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Purpose – Marketers are under increasing pressure to demonstrate the financial return associated with marketing expenditures. Concurrently, more attempts at measuring return on investment from marketing as well as achieving other long-term goals such as building brand equity and increasing shareholder value have been made. As a result of this emphasis, the degree to which advertising budgets are spent efficiently and the impact of these expenditures on the bottom line are an important topic to study.

Methodology/approach – This study applies data envelopment analysis (DEA) to a group of large firms to assess the degree to which companies spend advertising dollars efficiently and to examine the impact of advertising efficiency on investor behavior and, ultimately, stock prices.

Findings – The analysis reveals that firms that advertise more efficiently are rewarded by investors by positive stock returns.

Research limitations/implications (if applicable) – The study is limited to large enterprises with strong brands within a time frame of only four years.

Practical implications (if applicable) – The results imply that it is advisable for marketing managers not to limit their focus to increasing market-based assets at any cost. The efficiency of their efforts can send a positive signal to investors and contribute to shareholder value enhancement.

Originality/value of the chapter – The chapter finds investors to pay attention not only to the effectiveness of advertising activities but also to their efficiency. The study also demonstrates how DEA and stock return response modeling can be combined to investigate the link between advertising efficiency and investor behavior.

Purpose – We delineate how the concept of reputation has been used in different literatures. We develop some formal definitions of observers and reputation that bring together the different literatures. We then ask how noncooperative or “bad” reputations might be repaired. Based on the developed definitions and past research, we suggest some possibilities for reconciliation. We also work on developing an experimental paradigm to investigate reputation.

Methodological/Approach – We review research from different disciplines, develop definitions, and design an experiment.

Findings – We suggest that, under certain conditions, group reconciliation can occur. However, these conditions are quite specific.

Practical Implications – When the goal is to solve a social dilemma, reconciliation is an important part of the process. Without reconciliation, group integration is problematic.

Social Implications – Reconciliation can be a powerful process that encourages cooperation. We suggest some ways that reconciliation might be possible.

Originality/Value of the Chapter – This chapter suggests a new formalization to connect different conceptualizations of reputations.

Uncertainty means that transaction costs have to be incurred by organisations whenever they make an agreement. These costs include time and money spent searching, drawing up and enforcing contracts and in dealing with contingencies. The concept of transaction costs is traced from its originator, economist Ronald Coase, to its more recent development by David Kreps. Good reputations, themselves a product of successful corporate communications activities, tend to reduce internal and external transaction costs. Given a competitive environment those firms with lower transaction costs, as a result of high reputations, will tend to survive better than those with weak ones.

The purpose of this paper is to test the consumer‐perceived value of non‐traditional media, and the moderating effects of brand reputation, appropriateness and expense.

The approach takes the form of an experimental study of six (real) campaigns, manipulating media type and brand reputation (with appropriateness and expense measured within subjects).

Non‐traditional media enhance consumer‐perceived value. The effects are greater for low‐ than for high‐reputation brands. High‐reputation brands are more sensitive to the appropriateness and expense of the marketing. Consumer‐perceived value leads to higher purchase and word‐of‐mouth intentions.

The analysis of the mediating effects of consumer‐perceived value is exploratory and requires follow‐up. Being a first test of the effects of non‐traditional media, no discrimination was made between different types. This requires further attention.

The paper shows that non‐traditional media enhance the consumer‐perceived value of marketing, and suggests that consumer‐perceived value is important in generating purchase and word‐of‐mouth intentions. The approach also gives advice with respect to brand reputation, budget (expense) and appropriateness of marketing.

The paper is a first academic test of non‐traditional media/guerrilla marketing; it argues that marketing must generate consumer‐perceived value in order to be successful and finds support for this; and employs previously neglected (but highly current) variables such as appropriateness and expense. The paper is valuable in its high action‐orientation.

The Resource‐Based View of the Firm (RBV) has become an important stream of literature in strategic management. RDV's main prescription is that strategic assets are crucial determinants of sustainable competitive advantage and thus firm performance. Unfortunately, little empirical research has been occasioned to substantiate that prescription. Part of the difficulty in empirically testing RBV's main prescription lies in identifying resources capable of being strategic assets. This article combines RBV logic, the definition of strategic assets, Hall's studies, and the logic embodied in several streams of management literature to explain why strategic assets are intangible in nature, to show that not all intangible resources are strategic assets, and to demonstrate that company reputation, product reputation, employee knowhow, and organizational culture possess the characteristics of strategic assets. That is the foundation for the proposed hypotheses and proposed conceptual model presented in this paper for testing RBV's main prescription. We also discuss the practical, theoretical and empirical implications of this paper and make suggestions regarding empirical testing.

