be involved in an online environment such as online shopping, spending health care services to reduce the risk of infection. More people shop online than usual, contributing to 3-digit growth in just one month since the official pandemic announcement in Vietnam (Thanh Huyen, 2020). And this, incidentally, gives us the opportunity to demonstrate the effect of social proof’s psychological phenomenon in the pandemic outbreak, especially in the context of the exploding 4.0 industry era. Social proof is the most significant psychological phenomenon that people consider others’ actions in their surroundings to be similar to them (Cialdini, Wosinska, Barrett, Butner, & Gornik-Durose, 1999). This phenomenon is known as homophily, which is the propensity of individuals to associate and connect with similar others (McPherson, Smith- Lovin, & Cook, 2001). This propensity is an aspect that individuals with similar status in society equivalent likely to be associated with one another (Berger, 1954). Moreover, social proof is understood that people tend to trust their predecessors, in particular, those who have used and made reviews of certain products or specifics. Social proof has a powerful influence on consumers’ buying decisions as well as is tightly integrated into 887
  3. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 many communications messages today. To some extent, social evidence exists because people are sensitive to social cues from those around them when making decisions. Recognizing this behavior, many brands have been increasingly applying social proof to their social media plans and marketing strategies in the context of the Covid-19 pandemic outbreak’s crisis economy so that they can adapt consumer’s reactions and for better crisis management. So the nations, regions, or localities do. In this study, we consider the case study about how social proof may impact the way people react towards the brand image in the Covid-19 pandemic outbreak. In particular, we compile the impact of social proof on forming Danang’s projected brand image. From a managerial perspective, we will provide several relevant recommendations for the government resolving the brand image of a country in cases of occasions globally, such as the outbreak of a pandemic and some disaster all over the world. Moreover, we provide the recognition of other opportunities and trends in terms of social proof from citizens. 2. Literature review 2.1. Social proof effect The study of Das, Kramer, Dabbish, and Hong (2014) figured out that people’s awareness would be higher if social proof was shown through the number of their friends who had chosen available tools. On the social network, typical types of social proof (comments and number of likes for each comment) can lessen risk perception (Hofland, 2015). Low social proof (lack of user interaction and promotion) also decreases the potential of social networking services (Fong, Au, Lam, & Chiu, 2020) and contributes to the success of localized online deals (N. C. Amblee & Bui, 2012). Similarly, social proof can be utilized on social media (Hilverda, Kuttschreuter, & Giebels, 2018) via influencers who have numerous followers to attain a beneficial attitude toward the brand (Sigurðardóttir, 2019). It is used as a tactic to moderate reciprocity and enhances user registrations on e-commerce (Roethke, Klumpe, Adam, & Benlian, 2020). Towards digital prod- ucts, social proof can affect purchases (N. Amblee & Bui, 2011) via participant response bias in- fluence (Vashistha, Okeke, Anderson, & Dell, 2018). Moreover, under low self-control conditions, it may benefit healthy consuming (Salmon et al., 2015). Interestingly, social proof has a more significant impact on participants who have individualistic-collectivistic orientations (Cialdini et al., 1999). In terms of social influence, MacCoun (2012) examined social proof as an influence source that can be seen in many situations (crowd assembling, market share gaining of new products, popular support mustering of politicians). The author compared different social impact models to analyze the social proof shared threshold where humans considered various sources to imitate based on conformity, helping, and deliberation. This consideration creates the social proof burden. 2.2. Social proof and crisis communication According to Hu, Li, Zhang, and Zhu (2018), social proof can increase scientists’ partici- pation in science communication toward the general public. Besides, when combining social proof with in-science-community meaning, scientists’ communication efforts are boosted. The 888
