Corporate brand reputation and the adoption of innovations

Abstract

Purpose

This paper aims to investigate how the strength of a corporate brand influences the adoption of an innovative service, and the main components of the construct: corporate brand (CB).

Design/methodology/approach

A real‐world, online, information acceleration experiment was conducted where the marketing mix and competitive environment was held constant for a new service from three different CBs. Respondents indicated their likelihood of buying from each of these and their perceptions of them.

Findings

The study finds that there was a significant relationship between CB strength and respondents' likelihood of adoption of the service. The CB construct was found to comprise two factors: conative and cognitive, where the former was more influential on adoption probability.

Research limitations/implications

A limited set of variables commonly associated with brands was taken to be representative of CB. Further research would be needed to more generalise the findings and more fully examine the CB construct for its components.

Practical implications

A competent marketing mix is not sufficient on its own to gain the adoption of an innovative service: a strong CB is influential. The emotive rather than factual associations with the CB may well be a more influential on adoption decisions.

Originality/value

An indication of the scale of the CB effect on innovation adoption is given. CB is indicated to have two components: emotive and factual. Those managing the potential launch of an innovative service and who may have several corporate brands to choose from to use would be aided by this research.

Citation

Corkindale, D. and Belder, M. (2009), "Corporate brand reputation and the adoption of innovations", Journal of Product & Brand Management, Vol. 18 No. 4, pp. 242-250. https://doi.org/10.1108/10610420910972765