Working Papers, Hanken School of Economics
No 557:
Corporate Brand Repositioning with CSR as the Differentiating Factor: A Study on Consumer Perceptions
Tiina Vilppo and Kirsti Lindberg-Repo
Abstract: Purpose – This research paper studies how the strategy of
repositioning enables marketers to communicate CSR as their brand’s
differentiating factor. It aims at understanding how consumer perceptions
can be managed to generate brand value through corporate brand
repositioning when CSR is the differentiating factor. The purpose of this
paper is to answer the following research question: How can consumer
perceptions be managed to generate brand value through corporate brand
repositioning when CSR is the differentiating factor? The two research
objectives were: 1. to build a model, which describes the different
components of consumer perceptions involved in generation of brand value
through repositioning when CSR is the differentiating factor, 2. to
identify the most critical components in the context of the case company,
IKEA for generation of brand value during the process of corporate brand
repositioning. Design/methodology/approach – This paper is based on the
literature review covering the logic of brand value generation,
repositioning strategy and consumer perceptions connected to CSR
activities. A key concept of the positioning theory, the brand’s
differentiating factor, was explored. Previous studies have concluded that
desirability of the differentiating factor largely determines the level of
brand value-creation for the target customers. The criterion of
desirability is based on three dimensions: relevance, distinctiveness and
believability. A model was built in terms of these desirability dimensions.
This paper takes a case study approach where the predefined theoretical
framework is tested using IKEA as the case company. When developing
insights on the multifaceted nature of brand perceptions, personal
interviews and individual probing are vital. They enable the interviewees
to reflect on their feelings and perceptions with their own words. This is
why the data collection was based on means-end type of questioning.
Qualitative interviews were conducted with 12 consumers. Findings – The
paper highlights five critical components that may determine whether IKEA
will fail in its repositioning efforts. The majority of the critical
components involved believability perceptions. Hence, according to the
findings, establishing credibility and trustworthiness for the brand in the
context of CSR seems primary. The most critical components identified of
the believability aspect were: providing proof of responsible codes of
conduct via conducting specific and concrete CSR actions, connecting the
company’s products and the social cause, and building a linkage between the
initial and new positioning while also weakening the old positioning.
Originality/value – Marketers’ obligation is to prepare the company for
future demands. Companies all over the globe have recognized the durable
trend of responsibility and sustainability. Consumer´s worry about the
environmental and social impact of modern lifestyles is growing. This is
why Corporate Social Responsibility (CSR) provides brands an important
source of differentiation and strength in the future. The strategy of
repositioning enables marketers to communicate CSR as their brand’s
differentiating factor. This study aimed at understanding how consumer
perceptions can be managed to generate brand value through corporate brand
repositioning when CSR is the differentiating factor.
Keywords: corporate social responsibility; CSR; corporate brand; repositioning; (follow links to similar papers)
23 pages, June 1, 2011
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