  4. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 communication effect of donation-related psychological strategy is also enhanced when combin- ing with social proof strategy (Shearman & Yoo, 2007; Yukizawa, Tsunoda, & Tahir, 2019). Additionally, Desai, Luce, and Schwartz (2017) detected that social proof influences aver- sive decisions and the tendency of acting avoidance, although it can enhance the desired behavior. It can negatively affect perceived medical result accuracy. In the dangerous weather-related avi- ation cases, a pilot’s decision depends on social proof (Facci, Bell, & Nayeem, 2005). The timely decisions should be made at the “turning point” that Diamond (2019) linked to nations’ turning point in crisis to overcome upheavals. Furthermore, social proof informs untrained/inexperienced human groups (Duncan, Murphy, Shell, & Hopper, 2010) and helps determine which the most relevant potential supplier/client is (Davar, Hewitt, & Thompson, 2016). Although agreeing with two main factors (crisis type and performance history), Powers (2018) stated that situational crisis communication theory overlooks social proof through social media to determine stakeholders’ levels of attribution of responsibility. Therefore, understanding social proof is appropriate for na- tions without experience to react against the crisis. 2.3. Projected image Govers and Go (2009) stated that place planners use marketing and media and ICT com- munication to depict the projected image of a city to their consumers. A projected image contains the created meaning that defines place identity with narratives and visuals. Intermediaries and produced imagination here can be media, culture, and arts, which are called induced image for- mation agents by Gartner (1994). Besides, narratives are (re)told in history, culture, and arts con- cerning the term “imagined communities” proposed by Anderson (1991). The term “projected image” is commonly used in tourist destination studies, and Ji (2011) defined it as the ideas and impressions related to a destination that intentionally or unintentionally expressed. An intentional image is created for marketing purposes, while an unintentional image is formed independently (Andreu, Bigné, & Cooper, 2000). This classification is consistent with image formation sources divided by Gartner (1994), including overt/covert induced image (tra- ditional advertising, tour operators, wholesalers, newspaper, specialized magazines) and au- tonomous/organic image (news, popular culture, friends/relatives, experience). This image formation is attached to media, advertising, policymaking, and urban planning (Shirvani-Dast- gerdi & De-Luca, 2019). Overall, the city projected image is formed through the promotional activities of destination agents (pull factor) and news or information about the place from the other sources (push element) (Andreu et al., 2000). In other words, information sources can indirectly affect the destination choice of consumers. Hence, electronic Word-of-Mouth (eWOM) – a form of social proof can form the projected image of a city unintentionally via citizens’ reactions and similar places’ social proof can contribute to the projected image via crisis communication of the government. 3. Research methodology Based on reviewing the previous studies and the premise of Diamond (2019) regarding to the nations’ behavior towards upheavals, the conceptual framework is shown in Figure 1. 889
  5. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 Source: Proposed by the authors Figure 1. Conceptual framework In this study, we examine the social proof impact on the projected brand image. The pro- jected brand image can be formed intentionally and unintentionally through two sources of social proof, including electronic Word-of-Mouth (eWOM) and policies of places with similar charac- teristics. These sources reflect on the city stakeholders’ reactions (an important group in city branding) and the government to form the city’s projected image. The city can be seen as the epitome of the nation. Thus, we chose the single case study of Danang to consider the way of constructing the projected image of this Vietnamese city branding pioneer. The secondary data from the government’s communication channels and social network was used to consider the so- cial proof and its influence on Danang residents’ reactions and crisis communication. The qual- itative content analysis as an interpretation method in case study research was applied to detect the elements related to variables in the framework. 