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Value Amplification. Developing Authentic Brands Through an Exploration of Corporate Values
Value Amplification. Developing Authentic Brands Through an Exploration of Corporate Values
Value Amplification. Developing Authentic Brands Through an Exploration of Corporate Values
Value Amplification. Developing Authentic Brands Through an Exploration of Corporate Values
Publicité
Value Amplification. Developing Authentic Brands Through an Exploration of Corporate Values
Value Amplification. Developing Authentic Brands Through an Exploration of Corporate Values
Value Amplification. Developing Authentic Brands Through an Exploration of Corporate Values
Value Amplification. Developing Authentic Brands Through an Exploration of Corporate Values
Value Amplification. Developing Authentic Brands Through an Exploration of Corporate Values
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Value Amplification. Developing Authentic Brands Through an Exploration of Corporate Values
Value Amplification. Developing Authentic Brands Through an Exploration of Corporate Values
Value Amplification. Developing Authentic Brands Through an Exploration of Corporate Values
Value Amplification. Developing Authentic Brands Through an Exploration of Corporate Values
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Value Amplification. Developing Authentic Brands Through an Exploration of Corporate Values

  1. Value Amplification: Developing Authentic Brands Through an Exploration of Corporate Values. by Glenn Reid E: glenn@grmmarketing.co.uk W: www.grmmarketing.co.uk T: @glenn_reid_ “It is in the heart that the values lie.” Mark Twain (1906)
  2. Introduction For decades corporate brand specialists have been interested in understanding the secret to developing an authentic brand that is able to make meaningful connections with not only customers, but a wide variety of stakeholders (Maheshwari et al 2011, Murphy 1989, Tichy et al 1979). In response, this paper argues that a brand’s values forms the foundation of an emotional connection between brand and consumer. Moreover, it serves to fill the gap in literature that explores how values may be anthropomorphised into a brand personality and amplified through 3 key areas of the brand using the value amplifier model (Fig.1) resulting in the establishment, development and broadcasting of corporate brand values to its desired audience. The Value Amplifier Model The model created for this paper, entitled the Value Amplifier Model (Fig.1), may be considered to be the process of exploring and uncovering a brand’s values for the purpose of creating an anthropomorphised personality that promotes authenticity. Anthropomorphism is the psychological phenomenon that sees human domains assign human characteristics and traits to non-human entities (Epley et al 2007, Duffy 2003, Boyer 1996). This newly identified personality is the link to consumers perceiving the values of a brand to be authentic (Beverland 2005) when applied over long periods of time. It has been suggested that it is this authenticity that ultimately forms the emotional relationship between consumer and brand (Shen and Kim 2012, Ramperstad 2008). A brand might use the value amplifier model to anthropomorphise itself; however the model suggests the brand entity is required to then amplify itself through three factors that allow all stakeholders to be reached. Stakeholders may be identified by brand managers who make use of a stakeholder analysis (Merrilees et al 2005, Clulow 2005, Mendelow 1986). The three amplification factors found within the value amplifier model each target a specific cluster of stakeholders (Fig.2) and exist to allow each specific stakeholder to be exposed to the anthropomorphised brand personality born of the brand values. It is imperative that the brand values that are amplified by the model are consistent in a way that creates authenticity (Gilmore and Pine 2001, Godin 2012). It has been suggested that consumers are becoming increasingly savvy at researching brands and recognising brand personalities for multiple brands simultaneously (Thaler and Tucker 2013). It is accepted that there is increasingly greater competition than ever before between brands seeking to attract and retain the attention of the consumer (Webb and Ray 1979, Teixeira 2014). Through consumers having greater choice it has become essential for brands to win the consumers emotional favour. Moreover, increased digital access by consumers has created an online environment that allows publics to share their opinions on a brand and influence the opinions of others (Solis and Breakenridge 2009). This new connected era presents brand specialists with potential PR dilemmas on a permanent basis which only serves to cause tremors within the consumer’s perception of a brand. In recent years, even Nestle, a company with a well-established brand that includes household brand names suffered greatly at the hands of digital pitchforks. Greenpeace (2016), questioning the ethics of Nestle’s sourcing of paper and palm oil, used social media to rally a global scale boycott of the Nestle
