Toward the Importance of Nonprofit Brand Equity

Abstract

Various brand evaluation approaches assess the value and equity of for‐profit brands; accordant approaches for nonprofit brands, however, have been limited, and there is disagreement on what makes up a strong brand in the nonprofit sector. In response, this article provides insights into the conceptualization and operationalization of stakeholder‐based nonprofit brand equity and derives an initial measurement index. We conceptualize nonprofit brand equity as having three dimensions—nonprofit brand awareness, nonprofit brand trust, and nonprofit brand commitment—thereby empirically investigating trust in nonprofit brand equity building for the first time. The methodological procedure for building the index is based on partial least squares path modeling, and we draw on a sample of forty brands (N = 3,617 brand evaluations) identified as some of the best‐known nonprofit brands in Germany. Applying the index yields some of the strongest German nonprofit brands; for example, German Red Cross has by far the highest value of brand equity, followed by Aktion Mensch and UNICEF. The nonprofit brand equity index provides the basis for nonprofit managers to compare their brands’ performance over time and develop accordant branding strategies; it can be also used by organizations from other countries.

Do Mission Statements Matter for Nonprofit Performance?

“…Given the intense competition between nonprofit organizations for funding, there is interest in how nonprofit leaders can engage with stakeholders. Although still limited, there has been increasing interest in the importance of nonprofit brand (Boenigk and Becker ), and carefully constructed mission statements can be effective and persuasive communication tools to build an organization's brand and identity. However, additional content analysis studies are needed to further explicate what constitutes “carefully constructed mission statements.” Follow‐up studies can examine the influence of other semantic mission statement attributes on nonprofit performance.…”

Fraud survival in nonprofit organizations: Empirical evidence

“…Jones‐Bodie (, p. 34) notes that because nonprofits rely on public support, maintaining trust is key to their existence. Boenigk and Becker () identify trust as an important factor in the value of a nonprofit organization's brand, particularly in light of scandals in the nonprofit sector.…”

Finding greener grass on the other side of hill

“…Within an organisation, marketing adds to the cost of making products which has motivated brand managers to find ways to maximise return on investments by enhancing brand equity (Mizik and Jacobson, 2008) acknowledged as an intangible asset to strengthen relationships between organisation and its stakeholders (Christodoulides and De Chernatony, 2010). The trustworthiness and credibility of organisations in the customers' minds act as cues to create brand knowledge among stakeholders (Boenigk and Becker, 2016). Furthermore, brand equity drives brand preference and ultimately purchase intentions (Cobb-Walgren et al, 1995) by increasing the consumers' willingness to pay a premium price (Aaker, 1991).…”

“…The researchers Boenigk and Becker (2016) conceptualised a stakeholder-based brand equity framework by emphasising brand awareness, non-profit brand trust and non-profit brand commitment to enhance public's attitude towards organisation. This was aimed at uplifting the strategic position of the brand in the market.…”