4. Results and discussion Social proof and Danang projected image before the pandemic According to (Onishi, 2019), Danang is a quieter, slower coastal city in Central Vietnam with an airport and beaches near the urban center and upscale international hotels that can compete with Phuket (Thailand) and Bali (Indonesia). Due to its safety and historical role during the Viet- nam War, Danang is ranked No. 5 globally and No. 1 in Southeast Asia as a heritage gateway destination. This pioneer city for branding in Vietnam has been promoting itself as a fantastic livable city, aiming many target audiences. Recently, the Vietnamese government has declared Resolution No. 43 that emphasizes Danang’s regional “nuclear” role. Danang is a coastal biodiversity city that locates in the middle of Vietnam with an admin- istrative scope area of 1285.4 km2. Besides its diverse nature, Danang province is rich with min- erals such as marble, quartz sand, glass sand, peat, and other construction materials. The city is, however, influenced by storms, tides, tsunami risks, and harsh climate with two distinctly dry, rainy seasons (Danang UPI, 2013). The Lady Buddha (the female bodhisattva Guanyin or Kuan Yin) is considered a protector of Danang citizens. This belief is widely spread as social proof through word-of-mouth. Similarly, the city-image makers also apply social proof as a way to promote the image of local people. Defining people’s friendliness and hospitality is Danang’s strength; the Danang 890
  6. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 People’s Committee had launched the “Danang Smile” campaign initially prepared for APEC 2017 (Danang Department of Tourism, 2017). This campaign extended to all public organizations, related businesses, and local people and deployed for one year later (Ha, 2018), as remarked by the online photos contest “Danang Smile 2018” (@nucuoidanang2018 on Facebook). As a result, Danang has enhanced its prestige as a city of events. To attract investors, Danang IPC (2016) emphasizes its strategic geographic position as the gateway to the East-West economic corridor, the world cultural heritages, well-developed in- frastructure, open policy, customer-oriented public services, qualified human resources, and suit- able environment for pro-business and peaceful living. Besides, the city makes efforts for the image of an entrepreneurial hub, environmental orientation, and smart. In terms of ‘smart’, Danang focuses on six smart aspects (governance, economy, environment, society/living, people, and transportation/mobility) with priority of 16 specific areas, following a classification model (natural environment – hard infrastructure – ICT-based hard infrastructure – smart services – soft infrastructure (Danang People’s Committee, 2017, 2018). Danang has determined that “Tourism development becomes a key economic sector.” At the same time, it always creates favorable mechanisms and policies to support businesses in in- vesting and develop, calling for strategic investors to invest in Danang. Besides, the city strength- ens Danang tourism’s communication activities on different channels, improving the professionalism and quality of promotion activities towards foreign markets, contributing to spreading the beneficial social proof to reinforce Danang’s projected image. Danang has been ensuring a safe tourism environment, creating a friendly and hospitable image of Danang tourism - those are the ways that the tourism industry has been conducting to help itself brand image spread to the tourists. The accommodation facilities developed in both quantity and quality, world-famous tourism brands have been presented in Danang, such as Hyatt, Pullman, Marriott, InterContinental, Novotel, Hilton, contributing to service quality improvement and high-quality human resources attraction. The evidence is that many positive reviews or high recommendations from visitors about these destinations can be seen as social proof that enhances the Danang projected brand image. This brand image has gradually been affirmed with many titles certified as Top 10 “Destinations on the Rise” in the World 2015, Top 10 Tourist Destinations in Asia, Asia’s Leading Festival, And Event Destination 2016. It can be observed that social proof is effective in spreading positive narratives or anecdotes via worth-of-mouth or word-of-mouse. Besides, the city government also took advantage of social proof influences on enhancing local people’s participation to promote a beneficial image. Not only limited to the citizen community, but social proof is also shown in media publications to at- tract potential investors by offering quantity and positive reviews of businesses that come from countries with similar cultural values. Danang projected image in the Covid-19 pandemic Intentional source – Government’s crisis communication At the beginning of the first 3 cases, Danang relied on social proof other localities in Viet- 891
