The Interface Between Brand Equity and Employees

Introduction

It is an acknowledged fact that brands play a significant role in the world of businesses. Brands impact on employees, firms’ performance, markets, customers and other dimensions. On the part of employees, brands shape the attitudes, behaviour and value systems (Kimparkorn & Tocquer, 2010). Strong bands are noted to be instrumental in enhancing customer loyalty, market share of firms, as well as contributing to the increase of profits and other valuable assets (Kimpakorn & Tacque, 2010). As such, it is evident that brand equity is influenced by multifaceted and inter-disciplinary approaches.

 This essay therefore is an exploration of the interface between brand equity and employees. The interface explored in this essay focuses on both service industry and manufacturing sector. In the course of revealing the interface between brands and employees, the essay shall also attempt to examine  some other issues such as the various theories found outside the field of marketing that have informed issues of brand equity and employees, various constructs created in the area and the different contributions  that have been made in the past five years. It also exposes possible areas or opportunities for further research. Before embarking in the actual task of exploring the interface between the two variables, it is worth to conceptualize the key concepts used in this work; brand and brand equity.

Brand and Brand Equity Defined

 A brand can be conceptualized or rather defined as; ‘feelings, impressions, perceptions and attitudes of employees towards the company (Schlager, Bodderas, Maas & Cachelin, 2011). From this definition it is apparent that ‘brand’ is of central consideration in a company. On the other hand, brand equity has numerous definitions or conceptualizations as well. Keller (2003) defines brand equity as the difference in customer response to marketing activity. In other words, this refers to the various ways customers react to various modalities, strategies, approaches and techniques used by marketers. Such reactions and responses can be positive or negative. On the other hand, brand equity is conceptualized by Aeker as set of both assets and liabilities associated with brand name and symbol that adds or reduces the value provided by products or services to the firm (1991).

The Interface between Brand Equity and Employees

There is a strong correlation between brand equity and employees. From a human resource perspective that; human resources are the most important assets of any organization it is apparent that even on issues of brands, employees have a strong impact. People working in an organization bring to the work place their experience, knowledge, skills, minds, values, beliefs, similarities as well as differences. For employees, the extent to which they are committed to the brands produced by the firm has strong influence on service brands (Kimparkorn & Tocquer, 2010). If the employees are committed to brands, they are likely to promote services that are offered through communicating the quality and types of products.

Brands equity influences attitudes, values and behaviour of employees (Kimparkorn & Tocquer, 2010). Positive employees’ behaviour, values and attitudes are also necessary in shaping and creating strong and successful brands (King & Grace, 2008). It can therefore be argued that; the two mutually reinforce one another. Brands shape employees while employees shape brands and ultimately; they both contribute to the overall performance of the firm in terms of enhancing profitability and shares. This interface is vital for businesses. Strong and good brands are more likely to shape employees’ values, attitudes and behaviour positively while poor brands do the reverse.

Equally important, employees serve as brand ambassadors and in so doing, they influence a great deal brand equity (King & Grace, 2008). Employees being part of the society play a bigger part in influencing sells and dispensation of information about brands or products that are produced by firms. Employers do use their skills and knowledge to act as ambassadors of different brands. At some points, they broadcast about brands via the media, in other instances, they use the brands and hence promoting brand awareness and through other ways. Many companies, nowadays for instance have outfits that are put on by employees or services that are given to their workers. It is common for example here in Tanzania to see people around the city wearing t-shirt written Vodacom with a list of brands and services offered, others put on caps or hats with symbols of Airtel Tanzania and so on.  All these help employees to act as brand ambassadors.

Employees’ attitudes have strong impact on customers’ experiences (Cachelin, Maas, Schlager & Bodderas, 2011). Customers can either be impressed or disappointed by the attitudes of employees. Good employees’ attitudes are instrumental in enhancing the experience of customers. Understanding that employers’ brands are key in shaping the attitudes of customers, it is essential that there is a clear link and efforts to make sure that firms’ or employers’ brands impart positively on employees’ attitudes. Furthermore, as emphasized by Kimpakorn and Torcque (2010), customer’s experience with the brand is vital as it shapes their opinions and future associations with the brand.

