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ABSTRACT

Brands are an increasingly important marketing aspect in today‟s business and

marketing environment, ranging across different industries. Most importantly, the

customers‟ perceptions and opinions of brands are crucial and can determine the

eventual success or failure of a business. As competition is continuously increasing

in the operating environment of businesses, it is even more important for companies

to differentiate in the market, gain the customers‟ awareness and sustain their

loyalty. This can be achieved with brands, and a brand which is widely recognized

and liked in the market and which has a loyal customer base, is a significant

financial asset for a company. To be a successful company, a good product or

service isn‟t enough. Differentiation is the key and in order to do that you need a

strong reputation. Organizations compete on several levels to maximize profits and

diminish future risks. Reputation is one of the key elements in creating

differentiation from other companies in uncertain environments and competing for

economic resources. (Allen 1984; Horner 2002; according to Rhee & Valdez 2009,

146.)

This paper examines company image and reputation through theory and research. The theory explains how images are created

and managed, how to achieve a strong image and how image affects a company. Also the relation between reputations and

images is explained, as well as why they matter and why they should be treated as assets.

Keywords: brand, brand image, Reputation, Brand associations

INTRODUCTION

Nowadays it is not enough to have an awesome product, service and a solid business plan. A company has to have a

good image. Every time you hand out a business card, welcome a client to your office or store, send a letter or an

email, you tell something about the company. (Lesonsky 2007, 258.) You can also express your personal identity

through your logos, products, services, buildings, stationery, uniforms, and any other public side of you shown to

your constituencies (Argenti& Forman 2002, 70-71). Everything you do and how you look creates an image

(Marconi 2002, 70). Your look helps you promote your business by creating a good image (Lesonsky 2007, 258).

Advertising and public relations are also greatly involved in creating a company identity and image (Heath 2001,

170).

In order to gain a long-term success in the market and a loyal customer base, it is not enough to sell a single product

or service. A brand is more than a product as it has more dimensions and elements, including features such as

personality, symbols and emotional benefits. A brand is always more desirable and more appealing in the market

than an unknown product or service. Also in the long-term perspective, building a brand is more economical and

cost-effective for the company. When a brand is widely known in the market, it does not require as much marketing

effort to maintain the brand. (Aaker 2002; Rope & Mether 2001)

THE BRANDING : A STUDY OF BRAND IMAGE , BRAND

ASSOCIATIONS AND REPUTATION

Asal Mirzai Department of Management and Accounting,College of Humanities , Islamic Azad university of Hamedan Branch,Hamedan,Iran

Yaser Sobhani Fard Assistant Professor, University of Imam Sadegh, Tehran, Iran

[email protected]

Alireza Slambolchi [email protected]

Faculty Member of Management ,Islamic Azad University Hamedan Branch , Hamedan, Iran



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Nowadays competing in the business world can be extremely difficult. Not only do companies have to worry about

the efficiency of their operations but with so many companies looking similar, how do they differentiate themselves

from the masses? Customers appreciate a good reputation as everything you do and say affect stakeholder opinions.

This is why reputations matter. Companies need to stand behind their words and meet the stakeholders‟ needs in

order to maintain their reputation, since strong reputation takes years to form yet it can be destroyed in a flash.

What makes a reputation or image so fragile that merely a circulating rumor can be the end of it?

LITERATURE REVIEW

Brand and Branding

The American Marketing Association (AMA) defines a brand as: “A name, term, design, symbol, or any other

feature that identifies one seller's good or service as distinct from those of other sellers. The legal term for brand is

trademark. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a

whole, the preferred term is trade name.” (Marketing Power – American Marketing Association 2010) It is not

adequate that the brand name is familiar, but it also has to be distinctive. A brand needs to be distinctive in a

manner that is beneficial to its customers. A product or a service needs to be characterized by a distinctive attribute

in the mind of the consumer, in order to be a brand. Duane E. Knapp has further deepened the concept of a brand to

a genuine brand, which he has defined as: “The internalized sum of all impressions received by customers and

consumers resulting in a distinctive position in their “mind‟s eye” based on perceived emotional and functional

benefits.” Eventually, a brand is only that which is perceived in the mind of the consumer. Thus in order to truly be

a brand, the brand has to occupy a distinctive position in the mind of the consumer. The difference between brand

names, brands, and genuine brands, can be found in their levels of distinctiveness. From the consumer‟s

perspective, there are no differences between unknown commodities except for price, whereas a brand name may

be well known but it still does not differentiate in the mind of the consumer. Further, a brand is distinctive in the

mind of the consumer, whereas a genuine brand is perceived by the consumer as unique. Thus the more distinctive

a brand becomes in the mind of the consumer, the closer it approaches the definition of a genuine brand.(Knapp

