Towards market differentiation in the accounting profession: The case of Australia and New Zealand

A collective, undifferentiated accounting profession: an Australian study

“…Our finding of a ‘collective accounting profession’, defined by its shared brand/reputation and international recognition, can be interpreted as significant for a profession seeking to competitively differentiate itself in the broader market for accounting services and as a measure of the marketing effectiveness of the professional bodies. This finding supports the view of Velayutham and Rahman (2000, p. 707) that leading accounting bodies in Australia and New Zealand have concluded ‘the major asset of the profession is the brand (qualification) that is recognised in the marketplace, and the principal objective of the accounting bodies is to enhance the image of this brand, thus providing better value to its members’.…”

“…Our findings suggest that professional accounting bodies are perceived essentially as a collective profession of accountants which provide common attributes (features or benefits) of equal importance to potential and existing members of the profession. Confirming the general view within the literature on the accounting profession (see, for example, Velayutham and Rahman, 2000; Parker, 2005; Richardson and Jones, 2007), brand/reputation and the closely aligned attribute of international recognition of the professional body were common features of importance across all professional bodies identified by both the final‐year students and alumni. Of note is the high level of importance afforded by both groups to career opportunities in the decision to join a professional accounting affiliation.…”

“…In considering the theoretical framework for this study, we have reviewed and gained insights from broad‐level research into accounting as a career choice (given the perceived evolution of the accounting profession to a market‐driven and differentiated form (Velayutham and Rahman, 2000; Parker, 2001)) and economic models drawn from consumer decision theory.…”

“…Studies of the evolution and future of the accounting profession have highlighted a shift in the scope and nature of accounting work, the emergence of non‐accounting competitors and a strategic (responsive) move by professional accounting bodies to differentiate through branding (Velayutham and Rahman, 2000; Parker, 2001, 2005; Richardson and Jones, 2007). The CPA and CA brands and brand marketing, for example, are perceived as mechanisms for developing and communicating the reputation of the professional body and its members, providing information about the quality and market‐oriented nature of accounting services and highlighting the value of professional membership (Richardson, 1997; Velayutham, 1999/2000; Parker, 2005).…”

“…The means of competitively differentiating the accounting profession in Australia has been primarily through the promotion of distinct brands such as CPA and CA (Parker, 2005) and an emphasis on the reputation for quality and expertise of professional accounting qualifications. Velayutham and Rahman (2000) highlight the marketing of brand image as a way of differentiating professional accounting services from other non‐accounting regulated service providers and creating value for members of the professional accounting bodies. Member value, in this instance, is created by communicating important information about the profession and professional accounting services and potentially attracting new members to, and retaining current members within, the accounting profession.…”