Market-oriented relations in the digital era: A study of public relations and marketing professionals in Hong Kong

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2 Market-oriented relations in the digital era: A study of public relations and marketing professionals in Hong Kong Suk Chong TONG Department of Journalism and Communication, Hong Kong Shue Yan University, Hong Kong Fanny Fong Yee CHAN Department of Marketing, Hang Seng Management College, Hong Kong Acknowledgments The work described in this paper was fully supported by a grant from the Research Grants Council of the Hong Kong Special Administrative Region, China (Project No. UGC/FDS24(15)/H04/16).

3 Introduction & purpose of the study Prior literature has highlighted the similarities and differences between the fields of public relations and marketing since the 1990s (e.g., Harris, 1991; Hutton, 2001; Kotler & Mindak, 1978). Stepping into the digital era, this study revisits the relationship between public relations and marketing by investigating how market-oriented relations performed by professionals affect the perceptions of public relations values, the importance of interactivity, and the benefits of digital media usage in public relations.

4 Literature review The nature of public relations and marketing have been studied in terms of their contributions to relationships between organizations and their customers or consumers (Huang & Hagan, 2011), as well as the public relations values perceived by public relations and marketing professionals (Huang, 2012; Huang & Hagan, 2011). In the digital context, professionals perceptions of both interactivity (Sundar, Kalyanaraman & Brown, 2003) and benefits of digital media usage in public relations (Triantafillidou & Yannas, 2014) are two factors that could affect digital media usage in public relations. Digital media, which is defined as those information and communication technologies that can integrate different applications, functions, and content productions and, at the same time, will allow great interactivity among users (Valentini & Kruckeberg, 2012, p. 5), has been discussed with organizational practices in terms of Web 2.0, 3.0, mobile communications, computer-enabled user devices, and the social media (Valentini & Kruckeberg, 2012). This study hence proposes a model of market-oriented relations in the digital era to illustrate how market-oriented relations at the workplace could affect the interrelationships among professionals perceived public relations values, perceived importance of interactivity, and perceived benefits of digital media usage in public relations.

5 Literature review Public Relations Values (Huang, 2012; Huang & Hagan, 2012) H1a. Professionals who are more market-oriented (focusing on customer or consumer relations) will value public relations contributions on organizational reputation, organization-public relationship and media publicity more. H1b. Professionals who are more market-oriented (focusing on customer or consumer relations) will value public relations contributions on revenue generation and cost reduction less.

6 Literature review Interactivity of Practising Public Relations (Guillory & Sundar, 2014; Kelleher, 2008, 2009; Kelleher & Sweetser, 2012; Pavlik, 1996; Sundar, Kalyanaraman & Brown, 2003; Sweetser & Lariscy, 2008) H2. Professionals contribution to market-oriented (focusing on customer or consumer) relations significantly relates to their perceived importance of types of interactivity. RQ1. Is there a significant relationship between professionals values on public relations contributions and their perceived importance of types of interactivity?

7 Literature review Perceived Benefits of Digital Media Usage in Public Relations (Song & Zinkhan, 2008; Triantafillidou & Yannas, 2014; Yadav & Pavlou, 2014) H3. Professionals contribution to market-oriented (customer or consumer) relations significantly relates to their perceived benefits of digital media usage in public relations. H4. Professionals perceived importance of types of interactivity significantly relates to their perceived benefits of digital media usage in public relations. RQ2. Is there a significant relationship between professionals values on public relations contributions and their perceived benefits of digital media usage in public relations?

8 Methodology An online survey study on 204 professionals who have engaged in coordinating public relations activities in Hong Kong was conducted from July to September An invitation to participate in an online survey was sent through professional associations in Hong Kong.

9 Results 204 participants: in-house corporate communication departments (23%); in-house marketing departments (20%); public relations agencies (18%); public relations and marketing departments (15%); in-house public relations departments (12%); marketing agencies (9%). Reliability tests show that all the scales had adequate Cronbach s alphas and composite reliability (CR) coefficients above.70 so all the items were retained for further analysis. Validity tests show that all the average variance extracted (AVEs) were above the.50 threshold. In regard to the degree of model fit, the model was said to be supported by the data based on a range of evaluation criteria (RMESA =.07; SRMR =.06; CFI =.98; NNFI =.97; NFI =.96). Normed Chi-square (χ 2 /df ) was less than 3.00 (Kline, 2016), with χ 2 (47, N = 204) = 97.18, p <.001.

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12 Paths were significant at: ****** p < ***** p <.0001 ****p <.001 ***p <.005 **p <.05 * p <.01

13 Results and conclusions The results indicate that, no matter in which type of organizations, customers or consumers are still a significant group of stakeholders for professionals who have involved in organizing public relations activities (M = 6.97, SD = 1.93). Structural equation modeling analyses show that the degree of market-oriented relations had significant positive effects on professionals perceptions of public relations values, the importance of interactivity, and the benefits of digital media usage in public relations. All hypotheses were supported. Professionals who contribute more to market-oriented relations favor contingency interactivity more, in which involving target stakeholders in the digital platform is the most important way to establish and maintain relations with stakeholders. On the contrary, professionals who contribute more to market-oriented relations concern less about functional interactivity which focuses on enhancing stakeholders liking towards the digital platform. Clients profitability appears to be the most significant perceived benefit of engaging digital media in public relations practices.

14 Results and conclusions Despite the insightful research implications, a larger sample size is definitely more favorable in obtaining more robust effects among the variables. Future research may further validate the proposed model in different countries and cultural contexts, as well as extend the investigation of market-oriented relations to other stakeholders, such as suppliers and wholesalers.

15 Practical and social implications The results provide useful guidelines to professionals in formulating effective digital media strategies to manage the relationship between the organization and its stakeholders.

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