  3. brand causing enormous intangible and tangible damage to the foodstuff producer’s brand image and balance-sheet. Nestle’s reaction to the scandal garnered further criticism as it was accepted as counter-productive (Poerkson and Detel 2014) and the company ultimately met the demands of the infamous pressure group. This instance might suggest to a commentator on the scandal that Nestle’s “150 years of good food, good life” (Nestle 2016) was not as authentic as the brand claimed. It has been suggested by research that PR crises are unavoidable and risk of crisis increases parallel to the increase of brand value (Fink 1986, Piazza 2010). Consequently, the value amplifier not only serves to create an authentic brand designed to resonate with 21st Century consumers, but also create an emotional connection strong enough to survive turbulence through crisis. Brand Values It has been suggested that consumer groups are able to connect with brands at an emotional level through the process of submerging themselves in the brand values expressed by a business or organisation (Napoli 2014). The value amplifier model requires careful consideration toward the values of a business or organisation to remain authentic during application of the anthropomorphised brand personality. Brand values may be described as the intangible emotive connections (Creative Emporium 2014) that are self-allocated by an organisation in order to effectively convey the beliefs of a corporate brand or in some cases, its owners. Brand specialists often strive to broadcast brand values into the market environment in an attempt to create a connection with consumers. Since the 1980s, organisations have increasingly used mission statements to convey brand values to its employees (Klemm et al 1991). The mission statement of an organisation is a method to establish the desired values of a corporate brand. The organisation must strive to downplay their commercial motives in a statement to authentically communicate its values to this extended variety of stakeholders (Alexander 2009.) However, this paper is of the belief that stating what the values of a brand are is not enough to ignite an authentic connection between brand and consumer and the mission statement’s purpose it to formally recognise what values the organisation holds dear. This may be considered the corner stone of the value amplifier model. To successfully convey a brand’s values in an authentic way, the values must begin to influence consumer perception (Rokeach 1979). Since the early 1950s it has been accepted that brand image has remained an important aspect of the process of influencing consumer perception (Dobni and Zinkhan, 1990). Brand image has been referred to as a business’s “symbolic utility” in an effort to best describe the intangibility of the phenomenon (Pohlman and Mudd, 1973). The question remains, how do brands transfer its self- allocated values from its mission statement to the anthropomorphised form that is capable of entering an authentic relationship? Acknowledgment of the intangibility of the concept has led to commentators conducting a deeper analysis of the consumer’s internal process that might be seen as the initial connection between the buyer and seller. Brand Personality It has been suggested that it is brand personality that allows for the baseline emotional connection between a consumer and a business that maintains characteristics that resonate with them. Brand personality has been defined as “the set of human characteristics associated with a brand” (Aaker, 1997). The idea of anthropomorphism has been prevalent throughout human history and has been
  4. researched appropriately (Epley et al, 2007). Through the in-depth research on the topic to further understand the phenomenon, it is of little surprise that practitioners of branding have adopted the psychological concept and applied it to brand development. This paper recognises the importance of maintaining authenticity when considering the personality traits of a brand. To achieve this, the value amplifier requires a brand’s personality to be derived from its values. Research conducted by Aaker (1997) has identified five dimensions attributed to brand personality. These dimensions are; sincerity, excitement, competence, sophistication and ruggedness. It has been suggested by human behaviour experts that personality traits often stem from an individual’s values (Yik and Tang, 1996). Consequently, brand developers might also consider this tendency if attempting to anthropomorphise a brand to create meaningful connections with consumers. This paper argues that Aaker’s well regarded method of identifying brand personality traits may produce the most authentic results when the brand personality is derived directly from the brand’s