2000, 6 – 8)

Brand is “The company‟s promise to deliver a specific set of features, benefits ,services, and experiences

consistently to the buyers.” (Kotler 2005 p. 250). According to Kotler &Armstrong (2004 p.285),a brand is a name,

term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of a maker or

seller. Consumers perceive the added value from the branded article which most closely meets their needs. These

added values maybe good brand‟s quality, good brand image to consumers, or they may bring easier search

behavior to consumers. Brand is successful when it keeps produce these added values to consumers. (Blythe 2008

p.133)

Figure 1 shows the relationship between commodity products and branded products in terms of price and image.

Commodity products have low price differentiation, low product characteristic differentiation and low brand image

differentiation. In contrast, branded products have high differentiation on all three factors.



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Figure 1.Commodity products v branded products(Blythe 2008 p.134)

A consumer may recognize the benefits that a product may give him through the brand name. Buyers can know the

benefits from a branded article when he always buys it. He knows that he will get the same benefits from this

branded article, such as quality and product features.(Kotler& Armstrong 2004 p.285)

Branding is a big range of activities across the whole marketing mix. It delivers the brand image to consumers.

Consumers receive messages and arouse associations about self-image, quality, cost, expected performance, brand

features and status.

Brand Image

“Brand image is the current view of the customers about a brand. It can be defined as a unique bundle of

associations within the minds of target customers. It signifies what the brand presently stands for.” (Management

study guide, MSG 2013)

A brand image means the public‟s perceptions about the brand. The American Marketing Association (AMA)

defines a brand image as: “The perception of a brand in the minds of persons. The brand image is a mirror

reflection (though perhaps inaccurate) of the brand personality or product being. It is what people believe about a

brand their thoughts, feelings, expectations.” (Marketing Power – American Marketing Association 2010)

Brand image is on the side of receiver. Image is how consumers perceive a product, a brand, a politician, a

company or a country. Image refers to the way consumers perceive the signals from the products, services and

communication of the brand.(Kotler 2004 p.174).“A brand image is a subjective mental picture of a brand shared

by a group of consumers (Riezebos 2003 p.63).”

The importance of brand image has inspired business scholars to form the concept of „brand equity (Aaker 1991).

Under this concept, brands are seen as valuable assets, which can help companies generate revenues. Brand equity

can be divided into four main categories: brand loyalty, brand awareness, perceived quality, and brand association.

(Aaker 1991 p.16) Meanwhile, brand associations are divided into eleven types.

They are product attributes, intangibles, customer benefits, relative price, use/application, user/customer,

celebrity/person, life style/personality, product class, competitors, and country/geographic area. (Aaker 1991 p.115)

Brand associations are shown in Figure 2.



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Figure 2. Brand associations (Aaker 1991 p.115)

Brand image, an essential element in marketing research, is defined as “perceptions about a brand as reflected by

the brand associations held in consumer‟s memory” (Keller, 1998 p. 93). Although the term brand image has been

broadly defined and used in various ways, one general agreement of the definition is that brand image is a

consumer‟s overall impression of a specific brand through the influence of a consumer‟s reasoned or emotional

perceptions (Dobni & Zinkhan, 1990; Aaker, 1996). Brand image is formed by the combined effect of brand

associations; (Biel, 1991; Dohni & Zinkham, 1990; Yoo, Donthu, & Lee, 2000; Keller, 1998, 2003) therefore,

brand association is considered an important factor in several brand image studies. Brand association is often based

on the associative network model (Farquhar & Herr, 1992), in which a person‟s memory is made up of links and

nodes: links represent relationships (positive or negative, weak or strong), and nodes represent concepts (e.g. brand

associations) and objects (e.g. brands). Aaker (1991) refers to brand associations as the category of brand‟s assets

and liabilities that include anything linked in memory to a brand. Similarly, Keller (2003) defines brand association

as informational nodes linked to the brand node in memory that contains the meaning of the brand for consumers.