  7. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 nam and worked with Pasteur Institution to self-equipped at all aspects (VNCDC, 2020). Fortu- nately, the first wave did not put Danang in the stressfulness to create pressure of scarcity or con- fusion. Facing the second wave of the Covid-19, the Danang government looked at Wuhan’s case, where the virus was detected for the first time since December. In the official dispatch of the Danang People’s Committee (2020), social distancing is conducted again based on the directive No. 16/CT-TTg declared on 31 March 2020 and the directive No. 19/CT-TTg proclaimed on 24 April 2020. Besides, three related-hospitals were put under lockdown to prevent virus transmis- sions. According to an expert from Singapore, Danang could imitate Wuhan in social distancing by considering hospitals’ capacity, not paying attention too much on defining the first patient, or depending on fast testing (VNExpress, 2020). According to Vu Han (2020), the government’s re- actions are based on the experience of Ho Chi Minh City in the first pandemic wave and the ex- perience of nations that were already in the second one like Australia, Hong Kong, Israel. This social proof estimated threats that Danang is put in (40% higher than the first time), leading to the immediate plan to reduce risk perception of community transmission via home quarantine. At this time, the communication was about the rewards of medical staff who have signifi- cant important contributions to Danang Public Health (Minh Hien, 2020). Later, Danang called for the donation from the community through the campaign named “Energizing for Danang doc- tors and medical staff” (Phuoc An, 2020) on the official website of Danang Center for Disease Control (Danang CDC). The evidence of support is shown via image and texts regarding bottled water, milk, cakes, medical masks, toilet papers. The appeal is emphasized on the notion of “safety and health,” “humanity.” Additionally, the volunteer activities are promoted not only on official media but also on forums or social networks influenced by the city government. Notably, social proof is applied to ease the burdens of blockaded hospitals concerning dual missions of treating Covid-19 patients whilst performing professional tasks towards other diseases (Xuan Son, 2020). To help foreigners feel secure about their own health and to ensure that the Covid-19 epi- demic does not spread in the community, Danang conducts large-scale SARS-CoV-2 testing for thousands of foreigners living and staying in the city. This is also the first largest scale Covid-19 test for foreigners in Vietnam. From this management, the government has somewhat alleviated the concern of foreigners living in Danang and reinforced their confidence in a reliable and safe Danang city in tourists’ minds. In the context of Danang struggling to fight the pandemic, but still paid attention to organ- izing large-scale and careful tests for foreigners is a significant effort. This shows that Danang, in particular, always tries the best for the health of the community and has been implementing the right motto of humanity during the pandemic, no matter the nationalities of (potential) patients, which can be seen as the social proof that impacts on Danang brand image. Specifically, people who tend to visit Danang in the future will have a reasonable premise that comes directly from someone they know. However, following the experiences from other Asian nations like Korea, China, applying e-mask with Bluezone is still limited. Bluezone was mentioned in the official dispatch 6346/UBND-SYT by Danang People’s Committee along with the message “Face mask – Disin- fection – Distance – No public gatherings – Health Declaration” (Danang Center for Tourism 892
  8. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 Promotion, 2020). As stated by Phong Lan (2020), social proof here is only presented via the percentage of smartphone users who already installed this app (30% of total Danang users – the highest ratio compared to the other localities’). Nevertheless, it revealed limitations because caus- ing confusion concerning the number of contacts in users’ minds. Unintentional source – Citizens’ reactions towards eWOM Regarding citizens’ reactions, it is not too difficult to observe how electronic Word-of- Mouth affects theirs. Besides the Facebook pages such as Đà Nẵng Tôi Yêu (translated title: Danang I love), Yêu Đà Nẵng (translated title: Love Danang), Danang Viewers, Đà Nẵng Phố, the business community in Danang helps spread the measures to prevent epidemics via their pro- motional media publications. Danang citizens positively responded to the messages with popular hashtags: #bluezone, #nguacovid, #khaibaoyte, #khautrangdientu. By attaching hashtags and tag- ging at least three friends, one person could introduce the utility of this e-mask to other people in his/her social groups. This Word-of-Mouse seems to be useful in enhancing the community consciousness of people who are living in Danang. Additionally, the concern of city leaders, especially city image-makers, is the avoidance of isolation. The reason is that the fugitives did not trust the quarantine’s medical conditions or afraid of consuming too much time than expected. Fortunately, the posts related to home or con- centrated isolation help reduce visitor’s or residents’ worries. These posts were usually hashtagged with #nhatkycachly (isolation diary), #staystrongdanang, and #trachnhiemxahoi (social respon- sibility). The optimistic signals during the quarantine time are even the encouragements for cit- izens to overcome this crisis. Therefore, social proof from people who experienced quarantine or already recovered from exposure is informed by the government regularly (i.e., Thanh Thao and The Vinh (2020), Viet Nam News (2020)). Generally, Danang’s projected image before the pandemic is about a livable touristic city with hospitable people while depicted as a safe, resilient city with optimistic and humanist resi- dents. In any situation, social proof helps form the projected brand image through beneficial re- actions of citizens and crisis communication of the government based on previous experience from similar localities. 