Organizational Culture and Reputation - Vectors in Shaping Successful Retail Brand Value

Abstract

In order to shape the customers’ image about a retailer, a retail brand or a retail format, the retail company may appeal, in addition to the marketing tools, to the corporate culture (the company’s own perspective) and the company’s reputation (how the company is perceived by the public). Corporate reputation plays an essential role in impressing a retailer’s image on the customers’ mind and provides input into the company’s successful positioning on the market. Using the structural equation modeling, the present paper investigates how reputation contributes to the elucidation of the behavior exhibited by the customers of super- and hypermarkets, specialized and proximity stores, and highlights their potential reaction to the preferred retail brand. The results reveal management implications that are useful to the retail enterprise in understanding its customers and in strengthening its position on the market and in the customers’ mind.