CHAPTER II LITERATURE REVIEW

Transcription

1 CHAPTER II LITERATURE REVIEW 2.1 Brand Definition A company that produces a product, either in the form of goods or services, they have a brand which became as identity of the company. From company point of view, brand is expected to show the differences and advantages possessed by firms when compared with their competitors. On a discussion that related with a brand, need to know and understand about the brand itself. The terms of a brand has known by a human being since a long time ago. In the earlier brand was used by people to stamped ownership on his live stock. (Tom Blackett, 2003, p. 13) and today the brand has become a phenomenon that can not be separated from human being life. There are many definitions of a brand, based on Oxford Dictionary (80), Tom Blackett defined brand as a trade mark, goods of a particular make: a mark of identification made with a hot iron, the iron used for this: a piece of burning or charred wood, (verb): to mark with a hot iron, or to label with a trade mark. (Tom Blackett, 2003, p. 13). Adapting from de Chernatony and Riley (1998), Cretu and Brodie defined brand that definition and meaning attached to brand are diverse, due to the lack of consensus among a researcher. From consumer point of view, the brand of product or of a service represent the matching of functional and emotional value devised by a firm with performance and psychosocial benefits sought 8

2 9 by consumer. (Cretu and Brodie, 2009, p. 270). Philip Kotler based on The American Marketing Association on his book, defined brand as a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of seller to differentiate them from those competitors. (Kotler and Keller, 2006, p. 256). And another definition of a brand from brandchannel.com defined a brand is a mixture of attributes, tangible and intangible, symbolized in a trademark, which, if managed properly, creates value and influence. ( Brand Identity Aaker defined brand identity as a unique set of a brand associations that the brand strategist aspires to create or maintain (Aaker, 1996, p. 68). Kapferer, in his book describes the brand identity has six facets and represented by a hexagonal prism. The six facets of brand identity are (Kapferer, 2008, p ): a. Physique Physique means that a brand related with brand backbone and its tangible added value. b. Personality Personality related with how a brand communicates to build their characteristic. The way in which it speaks of its product or service shows what kind of person it would be if it were human.

3 10 c. Culture A brand is a culture, and a brand should have its own culture. Culture means the set of values feeding the brand s inspiration and culture refers to the basic principles governing the brand in product and communication. d. Relationship A brand is a relationship. Indeed, brands are often at the crux of transactions and exchanges between people. e. Reflection A brand is a customer reflection, and reflection is target s outward mirror. A brand will always tend to build a reflection or an image of the buyer or user whom it seems to be addressing. f. Self Image Self image is target s own internal mirror. Through our attitude toward a certain brand, we indeed develop a certain type of inner relationship with ourselves. Figure 2.1 Kepferer (2008) Brand identity prism.

4 11 Another researcher, Harris and de Chernatony (2001, p ) identified that brand identity consists of six components. The six components of brand identity are: a. Brand vision and culture Brand vision and culture are the core of brand identity. Vision encompasses the brand s core purpose and its core values. Culture represented organization culture that encompasses employees values and consumptions, which also guide their behavior, particularly in novel situations. b. Positioning Brand s positioning sets out what the brand is, who it is for and what it offers and the brand s positioning will be affected by artifacts. c. Personality Personality represented the brand s emotional characteristics. Personality traits are further developed through associations with the typical user imagery, endorsers and consumers contact with the company s employees. d. Relationship Relationship related with relation between brand, and its consumers evolves, which is characterize by the values inherent in the brand s personality. e. Presentation to reflect the stakeholders actual aspiration Brand as a reflection of stakeholders actually related with a customer reflection and aspiration. f. Presentation of aspirational self-image Aspirational self image related with company self concepts.

5 Brand Image Cretu and Brodie (2009, p. 276) described that brand image is the consumer s mental picture of the offering and includes symbolic meanings consumer associate with a specific product or service. Adapting from Low and Lamb (2000), Cretu and Brodie defined brand image as the reasoned or emotional perceptions consumer attach to specific brands. Brand image functions will define the product for consumers and differentiate the firm s offering among competitor Brand Reputation Successful management of internal brand resources should result in a favorable brand reputation. Adapting Fombrun and Rindova s (1996), Harris and de Chernatony defined a brand s reputation as a collective representation of a brand s past actions and results that describes the brand s ability to deliver valued outcomes to multiple stakeholders. Harris and de Chernatony said that brand s reputation is in contrast with brand s image. Brand s image reflects current and changing perceptions but brand s reputation is more stable and represents the distillation of multiple image overtime. Reputation provides a much more representative indication of brand performance. de Chernatony illustrates between brand s identity and brand s reputation in the relationship as below:

6 Figure 2.2 de Chernatony (1999) The brand s identity and reputation relationship. 13

7 Brand Image Gap A brand that is properly manage by its stakeholders will have a good brand s reputation and the reputation of a brand will be related with its performance. According to Harris and de Chernatony (2001), they found a gap between brand s identity and brand s reputation. Perceptions among stakeholders play an important role in building the brand reputation. Difference in perception, it makes a gap between brand identity and brand reputation and effect to the brand performance. According to Harris and de Chernatony (2001), perception depends on a person s expectations and previous knowledge as well as the information presented by the stimulus and in this case the brand. (Harris and de Chernatony, 2001, p. 446 ). Every stakeholders of the brand are likely to differ in their perceptions of their brand s identity. Therefore, to reduce / minimize the gap, according to Harris and de Chernatony (2001), they had the assumption that the similarity between the brand s stakeholders could influence the performance of the brand. There are three factors that influence in building inter-brand similarity perceptions of stakeholders and to improve brand performance. (Harris and de Chernatony, 2001, p ) These three factors are: a. Similarity of the brand team members. The resulting heterogeneity poses a challenge to the formation of congruent perceptions, which are crucial for effective leverage of brand resources and, consequently, brand performance. Similarity of the brand team members here can be define as similarity in terms of the age,

8 15 education, experience, teams, organizational and functional background. Harris and de Chernatony (2001) proposed that the more the similarity between the brand team members it will affect to the brand perception. b. Shared values Shared values are referred to the organization value and brand value. Consistency between the organization value and brand value will greatly affect the performance of a brand and shared values will play an important part in facilitating congruent brand perceptions and coherent actions both within the brand team and across the organization. c. Communication. Adapting from Dubrin (1994), Harris and de Chernatony (2001) defined communication as the sending, receiving, and understanding of a message. It is also the basic process by which managers and professionals accomplish their work. The purpose of communication is to gather, process and disseminate information. Communication plays an important role in the formation of congruent perceptions. More often the communications between the brand stakeholders will increase the similarity of the stakeholders brand s perceptions. Of the three factors that have been exposed to it, Harris and de Chernatony illustrates in diagram form as below:

9 16 Figure 2.3 Harris and de Chernatony (2001) The relationship between internal brand resources and brand performance. 2.2 Personal Branding Definition Nowadays, the brand is not only attached to the products or service that represent the identity of the brand owner companies, but today brands can also be embedded in one's own self and become part of the identity of the person. This trend is now known as personal branding. Based on the results of exploration through the internet, BNET Business dictionary defined personal branding as the public expression and projection of an individual's identity, personality, values, skills, and abilities. ( Rampershad (2008) from his paper, states that a successful personal brand can be able to manage the perception that there are effective and do the control and influence how others can feel yourself and think about you.

10 17 ( Another personal branding researcher, Ola Rhynge (2009) explains personal branding as personal brand is divided into two parts, your Personal Brand Image and your Personal Brand Identity, where the Personal Brand Image is how your peers perceive you and your identity, personality, values, skills, and abilities. Personal Brand Identity is who you really are (identity, personality, values, skills and abilities), and that you want to communicate to others. Furthermore, Rhynge (2009) in his blog stated that personal branding is about being in control over the two parts of the personal brand so that your brand image is consistent with you brand identity. ( Personal Brand Identity Talking about personal branding, according to Ola Rhynge (2009), personal branding divided into two parts, personal brand identity and personal brand image. Personal brand identity related with who you really are and how you communicate with others so that they can know who you are. Ola Rhynge (2009) described that personal brand identity formed from four elements as follows: a. Identity According to Harris and de Chernatony, brand identity associated with identity, vision and culture, positioning and relationship of the brand. (Harris and de Chernatony, 2001, p ).

11 18 b. Personality Personal brand personality associated with characteristic of the personal brand owner. c. Values Personal brand value associated with personal concepts and describes the beliefs of an individual. d. Skills and Abilities Personal brand skills and abilities associated with talent or quality of being able to do something Personal Brand Image According to Ola Rhynge (2009), personal brand image are closely connected with the personal brand reputation. Personal brand image is associated with how others or audience received your personal brand identity. It is important for the personal brand owners to manage their image by communicating and share their personal identity with others. As well as corporate branding, inconsistency on personal brand identity and personal brand image will be creating gaps and finally will be affecting to the personal brand reputation and performance. Consistency between personal brand identity and personal brand image is a key for a successful personal branding.