What Is Reputation Management Theory?

by Lindsay Pietroluongo March 31, 2025 Reputation Management Blog

This article about reputation management theory discusses the meaning of the concept and tips for your own reputation management.

When it comes to the decisions that your competitors, coworkers, customers, family, friends and strangers make about you or your business, what’s the most important factor?

Your reputation.

Whether you’re talking about a personal reputation or a company’s reputation, a positive online reputation is a source of power.

But your digital reputation is also fragile.

In this article, we’ll discuss how a brand’s reputation is formed, what it’s made up of, and how to build or repair it.

NetReputation provides information and services to help you create a strong reputation. Call us at 844-461-3632 to learn more or fill out the contact form below for a free consultation.

Game Theory and Reputation Management

According to Investopedia, game theory is “the study of how and why individuals and entities (called players) make decisions about their situations.” It can be considered “the science of strategy,” and it’s used in various fields to predict the outcomes of situations.

In the world of business — and specifically when talking about online reputation management — game theory can dictate how brands should make decisions when positioning themselves in the market.

For example, if Brand A has a solid reputation for being reliable, competing brands know not to compete over reliability. Instead, they should highlight their other attributes. Smart business owners will take advantage of their competitors’ weaknesses, not their strengths.

By carving out a niche in your market, you can essentially own a territory, or an area of expertise that your competitors won’t try to enter. If they do attempt to go head to head with your brand in the area where you excel, they’ll likely operate at a loss.

When you establish a positive reputation in a niche, you can keep a piece of the pie all for yourself.

What Is Reputation Management Theory?

At its most basic, reputation management theory is the idea that people and businesses want to — and can — manage their digital reputations. Common reputation management tactics include:

• Protecting and enhancing your digital image
• Preventing negative associations with your brand
• Highlighting your most desirable traits

The guiding idea behind the theory is that individuals and brands want to be viewed as likable and trustworthy on the internet. In turn, a person’s or organization’s reputation influences how others interact with the individual or company.

Not convinced that a positive reputation matters all that much? Trustpilot found that over 95% of responders feel that the top factor that increases trust in a company is if it has a good online reputation. Moreover, 90% of online shoppers won’t purchase from a company with a bad reputation.

To meet these goals, there’s a set of online reputation management principles to follow that dictate how to use SEO, social media and other channels.

What Core Elements Does an Online Reputation Consist Of?

There are three primary elements that influence an online reputation: image, identity and personality. Let’s explore each one.

1. Image

A brand image — whether we’re talking about a personal brand or a company — is its external perception by customers, employees, etc. The way others view a brand is influenced by behavior, communication and feedback.

When a brand has a positive image, others will trust and stay loyal to it. However, a negative image can impact everything from financial performance to personal relationships.

Here are a few ways to improve your brand image:

• Consistently deliver high-quality products and services.
• Use ethical practices that are in line with what your audience expects.
• Monitor public sentiment and quickly address misconceptions.

You can take control of your online reputation, whether you’re working on your personal reputation or your professional digital presence. Call us at 844-461-3632 for more information.

2. Identity

A brand’s identity is how the person or company defines itself, including its branding, mission, values and vision. Brands create a narrative that they want others to associate with them. When you have a strong brand identity, it’s easier for others to understand what you or your company stands for and differentiate you from competitors.

Here are a few ways to create a strong brand identity:

• Clearly articulate your goals and values when communicating with others.
• Make sure there’s synchronicity between your internal and external messaging and actions.
• Ensure your branding is aligned with the brand culture you want to exude.

Keep this stat in mind: Companies that demonstrate brand consistency increase revenue by 10-20%, yet only 30% of organizations with brand guidelines actually enforce them on a regular basis.

3. Personality

Your brand’s personality is your character or essence, including your approach to interactions, your style, and your tone. Personality also refers to the emotional connection others feel toward your brand.

When you have a relatable brand personality, you’re able to build emotional bonds with others. In turn, your customers, friends, etc., will be drawn to you and will want to engage positively with your brand.

To develop a personality for your brand, you can do the following:

• Develop a voice that’s unique to your brand and resonates with your audience — that may be friendly, innovative, professional, etc.
• Use personalized communication to foster relationships.
• Be approachable and responsive when people try to communicate with you.

When you’re able to align the three core elements of your digital reputation, you’ll build a cohesive internal and external presence that connects with your target audience.

6 Principles of Online Reputation Management

Personal and corporate reputation management focuses on a number of guiding principles. Let’s go over them.

1. Build and Nurture Trust in Your Brand

Trust is a pillar of online reputation management. The public and your own team must believe that you’ll consistently deliver on what you promise. You can earn trust by:

• Using ethical practices, like treating customers and employees fairly.
• Being transparent about your operations and honestly disclosing information.
• Delivering reliable, quality products and services.

CareerArc found that 64% of consumers stop buying from a brand after learning that the company treats employees poorly.

2. Always Be Authentic and Transparent

Today, it’s so easy to be manipulative online. That’s why it’s crucial to show that your brand is authentic and transparent — the last thing that people want is to feel like they’ve been tricked. Strategies to accomplish this include:

• Address and apologize for your brand’s mistakes and shortcomings. Don’t hide them or make excuses.
• Share behind-the-scenes and insider information about your brand’s decision-making processes and operations.
• Make sure your words, promises and actions are always in alignment.

Always stay genuine in your messaging, and never rely on manipulation to get what you want from your audience.