The purpose of this paper is to provide a picture of the practice of corporate social responsibility (CSR) communication among the top 300 companies in Switzerland and to investigate how favorable the cultural context is for this kind of communication.

The investigation of the top 300 companies in Switzerland was conducted using a written survey that built on previous studies.

CSR communication in Switzerland appears to be well developed, but still has broad margins for development. Examples are provided on how to improve CSR communication. Such improvements should be relatively easy to implement since Switzerland, it is argued, appears to be open to CSR communication.

The investigation considered only the communication objectives toward a limited range of stakeholders, such as clients, shareholders, and employees. The survey was conducted among the top 300 companies in Switzerland; these companies are not necessarily representative of the whole Swiss business community.

The paper describes the elements that should be considered in order to develop an effective CSR communication. These elements are synergies between issues, objectives, and channels; criteria for a credible social report; the exploitation of the potentialities of CSR advertising and the web; and the understanding of the national context where the organization is operating.

This paper focuses on CSR communication, an area that has received limited attention in CSR research. Organizations may find interesting hints on how to develop effective CSR communication.

Companies in all industries are searching for new sources of competitive advantage since the competition in their marketplace is becoming increasingly intensive. The resource-based view of the firm explains the sources of sustainable competitive advantages. From a resource-based view perspective, relational based assets (i.e., the assets resulting from firm contacts in the marketplace) enable competitive advantage. The relational based assets examined in this work are brand image and corporate reputation, as components of brand equity, and customer value. This paper explores how they create value. Despite the relatively large amount of literature describing the benefits of firms in having strong brand equity and delivering customer value, no research validated the linkage of brand equity components, brand image, and corporate reputation, simultaneously in the customer value–customer loyalty chain. This work presents a model of testing these relationships in consumer goods, in a business-to-business context. The results demonstrate the differential roles of brand image and corporate reputation on perceived quality, customer value, and customer loyalty. Brand image influences the perception of quality of the products and the additional services, whereas corporate reputation actions beyond brand image, estimating the customer value and customer loyalty. The effects of corporate reputation are also validated on different samples. The results demonstrate the importance of managing brand equity facets, brand image, and corporate reputation since their differential impacts on perceived quality, customer value, and customer loyalty. The results also demonstrate that companies should not limit to invest only in brand image. Maintaining and enhancing corporate reputation can have a stronger impact on customer value and customer loyalty, and can create differential competitive advantage.

The permeation of the corporate social responsibility imperative and the proliferation of the Internet across the globe have begun to redistribute social influence. A wider spectrum of competing stakeholders now exists and as a result corporate strategies and governance structures are subject to greater demands for transparency and accountability. In this context, reputation, of which the public relations practitioner is custodian, is now a company’s most valuable and fragile asset. To help rationalise the accountability dynamic, proposed changes to UK company law could enable a more inclusive approach to corporate reputation management through a change in definition of directors’ duties and the introduction of a non‐mandatory operating and financial review (OFR) to include intangible assets within a company’s reporting framework. The proposals are likely to be the subject of a white paper and legislation in the this session of parliament. This paper argues that by demonstrating greater emphasis on planning, research and evaluation the public relations practitioner can more effectively inform the company reporting framework and exceed the demands of accountability necessary for successful strategic corporate reputation management.

A certain number of theoretical trends consider a firm's reputation as valuable intangible assets. For companies in dematerialized e‐commerce, which is not protected by traditional entry barriers, reputation may be one of the key sources of competitive advantage. Assuming that firms’ assets result from flows of strategic actions, this research examines – over the 1999‐2002 period – the strategic actions underlying the reputations of Lastminute.com and Ebookers.com. Relying on an inductive approach, this research shows how Lastminute managed to build up its reputation through three types of actions – symbolical, competitive and relational – on the one hand, and through achieving a balance between those three types of action and the frequency of those actions, on the other hand. Finally, this research suggests a system linking the properties of those strategic actions to the firm's reputation building.