5. Implications The findings in this article lead us to make several recommendations. First of all, it is necessary for Danang to create an interactive online system between citizens and government, which encourages the positive aspect of social proof for the government resolving crisis promptly in the field of economy and society under the status of emergency. This absolutely requires an informatics technology platform, which is synchronized and interacted with citizens’ available data among managers and government. Secondly, it might be appropriate for government to interact with consumers by utilizing online environment, online social media and social networking such as Facebook, Instagram as one of means of communication to alert them of the risks of a positively perceived subject and to respond rapidly to customer comments timely (Veil, Buehner, & Palenchar, 2011). Thirdly, while using social media to interact with respondents, one would be cautious that 893
  9. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 citizens can also be able to manipulate each other by taking action to the information either in the form of giving comments by buttons of “love/like/wow” reaction and in the form of commenting directly or sharing these statuses. It would be helpful for authorities to participate in online discussions on social media (i.e., Twitter, Facebook, Zalo, even chat rooms) to avoid any conflicts. In this way, the government could take the opportunity to resolve any problem in crisis due to the pandemic effectively. It can be seen as one of the most advantages which social proof brings out citizens. Fourthly, utilizing social proof’s advantages brings the government’s usefulness in communicating the crisis to citizens. The government can take this as an advantage in branding. It creates the city’s projected brand image because it is vital for authorities to maintain the brand image in the citizens’ minds. It is feasible for the government to apply social proof for branding the projected city image by imitating similar places at the macro level. These allied nations or cities have similar economic factors and national models. Besides, it should be noted that they harmonize with the citizens’ community not to spread adverse reactions that can increase stereotypes, which will be harmful to the brand image in the post-pandemic. Moreover, the government needs to pay attention to the fact that the Covid-19 pandemic caused the lockdown of countries globally and led to changes in people’s habits. Hence, it is necessary to maintain the projected brand image through social proof because the projected image is formed by city-image makers and other stakeholders, private or public organizations. Additionally, it is not easy to moderate private organizations and control citizens’ efforts, known as viral social proof. Besides limitations related to the lack of previous studies or using other methodologies, the research also points out a few significant social proof suggestions for the government resolv- ing several problems that involve maintaining the brand image in the post-pandemic. 6. Conclusions From our research, it is clear that the Covid-19 pandemic directly affects human beings’ lives in the short and long term. Nevertheless, by reviewing many case studies involving social proof and its impact on the brand image, the research pointed out that government completely controls the status of crisis by utilizing the advantages of social proof on social media to com- municate with citizens timely. However, this research only proposes some management suggestions for projected brand image based on reviewing case studies of social proof and crisis management in the pandemic. Consequently, in the future, researchers need to apply other research methods such as content analysis techniques or in-depth interviews with different groups of stakeholders apart from re- viewing the case study to clearly understand the role of social proof in the formation of projected brand image. Since then, the government can adjust or diversify how to communicate or manage the pandemic crisis. 894
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