i EXPLORING THE INFLUENCE OF PUBLIC RELATIONS ON THE REPUTATION OF DIRECT SELLING COMPANIES. A CASE STUDY OF QNET LTD BY DEBORAH NAA NORLEY ADOM STUDENT ID: MAPRM23012 A DISSERTATION SUBMITTED TO THE UNIVERSITY OF MEDIA, ARTS AND COMMUNICATIONS UniMAC IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER OF ARTS IN PUBLIC RELATIONS WITH MARKETIN JANUARY 2025 ii DECLARATION DECLARATION BY STUDENT – PROJECT DISSERTATION I hereby declare that this research is a result of my own original research and that, no part of it has been presented for another degree in this university or any other higher education institute. I further declare that all the sources that I have used or quoted have been indicated and acknowledged by means of complete references. Deborah Naa Norley Adom MAPRM23020 20/01/25 ………………… ………………. …………… …………………. Student Index Number Signature Date DECLARATION BY SUPERVISOR This Dissertation has been prepared and presented under my supervision according to the guidelines for supervision and formatting of Dissertation laid down by the University of Media, Arts and Communications. Dr. Rhodalene Amartey 20/01/25 ………………… ……………………… ……………………… Supervisor Signature Date iii ABSTRACT This study explores the influence of public relations (PR) on the reputation of direct selling companies, with QNET Ltd. as the case study. Direct selling companies constantly face misconceptions and scrutiny globally and this has affected their reputation negatively. Public relations play an important role in shaping the reputation of organisations by promoting transparency, trust, and building a positive public perception. This research employs qualitative data collection techniques, through interviews, to examine how PR strategies employed by QNET mitigate negative perceptions and enhance its reputation. The findings from this study reveals the importance of strategic PR initiatives such as crisis communication, intensive campaigns, stakeholder engagements and digital media strategies in influencing public opinion and addressing challenges unique to the direct selling industry. The study contributes to the existing body of knowledge on reputation management, providing insights for public relations practitioners and policymakers on the effective use of PR in the direct selling sector. iv Acknowledgment I am profoundly grateful to the Almighty for granting me the strength, wisdom, and perseverance to complete this thesis. I would like to express my heartfelt appreciation to all those who supported me throughout this journey. To my supervisor, Dr. Rhodalene Amartey, thank you for your patience, guidance, and unwavering availability whenever I needed assistance. May God bless you abundantly for your support. A special thank you to Mr. Kojo Williams, my mentor, and Mrs. Barbara Adom for your financial support. This achievement would not have been possible without your generosity and encouragement. I am also deeply grateful to the staff of QNET Ltd., whose cooperation and insights were instrumental in the success of this study. To my mother, Mrs. Christiana Agyekum, I cannot thank you enough for your sacrifices and unconditional love. To the amazing friends I made during this time (Emmanuel Paintsil, Adelaide Shika Darko, and Eric Nyinaku) thank you for the wonderful memories and for cheering me on every step of the way. Lastly, this work is dedicated to my son, Jayse Nii Shidaa Adom, the driving force behind my hard work. Thank you for choosing me as your mother. You are my greatest blessing, and I love you dearly. To everyone else who contributed to the success of this project in any way, I extend my deepest gratitude. May God bless you all abundantly. v TABLE OF CONTENT ITEM PAGE NO. DECLARATION………………………………………..……………….……………...……..ii ABSTRACT……………….…….…………………….………………….……………..……iii ACKNOWLEDGEMENT……………………………………………………………..……...iv Table of Content…………..……………………………………………………..…………….v CHAPTER ONE – OVERVIEW OF THE STUDY 1.1 Background of the study……….……………….……………………...…………………..1 1.2 Statement of the problem ...…..…………………………………………...……………….3 1.3 Research Objectives ……………………...……………………………………..…………3 1.4 Research questions…… …………...………...……………………………………….……4 1.5 Scope of the study …………………….……….…….…………………………………….4 1.6 Significance of the study………….………………………………………………………..5 1.7 Organisation of the study……………...……………………………………………………5 1.8 Chapter summary…..…………………….………………………………………………...7 CHAPTER TWO - LITERATURE REVIEW 2.1 Introduction……………………………….………………………………………………..8 2.2 Review of relevant literature……………………………………………………………….8 2.2.1 Role of public relation in reputation management…………..………...…………………8 2.2.2 Public relations and crisis management….……………………………………………..11 2.2.3 The direct selling and e-commerce industry…………...………….……………..……..14 2.3 Theoretical framework…………………………………………...…………………….…15 2.3.1 Relevance of the study………… ………………………………….......……………….18 2.4 Profile………...………………………………………………………...…………………19 2.5 Operational definition of terms…………………………..……………………………….20 2.6 Chapter summary……………………………………………………..…………………..21 CHAPTER THREE - METHODOLOGY 3.1 Introduction……………………………………………………………………………….22 3.2 Research approach..............................................................................................................22 3.3 Research design…………………………………...............................................................22 3.4 Research method………….………………………………………..………………...……23 3.5 Population……………………………….………………………..………………….……23 vi 3.6 Sampling technique……………………………………………………..………….…….23 3.7 Data collection method………………………..…………………………….……………24 3.7.1 Secondary data…….……………………………………………………………………24 3.7.2 Primary data….…………………………………………………………………………24 3.8 Data analysis………………………………………………...………………..…………..25 3.9 Ethical considerations………..……………………………...………………..…………..25 3.10 Summary…..……………………………………………...………………..……………25 CHAPTER FOUR – DATA ANALYSIS, PRESENTATION OF FINDINGS AN DISCUSSIONS 4.1 Introduction……………………………………………….………………………………26 4.2 Public relations strategy……………………………………………………………..……26 4.3 Public perception and reputation………………………………………………………….28 4.4 Challenges in PR practice in Ghana………………………………….…………………...29 4.5 Stakeholder engagement…….…………………………………………….………….…...31 4.6 Measuring the effects of PR strategies…………………………………….….…………..33 4.7 Recommendations …………...…………………………………………….……………..34 4.8 Discussion of findings …………………….………………………….…….……………..35 4.9 Chapter summary ……………………..…………………………….…….……………...38 CHAPTER FIVE – SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.1 Introduction ……………………..…………………………….…….……………………39 5.2 Summary of findings ………………..…………………………….…….………………..39 5.3 Conclusion……………….………………………….…….………………………………42 5.4 Recommendations……………………….………………………….…….………………42 5.5 Areas for future research……………….….………………………….…….……………..44 5.6 Limitation of the study…………….………………………….…….……………………..44 REFERENCES……………………….………………………….……….…….……………..45 APPENDIX A……………………….………………………….…….…………………..…..52 APPENDIX B……………………….………………………….…….…………………..…..55 APPENDIX C……………………….………………………….…….…………………..…..70 1 CHAPTER ONE OVERVIEW OF THE STUDY 1.1 Background of the study In the evolving world of business and e-commerce, companies are paying attention to their reputation and brand image because like the famous actor and social commentator Will Rogers said, ‘It takes a lifetime to build a good reputation, but you can lose it in a minute’. Public relations play a vital role in maintaining that good reputation and the direct selling industry where credibility and trust are important is not left out. The Public Relations Society of America (PRSA) explains Public Relations (PR) as a strategic communication process that builds mutually beneficial relationships between organizations and their publics. The PRSA posits that Public Relations encourages influencing, engaging, and building a relationship with key stakeholders across numerous platforms. This is believed to be a core responsibility that shapes and frames the public perception of an organization. ("About public relations," 2024.) Public Relations today is more than just press releases and working with the media but an evolving field that combines the use and application of data, stories, marketing, advertising, social and digital components. This fosters and sustains mutually beneficial relationships across audiences and channels (Freberg, 2020). Aljanabi (2020) posits that public relations practitioners are expected to explain the problems of the organisation identified through research to the public before they develop into crises. Public relations practitioners must comply with the ethics regarding their work because its success and reputation are linked to its morals, integrity, credibility, and the confidence of others in it and that of their organisation. Corporate reputation is seen as the overall perception of stakeholders towards their organization or company, which is either positive or negative and the collective judgement of a company 2 based on ongoing assessments of its financial, social, and environmental impacts. (Mohd et al, 2023). The reputation of an organisation plays an important role in the progress or failure of any organisation and any stakeholder of that organisation can cause damage to the corporate reputation of that organisation. Hence the misconduct of stakeholders can tarnish the hard-won reputation of any multinational corporation overnight. (Chun et al., 2019). The reputation of an organisation also has an impact and influence on the confidence of investors, recruitment of staff, attitudes of suppliers and is used as a tool for business relations hence poses as a major risk on businesses. Companies engaged in retail, social media, and the internet, risk the spread of bad news faster than businesses in other arears. All stakeholders view the reputation of their organisations differently. For investors, it’s the company performance, for employees, renumeration standards, suppliers are more interested in the payment ability of the organisation and with customers, it is the quality of the product or service. This emphasises the need for different strategies when dealing with reputation crisis from different stakeholders (Edi & Wati, 2022). Direct selling has existed for decades and is a type of non-store retailing where all direct sellers are non-salaried, and the traditional notion of direct selling is of an industry that is face-to-face and people orientated where relationships are formed (Wait, 2019). According to the Direct Selling Association, direct selling is a retail channel used by top global brands and smaller, entrepreneurial companies to market products and services to consumers. Most of these companies market all types of goods and services, including jewellery, cookware, nutritional’s, cosmetics, housewares, energy, insurance, and other products. The direct selling association also reveals that direct selling is an avenue where entrepreneurial persons work independently to build a business with low start up and overhead cost. ("What is direct selling," 2024). Emphasis is placed on the word independently. Statistics from the World Federation of Direct Selling Associations 2022 global annual direct selling statistical data report reveals that Africa 3 / Middle east recorded an estimated retail sales of $1466 million in 2022 which shows a decline of 13.3% in sales when compared to previous years. ("Wfdsa stats," 2023.) This study will explore the influence public relations has on the reputation of a direct selling company with QNET Ltd as the case study. 