Figure 3 shows an example of brand associations of Apple, a computer brand.



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Associations come in all forms and may reflect characteristics of the product or aspects independent of the product

itself (Keller, 2003). Strength, favorability, and uniqueness are three dimensions of brand associations that reflect

brand image (Keller, 1998).

Figure 3. Brand Associations source: Keller (2003, p. 66)

Brand image are networks elements stored in long-term memory. The core of the network is a brand name, which is

linked to a number of other knowledge elements or associations. (Riezebos 2003 p.68-69)

Brand image has three components. They are content, favorability and strength. Favorability and strength can be

combined into a term called „reputation. The content of a brand image means the associations a brand name may

generate. Associations refer to cognition (knowledge), feeling, smells, sounds, etc. (Riezebos 2003 p.68-69)

There are distinction between material and immaterial brand associations. Material brand associations can be

associations about the nature of certain material aspects (reliability and durability, function, quality and aesthetics)

and associations of the presence or absence of certain attribute. Material brand associations are related to the

product itself. Immaterial brand associations can be associations not related to the (physical) product, such as

associations of a certain lifestyle and experience. (Riezebos 2003 p.64-65) The favourability of a brand image

means the feeling that consumers have about the associations. The feeling can be negative and positive. The

strength of a brand image means the extent to which the association is experienced as negative or positive.

(Riezebos 2003 p.64-65)

The central question of image forming is that how associations can be tied to the brand name.

Marketing communication gives content to the brand image. They give consumers the first impression about the

brand. Also, the brand images in consumers‟ mind are difficult to change at a later stage. Companies should try to

guide the brand image in the direction of the brand identity through the marketing communication. The image

called up in marketing communication should not be in conflict with the image called up in consumption

experiences. (Riezebos 2003 p.65-66) For example, the effect of advertising is greatest when the product realizes all

the benefits promised in the advertisement.

The problem of brand associations has also been discussed by Keller (1993). In figure 4, a picture of the

components of brand image is presented.



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Figure 4. Components of brand image (Keller 1993 p.7)

Keller classified the brand associations into three categories: attributes, benefits and attitudes (Keller 1993).

Attributes can be either product related or non-product related. The product related attributes are defined as the

necessary ingredients for performing the products or services functions. They are related to the physical aspect of a

product. The non-product related attributes are defined as the aspects related to purchase and consumption. There

are price attribute, packaging attribute, user imagery attribute (a consumer‟s image of who uses the product) and

usage imagery attribute (a consumer‟s image of when and the situation in which the product is used).User and

Usage imagery attributes can produce brand personality attributes (youthful, colorful and gentle).(Keller 1993)

20 Benefits are the values that consumers attach to the product attribute (what the consumers think of the product

can do for him or her). Benefits can be divided into three categories: functional, experiential and symbolic benefits.

Functional benefits are usually corresponding to the product related attributes. They meet the consumer‟s need to

solve their problems. Experiential benefits are about the feelings of using a product. They are corresponding to the

brand knowledge

brand awareness

brand recall

brand recognition

brand image

types of brand associations

attributes

non-product-related

price

packaging

user imagery

usage imagery

product related

benefits

functional

experiential

symbolicattitudes

favorability of brand associations

strength of brand associations

uniqueness of brand associations



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product related attributes. Experiential benefits can be such as sensory pleasure, wellbeing, variety and cognitive

stimulation. Symbolic benefits are usually corresponding to non-product related attributes. They satisfy the needs of

social approval, personal expression, the desire to be seen, to play a social role, outer directed self-esteem, and the

needs to belong to a group. (Keller 1993)

