Organizations can introduce a variety of strategies and initiatives to improve their reputation--to ensure they are perceived as virtuous, trustworthy, and credible.
Step 1. Organizations should ensure that most of their virtuous acts--perhaps their support of charities or benefits to employees--are conceptualized as distant in time or space. For example, they should highlight how their initiatives to support deprived communities or overcome injustices are applied in distant locations. They might also show how these initiatives will unfold over many years rather than begin immediately.
When individuals experience a sense of distance from some initiative, they are more likely to apply broad moral principles when they evaluate this program (Eyal, Liberman, & Trope, 2008). Specifically, events that are perceived as distant in time or space are classified or represented as abstract, intangible, unobservable, and broad concepts--not with concrete, specific, observable, or discrete features. Hence, individuals apply abstract, intangible principles to evaluate these initiatives, disregarding specific contextual features.
For example, moral acts, such as donations, are perceived as more virtuous if undertaken the next year than if undertaken the next day. If distant in time, individuals are more inclined to apply the principle that donations are virtuous, regardless of the circumstances.
Step 2. Using the same principle, organizations should ensure that any contentious acts, such as elevated levels of contamination, are conceptualized as more immediate. For example, when justifying these acts, managers should refer to concrete details and highlight immediate actions that will be undertaken to redress any complications (see also Construal level theory).
Step 1. Managers should ascertain whether or not potential shareholders perceive their organization as supportive of the environment. If the organization is perceived to support conservation, initiatives that are intended to protect the environment should not be emphasized in annual reports or the media. If the organisation is perceived to damage the environment, plans that could bolster conservation over the next few years should be formulated. Organizations should publicise this plan as soon as possible.
After companies distribute press releases that highlight their commitment to the environment, the price of their shares or stocks becomes more stable and less erratic (Bansal & Clelland, 2004). When these prices are stable, investors are more likely to be attracted to the company and strategic initiatives can be planned more effectively. Nevertheless, these press releases do not enhance the stability of shares or stocks--and might even provoke instability--if the company is already renowned for their support of the environment (Bansal & Clelland, 2004).
That is, some organizations are assumed to undertake activities that are intended to preserve the environment and minimize pollution or wastage. If these organisations announce an initiative to bolster conservation, the public become either sceptical of their motives or concerned they will neglect other business imperatives. As a consequence of this distrust, shareholders feel uncertain and hence the price of shares and stocks fluctuates markedly.
In contrast, some organisations are assumed to undertake activities that damage the environment and promote pollution or wastage. The public presume these organisations are more vulnerable to various events or initiatives, such as protests or government regulations. Hence, in response to some economic or industrial event, the price of shares and stocks fluctuates markedly. This problem diminishes, however, if the company distributes a press release that highlights their commitment to the environment.
Step 1. Sometimes, organizations would like to experiment with a novel product or service line. Before they release these products or services, they should cultivate an exciting, trendy, and youthful image. For example, on their website, they could utilize informal language and jargon that is associated with youth, such as "Hey!" rather than "Hello." Second, they should utilize bright reds, purples, and greens. Third, they should present photographs of risky adventures, such as rock climbing. Finally, they should include words such as "exciting" or "original" in their slogans.
Customers are more likely to maintain a sense of loyalty and commitment to a company that commits an error, such as misplaces an order, if the brand is perceived as exciting, trendy, and youthful rather than sincere, wholesome, and sentimental (Aaker, Fournier, & Brasel, 2004). That is, some brands or companies are often perceived to be sincere, wholesome, and sentimental, such as Hallmark. Customers expect these companies to be reliable and therefore do not anticipate any errors or problems. When errors or problems arise, their expectations are shattered, and hence customers become dissatisfied and disloyal.
In contrast, some brands or companies are often perceived to be exciting, trendy, and youthful, such a Yahoo or Virgin. Customers anticipate that some unexpected events might arise. Hence, they are less sensitive to errors and problems. Indeed, when errors or problems arise, customers often remain satisfied and loyal (see also Regulatory focus theory).
Step 2. Organizations should highlight how their operations are, in some sense, connected to some traditional practices. They might, for example, maintain they use the same ingredients that were popular during the Renaissance.
Customers prefer some product if told these goods were first manufactured or discovered many years ago. They will, for instance, prefer some drink they were told was first developed in 1900 than a drink they were told was first developed in 2000 (Eidelman, Crandall, & Pattershall, 2009). Individuals tend to trust any product or process they feel has existed over many years, called the existential bias (see also System justification theory).
Step 1. Often, an organisation would like to introduce another product line. Sometimes, the brand is trusted, primarily because its customers are perceived as fashionable, discerning, or desirable. In these instances, the new product line should be directed to the same market segment. Alternatively, the brand might be trusted, primarily because its products are regarded favourably on some attribute, such as reliability. In these instances, the new product line should comprise the same attribute.
Organizations that venture into other markets often become less reputable, unless they can apply their perceived expertise, such as reliability, to this additional segment (Bridges, Keller, & Sood, 2000). Some organizations develop a solid reputation because their customers are perceived as fashionable, discerning, or desirable. For example, some shoe manufacturers are renowned because celebrities tend to purchase their products. Sometimes, these organisations will then decide to introduce a product that a different segment of customers is likely to purchase. Hence, the image of this organization becomes hazy and the reputation might deteriorate.
In contrast, some organizations develop a solid reputation because their products are perceived as desirable on some attribute, such as reliability or appearance. Occasionally, these organizations will decide to introduce a product in which this attribute is insignificant. For example, a watch maker, renowned because of its reliability and accuracy might introduce a line of tennis shoes. Again, the image of this organization thus becomes hazy and tarnished.
Aaker, J. , Fournier, S., & Brasel, S. A. (2004). When good brands do bad. Journal of Consumer Research, 31, 1-16.
Bansal, P., & Clelland, I. (2004). Talking trash: Legitimacy, impression management, and unsystematic risk in the context of natural environment. Academy of Management Journal, 47, 93-103.
Bridges, S., Keller, K. L., & Sood, S. (2000). Communication strategies for brand extensions: Enhancing perceived fit by establishing explanation links. Journal of Advertising, 29, 1-11.
Eidelman, S., Crandall, C. S., & Pattershall, J. (2009). The existence bias. Journal of Personality and Social Psychology, 97, 765-775.
Eyal, T., Liberman, L., & Trope, Y. (2008). Judging near and distant virtue and vice. Journal of Experimental Social Psychology, 44, 1204-1209.
Last Update: 5/11/2016