1.2 Statement of the problem While there has been some research done on the influence of public relations on brand reputation, most studies have not focused on the direct selling industry. Anani-Bossman, (2020) in his research on the role of public relations in corporate reputation management focused on other industries in Ghana like the banking, food and beverage and oil and gas. However, there is limited to no research conducted on the influence of public relations in the direct selling industry. This gap is significant because, it affects both industry and academia. This research aims to address this gap by conducting qualitative research through purposive interviews and document analysis in addressing the lack of empirical evidence on the effectiveness of PR strategies employed by direct selling companies like QNET Ltd in managing their reputation in Ghana and how these strategies impact their stakeholders. 1.3 Research Objectives 1. To examine the strategies used by QNET LTD’s Public Relations team in Ghana. 2. To assess the impact of QNET LTD’s Public Relations strategies on the company’s reputation. 3. To identify the main stakeholders of QNET LTD in Ghana 4 4. To identify the issues faced by QNET's Public Relations team in maintaining a positive reputation in Ghana. 5. To suggest recommendations for improving the Public Relations practices of direct selling companies in Ghana. 1.4. Research Questions 1. What Public relations strategies does QNET Ltd employ in Ghana? 2. How does the public view the reputation of QNET Ltd in Ghana? 3. What challenges does the QNET Ltd PR team face in maintaining a positive image in Ghana? 4. Who are the company’s main stakeholders? 5. How effective are QNET Ltd.’s PR strategies in enhancing its reputation among its Ghanaian publics? 1.5 Scope of the study This study will focus on examining the various public relations strategies that QNET Ltd uses in Ghana. It will also study any significant shifts in QNET Ltd.’s PR strategies in the past few years and the impact it has on the company’s reputation. The study will focus on Ghana, and on how the public relations strategies influence direct selling companies with QNET Ltd as the case study. This research will further identify the challenges faced by QNET’s PR team in maintaining a positive image and explore how these challenges are addressed. The research will identify the key stakeholders of QNET Ltd in Ghana, including customers, employees, regulators, and the media, to understand their influence on the company's reputation and the role PR plays in managing relationships with these stakeholders. 5 The study will employ qualitative research methods, including purposive interviews with QNET’s PR professionals and stakeholders, as well as document analysis, to gather insights into the effectiveness of the PR strategies used by QNET Ltd. The study aims to provide recommendations for improving the public relations practices of direct selling companies in Ghana, based on the findings related to QNET Ltd.’s PR strategies and their impact on the company’s reputation. 1.6 Significance of the study This research will provide QNET Ltd and other direct selling companies with information on how to strategize and use public relations in the Ghanaian space. It will contribute to both academia and industry by bridging the literature gap in public relations, corporate reputation, and direct selling in Ghana. It will also contribute to understanding the Ghanaian landscape when it comes to direct selling and inform direct selling companies on the key challenges and opportunities in PR for direct selling companies when penetrating the Ghanaian market. 1.7 Organisation of the study This study will explore the influence of public relations on the brand reputation of direct selling companies, specially focusing on QNET Ltd. as a case study. The research will help understand how public relations strategies are employed by QNET Ltd in maintaining its brand reputation in the face of public scrutiny and misconceptions often associated with the direct selling industry. The study will be in six chapters and each chapter will address a specific aspect of the research in achieving the overall objective. 6 Chapter one provides an overview of the entire study and explains the main objectives of the study, the problems identified, the questions that the research seeks to answer and the scope of the entire study. It further explains the significance of the study introducing the research problem, objectives, and research questions. It also discusses the significance of the study and give a clear overview on how the entire research would be structured. Chapter two will review existing literature pertaining to public relations, brand reputation and the direct selling industry. This chapter will explore theories and frameworks that important to understanding public relations and its influence on brand reputation. In this chapter, the gaps in literature in the field of study will be clearly identified especially in the direct selling industry In chapter three the research methodology employed will be stated. This chapter will explain why that methodology was chosen and it will further explain the data collection methods, sampling techniques, ethical considerations and the data analysis process. In Chapter four the research findings would be presented and would explain how QNET Ltd. uses public relations strategies to manage and enhance its brand reputation. Findings will be organised in key themes identified in this chapter. The key findings and its implications in relation to the research questions raised in Chapter one will be discussed. The effectiveness of QNET’s public relations strategies and their impact on the company’s brand reputation would be analysed using the findings. The chapter will also reveal how the findings will contribute to understanding how reputation is management in the direct selling industry. Chapter five will be the final chapter and will summarise the key finding and based on the findings and offer a conclusion. The limitations of the study will be disclosed and recommendations on how QNET Ltd and other direct selling companies can improve their public relations practices to enable them do away with the misconceptions and further improve their brand reputation would be stated. 7 1.8 Chapter summary This chapter gives a broad overview on what the entire research is going to be about and introduces the entire research. This chapter reveals the lack of research available in the sphere of direct selling when it comes to public relations and identifying what public relations strategies are employed by QNET Ltd and their effectiveness forms the problem identified and objective of the study. The research will further probe into the relevant stakeholders of the company and which public relations strategy is used in working with them. This study in the end will be beneficial to both academia and the direct selling industry. The chapter further explains the framework in which the research would be conducted, while providing the necessary context to understanding the importance of exploring the influence that public relations has on the brand reputation of direct selling companies. 8 CHAPTER TWO LITERATURE REVIEW 2.1 INTRODUCTION This chapter discusses and reviews literature that is relevant to the topic and review other related studies. It also throws light on the theoretical framework that is used in this study and as well as defines the terms and concepts in the study. The chapter concludes with a chapter summary. 2.2 Review of Relevant Literature 2.2.1 Role of Public Relations in Reputation Management To better understand the basis of this research, it is important to first understand public relations and how much it has evolved over the years. According to Grunig & Kim (2021), in the early days, public relations was merely a press agentry role, where public relations officers were reduced to press relations officers and were only interested in getting favourable press mentions for their organisations, no matter what it took. During this era, the practitioners engaged in one- way communication, which was from the organization to the public without room for transparency or feedback. They dwelled on the lack of probity to hide relevant public information and told only the favourable stories of their organizations to their public. Public Relations was generally described as a tool for subterfuge, insincere public gestures, spinning, and a mere propaganda machinery within this era (Olariu, 2017) later redefines Public Relations as a tool that is used in creating public awareness, generating the publics preference for a product, repositioning a product in the market and sustaining the products in the market. In this context, PR plays a vital role in promotion and communication. 9 (Umaru et al., 2022) also emphasized public relations as a management function that is used by both the private and public sectors because it plays an important role in fostering and maintaining a positive relationship between an organisation and its publics, both internal and external. They argue that an organisations success is influenced by how cordial the relationship with its immediate community is, because this helps build and foster trust and in the end influences productivity and their overall performance. (Olariu 2017) further highlights key public relations tools which he states are publications, events, news releases, speeches, public service activities, written and audiovisual materials, corporate identity building, and telephone services. He also noted that planning public relations activities today involves setting clear objectives, selecting the right messages and communication channels, and assessing the outcomes of these. Anani-Bossman (2020) emphasises this point. He posits that PR is at the forefront of spearheading the reputation management agenda employing several techniques such as determining the right communication tools, developing media plans, selecting the right messages, setting objectives, budgeting and determining the overall effectiveness of the PR strategy has become an essential business function that influences business decisions including how organisations plan and communicate with their key stakeholders. It is clear that every organization needs a communications practitioner who is creative and proactive in establishing good relations and disseminating information to the public. This is done to minimize errors in conveying messages and misunderstandings in acceptance by the public. So that the image of an organization is always well maintained. For example, agency or institution A is experiencing a period of crisis and the image of the institution is viewed negatively by the public, Public Relations is the first party who will find the best solution and solution to solve the problems being faced (Raya & Apriliani, 2024). 