Journal of Strategic Marketing · 2010 · 42 citations · 49 references
Customer SatisfactionReputation ManagementBrand StrategyConsumer ResearchSuperior Financial PerformancePersonal BrandingBrand AssociationsManagementHigher Market ValueBrand ManagementBrand DevelopmentCorporate GovernanceBrand AwarenessStrategic ManagementMarketingDoes Brand ManagementCorporate Reputation TranslateBusinessBusiness StrategyMarketing ManagementBrand EquityBrand AssociationBrand AuthorityMarketing Strategy
Brand reputation is a key source of brand associations, yet empirical evidence linking it to operational performance remains scarce. The study empirically tests whether firms with a positive reputation enjoy economic benefits. The authors use a comprehensive empirical approach to examine the link between reputation and economic outcomes. Positive reputation is linked to a market‑value premium, better financial performance, and lower cost of capital, suggesting managers should cultivate it.
Brand associations affect image and one source of brand association is a company's reputation. While the relationship between a positive corporate reputation and operational performance is intuitively appealing, there has been relatively little empirical research. This study, using a comprehensive approach, seeks to empirically test the relationship and thereby determine whether firms with a positive brand image, that is those with a positive reputation, experience an economic benefit. Findings are that these firms are associated with a significant market-value premium, superior financial performance, and lower cost of capital. Given these findings, marketing managers would do well to strive to build and maintain a positive reputation.
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