Additionally, as the interaction that prevails between employees of the firm and customers is crucial in enhancing brand equity, it is essential that employers and organizations impart on employees, the desired image of the brand and capacitate them to clearly distil all brand values. This will in turn help create meaning of the brands and ultimately foster positive relationships between employees and customer. All these will in their combination; enhance firms’ profitability, performance and sustainability.

Theories outside marketing that influence brand equity and employees

I think that there are a number of theories outside marketing that are used to inform the interface between brand equity and employees. Principally, the immense influence of theories governing human resources management such as the instinct theory of motivation and the Employee Based Brand Equity theories cannot be underestimated (King & Grace, 2009). It is in no doubt that motivation theories are instrumental in looking at the relationship between brand equity and employees. Other theories that are also useful include; identity, leadership and self-determination theories (Morhart, Herzog & Tomczak, 2009). Besides, as knowledge is of great value for employees to be able to disseminate information on the brand, knowledge based theories have also been useful in informing the interface between brands and employees.

Emerging Constructs

From the readings, there are several constructs that seem to emerge. They include; King and Grace (2010) term as openness; the extent to which employees are receptive to organizational dialogue and Brand Commitment a well as Employee Based Brand Equity (EBBE). Other constructs are such as; the centrality of knowledge dissemination, information generation, role clarity and human factors. Human factors are in this case defined as; the extent to which employees perceive that they are being treated in a humane way by their organization. This is thought to manifest through different ways namely; being respected, communication various information, ensuring trust and cooperative interactions.

                                               Opportunities for further research          

More research is needed into such areas as customer outcomes that emerge from good employees’ attitudes or strong brands. Besides, there is a need to research on the kind of leaders or employer’s attitudes and behaviour that have a greater possibility of reinforcing transformational attitudes to employees and hence fostering brand equity. It is also worth conducting research to examine the extent to which employees contribute to brand equity. Apart from that, research is necessary to find out the relationship between employees commitment in different companies, customer satisfaction and companies’ profitability. Further research can also be centred on examining employees brand commitment in various service industries and the antecedents of employers brand commitment.

Conclusions

From the foregoing discussion, it has been established clearly that brand equity and employees have a mutually reinforcing relationships that impact businesses positively or negatively. Employers’ economic value, reputation, development, diversity and social values influence employees’ satisfaction and identification. As such acceptable and legitimate values of employers are likely to influence employees’ satisfaction and identification with the brands and overall improving the services offered. More research also needs to be carried to find out other factors that mediate the interface between brands and employees. It is also imperative to note that the interface between employees and brand equity discussed above can vary substantially depending on the type or kind of sector being examined. Certainly, the interface differs between service and manufacturing sectors.

References

Kimpakorn, N. and Tocquer, G. (2010). Service Brand Equity and Employee Brand Commitment. Journal of Service Marketing, 24 (5), 378-388.

King, C. and Grace, D. (2010). Building and Measuring Employee-based  brand equity. European Journal of Marketing, 44 (7/8), 938-971.

Lindgreen A., Beverland M.B.,&  Farrelly F.,(2010).From strategy to tactics: Building, implementing and Managing brand equity in business markets. Industrial Marketing Management 39, 1223-1225

Morhart, F. M.; Herzog, W and Tomczak, T. (2009). Brand-specific leadership: Turning Employees into Brand Champions. Journal of Marketing, 73 (5), 122-142.

Schlager, T.; Bodderas, M.; Maas, P.; and Cachelin, J. L. (2011). The Influence of Employer Brand on Employees’ Attitude Relevant for Service Branding: An Empirical Investigation. Journal of Services Marketing, 25 (7), 497-508.