10 McKie & Sriramesh (2017) argue that Public Relations (PR) is a field that focuses on managing communication and relationships between people, groups, and organizations with the aim of building, maintaining, or even repairing reputations. They state that PR plays a key role in crisis management, risk communication, and handling public issues. They further informed that people from various sectors, including business leaders, governments, and non-profits, use PR and overtime it has evolved from being about controlling messages to fostering mutually beneficial relationships, especially with the rise of social media and digital technologies. (McKie & Sriramesh, 2017) further explains that in modern times, PR is less about controlling communication and more about building connections that benefit both organizations and the public. Ntsugah & Bossman (2023) emphasize that PR remains at the forefront of spearheading the reputation management agenda by employing several techniques such as determining the right communication tools, developing media plans, selecting the right messages, setting objectives, budgeting, and determining the overall effectiveness of the PR strategy reputation has become an essential business function that influences business decisions including how organizations plan and communicate with their key stakeholders. In their study, PR practitioners from selected multinational organizations were used as respondents to the research. Results indicate that public relations play a critical role in building the reputation of an organization. Practitioners use several activities including interpersonal communication, corporate social responsibility, and community engagement to build reputation. Every organization certainly needs a practitioner in the field of communication who is creative and proactive in establishing good relations and disseminating information to the public. This is done to reduce errors in conveying messages and misunderstandings in acceptance by the public and to maintain a good image for the organization. For example, if an organization is 11 experiencing a period of crisis and their image is seen as negative by the public, the Public Relations unit is the first party that will find the best solution to solve the problems being faced. Public Relations include the strategic management of information exchange between a person or organization and the public, intending to shape public opinion. Studies have shown that public relations have a beneficial effect on audience engagement by effectively sharing information between different parties, leading to a more involved audience. This shows that public relations has evolved over the years from being one sided and now involves building relationships with stakeholders. In summary, PR has evolved from being a one-sided way of communicating to a strategic process that highlights relationship-building with stakeholders. Studies show that effective PR practices can enhance audience engagement and foster deeper involvement between organizations and their publics. 2.2.2 Public Relations and Crisis Management One of the roles of public relations is crisis management. Oyewole (2023) posits that crises management is a critical organisational function which is one of the core essences of public relations. He refers to public relations as a strategic, marketing function that has been touted as an essential tool for resolving and or managing crises. He emphasises on the fact that crises management remains a critical organisational function and reveals how some crises have brought organisations to an abrupt end whiles leaving the reputation of other organisations crucially dented and as such, wanes the interest of stakeholders. Bundy et al. (2017) defines an organizational crisis as an event perceived by managers and stakeholders as highly salient, unexpected, and potentially disruptive which can threaten an organization’s goals and have profound implications for its relationships with stakeholders. In this article, (Bundy et al. 2017) outline four primary characteristics of crises and these are (a) 12 crises are sources of uncertainty, disruption, and change. (b) Crises are harmful or threatening for organizations and their stakeholders, many of whom may have conflicting needs and demands. (c) Crises are behavioural phenomena, meaning that the literature has recognized that crises are socially constructed by the actors involved rather than a function of the depersonalized factors of an objective environment. Lastly (d) crises are parts of larger processes, rather than discrete events. From their review of Literature, (Bundy et al. 2017) identified two primary perspectives that focused on different aspects of crises and crisis management. These which they stated were the internal and external perspectives. The internal perspective, as explained by (Bundy et al. 2017) focuses on the within-organization dynamics of managing risk, its complexities, and technology. This means that organisations should be able to handle the technical aspect and the relational aspect of their organisations. They should be able to prevent crisis, reduce the impact of these crisis in case it happens and learn and improve from crises. The external perspective according to (Bundy et al. 2017) focuses on the interactions of organizations and its external stakeholders. This perspective, believes that crisis management involves shaping perceptions and coordinating with stakeholders to prevent, solve, and grow from a crisis. Stakeholders are more involved here. Bundy et al. (2017) believed that these two perceptions have been developed independently over the years and its integration would serve a better purpose. They situate it around three primary stages which they labelled a) Precrisis prevention, b) crisis management and c) Postcrisis outcomes and this involved both the internal and external perspectives. Karam (2017) carried out a study on the impact of strategic planning on the crisis management of 5-star hotels. The study investigates crisis management styles (escaping, confrontation, cooperation, and containment) and their relationship to strategic planning processes. The study used a descriptive-analytical method with qualitative and quantitative approaches. Self- 13 administered e-mail questionnaires totalling 190 were sent to all the general managers at the Egyptian five-star hotels. The outcome revealed that there is a statistically significant correlation and the relationship between strategic planning processes and crisis management styles. There was a negative correlation between strategic planning and escape, while strategic planning and confrontation, cooperation, and containment have a positive correlation. The findings implied the significance of strategic planning in times of crisis to improve hotels’ ability to survive and thrive in a crisis. The manager who actively exercises strategic planning is less escapable and able to manage the crisis either by using the style of cooperation, confrontation, or containment. The researcher recommended that hotels should employ a strategic approach to crisis management by embodying crisis management planning in the strategy process. Hotels should introduce crisis management as an integral and integrated part of strategic planning. Proper strategy and crisis management at the same time help hotels to think and plan strategically during a crisis and increase their ability to successfully manage it. (Nordeman & Humanson (2017) in their study of proactive crisis management affirmed that due to a competitive and consistently changing global business environment, it is almost impossible for organizations to avoid crises of various types and magnitude. The objective of their study was to display relationships between the perception of crisis awareness, crisis readiness, and the organizations` actual crisis management initiatives against major industrial crises. And also, to clarify if the perception of crisis awareness and crisis readiness could be affected by other factors that should be in consideration, which in turn could affect the outcomes of crisis-management initiatives and actions in industrial organizations. Data was obtained through literature and articles and was presented in the theory part. Collected data and empirical findings of the two largest automakers namely, Volkswagen and Toyota, who have been involved in scandals and crises related to core research of this paper. The findings of the research indicate that the perception of crisis awareness and crisis readiness in an organization 14 has a direct impact on the organization's crisis management initiatives and activities. Likewise, there are elements like Corporate Culture, Personnel Education in Crisis Management and Corporate Communication, and other factors, which would affect the perceptions of organizations. The study proposed that by the effective use of the elements listed above, organizations could influence employees’ crisis awareness and crisis readiness positively, thus strengthening the organizations' crisis management capacities. These studies demonstrate that strategic planning, crisis awareness, and readiness are important aspects of effective crisis management. Organizations that take a proactive approach in engage in these activities are better prepared to prevent, manage, and recover from crises, while maintaining their relationships with stakeholders and protecting their reputations. 