Erim - 04 omslag BerensXP5 31-03-2004 10:53 Pagina 1 Corporate branding: The development of corporate 39 GUIDO A.J.M. BERENS associations and their influence on stakeholder reactions GUIDO A.J.M. BERENS Companies are becoming increasingly transparent toward society. But how do people respond to this transparency? Some critics state that the majority of people do not care about the way companies Corporate branding: behave, at least as long as it does not affect them personally. Obviously, this criticism is overstated since there have been large-scale consumer boycotts. However, the question is under which conditions The development of corporate associations people are more likely to care about the way a company behaves. and their influence on stakeholder reactions This thesis contributes to an understanding of this issue by looking Corporate branding at the development and influence of corporate associations, i.e., of the perceptions that people have regarding companies. It addresses three important questions. First, which types of corporate associations can be distinguished? Second, under which conditions do different types of corporate associations influence people’s preferences for a company’s products, stocks, and jobs? And third, which way of communicating about a company leads to the most favorable corporate associations? These questions are addressed by three experimental studies and by a thorough review of the literature. ERIM The Erasmus Research Institute of Management (ERIM) is the Research School (Onderzoekschool) in the field of management of the Erasmus University Rotterdam. The founding participants of ERIM are the Rotterdam School of Management and the Rotterdam School of Economics. ERIM was founded in 1999 and is officially accredited by the Royal Netherlands Academy of Arts and Sciences (KNAW). The research undertaken by ERIM is focussed on the management of the firm in its environment, its intra- and inter-firm relations, and its business processes in their interdependent connections. The objective of ERIM is to carry out first rate research in management, and to offer an advanced graduate program in Research in Management. Within ERIM, over two hundred senior researchers and Ph.D. candi- dates are active in the different research programs. From a variety of academic backgrounds and expertises, the ERIM community is united in striving for excellence and working at the forefront of creating new business knowledge. www.erim.eur.nl ISBN 90-5892-065-8 Corporate Branding: The Development of Corporate associations and their Influence on Stakeholder Reactions Corporate branding: De ontwikkeling van ondernemingsassociaties en hun invloed op de reacties van belanghebbenden Proefschrift ter verkrijging van de graad van doctor aan de Erasmus Universiteit Rotterdam op gezag van de Rector Magnificus Prof.dr. S.W.J. Lamberts en volgens besluit van het College voor Promoties. De openbare verdediging zal plaatsvinden op vrijdag 4 juni 2004 om 13.30 uur door Guido Antonius Johannes Maria Berens geboren te Oss Promotiecommissie Promotor: Prof.dr. C. B. M. van Riel Overige leden: Prof.dr.ir. G. H. van Bruggen Prof.dr. M. Kaptein Prof.dr. E. R. Seydel Erasmus Research Institute of Management (ERIM) Rotterdam School of Management / Rotterdam School of Economics Erasmus University Rotterdam Internet: http://www.erim.eur.nl ERIM Electronic Series Portal: http://hdl.handle.net/1765/1 ERIM Ph.D. Series Research in Management 39 ISBN 90 – 5892 – 065 – 8 © 2004, Guido A. J. M. Berens All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the author. Voor pap en mam VOORWOORD (PREFACE) Bij het afronden van mijn promotie-onderzoek wil ik allereerst mijn promotor Cees van Riel bedanken. Ondanks zijn meestal onvoorstelbaar drukke werkzaamheden wist hij altijd tijd vrij te maken om samen mijn onderzoek te bespreken. Ik heb ruim vier jaar lang bijzonder prettig met hem samengewerkt, en hoop dat nog lange tijd te mogen doen. Ook mijn hartelijke dank aan Gerrit van Bruggen, die aan een belangrijk deel van het onderzoek heeft meegewerkt en mij vele nuttige adviezen heeft gegeven. Joke van Oost wil ik bedanken voor al haar uitstekende hulp bij het regelen van van alles en nog wat. Mijn dank gaat ook uit naar de overige leden van de “kleine commissie”, Muel Kaptein en Erwin Seydel, voor het zorgvuldig lezen van het manuscript. In addition, I would like to thank the following people for giving detailed comments on one or more parts of the thesis: Tom Brown, Peter Dacin, Mirdita Elstak, Mignon van Halderen, Dirk van Aalsburg, Manfred Wienhoven, Onno Maathuis, Ale Smidts, Craig Carroll, Dennis Bromley, and Valérie Swaens. I also want to thank David Lloyd for his help with setting up the online questionnaire used for Chapter 4. Iedereen die (naast Cees en Joke) tijdens mijn traject bij het Corporate Communication Centre heeft gewerkt, wil ik bedanken voor hun collegialiteit (en voor de bereidheid om af en toe als proefpersoon te dienen als ik weer eens een nieuwe vragenlijst moest testen): (ahem) Mirdita, Mignon, Ahong, Sytske, Saskia, Anna-Luisa, Majorie, Dennis, Janneke, Heidi, Dirk, Manfred, Krista, Chantal, Yvonne, Craig, Alexander, Leila, v Hans, Martine, Remco, Leontine en Catelijne. (Hopelijk ben ik niemand vergeten...) Tot slot wil ik al mijn familie en vrienden bedanken voor hun belangstelling en steun. In het bijzonder wil ik papa, mama, Annelies, Christian, Dirk en natuurlijk Sunou bedanken voor al hun liefde. Sarang hae! vi CONTENTS Voorwoord (Preface).................................................................................... v Contents...................................................................................................... vii Part I: Corporate branding and corporate associations................................. 1 Chapter 1: Introduction............................................................................. 3 Focus of the thesis ................................................................................ 6 Overview of the thesis........................................................................ 10 Chapter 2: Typologies of corporate associations.................................... 13 Definitions and conceptualizations..................................................... 15 Search method .................................................................................... 18 Types of corporate associations.......................................................... 20 Discussion........................................................................................... 40 Part II: The development and influence of corporate associations............. 49 Chapter 3: The moderating effect of corporate brand dominance on the influence of corporate associations ........................................................ 51 Literature review ................................................................................ 53 Hypotheses Development................................................................... 56 Method................................................................................................ 66 Results ................................................................................................ 73 Discussion........................................................................................... 85 Chapter 4: The compensatory and non-compensatory effects of corporate associations............................................................................................. 95 Literature review ................................................................................ 96 Hypotheses Development................................................................... 98 Method.............................................................................................. 104 vii Results .............................................................................................. 111 Discussion......................................................................................... 118 Chapter 5: The influence of corporate ad factualness on the establishment of corporate associations ............................................... 125 Literature review .............................................................................. 129 Hypotheses development.................................................................. 131 Method.............................................................................................. 138 Results .............................................................................................. 146 Discussion......................................................................................... 151 Part III: Discussion................................................................................... 161 Chapter 6: Discussion........................................................................... 163 Theoretical implications ................................................................... 164 Practical implications ....................................................................... 173 General limitations and suggestions for future research .................. 177 References ................................................................................................ 183 Appendices ..............................................................................................