3. Proactively Monitor Your Personal or Corporate Reputation

It’s important to vigilantly track brand perception across the channels where you and/or your audience is present, including news outlets, review sites and social media. There are a lot of tools for reputation monitoring, such as:

• Social listening platforms like Brandwatch and Hootsuite
• Online reviews on platforms like Google and Yelp
• Surveys you conduct to gauge audience sentiment

By proactively monitoring how others feel about your brand, you can capitalize on what’s working and identity risks before they snowball into crises.

4. Set Up a Crisis Management Plan

Even the most well-run organization will face a PR crisis at one point or another, resulting in reputational challenges or fallout. Crisis management includes:

• Creating a crisis response plan before you need one. It should include who will be the spokesperson in the event of a crisis, drafted statements, etc.
• Responding both quickly and thoughtfully during a crisis so as not to lose more confidence from your audience.
• Be accountable and empathetic when addressing concerns from those affected.

It’s important to rebound from a PR crisis as soon as possible, and a plan that’s laid out ahead of time is crucial. According to Trustpilot, customers will pay more for the same item from a company they’re unfamiliar with versus one that’s had a recent scandal.

5. Never Spin Your Reputation

A positive reputation must be earned, not falsely created. Don’t rely on superficial, inauthentic efforts to build a good reputation. Avoid deceptive practices like:

• Posting fake reviews to make it seem like your brand is more popular or beloved than it is.
• Making misleading claims to cater to what your audience wants to hear, even if they don’t reflect what your company offers.
• Deleting negative reviews to give the impression that your brand only generates positive feedback.

Remember, it’s OK to have some poor reviews — every company does. BrightLocal found that responding to reviews matters more than if you have some negative feedback from customers. As much as 88% of consumers would use a business that replies to all reviews, both positive and negative, while only 47% would use a business that doesn’t respond to its reviews at all.

6. Harness the Power of Social Media

Social media plays a major role in reputation management, mainly because it makes an immediate impact and is one of the best ways to be transparent with your followers. Reputation management on social media platforms includes:

• Engaging with followers and your audience through comments and DMs.
• Addressing negative feedback in a constructive (and public) way rather than being defensive.
• Using social media for storytelling that connects emotionally with your audience and highlights your brand’s achievements and positive attributes.

At NetReputation, we work with individuals and businesses to help them build and take control of their online reputation. Give us a call at 844-461-3632 to learn more.

3 Tips for Creating and Maintaining a Good Reputation

Improving public perception of your brand isn’t a one-time goal. Prioritizing public relations, social responsibility and positive online reviews for the sake of reputation management is an ongoing process. Here’s how to maintain the strong reputation you worked so hard to build.

1. Always Be Increasing Positive Associations With Your Brand

Whenever your brand takes action or communicates with your audience, you create an association — either a positive or negative one. The goal is to continually build positive associations with your brand by taking actions that the public will view favorably. Here are a few ways to do that:

• Deliver exceptional customer service in every interaction. Go above and beyond what’s expected. If you have a team of people working for you, empower them to make high-level decisions for the sake of the customer experience.
• Share success studies with your audience, particularly those that will connect emotionally with them. Highlight the impact your brand has had on the industry, society or individuals.
• Partner with reputable organizations that share the same audience as you. This will help you reach more people and make you more credible in your industry because you’re associated with other trusted brands.

We offer ORM solutions for individuals as well as businesses. Get started today by calling 844-461-3632 and getting a free consultation with one of our experts.

2. Constructively Address Negative Feedback

Negative content — like poor reviews, unflattering comments on social media and negative news coverage — happens to even the most reputable companies. It’s how you handle the negativity that matters most. Here’s how to constructively respond to poor feedback and content online:

• Actively listen to the concerns of those impacted. Don’t try to dismiss them. Instead, take to heart what’s being said and consider if and how you can apply the feedback to improve your personal or corporate reputation.
• Apologize for your part in the situation, even if there’s been a misunderstanding and you’re not exactly at fault. Express your sincere apologies for how the other party is feeling, and take accountability by assuring them you’re there to fix the problem in some way. Offer whatever solutions are possible and reasonable to rectify the issue.
• When handling negative online reviews, first respond publicly, maintaining an apologetic, friendly and professional tone. Then, take the conversation offline to learn more about what went wrong and to work out a solution with the person who was affected.

In general, you can use negative feedback to make improvements to your customer service, business operations, marketing strategies, etc. At the very least, you may realize that you’re creating unrealistic expectations or targeting the wrong market, and you can make shifts with your brand to better cater to your audience.

3. Remove Harmful Content the Responsible Way

When it comes to seriously damaging content, like defamatory or false comments or media coverage, there are ethical ways to have it removed.

• Respond publicly to clarify inaccurate and misleading information. However, refrain from attacking critics. Instead, speak with your audience in a transparent, clear way.
• Take legal action, if necessary. Sometimes, the only way to remove defamatory content is through legal channels.
• Focus on creating fresh, positive content that will outweigh negative content in Google search results.

While you don’t want to remove negative online reviews or social media comments across the board, it’s OK to tackle truly incorrect or defamatory content that has the purpose of damaging your brand.

Let NetReputation Help

At NetReputation, we provide a broad range of reputation management services to individuals and businesses who want to create, grow or repair their digital reputation. It’s time to take back control of how people perceive you online so you can attract the opportunities you deserve.

Contact us today at 844-461-3632 or by filling out the form below to learn more.