Abstract
Corporate reputations are of growing interest as intangible assets that provide firms with a competitive advantage in the marketplace. This article describes the development and validation of the RepTrak™ Pulse, an emotion-based measure of the corporate reputation construct that untangles the drivers of corporate reputation from measurement of the construct itself. The authors draw on signaling theory to conceptualize corporate reputation as a set of beliefs about companies. Qualitative research conducted in the US demonstrated the content validity of this measure of reputation. Quantitative studies with multiple samples of participants validated the simplified measure in different geographical locations and confirmed the measure's ability to assess perceptions across stakeholder groups. Specifically, the authors examined how the US general public thinks about companies, how Canadian doctors assess pharmaceutical companies, how US consumers rate energy companies, and how Danish transportation employees evaluate their own firm. To confirm its cross-cultural validity the authors collected and analyzed data from 17 countries from six continents. This article reports the results of these analyses, and demonstrates the reliability, internal validity, nomological validity and cross-cultural validity of the RepTrak™ Pulse scale as a short-form, etic measure of corporate reputation that can be used to facilitate cross-cultural research as well as online interviewing and survey-based data collection.
Similar content being viewed by others
Notes
Barnett et al. note the number of publications excludes CRR because it was not indexed.
References
Anderson, J.C. and Gerbing, D.W. (1988) ‘Structural equation modeling in practice: A review and recommended two-step approach’, Psychological Bulletin, 103 (3), 411–423.
Asher, H. (2004) Polling and the Public, 6th edn. CQ Press, Washington, DC.
Balmer, J.M.T. and Greyser, S.A. (2006) ‘Integrating corporate identity, corporate branding, corporate communications, corporate image and corporate reputation’, European Journal of Marketing, 40 (7/8), 730–741.
Barnett, M.L., Jermier, J.M. and Lafferty, B.A. (2006) ‘Corporate reputation: The definitional landscape’, Corporate Reputation Review, 9 (1), 26–38.
Basdeo, D.K., Smith, K.G., Grimm, C.M., Rindova, V.P. and Derfus, P.J. (2006) ‘The impact of market actions on firm reputation’, Strategic Management Journal, 27 (12), 1205–1219.
Bergh, D.D., Ketchen Jr., D.J., Boyd, B.K. and Bergh, J. (2010) ‘New frontiers of the reputation-performance relationship: Insights from multiple theories’, Journal of Management, 36 (3), 620–632.
Boyd, B.K., Bergh, D.D. and Ketchen Jr., D.J. (2010) ‘Reconsidering the reputation-performance relationship: A resource-based view’, Journal of Management, 36 (3), 588–609.
Brislin, R.W. (1980) ‘Translation and content analysis of written materials’, in H. C. Triandis and J.W. Berry (eds.), Handbook of Cross-Cultural Psychology, Allyn & Bacon, Boston.
Bromley, D. (2002) ‘Comparing corporate reputations: League tables, quotients, benchmarks, or case studies?’ Corporate Reputation Review, 5 (1), 35–50.
Brooks Jr., R.C. (1957) ‘Word-of-mouth advertising in selling new products’, Journal of Marketing, 22 (2), 154–161.
Brown, B. and Perry, S. (1994) ‘Removing the financial performance halo from Fortune's ‘most admired’ companies’, Academy of Management Journal, 37 (5), 1347–1359.
Brown, T.J., Dacin, P.A., Pratt, M.G. and Whetten, D.A. (2006) ‘Identity, intended image, construed image, and reputation: An interdisciplinary framework and suggested terminology’, Journal of the Academy of Marketing Science, 34 (2), 99–106.
Campbell, M.C. (1999) ‘Perceptions of price unfairness: Antecedents and consequences’, Journal of Marketing Research, 36 (2), 187–199.
Casalo, L.V., Flavian, C. and Guinaliu, M. (2007) ‘The influence of satisfaction, perceived reputation and trust on a consumer's commitment to a website’, Journal of Marketing Communications, 13 (1), 1–17.
Churchill Jr., G.A. (1979) ‘A paradigm for developing better measures of marketing constructs’, Journal of Marketing Research, 16 (1), 64–73.
Couper, M.P., Traugott, M.W. and Lamias, M.J. (2001) ‘Web survey design and administration’, Public Opinion Quarterly, 65 (2), 230–253.
Craig, C.S. and Douglas, S.P. (2000) International Marketing Research, 2nd edn., John Wiley & Sons, Ltd, New York.
Darke, P.R., Ashworth, L. and Ritchie, R.J.B. (2008) ‘Damage from corrective advertising: Causes and cures’, Journal of Marketing, 72 (6), 81–97.
Diamantopoulos, A. and Winklhofer, H.M. (2001) ‘Index construction with formative indicators: An alternative to scale development’, Journal of Marketing Research, 38 (2), 269–277.
Flanagan, D.J. and O'Shaughnessy, K.C. (2005) ‘The effect of layoffs on firm reputation’, Journal of Management, 31 (3), 445–463.
Fornell, C. and Larcker, D.F. (1981) ‘Evaluating structural equation models with unobservable variables and measurement error’, Journal of Marketing Research, 18 (1), 39–50.
Fombrun, C. and Shanley, M. (1990) ‘What's in a name? Reputation building and corporate strategy’, Academy of Management Journal, 33 (2), 233–258.
Fombrun, C.J. (1996) Reputation: Realizing Value from the Corporate Image, Harvard Business Press, Cambridge, MA.
Fombrun, C.J. (2001) ‘Corporate reputations as economic assets’, in M. A. Hitt, R. E. Freeman and J.S. Harrison (eds.) The Blackwell Handbook of Strategic Management, Blackwell Publishers, Oxford, UK.
