activity 7: ‘misused’ social technology

• About Domino Pizza Korea.

Domino Pizza, is a USA pizza chain restaurant founded in 1960 at the Domino Farms office park. It has 10,000 worldwide corporate franchised stores in 70 countries. 1990 Domino opened the first store in Korea, now has 340 stores around the country. One of the most popular pizza brand along with Pizza Hut.

• What when wrong and the consequences

Domino Pizza opened their twitter 14.05.2010, after only one and half month they got 7.700 followers. For brand name to be exposed and sell more pizza they made event which was targeting the power-twitter (who has many followers). 

The event strategy was simply that if the event participant get more follower give extra discount on pizza purchasing. MIN(1000won-about$1AUD:0-100follower)~MAX(20,000won-about$20AUD:more than 1901follower)

However, (Event strategy leads to loss of control and brand reputation)

Loss of control:To get more discount people start to follow each other who they don't even know. The follower number was boomed up, but Domino had no solution to deal with and twitters start to call this event "Domino zombie". As the event went opposite side of their planning Domino pizza just shut down the event after a few days later.

Loss of money (resources) & reputation: During the event periods minimum more than a thousand people get discount coupon, which means Domino Pizza sell 1000 boxes of pizza for $1, also as the event close down earlier than the origin date consumers got antagonistic feeling toward the brand.

Rogerson's 8 Ethical Principles.

-Honor

-Honesty

-Bias

-Professional Adequacy: the action was out of the limits of capability

-Due care

-Fairness

-Consideration of social cost:not accountability and responsibility action followed as they just shut down the event

-Effective and efficient action: the event sets up idea definitely not efficient, which cause big financial damage to the company

• How to avoid 'misuse' in the future?

It is true that once enterprise loss control on online, too hard to fix from there. Therefore, in the beginning business planners need to critically check the strategy, whether the strategy reasonable to make positive impacts on their business. Moreover, there always should be plan B for when plan A has gone the wrong way. Also, I would recommend to be more responsible for your customer rather than just shut down the event.

Reference

Jung. (2012, November 8). 엉뚱상상 블로그 라이프 :: SNS를 이용했던 기업들의 실패 사례. Retrieved from http://ddungsang.tistory.com/455