This conceptual article examines brand orientation as an alternative to market orientation in the public sector. The problem with market orientation is that the focus on customers is too great; it is myopic, and lacks true interaction; it is mechanistic, and the emphasis on economic values is too strong. In this light, brand orientation becomes an interesting alternative. Brand orientation is more powerful, since it provides a holistic and balanced perspective on an organisation, diminishing the risk of too much focus on customers, which leads to myopia. Brand orientation is more robust because it emphasises continuity coupled with dynamics and interaction, diminishing the risk of short-sightedness and reactivity. Brand orientation also facilitates prioritisation of democratic values, diminishing the risk of too much focus on economic values.
Purpose
The purpose of this study is to investigate the relationship between an organization’s human resource management (HRM) image and its customer-based brand equity. Research into HRM in relation to branding has mostly dealt with how to attract and maintain employees through employer branding. The present study attempts to link HRM directly to marketing and branding aimed at customers as an altruistic dimension of the brand image and as something that applies to customers’ sociological needs.
Design/methodology/approach
The study is based on a survey of Swedish customers in two different retail categories: groceries and home decoration.
Findings
The results show that HRM image is distinct from a more traditional service image and that there is a significant relationship between favourable customer perceptions of an organization’s HRM and customers’ willingness to buy and pay a premium for products provided by the retail chain. This finding leads to the conclusion that HRM is not only relevant for employer branding, internal branding and operations management but also plays a significant role in building customer-based brand equity. The results show that further integration of HRM and brand management is needed, both in theory and practice.
Originality/value
This study takes a holistic approach to marketing and is one of the first attempts to incorporate HRM and employer branding into the customer-based brand equity framework. Implications for future research, retailing and other businesses are discussed in the conclusion.
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