Brand attitudes are the overall evaluation of the consumer to the product. They form the basis of consumer behavior

and brand choice. They have the relation with the products, perceived quality, non-product related attributes,

functional benefits, experiential benefits and symbolic benefits. Consumers may use the signals such as the color of

the product appearance and the scent to evaluate the brand and the product quality. (Keller 1993) In conclusion, the

different types of brand associations build up the brand image. The brand associations includes product and non-

product related attributes; functional, experiential and symbolic benefits; and overall brand attributes. (Keller 1993)

Design as a brand instrument

In nowadays environment it‟s extremely challenging to build brands, and internal and external substantial pressures

and barriers may inhibit the brand builder. It‟s essential to understand these pressures and barriers when making

and developing brand strategies.(Aaker 1995 pp. 28-34) According to Aaker (1995 pp. 28-34) there are basically

two keys to success when building brands. First of all, it should be understood how to develop brand identities.

That is to say, the brand builder should know what the brand stands for, as well as how to express that identity most

effectively. The other way is to manage internal forces and pressures. All in all, Aaker states (1995 pp. 28-34),

“The

need is to recognize organizational biases against true innovation and towards diversification, short-term results,

and frequent changes in brand identity or execution.” According to Kotler (2006 p. 148), one of the factors

influencing the buying behavior is each person‟s distinct personality. The personality may be useful when

analyzing buying behavior for brand choices or a certain product. Kotler (2006 p. 148) defines personality as “the

unique psychological characters that lead to relatively consistent and lasting responses to one‟s own environment.”

It‟s suggested that brands also have personalities, and the brand personalities influence the buying behavior when

the consumer chooses which brand to use; consumers are often likely to choose the brands whose personalities

match to their own personality features. A brand personality is defined as “the specific mix of human traits that may

be attributed to a particular brand” by Kotler (2006 p. 148). It has been identified that there are five different brand

personality traits, which include sincerity, excitement, competence, sophistication and ruggedness. It‟s said that

many brands tend to be firmly connected with one of these personality traits. (Kotler 2006 p. 148)

There are several instruments in brand strategy. Design plays a large role as a brand instrument. Design makes the

product‟s quality, technical performance, reliability, safety or ease of use visible. Design differentiates products,

creates a unique selling position and evokes desire and interests. Consumers decisions can be influenced by design.

According to Riezebos, there are four important roles of design as a brand instrument.

1. Identification: People can know the owner, producer, or sender of the branded article or advertising message.

Recognition and categorization are two functions of design. Better visibility and a strong profiled image can

influence the consumers decisions.

2. Differentiation: Through distinctive design, a brand stands out from the competition in the eyes of consumers.

3. Transfer of material brand values. Design contributes to the perceived performance of the brand through the

physical aspects. For example shape, size, color, material, structure and image.

4. Transfer of immaterial brand values: Design contributes to the psychosocial meaning of the brand, shows certain

character traits being attributed to the brand through the visual expression. (Riezebos 2003 p.129-130)

The importance of a Brand’s Visual Identity



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Visual identity of a brand includes its logo, symbol, form and packaging, even includes the environment in which it

appearance. It is said that a person dedicates 80 percent of his/her brain to recognize the visual stimulus. A person‟s

first impression to most of the things is visual. A product‟s visual appearance communicates the product features,

benefits, brand‟s personality, and values of the brand with consumers. Consumers can gain associations about the

brand from a product‟s visual appearance. Visual appearance of a product is a powerful tool to create brand loyalty.

A brand‟s visual identify is very important for brand identification and brand communication. (Hart & Murphy

1998 p. 46-47)

Communication of Symbolic Meaning

A product can communicate symbolic meaning to consumers directly by its appearance. Consumers sometimes may

see the symbolic meaning as a critical determinate in the product selection. Consumers may form meaningful

associations with a certain style of appearance. Consumers choose products or brands to express self-image and

express what kind of people they want to be. (Creusen & Schoormans 2005) A product or a product appearance can

strengthen brand image. This is because that the product appearance describes the brand identity or brand meaning

visually. For example, a company uses the bright colour and the large size on its newly launched cars. It is easy to

position the car brand as aggressive. A company can use consistently certain design elements to its future products,

which would ensure, to a great extent, consumers to recognize its products and brand easily. For instance, a

company uses a particular color combination, a distinctive form element or style to make its products recognizable

or differentiable (Creusen & Schoormans 2005).

