What is it about?

We measure corporate reputation of various brands and see how this value affects choices along a number of dimensions such as overall evaluations, price sensitivity, inferring the value of unknown attributes and well known attributes. We conduct our study in the context of how consumers make choices about televisions and known brands with varying performance on CR (namely, Sony, Panasonic and Toshiba).

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Why is it important?

Most evaluations of corporate reputation do not link its value to consumer choices. This one examines the value of brands in the context of a choice rather than in isolation. It will be of interest to those reading about CSR, corporate ethics, ethical consumerism, social attributes.

Perspectives

This research shows the value of corporate reputation in consumer choice is more expansive than a halo effect that companies with better reputations are chosen. Improving corporate reputation reduces price sensitivity among consumers and improves their valuation of high clarity features. Better knowledge about indicators of the company’s reputation amplifies these effects. The research incorporates an individual SEM-based measure of corporate reputation into a choice model to demonstrate these effects. corporate branding; marketing management; corporate social responsibility (CSR), ethics; corporate reputation; consumer choice; marketing strategy; marketing management

Professor Paul F Burke
University of Technology Sydney

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This page is a summary of: The relative impact of corporate reputation on consumer choice: beyond a halo effect, Journal of Marketing Management, September 2018, Taylor & Francis, DOI: 10.1080/0267257x.2018.1546765.
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