Reaching for the Stars: The Role and Value of Digital Reputation

In the old economy, reputation was considered an important but somewhat underestimated intangible asset. In the digital economy, the significance of reputation is expanded in scope. It enables the building of trust among “quasi-strangers” who engage in an economic transaction. Reputation scores, usually in the form of feedback, ranking and rating systems, facilitate the building of trust in the absence of a direct relationship between sellers and buyers. Concomitantly with the rise of social network sites and the proliferation of metrics and analytics of all kinds, the era of the “reputation economy” has dawned. A good reputation usually brings further good evaluations. On the other hand, a bad reputation can be a long-term setback for a company. Having no reputation means virtual non-existence in the eyes of today’s consumers. Professional reputation management is therefore a core task that makes a decisive contribution to the success of a company.