2.2.3 The direct selling and e-commerce industry Viswanathan (2018) describes direct selling by explaining that the direct selling business is a form of business in which products and services are marketed directly to consumers. The products are directly sold to the consumer in a non-retail environment and the sale occur generally at a customer’s location like home, work, or other location. It eliminates the use of middlemen involved in product distribution, such as the brokers, regional distribution centres and wholesaler. Instead, products go from manufacturer to the consumer directly through a distributor or retailer who can also be a customer for those goods or services. According to (Bobâlcă, C. 2015), Direct selling is a type of relationship marketing that facilitates the construction of a customized relation between the company and its clients and assures a long-term collaboration between the two parts. For a direct selling company, direct marketing is a powerful tool used to build strong relationships with the clients. Viswanathan (2018) further explains that growth in the direct selling business is seen through companies having their own performance-based marketing and rewards plan based on the sale 15 of goods and services it offers. The higher the turnover, the higher the reward earned. According to (Viswanathan, 2018) companies provides product and services information in the form of brochure, leaflets, catalogues, Audio and video Visuals and the training programmes offered through internet and online training libraries or in person through the company trainers. The sales can be carried out individually or with the help of sales team formed by the individual. But in Ghana recently, there have been several controversial issues surrounding direct selling companies. Seow (2022) posits that it is not easy to differentiate pyramid or Ponzi scheme from legitimate direct selling because unfortunately, due to a lack of regulatory scrutiny and public awareness, pyramid or Ponzi schemes have penetrated many countries around the world. According to (Seow, 2022) fraudulent operators disguise themselves as legitimate direct selling operators and infiltrate society causing catastrophic damage to the reputation of direct selling. He differentiates that Pyramid and Ponzi schemes are recruitment-centric and members are rewarded by mere recruitment, but the direct selling model is product-centric and thus, distributors are rewarded based on the personal and team sales of products. 2.3 Theoretical framework Thomas (2017) explains theory as a description of a phenomenon and the interactions of its variables that are used to attempt to explain or predict. Generally, research is underpinned by some theoretical constructs. This helps draw research findings and analysis within certain theoretical frameworks and goes a long way to help appreciate these theories some more. It also helps the researcher confirm the existence of a theory in a phenomenon, challenge the existence of the said theory or even show some extensions or variations that may exist in the theory. The theory that underpins this study is the Situational Crisis Communication Theory (SCCT) which was propounded by W. Timothy Coombs which is grounded in the attribution theory that 16 explains how individuals interpret events and how this relates to their thinking and behaviour. Attribution theory suggests that people attribute responsibility for events, including crises, and their perceptions of that responsibility shape their reactions. SCCT categorises crisis into different types. These include A) Victim crisis this is where the organisation is seen as a victim to the crisis. This is normally stemmed from natural disasters, the tampering of products etc. B) Accidental crisis where the organisation is involved in event or crisis that was unintentional. This is normally seen when there is a technical error or a machine or equipment malfunctions and the last is C) Preventable crisis. This is where the crisis could have been avoided or was intentional. The organisation is held responsible, and the reputation of the organisation is highly at risk here. This can be stemmed from mismanagement, illegal activities, or unethical behaviour. Timothy Coombs (2007) further outlined some specific strategies that organisations can use in response to crisis depending on the type of crisis and the degree of responsibility attributed. His suggested strategies fall into three categories: the deny, diminish and rebuild strategies. The deny strategies is where the organisations deny responsibility for the crisis, and this is used mostly in victim crisis situations. The organisation uses these strategies to distance itself from the crisis situation by using scapegoating, attacking the accuser etc. The diminish strategy is where the organisation is where the organisation tries to reduce the severity or impact of the crisis or event or its responsibility to it by offering explanations and justifying the situation. These strategies are normally used in accidental crisis where the organisation takes some responsibility for the event but downplays its severity. The rebuild strategies according to Coombs is when the organization accepts responsibility for the crisis and seeks to repair its reputation by apologising, offering compensation and even 17 performing some corrective actions. This is important in preventable crisis where the organisation must demonstrate its commitment to changing. Timothy Coombs suggested some additional strategies that may be used alongside the main strategies mentioned above and this he called the Bolstering strategies. In this case organisations are recommended to use reminders; this is where the organisation reminds its stakeholders of its past good deeds in order to balance the current situation. He listed ingratiation as another strategy and in this case, organisations praise their stakeholders in order to get into their good books or win their favour. The last he states as victimage; this is where the organisation highlights the impact the crisis has had on them and the harm it has caused. This is also normally used in victim crisis. Many scholars have agreed to this theory and even built on it, but others share a different opinion on the crisis response strategy According to Coombs & Holladay (2014) the crisis response strategy research reflects a very specific univocal bias by concentrating on what organizational managers say and do to manage meaning. The “one voice” of the organization-as-crisis-manager is examined. This does not mean that all crisis responses emanate from a single spokesperson but rather that spokespersons, one or many, are perceived to be speaking for “the organization.” However, we must acknowledge that other voices may emerge during a crisis and seek to influence the meanings people attach to the crisis and the organization in crisis. The growth of social media has provided public places for other voices, in addition to the organization’s voice, to communicate about the crisis and crisis-related message. This argues that categorizing crisis into clear-cut types (victim, accidental, preventable) does not fully capture the complexity of real-life situations. This argues that crises are often fluid and more complex and may not fit neatly into these categories. As a result, SCCT may not provide sufficient flexibility for organizations facing confusing or evolving crises 18 Lu & Huang (2018) argue that crisis communication strategies like SCCT does not clearly consider the role of emotions in crisis communications. They argue that scholars tend to ignore the possibility that emotion plays as strong a role as rationality in cognition and argue that the neglect of an emotion-to-cognition approach is partly due to theoretical presuppositions and partly due to the difficulty of observing, targeting, controlling, and measuring crisis emotions. Coombs (2007) states that SCCT is an example of the scientific social study of crisis communications. He emphasises that the internet is becoming a valuable tool for collecting information about warning signs and crisis as well as an option for communicating with stakeholders during a crisis. He mentions that this has also increased the crisis risks organisations face through computer hacking, denial of service and amplifying challenges from stakeholders that management might be operating an organisation in an inappropriate manner. 2.3.1 Relevance of the theory to the study The Situational Crisis Communication Theory (SCCT) highlights the importance of aligning a crisis response strategy with the organisations level of responsibility towards the crisis. This helps the organisation protect and or potentially repair its reputation. A direct selling company like QNET Ltd faces crisis in Ghana a lot where they are accused of unethical practices. This theory would help determine if their public relations team uses the SCCT during crisis and if this theory actually work in complex situations like that of QNET Ltd. 19 2.4 Profile ABOUT QNET LTD Overview QNET LTD is a global e-commerce-based direct selling company that operates in over 100 countries with regional offices and agency partnerships across the world. The company offers a wide range of products in different categories, which includes health and wellness, lifestyle, travel and education. The company operates under the umbrella of the QI Group, which was founded in 1998 by Vijay Eswaran and Joseph Bismark. QNET's business model is based on multi-level marketing (MLM), where independent representatives (IRs) promote and sell the company's products while also recruiting new representatives. QNET uses a multi-level marketing model as its business model. This allows independent representatives earn commissions based on the sales of their recruits in addition to their own sales. This business model is known for its entrepreneurial opportunities but criticized for its resemblance to pyramid schemes. QNET LTD’s Product Range QNET's product portfolio is diverse, encompassing several categories: • Health and Wellness: Nutritional supplements, water purification systems, and personal care products. • Lifestyle: Home care products, jewellery, watches, and fashion accessories. • Education: Online learning courses and educational tools. • Travel: Holiday packages and vacation club memberships. ("About QNET QNET - About QNet - Who are we? What we stand for…," 2023) 20 2.5 Operational definition of terms and concepts Public Relations The Public Relations Society of America (PRSA) defines public relations as a strategic communication process that builds mutually beneficial relationships between organizations and their publics. Media relations (McKie & Sriramesh, 2017) posit that in many parts of the world, many managers and public relations practitioners equate public relations with media relations. This they state is because typically, most practitioners spend most of their time developing relationships with members of the media with the goal of getting positive publicity. Corporate Social Responsibility Corporate Social Responsibility (CSR) is described as how a company manages its industry and takes responsibility for its social impact. Corporate social responsibility encompasses various characteristics like economic dependence, legal conformity, ethical requirement, and societal influences (Chen et al., 2021). Stakeholder Engagement According to (Kujala et al., 2022) stakeholder engagement is explained as the relationships between organizations and stakeholders, such as employees, customers, suppliers, competitors, local communities and citizens, and the various outcomes of these relations. Stakeholders are individuals, groups, or organizations that affect or are affected directly or indirectly by the activities of an organisation Kujala et al (2022). 