“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.
Table of Contents
- 1 Introduction
- 2 Discussion
- 3 Conclusion
Objectives and Key Themes
The objective of this paper is to determine whether brands in traditional ("bricks and mortar") environments differ significantly from brands in online ("click") environments, and consequently, whether a new theory of branding is necessary for the online context. The author challenges the assertion that a "brand is a brand regardless of its environment."
- Definition and components of a brand
- The functions of a brand for consumers and sellers
- The impact of the online environment on branding
- The role of online communities and interactivity in branding
- Different branding approaches for the online environment
Chapter Summaries
1 Introduction: This chapter lays the groundwork for the paper by introducing the central question: Does the online environment necessitate a new theory of branding? It begins by presenting De Chernatony's (2000) assertion that a brand remains consistent regardless of its environment. The chapter then proceeds to define a brand, drawing on various perspectives including Duncan (2002), Kotler (in Esch, 2000), and Bruhn (1999). These definitions highlight the brand's role in differentiation, identification, and the promise of standardized quality to the customer, emphasizing the importance of both rational and emotional values in brand perception. The chapter concludes by outlining the functions of a brand for both consumers (orientation, risk reduction, self-expression) and producers (differentiation, loyalty, price flexibility).
2 Discussion: This chapter explores the changes brought about by the online environment and their implications for branding strategies. It acknowledges the shift toward interactivity, virtual communities, and information asymmetry in the digital space, yet argues that the fundamental meaning and function of a brand remain unchanged. The chapter contrasts the “tightly controlled approach” of classical branding with the increased consumer power and information exchange facilitated by the internet. It discusses the challenges of information overload and the importance of clear brand values in an online context. The author highlights the need for different branding approaches in the online environment, such as brand positioning, two-way communication strategies, and a more strategic view, emphasizing the crucial role of online communities and the need for rapid response mechanisms.
Keywords
Brand, branding, online environment, online branding, brand theory, brand definition, customer loyalty, brand positioning, online communities, interactivity, information asymmetry.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main research question addressed in this paper?
The central question explored is whether the online environment necessitates a new theory of branding, challenging the assertion that a brand remains consistent regardless of its environment.
What are the key objectives of this paper?
The paper aims to determine if brands in traditional ("bricks and mortar") and online ("click") environments differ significantly, and whether a new branding theory is needed for the online context.
How does the paper define a brand?
The paper draws on various perspectives to define a brand, highlighting its role in differentiation, identification, and promising standardized quality. It emphasizes both rational and emotional values in brand perception and its functions for consumers (orientation, risk reduction, self-expression) and producers (differentiation, loyalty, price flexibility).
What are the key themes explored in the paper?
Key themes include the definition and components of a brand, the functions of a brand, the impact of the online environment on branding, the role of online communities and interactivity, and different branding approaches for the online environment.
How does the online environment impact branding strategies?
The paper discusses the shift towards interactivity, virtual communities, and information asymmetry in the digital space. While acknowledging these changes, it argues that the fundamental meaning and function of a brand remain unchanged. It highlights the challenges of information overload and the need for clear brand values, two-way communication, and rapid response mechanisms in the online context.
What are the main differences between traditional and online branding approaches, according to the paper?
The paper contrasts the "tightly controlled approach" of classical branding with the increased consumer power and information exchange facilitated by the internet. It emphasizes the need for different strategies in the online environment, including brand positioning and a more strategic view, recognizing the crucial role of online communities.
What are the key takeaways from Chapter 1 (Introduction)?
Chapter 1 introduces the central research question and provides various definitions of a brand, emphasizing its role in differentiation, identification, and the promise of standardized quality. It also outlines the functions of a brand for both consumers and producers.
What are the key takeaways from Chapter 2 (Discussion)?
Chapter 2 explores the impact of the online environment on branding, acknowledging the increased interactivity and consumer power. It argues that while the fundamental function of a brand remains unchanged, new strategies are needed to navigate the challenges of the online context, including the importance of online communities and two-way communication.
What keywords are associated with this paper?
Keywords include: Brand, branding, online environment, online branding, brand theory, brand definition, customer loyalty, brand positioning, online communities, interactivity, information asymmetry.
- Quote paper
- Volker Schmid (Author), 2005, A New Theory of Branding for the Online Environment?, Munich, GRIN Verlag, https://www.grin.com/document/38125
