Which of the following is a positive effect of social media for organizations?

Prepare for the SQA Higher Business Management Exam. Enhance your skills with dynamic flashcards and practice questions. Explore hints and explanations to ace your exam!

Enabling global customer engagement is a significant positive effect of social media for organizations. In today's interconnected world, social media platforms provide businesses with the ability to interact with customers from various geographic locations easily. This engagement extends beyond mere visibility; it fosters communication, feedback, and community building, allowing organizations to build relationships with a diverse customer base.

Through social media, businesses can reach international audiences, enabling them to gather insights on customer preferences in different regions and tailor products or services accordingly. Additionally, global customer engagement enhances brand loyalty, as users feel more connected to a brand that actively engages with them on platforms they use. This engagement can lead to increased customer satisfaction and improved brand reputation, further solidifying the organization's presence in the market.

While the other options may have some merit, they don't capture the broad and impactful scope of social media's role in fostering worldwide communication and community among customers. For instance, while social media can aid in customer service training and may contribute to reducing marketing costs, these effects are more specific and do not encompass the global outreach that social media provides. Similarly, preventing negative reviews is not an inherent function of social media; rather, the focus is on how effectively organizations can manage and respond to feedback, whether positive or negative.

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