21 2.6 Chapter summary Chapter 2 of this research provides a comprehensive review of literature relevant to the role of public relations in managing the reputation of direct selling companies. It delves into the core functions of public relations in crisis management, highlighting theories like the Situational Crisis Communication Theory (SCCT) by Coombs, which categorizes crises and offers tailored response strategies. The chapter also examines the direct selling industry, discussing its unique marketing model and the reputational challenges posed by fraudulent schemes. Additionally, critiques of SCCT, particularly regarding its limitations in addressing complex crises and the role of emotions, are explored. This review establishes a theoretical foundation for understanding how direct selling companies like QNET Ltd. manage reputation through strategic public relations efforts. 22 CHAPTER THREE METHODOLOGY 3.1 Introduction This chapter focuses on the methodology that this research utilised in acquiring the best research results. It outlines the methods used in exploring the influence of public relations on the brand reputation of direct selling companies in Ghana, with QNET Ltd as the case study. It details what research approach, design and sampling methods were used and what data collection method brought out the best results. The data analysis method was discussed, and ethics were considered in this chapter. 3.2 Research Approach The qualitative approach was used for this study because it focuses on understanding human experiences and social phenomena. (Taherdoost, 2022) states that the qualitative research approach aims to solve scientific and practical problems in society by using naturalistic and interpretative methods and this aligns with the study’s objectives. Through the use of a semi- structured interview guide, in-depth data was gathered which helped to understand the strategies and challenges faced by the PR team at QNET Ltd. 3.3 Research Design A qualitative case study design was used for this research. This helps explore a phenomenon in a specific context using various data sources and perspectives to reveal different aspects of it 23 (Rashid et al., 2019). The case study design is used in this qualitative research to gain an in- depth understanding of how public relations activities influence QNET’s brand reputation. 3.4 Research Method Research methods are the means or modes of data collection or, sometimes, how a specific result is to be calculated (Igwenagu, 2016). A semi-structured interview was conducted for this study due to its appropriateness in gathering information from a specific group of people. Interviews with key public relations personnel from the Sub-Saharan Africa region of QNET Ltd were interviewed during the data collection process. This helped to gather rich and in-depth insights into the organisation under investigation. The qualitative approach helps understand people's experiences, views, and strategies in the organization's PR framework. 3.5 Population According to (Majid, 2018), the population is the study’s target population that it intends to study or treat. Population is a set of all the units which possess variable characteristic under study and for which findings of research can be generalised (Shukla, 2020). The population used in this study are the public relations professionals working with QNET in Sub-Saharan Africa. Specifically, the PR Manager and Assistant PR Manager were selected because of their expertise and how directly involved they are in the company’s public relations activities. 3.6 Sampling Technique Purposive sampling was used to select participants who had in-depth knowledge and experience to answer the research objectives. This sampling technique was used because it is found in any 24 research paradigm and helps ensure that quality sample is located without biases so as to increase the reliability and trustworthiness of the findings (Nyimbili & Nyimbili, 2024). 3.7 Data Collection Methods 3.7.1 Secondary Data Secondary data was collected from existing literature, reports, online sources, and media coverage. This secondary data helped give context and understanding into QNET's public relations practice, the perception the public has of direct selling companies, and reputation management in general. 3.7.2 Primary Data Primary data was collected through semi-structured interviews. The interviewees were the PR Manager and Assistant PR Manager of QNET in Sub-Saharan Africa. These interviews were conducted with the aim of exploring and understanding the strategies QNET uses in managing the perception of the brand and their reputation. These interviews also provided insights into the challenges that WNET faces when addressing misconceptions and how they overcome it. It reveals how QNET leverages on various public relations strategies to mitigate their negative reputation in Ghana. The interviews helped in understanding the participants' experiences and professional insights, which is important when using the qualitative approach described by Roberts (2020), which emphasizes capturing the meaning and experiences of participants in their own words and specific contexts. 25 3.8 Data Analysis Qualitative data analysis is a research method that studies data through the systematic classification process of coding and identifying themes or pattern related to the study which in this case is the influence of public relations on QNET’s brand reputation (Shava et al., 2021). This data analysis process helped put information gathered under themes which were later coded, and this aided in the easy interpretation and understanding of the study. 3.9 Ethical Considerations Strict ethics were adhered to throughout the study and participants were informed about the purpose of the study and their consent were obtained before the interviews were conducted. Participants requested to remain anonymous, and their Confidentiality and anonymity were maintained, and they were assured that the data would be used solely for academic purposes. 3.10 Summary This chapter outlines the design, approach, and methodology used in this research. It further reveals the use of the qualitative case study approach, and semi-structured interviews, to enable an in-depth investigation into the role of public relations in shaping the brand reputation of QNET in Ghana. The next chapter will present the findings and analysis derived from the data collected. 26 CHAPTER FOUR DATA ANALYSIS, PRESENTATION OF FINDINGS AND DISCUSSIONS 4.1 Introduction This chapter focuses on presenting the findings of the study in relation to the interviews conducted with the Manager and Assistant Manager for Sub-Saharan Africa of QNET Ltd in Ghana. The chapter studies the data collected during the interviews and aligns it to the research questions and objectives of the study to determine the influence of public relations on QNETs reputation in Ghana. The key areas this study focuses on includes the challenges faced by the PR team, the strategies used to address misinformation and misconceptions, stakeholder engagement, evaluation of PR strategies, and recommendations for improvement. 4.2 Public Relations Strategies The research sought to investigate the PR strategies utilised by QNET Ltd in their practice in Ghana and the PR team revealed a number of strategies that have helped them in the Ghanaian space. Public relation campaigns, social media, media relations and government relations are the key strategies 4.2.1 Public Relation Campaigns Both participants revealed PR campaigns as one of the key strategies used by the company. Participant 2 states ‘Another key PR strategy that we employ is the use of PR campaigns. Currently we are running a PR campaign in Ghana called QNET against Scam… that was creating awareness to fight the misinformation and misrepresentation of our brand’. They mentioned that there was also the MAMA campaign but could not speak much on it because it was before their time. 27 4.2.2 Digital media Another important strategy that QNET Ltd uses in Ghana is Digital media. The company leverages on the wide reach of social media platforms by utilising it to reach their stakeholders especially their Independent Representatives (IRs) because they are based in different regions in Ghana. They have used social media to create a sense of community and this increases the love for the brand and encourages feedback. Participant 2 emphasised this ‘we've leveraged on it and we've created something like communities, you know that now social media channels have communities where you can group all the people who follow you, have interest in your product or your brand and engage them directly’. 4.2.3 Media Relations According to the PR team, media relations is an important PR strategy they utilise. Participant 1: ‘We've done more of media relations’ 4.2.4 Government relations Government relations was stated to be another important aspect of their public relations strategy. One on one meeting with government officials they revealed has gone a long way in repairing their reputation and educating the higher ups on direct selling. Participant 1: ‘stakeholder engagement, specifically government stakeholders’ It was mentioned during the interview that all PR strategies are tailor made for the Ghanaian market because all markets have slightly different issues and with Ghana, the main issues faced are misrepresentation and misinformation of the brand. Participant 2 revealed, ‘We have market specific plans. So, for Ghana… misinformation and misrepresentation is one of the biggest 28 issues we need to confront in this particular market. So, all these strategies that I've mentioned…, are tailored to meet the specific needs of the Ghanaian market’. The participants revealed that they utilise the help of a PR agency in implementing and monitoring their PR activities in Ghana. ‘We have a PR consultant who does that for us. And I can't mention specifically the tools they use’ Participant 2 also revealed that one of the agencies they use is called Carma. ‘They give us real time analysis feedback on our, on our, on our mentions, on our reputation, on our performance in media, in traditional media, in social media, et cetera’. 