Nov 30th, 2012 by TVG Staff
Recent research conducted by the Council of Public Relations Firms reveals that there may be an even stronger relationship between brand equity and corporate reputation than previously thought. An analysis of 50,000 consumers showed that when these two strategies are combined, the effects are stronger than the individual power of each.
These results have a big impact for marketers. They suggest that by combining brand efforts and corporate reputation efforts, companies can achieve better results with respect to things such as purchase consideration and recommendation.
If you think about it, this really does make sense. The reputation of a brand usually plays a role in purchase decisions. At the same time, brand equity impacts reputational outcomes. The more well-known and respected a brand is, the greater the chance that overall corporate image will be positive. The reputation a brand has in the mind of the consumer clearly correlates with whether or not they decide to buy a product. These two strategies show a cause and effect relationship that can be used together to create a bigger impact.
This study encourages various companies to re-think the way they segregate brands and corporate reputation. Robert Fronk, Harris Interactive Executive Vice President predicts that “individual companies will need to measure and analyze their unique product brand and corporate reputation drivers to find their maximized model.” By combining these two practice areas together, companies may see better results in the future from the convergence.
The Vandiver Group, Inc. helps manage corporate reputation and brand equity for companies every day. Call us at 314-991-4641 or visit our website at www.vandivergroup.com to learn more.