Reputation

The term „reputation‟ is defined in Encyclopædia Britannica (2009) as the “overall quality or character as seen or

judged by people in general” and as the “recognition by other people of some characteristic or ability”. Reputation

refers to general beliefs or impressions of something, or to its evaluation (Bromley 1993, 2). People and other

entities have reputations that are important and valued. The extent and the subject of a reputation vary. People can

have reputations for many things, or of being or doing something. There are many kinds of reputations and all of

them can be manipulated. (Bromley 1993, 3.)

If you want your reputation to be superb, you need the help of a strong brand (Ettenson & Knowles 2008, 20).

Brand is an essential part of reputation and they need to work together. The brand can suffer if you focus only on

reputation at the expense of the brand. On the other hand, if you neglect reputation it can lead to difficulties, for

example attracting talented work force. (Ettenson & Knowles 2008, 19.) You can influence the consumers buying

behavior by a powerful brand image created by strong brand associations. Image has the capability to influence the

information processing of consumers and therefore it can evoke certain psychologicalpatters or behavior. (Kahle &

Kim 2006, xv.) Brands are only as good as how the consumers see them (Satterthwaite 2007, 16).

“Brand describes the associations that customers have with the company‟s products.” A poor brand has a weak

awareness and functional appeal to customers whereas a good brand has high awareness and appeal. (Fombrun &

Van Riel 2004, 4.) Brand focuses on the promises and commitment the product, service or company has for the

customers. Brand is a customer centric concept. The brands value and strength depends on the fulfilled promises of

the product or service to the customers. A strong brand helps to communicate with customers how the company‟s

products are relevant and unique for their needs. (Ettenson & Knowles 2008, 19.) As Keller (1993) mentions a

positive brand image boosts the brand awareness of a certain product or service and it improves customer based

equity and satisfaction. Consequently a good brand will be beneficial for enhancing customer satisfaction and

loyalty on a long-term basis. (Kahle & Kim 2006, xvii.)

Branding is a part of reputation management as it affects the possibilities of customers favoring certain purchase

decisions, while reputation affects the supportive behavior from the brands stakeholders (Fombrun & Van Riel

2004, 4).



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A strong reputation is like a magnet. It is drawn to those who have it. (Fombrun & Van Riel 2004, 3). It brings in

new opportunities, attracts talented work force, customers and investors (Fombrun & Van Riel 2004, 4).

FIGURE 5. Reputations are like magnets: They help a company attract resources. (Fombrun & Van Riel 2004, 5.)

Figure 5 indicates how reputations affect on people‟s decisions. It implies that a good reputation has an effect on a

person‟s decision which company to work for, which products customers should buy and which shares investors

should accumulate.

Reputation vs Image

The company‟s image is a reflection of an organizations identity, so everything you do and how you look creates an

image and over time these images create a reputation (Argenti & Forman 2002, 69; Marconi 2002, 70; Alsop 2004,

10). These images can speak to you in levels of beliefs, impressions or perceptions and these beliefs can be formed

by a single word or a name. The impressions can be formed after reading persuasive research, impressions created

over a lifetime, a series of impressions or our first impressions. Whoever your customer or client is, everybody acts

on the basis of what he or she have seen, heard and learned and everybody has his or her own image of your

organization. (Marconi 2002, 1; Argenti & Forman 2002, 69.) After every interaction with your company the

lingering associations and impressions together form the image of your company (Argenti & Forman 2002, 69).



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FIGURE6. What are identity, image, and reputation? (Argenti & Forman 2002, 69.)

As seen from figure 6, a good reputation is formed by a strict alliance between a company‟s identity and image

(Argenti & Forman 2002, 70). It is a compilation of all the images formed by your constituencies‟ impressions

(Argenti & Forman 2002, 57). A strong and long-lasting image is built through the organization‟s identity, the

overall coherence of the images the public perceives, and the association of the organization‟s identity with the

images held by its constituencies (Argenti & Forman 2002, 68).