4.3 Public perception and reputation 4.3.1 Negative public perception To further understand QNET Ltd.’s reputation in Ghana, Participants were asked what they believed was the public’s perception of QNETs reputation in Ghana and both stated it was negative. Perceived reputation of QNET was in Ghana was and both participants stated Negative. Participant 2: ‘There's a lot of mistrust, misconception because people don't actually know what we do. It's what they've read in the media space, what they've been told, experiences from others. And you know, there's generally, this fear of the unknown. And so it's been negativity and mistrust. That is what some people too are torn in between because they don't know who to trust.’ Participant 1 revealed that with constant engagement with stakeholders especially with security agencies the perception is changing ‘after engaging them one on one they understood, or they've got to understand the company policies properly which to some to a large extent change their 29 perception about the company. But I wouldn't say the general public have changed their perception from what we do or the statements that we issue.’ Participant 2 cautioned that it is a gradual process ‘You need to keep on fighting, spreading the message. And that is one of the reason that we're running this year long campaign to ensure that the real message about the real QNET goes out there into the public. So it's a gradual thing’. The major challenges identified is the negative mindset and perception of the public toward QNET and direct selling as indicated above. Constant media and stakeholder engagements and campaigns are the main strategies the company is using to change that perception. 4.4 Challenges in PR practice in Ghana 4.4.1 Negative Perception Negative perception of QNET and direct selling in general has stifled the efforts of the PR team in Ghana. That has been the number one challenge according to the team. Changing the perception of the public has been difficult and the team acknowledges that can seem impossible, but they seem optimistic that it would change in time. Participant 1: ‘I think the main challenge is there's a negative perception about the company. That is what is the number one challenge. Because when people have an opinion or a negative perception about you, it's really difficult to erase it. It takes a while up. So that makes it more difficult’ Participant 2: You would have instances where people you're engaging have preconceived mindsets. That everything done online is a scam. I don't want to be involved… they don't even want to listen to you. They don't want to hear you’. 30 4.4.2 Lack of Understanding and Education about Direct Selling Another challenge is the lack of understanding and education about the company and the direct selling industry and they are just not willing to learn. Participant 1: ‘Some people do not understand the industry and are not ready to learn about the industry. So the mere mention of IR, direct selling, they don't want to hear it’. When participants were asked if they have put together any measures to correct this perception, they revealed they have. Participant 1 stated ‘constant engagement of the media and government stakeholders’. Participant 2 revealed that they are changing the perception of the public also through their campaigns that reveal the real truth about the company and they are against scams. ‘We decided to come out and tell people the real truth about QNET. And whilst we focused on doing that, we are concurrently running a campaign to encourage people to tell them that we are against scams’. The complex nature of QNET’s products, particularly those based on advanced science such as quantum physics, makes this more challenging. For example: “Some of our products are based on quantum physics… People don’t understand when you tell them there’s a glass with a special pattern that can re-energize or restructure your water.” 4.4.3 Cultural and Communication Barriers The PR representative highlighted cultural communication barriers as another challenge. He expressed that receiving feedback is important because that is how you identify the problems. Participant 2: ‘Sometimes it's a language barrier. Sometimes it's a cultural communication barrier. A lot of people overlook that. Sometimes you have to look at the culture setting and see if your PR strategies are really connecting with the people in the grassroots’. 31 This cultural expectation makes it difficult for QNET to build trust, particularly in rural or grassroots communities where digital solutions are still viewed with scepticism. 4.4.4 Lack of Direct selling laws There are no laws that govern the direct selling business in Ghana, and this make it very difficult to regulate. Independent representatives end up just doing whatever they see fit which worsens the company’s reputation and the authorities are also not able to do much about the situation because there are no guidelines to follow; Participant 1: ‘Ghana doesn't even have direct selling laws. That is also a big challenge because they are not laws to regulate it. The authorities use their own whatever understanding or their own judgment when it comes to dealing with issues on direct selling’. 4.5 Stakeholder Engagement 4.5.1 Identification of Key Stakeholders The PR team identifies Independent Representatives (IRs) as QNET’s primary stakeholders Participant 2 states “They are the first point of call after our website and social media. What they tell these prospects, and what they don’t tell them, is critical.” The IRs play an important role in shaping the public’s perception of the company, because they are mostly the first point of contact prospects have with QNET. They also mentioned the media and government as key stakeholders. ‘The media is the first… We go to government stakeholders second’ 4.5.2 Engagement Strategies QNET engages with its Independent Representatives (IRs) through training and development programs tailor-made for the Ghanaian market to ensure they are educated enough to represent the company. The two key programs that were mentioned are the QNET Product Certification 32 (QPC): This program educates IRs on the products, their benefits, and unique selling points and the QNET Sales Training (QST): This program trains IRs on how to pitch products and communicate well with prospects. ‘We have training and development sessions, and I can give you the two main ones, Its QPC and QST. QPC is QNET Product Certification where we have our trainers that understand everything about the products, we sell… And the QST is the QNET Sales Training. So, we also train them on how, how they can pitch’. These training programs help IRs address prospects in the field in a more knowledgeable, confident, and capable manner. The PR team also revealed they engaged the media more than the government by taking the media on junkets to their headquarters and product exhibitions. They engage the government through one-on-one interactions with them and introduce them to their products. ‘We have engaged in the media several more than we have engaged the government stakeholders. With the media, we’ve gone to the extent of even taking them to Malaysia to see our head office and to be part of our annual VCON celebration. All this we have done to make them really believe that there's a company or QNET is a genuine company. That really has product and sells product’. Participant 1 further states. ‘. What we have done is this one on one engagement with them as well and showing them our product’. In relating to government officials. 4.5.3 Addressing Stakeholder Complaints The PR team actively addresses complaints from IRs, especially those that are related to misinformation and misrepresentation which disrupts prospecting: we’ve received stakeholder complaints that the issues of misrepresentation and misinformation hurts their business …it affects their prospecting… it’s demoralizing for them.” States participant 2. The PR team solves complaints from media and government that relate to IRs by conducting their internal investigations and prosecute. 33 Participant 1: ‘we've had the media people go into the media to report that qnet employees have come to them… we check in our database to find out if they are in our database as an IR. Then we have internal disciplinary actions that we take against them. If it's something that has to go to court, we encourage the people that have been scammed, to go to the authorities and report and we support them’. The team uses such feedback to refine their messaging and campaigns, ensuring IRs are supported in their efforts to promote QNET. 4.6 Measuring the Effectiveness of PR Strategies QNET employs a variety of ways in measuring the effectiveness of their public relations efforts. This includes feedback from stakeholders, and internal monitoring platforms in the form of a hotline that IRs can reach out through. However, the PR representative emphasized that data collection and analysis for ongoing campaigns, such as the QNET against Scams campaign, is still in progress; 4.6.1 Constant engagement with stakeholders One on one feedback is received from stakeholders through constant engagement from the PR team. This enables the team know what their stakeholders especially those in the media and government sector are feeling Participant 2: ‘our stakeholders are one of our best ways of getting feedback...’ 4.6.2 WhatsApp hotline and email To enable easy access to feedback and create a better relationship with its publics, the company uses a WhatsApp hotline and an email address that makes it easier for the public to reach them at any time with complaints, suggestions and other information. This hotline and email are a 34 great source of information. To get their hotline numbers across to their stakeholders, they make sure to include it into the press releases they send out. Participant 1: ‘the company has a hotline that we give out or we always put in our statements out there. So we through this hotline and email address they can reach us any day. They are able to reach us anytime, any day’. 4.6.3 PR Agency QNET relies on a Public relations agency for measurement of its PR activities. This shows that QNET relies on continuous monitoring to assess the success of their campaigns and inform future their strategies. Participant 1: ‘Yes, we have a PR consultant who does that for us. And I can't mention specifically the tools they use’ 4.7 Recommendations 4.7.1 Increased stakeholder engagements Stakeholder engagements run through the entire interview and the PR team once again recommended an increase in their stakeholder engagement efforts. They believe that positioning QNET as a company that does not just sell supplements but promotes health and wellness to stakeholders would go a long way in improving QNETs PR practice in Ghana. Participant 2: ‘Increased stakeholder engagement. We will push more of the brands positioning out there. People should know what we stand for, what we do, what we're about’. 