There is no way to mistake the ubiquitous trademarked Coca-Cola bottle, or the stylish ads for Absolut Vodka with any of their competitors. How have these companies created this irresistible appeal for their brands? How have they sustained a competitive edge through aesthetics?
Bernd Schmitt and Alex Simonson, two leading experts in the emerging field of identity management, offer clear guidelines for harnessing a company's total aesthetic output-- its "look and feel"-- to provide a vital competitive advantage. Going beyond standard traditional approaches on branding, this fascinating book is the first to combine branding, identity, and image and to show how aesthetics can be managed through logos, brochures, packages, and advertisements, as well as sounds, scents, and lighting, to sell "the memorable experience." The authors explore what makes a corporate or brand identity irresistible, what styles and themes are crucial for different contexts, and what meanings certain visual symbols convey. Any person in any organization in any industry can benefit from employing the tools of "marketing aesthetics".
Schmitt and Simonson describe how a firm can use these tools strategically to create a variety of sensory experiences that will (1) ensure customer satisfaction and loyalty; (2) sustain lasting customer impressions about a brand's or organization's special personality; (3) permit premium pricing; (4) provide legal "trade dress" protection from competitive attacks; (5) lower costs and raise productivity; and (6) most importantly, create irresistible appeal. The authors show how to manage identity globally and how to develop aesthetically pleasing retail spaces and environments. They also address the newly emergent topic of how to manage corporate and brand identity on the Internet. Supporting their thesis with numerous real-world success stories such as Absolut Vodka, Nike, the Gap, Cathay Pacific Airlines, Starbucks, the New Beetle Website, and Lego, the authors explain how actual companies have developed, refined, and maintained distinct corporate identities that set them apart from competitors.
Organizational Behavior and Human Decision Processes
This paper builds a simple analytical model to help crystallize the often fuzzy concept of trust. Altogether, seven properties of trust are derived. The findings lend support to some well-accepted views on trust yet shed new light on other interesting properties of trust. In particular, it is shown that trust supports cooperation through its impact on two main threats to cooperation, namely fear and greed.
Journal of International Marketing
Should the focus of a brand-extension strategy be on product-category related factors (e.g., the fit between the extension and the core product) or should consumers' attention be drawn to characteristics of the company providing the extension (e.g., company size)? Examining this issue experimentally in Hong Kong and in the United States with samples of students and working professionals, we find that for U.S. consumers, perceived fit is much more important than company size; for Hong Kong consumers, company size does not matter for high fit extensions, but does matter for low fit extensions. We suggest the value of collectivism may explain the relative higher importance of corporate identity for East Asian consumers. East Asian consumers rely on companies as interdependent, collective societal entities to reduce the risk of a low fit extension, whereas U.S. consumers-as individualists-place higher importance on their own judgment regarding the product fit rather than cues such as company size.
One of the most notable business trends in recent years has been the surge in alliance formation. Globalization, escalating R&D expenses, shortening product life cycles, and convergence of technologies are often cited as important factors that contribute to this phenomenon. This article develops a framework for multi-firm alliances. Multi-firm alliances can be classified on the basis of distinct payoff structures, leading to critical differences in their predicted development and final result. This article presents four multi-firm alliance game scenarios to describe the dynamics that underlie the interactions among firms and provides industry examples. It offers a number of lessons to help managers improve their ability to manage multi-firm alliance relationships.