On the Relationship between Corporate Reputation and Brand Trust – an Investigation of three Corporate Brands’

Abstract

In today’s corporate world, where the market place demands the highest of standards on companies and their products, it is of detrimental nature that consumers possess trust for the brands that define their lives. While research has previously been able to demonstrate the relationship between negative corporate reputation and brand trust, this paper aims to further investigate reasons for why and how this is. In order to investigate this imperative question a multiple case study approach, where in-depth interviews was the primary research method, has been employed. The Swedish companies IKEA, SAAB Automotive and SJ are not only well known in Sweden, but they are also continuously under intense media pressure and were therefore chosen to be the focal cases for the study. The comparative analysis of these cases proved the central importance of the product, the importance of the consumers’ relationship to the brand and the importance of sound corporate governance and management in the creation of brand trust among consumers today. The main effect that negative corporate reputation has on brand trust is derived from these three themes according to the conclusions presented in this study. The study also furthered the understanding of the interrelationship between functional aspects and social aspects of corporate reputation in the creation of brand trust through our interviews. Regarding which functional aspects where found to be of prime importance in the creation of trust.