35 4.7.2 Nationwide Campaigns The team acknowledges that there have been campaigns that have been organised but are tailored to cater to specific regions or markets. They recommended that subsequent campaigns would be more effective and reach the entire target audience if it is done Nationwide and more in depth. They also recommended the campaigns be longer and more intense. Participant: ‘I think we should have more campaigns, and the campaign should be more … I think we should have a more detailed campaign, a more a nationwide campaign which involves all the above the line and below the line tools intensive one’. 4.7.3 Education When asked about how QNET can improve the misconceptions the public has about direct selling, the team provided that more education needed to be done. Though direct selling is not a new concept, it is quite new to the Sub Saharan Region and this has posed a lot of misconceptions because the public dos not have much education about the concept and its benefits and labelled direct selling as the future of entrepreneurship Participant 2: ‘Education. Education, education... We must present the benefits to the individual, to communities, to the nation, and most importantly, to the Sub Saharan African region, because it has a lot of potential... And direct selling is the future of entrepreneurship’. 4.8 Discussion of findings The response from the interview emphasizes Grunig & Kim (2021) assertion that Public Relation (PR) has evolved from just being a press agentry role where information is passed on and communication is one way without room for feedback to nurturing and maintaining a positive relationship between an organisation and its publics like stated by Umaru et al., (2022). 36 Reviewing QNET’s public relations strategies, it is seen that two-way communication is important and feedback is taken seriously and informs the next steps of all the company’s strategies. Respondents highlighted PR campaigns. Media relations through press releases and media engagements, government relations and Digital communication through social media as their main strategies. Another key information that was noted is that whatever strategy is used is tailormade for the Ghanaian market since the objectives and key messaging of their global office might not necessarily be exactly what the Ghanaian market and this emphasises what Anani-Bossman (2020) opines that PR is at the forefront of reputation management by setting clear objectives, right messaging and communication tools among others. From the information shared, QNET is on the right path and is in tune with the modern concepts of Public relations and utilises the right strategies. QNET as a representative of the direct selling industry focuses on transparency, two-way communication, and constant education to address misconceptions and manage its reputation. This emphasises the need for direct selling companies to utilise these tools for a better reputation. The perception of the public and how the public views QNET and direct selling in general was said to be negative. The research revealed that this is because of direct selling being a new concept in Sub Saharan Africa and one that is misunderstood. People in Ghana mistaken direct selling organisations to be scams because some Independent Representatives (IRs) misrepresents the company to prospects. This emphasises the point that Seow (2022) made that, it is not easy to differentiate pyramid or Ponzi schemes from legitimate direct selling because unfortunately, due to a lack of regulatory scrutiny and public awareness. The misrepresentation of the brand and direct selling has caused the company various crisis situations. From the interview, it is evident that QNET utilises the SCCT framework in managing its crisis, they 37 categorize the issue by investigating in house and in most cases the crisis could have been prevented because it’s always from the actions or inactions of third parties i.e. Their independent representatives. The next thing is to send out a press release stating the fact of the issue and clarifying the misconception that the issue is cause by the organisation, then the trust rebuilding exercises begin through public education campaigns and direct engagement with stakeholders. This falls in line with SCCT’s rebuilding approach and shows transparency and accountability. The study also identified various challenges that public relations faces in the direct selling industry in Ghana. Lack of understanding and education, no direct selling laws in Ghana, the cultural and communication barriers and the negative perception of people about QNET and direct selling poses as a challenge in managing the reputation of the company. Engaging stakeholders is one of the frequently mentioned strategies that QNET uses in building and managing its reputation in Ghana. This emphasises the point by (McKie & Sriramesh, 2017) that QNET is more about building connections that are mutually beneficial to the organisation and its public and the best way to do that is through stakeholder engagements. The organisation constantly staying in touch with their stakeholders who they identified as their independent representatives, the media and the government helps promote a positive reputation and encourages feedback. They mentioned some innovative ways in which they stay in touch with these stakeholders are through trainings and social media when dealing with Independent representatives, junkets and organising media engagement programmes for the media and one- on-one meeting and junkets for stakeholders. This buttresses the point made by (Kujala et al., 2022) that stakeholder engagements involves two-way communication activities and stated some of these two-way activities as roundtable meetings, one-on-one conversations and negotiations, work-shops, training, conferences, and open-house days. 38 The study also revealed that QNET does not analytically measure the effectiveness of their PR activities. This poses as a threat to their reputation because they might not necessarily be informed on the gaps in their PR activities without analytical measurements. They study revealed that QNET uses feedback from stakeholders, whatsapp hotline and emails and their agencies. They mentioned they used a third party for media monitoring but not for real time analysis. Stevenson (2022) states that for PR practitioners to speak with authority when asked to prove their value to the organisation they need to measure the effects of their programmes, provide sound forecasts of future needs, and account for the resources they consume. Without these not being done, the impact of the activities and actions taken by the PR team cannot be said to be effective. Direct selling companies need to take measurement and evaluation of their PR activities seriously to be able to determine if the activities performed to build and manage their reputation are effective. 4.9 Chapter summary This chapter presents the findings from the interviews conducted on exploring the influence of public relations on the reputation of direct selling companies using QNET ltd as the case study. The interviews reveal the main PR strategies used by the company, the challenges that hinder the company’s PR efforts and how they are tackled and the perception the public has about QNET in Ghana and how that is being managed. This chapter revealed that QNET has a negative reputation in Ghana which is due to the lack of education, cultural barriers and the lack of direct selling laws in Ghana which causes an unhealthy number of crisis situations in the country. Stakeholder engagements and PR campaigns and publishing disclaimers are some efforts being used to address these issues. 39 CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMENDATION 5.1 Introduction This chapter summarises the key findings of this study, presents the conclusions based on the research, and offers recommendations for improving public relations (PR) practices in the direct selling industry and in direct selling companies like QNET Ltd. It also mentions the areas for future research. 5.2 Summary of Findings 5.2.1 Public relations strategies QNET from this study listed a number of public relations strategies they utilise in building and maintaining their reputation in the Ghanaian market. Public relations campaigns is one key strategy they utilise and revealed there is one of such campaigns currently running named the ‘QNET against scam’ campaign. They also listed media relations as another strategy. They keep in touch with their media stakeholders through media junkets, engagements and dissemination of press releases. They also revealed government relations as one key strategy where there have one on one interactions with the security agencies and take a few on junkets to their headquarters for them to experience the real QNET and be shown evidence that the company is real and not a scam. Digital communications through the use of social media is another strategy that is used. The company is able to reach larger numbers and form communities that foster togetherness and helps their stakeholders feel seen. 40 5.2.2 Public perception and reputation Even though QNET has implemented these PR strategies, they have not been able to eradicate the negative reputation that they have in the country because of the constant misuse and misrepresentation of the company’s name by fraudsters. This has slowed down the impact of the PR strategies being implemented in the country. 