Critically discuss the proposition that reputation is more important for long-term strategic distinctiveness than product brands

Question

What will be an ideal response?

Answer 1

Brand image or personality contributes to and is certainly a signifier of reputation. The nature of a
brand image, however, may shift over time, without affecting reputation remain unchanged. For
example, Toyota and Volkswagen have long enjoyed global reputations for good product quality and
reliability, yet neither would claim to be symbol of high automotive desirability on a par with, say,
Mercedes. For this reason both corporations have introduced ‘prestige’ brands whose images they
have worked hard to create (viz. Lexus and Audi, respectively. The two corporations now vie for the
position of being the world’s largest vehicle producer. Conversely, the Italian car brand Alfa Romeo
is widely seen as a desirable brand, especially by enthisiasts, yet it is still dogged by its reputation
for poor reliability, even though it may not longer be fair. Accordingly, a high reputation depends on
the ability of the enterprise to earn the respect and loyalty of its customers by delivering tangible
perceived value for them via products and services that meet their needs and legitimate
expectations, allied to the quality and being responsive to changes therein. By operating these
principles, highly regarded ‘portfolio’ corporations such as Unilever and Johnson and Johnson have
maintained high reputations despite the fact that some brands fall from favour whilst others emerge.