Is It All A Question of Reputation? The Role of Branch Identity (The Case of an Oil Company)

Abstract

This paper aims to demonstrate that a good corporate reputation in itself does not ensure the successful introduction of a new product or brand when it is a case of brand extension. In this paper, it is argued that good corporate reputation is not a decisive factor in the consumer's perception of a product, if the product does not match the company's identity. The paper introduces a concept of ‘branch identity’, which can be seen as a preliminary condition for building corporate identity. The findings presented in this paper are based upon the case study of a Slovenian oil company.