5.2.3 Challenges in PR practices in Ghana The negative perception the company has in Ghana has been a constant challenge in the activities of the PR team. A reputation takes time to build but it takes one crisis to see that carefully built reputation stained. And with QNET’s name constantly being dragged in the mud, it makes their situation more challenging. The lack of direct selling laws in Ghana worsens the situation because Independent Representatives who misuse the company’s name are not governed by any laid down laws which makes controlling their way of business difficult. The authorities also find it difficult to prosecute these perpetrators because they are limited and do not know what passes as legal or illegal when it comes to direct selling in Ghana. Ghana has various ethnic languages and cultures, and this is another challenge. Since independent representatives are based all over the country and being educated is not a requirement in practicing direct selling, PR messages must be drafted in a way that resonates with everyone whether educated or not. 41 5.2.4 Stakeholder Engagement Effectively communicating with stakeholders in the company which the PR team revealed are the Independent Representatives (IRs), the media, Government and customers has gone a long way in mitigating crisis that rise up. Different engagement strategies are used for different stakeholders. Independent representatives are usually engaged via training programmes that help them get to know the product they are selling and make them more confident when prospecting and through social media. Junkets to the headquarters of the company, product exhibitions and media engagement workshops are the key ways media is engaged. One on one engagements work best with government officials, and this has helped build a relationship with these stakeholders and garner feedback. Feedback is received from stakeholders in diverse ways also. What works for one does not work for the other. Independent Representatives reach the company via their WhatsApp hotline and email, while media and government reach the PR team directly through one-on-one conversations and constant engagement by the PR team. 5.2.5 Effectiveness of PR strategies No specific software of programme is used to measure the effectiveness of PR activities in the country. The company relies on feedback from stakeholders and their PR agencies as a way of measuring the impact of their strategies. This poses as a huge gap in their PR efforts. Analysing the sentiments of stakeholders alone is not enough to fully assess the impact. A more robust evaluation method is needed. 42 5.3 Conclusion This study is to examine the influence of Public relations on the reputation of direct selling companies with QNET being the case study. The study concludes that it is important to constantly interact with stakeholders of a direct selling organisation in order to build and maintain a positive reputation. The terrain of direct selling differs from other industries because there are third party entrepreneurs who can affect the reputation at any time so constant education and training is important here. Public relations does have an influence on the reputation of direct selling companies but it takes a longer time and more effort to achieve the desired result. 5.4 Recommendations Based on the interviews and research conducted the following recommendations are being proposed to enhance QNETs PR practice and the influence it has on the company’s reputation and that of other direct selling organisations in Ghana and by extension other parts of Sub- Saharan Africa. 5.4.1 Enhance transparency and accountability An increase in educational drives and campaigns that would equip the public on being able to differentiate between scammers or fraudsters and the legitimate QNET would help the company appear more transparent. Prosecuting and publicly bringing these fraudsters to book would enable the public view the company as one that is accountable and transparent in their dealings. The right way of making money and how it is made should be made privy to the public and this would help the public 43 understand the compensation plans of direct selling and help in pushing the image of transparency. 5.4.2 Leverage on digital media Enhance the use of digital platforms in reaching stakeholders and the public. Have a more interactive relationship with social media audience and this helps to send across information and receive feedback in a timely manner. Investing in analytic tools that can monitor and evaluate social media engagements would help direct the PR team on what strategies to take and which ones make the most impact. 5.4.3 Strengthen stakeholder engagement Constantly interact with stakeholders and respond to their feedback both offline and online in a timely manner. Always ensure that stakeholders are engaged after an unforeseen crisis to keep them satisfied and happy. 5.4.4 Proactive crisis management Constantly train PR team on new strategies utilised in managing crisis. Create a comprehensive Crisis management plan that can be used when there are challenges or crisis. Conduct scanning of the horizon both internally and externally to guage red zones that can cause issues and mitigate before it becomes a full-blown crisis. 5.4.5 Constant evaluation of PR strategies Create key performance indicators (KPIs) to measure effectiveness of PR campaigns, such as media coverage analysis, sentiment scores, and stakeholder surveys. This would help in identifying areas in the PR plan that need improvement. 44 5.5 Areas for Future Research In future, researchers can conduct research on the impact of public relations by comparing PR strategies across various direct selling companies or across Sub Saharan Africa. This can provide more insight into what other direct selling companies are doing and verify if the challenges they face are similar. A comparative analysis can also be conducted between direct selling companies in different African countries to verify if the issues faced and strategies used are similar and works for both African countries. 5.6 Limitations of the Study Access to information on direct selling in Africa was difficult to come by. It was also a challenge gaining access to the PR team of QNET in Ghana because they have a busy schedule. Some information was difficult or unavailable due to corporate confidentiality. Public perception and reputation of the company relied heavily on subjective inputs from interviews conducted and the answers could have been influenced by personal biases. 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Acta Commercii, 19(1). https://doi.org/10.4102/ac.v19i1.679 Wfdsa stats. (n.d.). Heyzine PDF To Flipbook - Online flipbook maker. https://heyzine.com/flip-book/WFDSASTATS_Aug2023V2#page/1 What is direct selling. (n.d.). Direct Selling Association | Representing Direct Selling Companies. https://www.dsa.org/about/direct-selling https://doi.org/10.22214/ijraset.2018.6279 https://doi.org/10.4102/ac.v19i1.679 https://heyzine.com/flip-book/WFDSASTATS_Aug2023V2#page/1 https://www.dsa.org/about/direct-selling 52 APPENDIX A INTERVIEW GUIDE Introduction My name is Deborah Naa Norley Adom. A graduate student at the University of Media, Arts and Communications (UNIMAC). I am conducting a study on the topic: "Exploring the Influence of Public Relations on the Brand Reputation of Direct Selling Companies in Ghana: A Case Study of QNET Ltd." Public Relations Strategies Can you describe the key Public Relations (PR) strategies QNET employs in Ghana? How are these strategies tailored to address the specific needs of the Ghanaian market? What are some recent PR campaigns you have launched, and what were their goals? Do you use any specific tools or platforms to implement and monitor PR activities? Public Perception and Reputation How would you describe the public's perception of QNET in Ghana? Have you put any measures in place to build and maintain a positive reputation for QNET in Ghana? Was there a situation where the public changed its perception of QNET in Ghana? What did you do to achieve this? Crisis Management in Public Relations Has QNET experienced a crisis in Ghana? What is QNET Ltd’s general approach to identifying and managing crises in Ghana? 53 Can you share a recent example of a crisis the PR team managed, and what strategies were used to address it? How does QNET Ltd ensure effective communication with stakeholders during a crisis? What role does social media play in your crisis management efforts? How do you evaluate the success of your crisis response, and what lessons have you applied from past experiences? Challenges in PR Practices What are the main challenges you and your team face in maintaining QNET’s reputation in Ghana? How does the team address misinformation or negative publicity about QNET? Are there any challenges when it comes to culture or the specific regulations of Ghana that affect your PR efforts? Stakeholder Engagement Who do you identify as QNET’s primary stakeholders in Ghana? Does the PR team engage with these stakeholders? If yes How? Have you received any stakeholder complaints? If yes, what strategies do you use to solve them? Effectiveness of PR Strategies How do you measure the effectiveness of your PR strategies? 54 Have you had any successful PR Campaigns? If yes, Can you provide examples of successful PR campaigns and their outcomes? Are there any specific systems you rely on for feedback? Recommendations for Improvement In your experience, what improvements would you recommend for QNET’s PR practices in Ghana? Are there any new PR trends or tools that you think QNET should adopt? How do you think the QNET can improve public misconceptions about direct selling? Conclusion Do you have any additional comments or insights you would like to share about QNET’s Public Relations practices in Ghana? Thank you for your time. 55 APPENDIX B INTERVIEW WITH PARTICIPANT ONE Interviewer Okay, so good afternoon and thank you for taking time to meet with me today. My name is Deborah Naa Norley Adom and I'm a graduate student at the University of Media Arts and Communications, Unimac. I am conducting a study on the topic exploring the influence of public relations on the brand reputation of direct selling companies in Ghana. A case study on QNET limited. Your insights are very important to me, and I truly appreciate your willingness to share your thoughts. Before we begin, I want to assure you that this conversation will remain confidential. Your responses will be used only for research purposes and presented in a way that doesn't identify you personally. If you feel uncomfortable at any point, you are free to decline to answer or stop the interview. Please Do you have any other questions before we start. Interviewee I'm good. Interviewer Okay. Okay, so the first question I want to ask is on public relations strategies that QNET uses. Can you describe the key public relations strategies QNET uses in Ghana? Interviewee 56 I'm not going to describe; I'm going to mention them. We've done more of meda relations, stakeholder engagement, specifically government stakeholders and we've done crisis management as well. Interviewer Okay. And with these strategies, do you tailor them to the Ghanaian market since you are for SSA? are the strategies you use in other SSA countries different from what you use in the Ghanaian market? Interviewee There hasn't been much difference though. But we definitely have to put the country in perspective because we don't have the same dynamics in every country even though they are similar. So, the difference hasn't been much is we've had. We are having the same issues in most of the SSA market crisis issues, reputational issues. So, I don't think we have used relatively