values. Fig 3 shows an example of a complete table that pertains to the personified personality traits that have been derived from the self-described brand values of Virgin Media (2016). These corporate brand values are; Quality, authentic, innovative and engaging. Consumers may attach personality traits to a brand that do not stem from the brand values and remain an entirely unintended consequence. A brand’s promise runs the risk of appearing insincere and unauthentic which affects the consumer’s perception of the anthropomorphised personality (Wallstrom et al 2008). Although unintended personality traits might appear to be unavoidable, it can be hypothesised that actions that remain consistent with the brand’s values and subsequent personality will engrain deeper in the consumer’s memory. Consequently, the value amplifier model requires the brand’s personality to constantly and consistently refer back to the brand’s values with the intent to remain authentic over long periods of time. A practitioner of branding would desire their publics to experience the faded affect bias. This psychological phenomenon is when individuals recall consistent pleasant memories over inconsistent negative memories. As time passes, the consistent feeling is prioritised moreover the inconsistent feeling (Walker and Skowronski, 2009). Research suggests that the removal of reinforced consistent demonstrations of dimensions of personality might lead to a consistency bias. This form of memory bias is best described as incorrectly remembering past feelings and replacing them with more recent feelings (Peeters 2006). When memory bias are considered within the context of branding it is suggested by Keller’s Brand Equity Model (2013) that consumers will remember the consistent personality traits as more authentic whilst forgiving temporary stray from the brand’s personality more quickly. To achieve this state of cognitive bias, this paper stresses the importance of referring to the brand’s values. A major function of the value amplifier is the creation of an anthropomorphised brand entity that is made authentic by evolving the personality traits from the values that remain at the heart of the brand. The intended result is the creation of a meaningful and lasting relationship between brand and consumer. Moreover, to achieve this, the model states that the newly formed value led brand personality must be consistently conveyed through three key factors: Value Proposition, CSR and Leadership. Each factor is of equal importance and would ultimately reflect the values of a brand. Value Proposition
  5. The value proposition of a brand was described by Lanning and Michaels (1988) as the value delivered by an organisation to its stakeholders. The value proposition is created following careful analyses of data obtained on segments and what each segment views as valuable. Since 1988, both academics and marketing professionals have adopted the concept of value proposition and expanded upon it. Research has shown that there are four elements to delivering high value proposition which include pricing structure, functionality, emotion and symbolic offering (Rintamaki et al 2007). This paper attempts to connect the brand values to all four elements of value proposition. When pricing and functionality is considered consumers may notice the connection between a brand’s personality and the cost of their product or service. Specifically, the sophistication dimension of brand personality might be reflected in the pricing structure. Fig 4 is a comparison of Aaker’s (1997) “sophistication” dimension applied to Apple and Ryan Air. Apple is recognised (Fitzsimons et al 2008) as an innovative high end brand with pricing to reflect this whilst Ryan Air is a low end brand that boasts its cheap price point and “no frills” (Edwards 2015). The comparison shows the interesting interlinks between the personality dimension and the consumer targeted by each brand’s appropriate offering. It is apparent that both brand’s anthropomorphised personalities represent the customer and what the customer perceives as valuable. Moreover, this paper refers back to customer’s perception of authenticity and how the phenomenon effects the emotional connection between brand and consumer. Value proposition is seen to be co-created (Frow and Payne 2011) by a brand and its various stakeholders. This is especially true when creating the intangible emotional and symbolic offering through consistent experiences of a brand’s personality being implemented over periods of time (Ponsonby-McCabe and Brown 2010). Consequently, this report is of the belief that the emotion and symbolic offering of a brand’s value proposition is communicated heavily through stakeholder’s consistent exposure to the brand’s value created personality dimensions. Effective Leadership Leadership comes in various forms within the organisational structure of a business (Nohria N and Eccles R 1992, Morgan 2015, Lister 2016). This paper