Brand attachment

Vincent (2012) evaluates the success of some world-famous brands and states that one of the major factors is brand

attachment. Vincent (2012) claims, that when consumers become attached to brands their behavior changes, on the

other hand brand attachment measures how much consumers view the brand as an extension of themselves. Vincent

(2012) differentiates brand attitudes and brand attachment; brand attitudes measures how much people like some

specific brand, when brand attachment weights how much people say that the brand is like them. That is to say,

brand attachment deals with consumers identifying with a brand because it expresses their values as well as

resembles in a way they see themselves. When people get attached to some specific brand, the brand becomes part

of the consumer‟s self-concept. The brand builder should understand how consumers collectively attach a brand to

their self-concept, as the attachment “proves to be one of the best drivers of relevance.” (Vincent 2012) The power

of brand attachment is significant, and Vincent (2012) claims that when consumers are truly attached to a brand,

they are willing to make compromises in their other consumer and buying behavior in order to keep that specific

brand in their life. Vincent(2012) mentions as an example many luxury brands, which have posted record sales

when the economic times have been tough. When consumers view the brand as part of their own identity, they are

likely to defend it and attack anything that threatens it. All in all, the more consumers view the brand as an

extension of their own identity, the more they want to have the brand in their life nearby. (Vincent 2012) There are

different ways how consumers act in different situations and nowadays also the social media plays a big role what it

comes to brands and brand attachment. Vincent (2012) reminds that it‟s said that every time a consumer includes a



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brand to their social stream, they signal to their world what they stand for. According to Vincent (2012) when a

brand enjoys a high level of attachment, the brand has an obligation to live up to what the brand builder promises.

On the other hand, if this doesn‟t happen there is a risk that the brand becomes irrelevant, or even reviled and

outcast.

CONCLUSION

Technically brands are also dealing with names, logos and symbols for a product. According to Keller (2003 p. 3)

The American Marketing Association, AMA, defines brand as “a name, term, sign, symbol, or design, or a

combination of them, intended to identify the goods and services of one seller or group of sellers and to

differentiate them from those of competition.” Even so, the American Marketing Association, AMA, claims that a

brand might also be defined, for instance, in terms of having actually created a certain amount of awareness,

reputation and prominence in the marketplace. (Keller 2003 pp. 3-4) According to the American Marketing

Association, AMA, the key to creating a brand is to “choose a name, logo, symbol, package design, or other

attribute that identifies a product and distinguishes it from others.” (Keller 2003 p. 3)

A brand image which relates to the brand as it is seen by the customers needs to be examined regularly. It is

important to know the current situation of the brand image, as it reveals the opinions and attitudes of the target

customers towards the brand. In addition, it provides a basis for future marketing planning and marketing activities.

Reputation management is the mission of keeping the positive image in the minds of stakeholders (Heath 2001,

309). However you need to remember that you can‟t please everyone at the same time (Alsop 2004, 40). The

reputation management starts from building an alignment between the company identity and image. You need to

create your identity and manage the people‟s perceptions. (Argenti & Forman 2002, 70.) Remember that you do it

through creating and managing your identity (Argenti & Forman 2002, 89). You also need to measure the

reputation for managing it (Alsop 2004, 25).

Reputations matter because they are connected to the strategic positioning. A company reputation is like a mirror

that reflects the relative success at its ups and downs, the current and the future strategic direction. But the mirror

can also be like a magnet. If people like what they see and hear, they start supporting the company and as a result it

attracts more resources to the company. (Fombrun & Van Riel 2004, 20.)

Because of the value that reputations hold with customers, investors, employees, and even with competitors, a

company wants to preserve a good reputation (Marconi 2002, 13). With a strong reputation comes great

responsibility. If customers are used to a high standard and you fail to deliver that image, your customers judge it

more harshly than they do others (Alsop 2004, 13).

You should care about the cumulative effect of the messages you deliver to your constituencies because all the

stories contribute directly to the impressions people have of your company and depending on how well they align

with your company‟s reality, which can be negative or positive.

A strong brand doesn‟t necessarily mean you have a good reputation, and the other way round, a solid reputation

doesn‟t equate with a good brand. A company with a poor reputation can have a brand with high awareness, and in

contrast, a weak brand doesn‟t always result a strong reputation. (Ettenson & Knowles 2008, 20; Fombrun & Van

Riel 2004, 4.)

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