“According to De Chernatony (2000) a brand is a brand regardless of its environment. Therefore, there is no need for a new theory of branding for the online environment, but merely a different approach to executing the brand’s essence”.
The aim of this paper is to conclude whether brands in a mortal and bricks environment are different from brands in a ‘click’ environment, and therefore, if a new theory of branding is required. De Chernatony (2000) believes that a “brand is a brand regardless of its environment”, which he substantiates by analysing the assumptions about migrating brands to the Internet, and the impact of online communities. In order to test De Chernatony’s idea, it is necessary to define and understand a ‘brand’, its components and functions.
For the consumer, a brand provides orientation in the ‘product jungle’, and facilitates the identification of a specific product among competitive ones. Furthermore, it lowers the purchasing risk, as the customer can trust the functional and emotional quality of the brand (Biel, 2000). Lasty, a brand allows the customer to transfer the brand image to himself. Bugdahl (1998) describes this as a personalisation function or ‘snob syndrome’, for example, a BMW owner has the physical and emotional experience of “being sporty and having friends” (Herrmann, 2000). Understanding the meaning of a brand, its components and functions, the following section discusses if the essence of a brand changes in an online environment.
At a glance
- Examines De Chernatony’s argument about branding across online and offline environments
- Considers Ind and Riondino’s research on technology’s effects on branding
- 28 sources in the bibliography
Table of Contents
1 Introduction
2 Discussion
3 Conclusion
Objectives and Themes
This paper examines whether brands differ fundamentally between physical and online environments and whether the internet requires a new theory of branding or a different approach to expressing a brand’s essence. It assesses De Chernatony’s argument through definitions of branding and a discussion of changes in the online marketplace.
- Brand identity, differentiation and customer value
- Brand promises and emotional and rational values
- Consumer information, interactivity and online communities
- Brand positioning and two-way communication
- Continuities and changes between offline and online branding
Excerpt from the Book
Discussion
This section considers the environmental change, applied branding approaches, and the brands components in the cybermarket.
Without doubt, the environment of branding has changed since the coming of the Internet. It is an environment which is marked by interactivity, virtual communities, information asymmetry and overload (De Chernatony, 2000; Ind and Riondino, 2001; Mierau, 2002; Fazarinc, 2003; Graham, 2002). However, it is just the environment which has changed but not the meaning and function of a brand. The internet as an information medium provides the consumers with more market information. According to Siegmund (2003), the relevance of information in an online environment such as the internet is more efficient in reaching people compared to other channels. In this kind of ‘product jungle’, a brand is becoming more and more important as it helps the customer’s orientation during the product selection. On the other hand, a brand gives the seller the possibility to create customer loyalty (Mierau, 2002).
Mierau (2002) explains that the consumer has gained more power through the internet. In the past, the consumer had an information deficit. He or she was not able to have an overview the various offers, prices, product descriptions, customer recommendations etc. This situation has changed in the online environment. Here, the customer has the chance to base the buying decision on deeper market information. According to Chernatony (2000), the classical branding model is based on a “tightly controlled approach”, which assumes consumers to be “passive recipients of value”. In an online environment, consumers exchange more information, for example, through chat forums. This reduces the level of owners’ control over brands. On the other hand, the consumer is often confronted with an information overload. Therefore, consumers rely on the brand’s strength - a meaningful, clear and trusted set of values and attributes (Reynolds 2000; Ward and Lee 2000) - which facilitates the buying decision. De Chernatony (2000) found that people read the content of a web site in another way compared with the way that they read print publications. This means that customer behaviour slightly changed. A study by Chernatony (2003) found that the majority of website visitors scan the content instead of reading it. “Only 22 percent of online applications are completed” because the customer was not able to communicate with a vendor. To ensure a rapid response to customers, an interactive communication approach will replace the classical model of talking to customers.
Chapter Summaries
1 Introduction: The author introduces the question of whether online branding requires a new theory and outlines definitions, components and functions of brands for sellers and consumers.
2 Discussion: The discussion examines changes in the online environment, including consumer information, communities and communication, alongside approaches to positioning and managing brands. It considers whether these changes affect the fundamental essence of a brand.
3 Conclusion: The author concludes that the internet calls for different branding approaches while the essence and functions of brands remain consistent across environments.
Keywords
online branding, brand theory, brand identity, brand promise, brand positioning, consumer behaviour, online communities, interactivity, brand differentiation, customer loyalty, brand communication, brand values
Frequently Asked Questions
What is this paper about?
It explores whether branding in an online environment requires a new theory or a different way of putting established branding principles into practice.
What are the central themes?
The paper considers brand definitions, consumer and seller benefits, online communities, information, communication and brand positioning.
What is the main research question?
The central question is whether brands differ fundamentally between physical and online environments and whether those differences require a new branding theory.
What method does the author use?
The author develops a literature-based discussion, drawing on published definitions, research and professional perspectives to assess De Chernatony’s argument.
What does the main discussion cover?
It examines how online interactivity and consumer information affect branding approaches, then considers the continuing role of brand promises and values.
Which keywords characterise the paper?
Key terms include online branding, brand promise, positioning, consumer behaviour, interactivity and online communities.
How does the paper discuss online communities?
It considers communities as spaces where consumers exchange information and interact with brands and other consumers.
What role does brand positioning play online?
The discussion considers precise positioning important for helping consumers find a brand through search engines and limited search terms.
What conclusion does the author reach about a new theory?
The author agrees with De Chernatony that the online environment calls for a different approach to executing a brand’s essence rather than a new theory of branding.
- Quote paper
- Volker Schmid (Author), 2005, A New Theory of Branding for the Online Environment?, Munich, GRIN Verlag, https://www.grin.com/document/38125