argues that the brand values must be applied by all elements of leadership within an organisation regardless of seniority (Henkel et al 2007). To best apply the value amplifier model the most senior leaders in an organisation should effectively convey the anthropomorphised brand entity to their subordinate managers who will in turn communicate the same values down the chain (Fig.5) until the customer is reached (Morhart et al 2009, King and Grace 2010). Although leadership is prioritised equally against CSR and value proposition in the value amplifier model, more vigilance might be considered toward senior leadership for a number of reasons: It remains the responsibly of senior leaders to establish the values that filter into the value amplifier model. This paper is carried on the recurring theme that an anthropomorphic brand is the key to authenticity; therefore the brand’s most senior leader might be compared to the parental figure to the personified brand. Studies show that a persons values are inherited by their parents (Kagen 1999, Kasser et al 2002, Longest et al 2013) and in a branding context it becomes clear that the leaders representation of values are vital to the brand’s values remaining consistent. Moreover, it is these senior figures that must adapt the brand’s values to remain both current and compatible with
  6. the strategic goals of the business. In some cases it may be noted that it is the brand’s CEO or founder that acts as a brand mascot that embodies the brand’s values, and thus, personality. A fitting example of this may be found in the late Steve Jobs and his values orientated leadership of Apple (Nova Media 2015). CSR Strategy It is widely believed that corporate social responsibility (CSR) is beneficial for the society that it pertains to (Steurer et al 2005, McWilliams and Siegel 2001, Pedersen 2009). In recent years it has been theorised (Lacey 2014, Paswan et al 2005, Rodrigo and Arenas 2008) that CSR has transformed from a “motivational factor” to a “hygiene factor” (Herzberg 1974) in the mind of various stakeholders (Amin-Chaudry 2016, Amaeshi et al 2013). This evolution in CSR leads this paper to conclude that the concept must be considered when attempting to develop a brand worthy of emotional connection. In these contemporary times where CSR is expected, the concept has been considered an amplifier of the brand (McElhaney 2009). CSR has an important role in authentically communicating brand values within the value amplifier model (Beckman et al 2009). The transparent nature of CSR (McWilliams et al 2006) allows for the appearance of authenticity which when applied to the value amplifier model leads to an emotional connection with consumers. Moreover, it has been claimed that 88% of customers are more likely to purchase a brand that implements a CSR policy (Simply CSR 2016). Luan and Ailawadi (2009) suggest that customers remain more loyal to a brand when its CSR activities directly affect their experience with the company. There remains a clear overlap in the value amplifier model through the experiential element of proposition value and the customer’s tendency to resonate with the CSR experience. Conclusion In the interest of developing authenticity that allows for emotional and memorable connection with consumers, this paper emphasises the need to not only create a profound anthropomorphic brand entity but ensure that it exercises its brand values across multiple elements of the brand. This paper finds that the value amplifier model might be considered a reference point by corporate brand specialists to formalise such a brand birth experience. Moreover, the practitioner of brand development may reflect on the model to correctly determine if the brand’s actions are consistent with the values and personality matrix that form what, or equally who, the brand is.
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  12. Appendix. Fig. 1: Value Amplifier Model Fig. 2: 3 Amplification Factors and Corresponding Stakeholders Leadership CSR Strategy Value Proposition Employees (Senior & Junior) Pressure Groups/Charities Customers Government Communities Consumers Partners (eg. suppliers) Charities Competitors International Government (eg. EU) Banks & Shareholders Local Government Fig. 3: Five Dimensions of Personality (Aaker 1997.) (Virgin Media 2016.) Sincerity Excitement Competence Sophistication Ruggedness Family Daring Reliable Charming Maverick Honest Spirited Hardworking Attractive Edgy Original Imagination Leader Extravagant Rebel Cheerful Up to date Confident Fig. 4: Sophistication Comparison of Apple and Ryan Air (Apple 2016, RyanAir 2016) Apple (high end brand) Ryan Air (low end brand) Sophistication Sophistication Chic & Stylish Unassuming Futuristic Serves purpose (no frills) Vibrant Basic aesthetic design
  13. Fig. 5: Leadership Top-to-Customer Chain CEO Senior Managers Junior Managers Non-Managerial Employees Customer
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