Fombrun, C.J. (2007) ‘List of lists: A compilation of international corporate reputation ratings’, Corporate Reputation Review, 10 (2), 144–153.
Fombrun, C.J., Gardberg, N.A. and Sever, J. (2000) ‘The Reputation Quotient: A multi-stakeholder measure of corporate reputation’, Journal of Brand Management, 7 (4), 241–255.
Fombrun, C.J. and van Riel, C.B.M. (2004) Fame & Fortune: How Successful Companies Build Winning Reputations, Financial Times Prentice-Hall, Upper Saddle River, NJ.
Fryxell, G.E. and Wang, J. (1994) ‘The Fortune corporate ‘reputation’ index: Reputation for what?’ Journal of Management, 20 (1), 1–14.
Gardberg, N.A. (2006) ‘Reputatie, reputation, réputation, reputazione, ruf: A cross-cultural qualitative analysis of construct and instrument equivalence’, Corporate Reputation Review, 9 (1), 39–61.
Gardberg, N.A. and Fombrun, C.J. (2002) ‘For better or worse: The most visible American corporate reputations’, Corporate Reputation Review, 4 (4), 385–391.
Gardberg, N.A. and Schepers, D.H. (2008) ‘Do stakeholders detect corporate social performance signals?’, Academy of Management Annual Meeting Proceedings, 1–6.
Gupta, V., Hanges, P.J. and Dorfman, P. (2002) ‘Cultural clusters: Methodology and findings’, Journal of World Business, 37 (1), 11–15.
Helm, S. (2005) ‘Designing a formative measure for corporate reputation’, Corporate Reputation Review, 8 (2), 95–109.
Hem, L.E., de Chernatony, L. and Iversen, N.M. (2003) ‘Factors influencing successful brand extensions’, Journal of Marketing Management, 19 (7/8), 781–806.
Highhouse, S., Broadfoot, A., Yugo, J.E. and Devendorf, S.A. (2009) ‘Examining corporate reputation judgments with generalizability theory’, Journal of Applied Psychology, 94 (3), 782–789.
Jensen, M. and Roy, A. (2008) ‘Staging exchange partner choices: When do status and reputation matter?’ Academy of Management Journal, 51 (3), 495–516.
Lee, C., Bobko, P., Ashford, S., Xiong, C.Z. and Xiaopeng, R. (2008) ‘Cross-cultural development of an abridged job insecurity measure’, Journal of Organizational Behavior, 29 (3), 373–390.
Nunnally, J.C. and Bernstein, I.H. (1994) Psychometric Theory, 3rd edn., McGraw-Hill, New York.
Prabhu, J. and Stewart, D.W. (2001) ‘Signaling strategies in competitive interaction: Building reputations and hiding the truth’, Journal of Marketing Research, 38 (1), 62–72.
Richins, M.L. (2004) ‘The material values scale: Measurement properties and development of a short form’, Journal of Consumer Research, 31 (1), 209–219.
Rindova, V.P. and Fombrun, C.J. (1999) ‘Constructing competitive advantage: The role of firm-constituent interactions’, Strategic Management Journal, 20 (8), 691–710.
Roberts, P.W. and Dowling, G.R. (2002) ‘Corporate reputation and sustained superior financial performance’, Strategic Management Journal, 23 (12), 1077–1093.
Roster, C.A., Albaum, G. and Rogers, B. (2006) ‘Can cross-national/cultural studies presume etic equivalency in respondents’ use of extreme categories of Likert rating scales?’ International Journal of Market Research, 48 (6), 741–759.
Schwaiger, M. (2004) ‘Components and parameters of corporate reputation – An empirical study’, Schmalenbach Business Review, 56 (1), 46–71.
Shamsie, J. (2003) ‘The context of dominance: An industry-driven framework for exploiting reputation’, Strategic Management Journal, 24 (3), 199–215.
Singh, J. (1995) ‘Measurement issues in cross-national research’, Journal of International Business Studies, 26 (3), 597–618.
Stanton, J.M., Sinar, E.F., Balzer, W.K. and Smith, P.C. (2002) ‘Issues and strategies for reducing the length of self-report scales’, Personnel Psychology, 55 (1), 167–194.
Villanueva, J., Yoo, S. and Hanssens, D.M. (2008) ‘The impact of marketing-induced versus word-of-mouth customer acquisition on customer equity growth’, Journal of Marketing Research, 45 (1), 48–59.
Walsh, G. and Beatty, S.E. (2007) ‘Customer-based corporate reputation of a service firm: Scale development and validation’, Journal of the Academy of Marketing Science, 35 (1), 127–143.
Walsh, G., Beatty, S.E. and Shiu, E.M.K. (2009) ‘The customer-based corporate reputation scale: Replication and short form’, Journal of Business Research, 62 (10), 924–930.
Acknowledgements
The authors thank Professors Andreas Grein and Sankar Sen, Senior Analysts Daniel Stasik and Sebastian Taciak, and editor Cees van Riel and two anonymous reviewers for their helpful comments and suggestions on previous drafts of this paper. We also acknowledge the Weissman Center for International Business at Baruch College - CUNY for research support.
Author information
Authors and Affiliations
APPENDIX
APPENDIX
See Table A1
Rights and permissions
About this article
Cite this article
Ponzi, L., Fombrun, C. & Gardberg, N. RepTrak™ Pulse: Conceptualizing and Validating a Short-Form Measure of Corporate Reputation. Corp Reputation Rev 14, 15–35 (2011). https://doi.org/10.1057/crr.2011.5
Published:
Issue Date:
DOI: https://doi.org/10.1057/crr.2011.5