1. 1
DECLARATION
This project is my original work and has not been presented for a diploma or any award in any
university.
Signature Date
BRENDAH JOYCE OTIENO
L137/22792/2011
This project has been submitted for examination with my approval as the university supervisor.
Signed Date
MR RUFUS AGESA
LECTURER DEPARTMENT OF EXTRA MURAL STUDIES
UNIVERSITY OF NAIROBI

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ACKNOWLEDGMENT
I would like to thank University of Nairobi for the opportunity that made it possible for me to
study my Diploma in Public Relations.
I would like to thank Mr. Rufus Agesa who has offered me guidance along the course of my
project.
My appreciation goes to Siganga & Company Advocates who made my data collection possible
and my friends and family who helped me collect my data.

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ABSTRACT
Research identified that reputation has had a positive impact on client behavior, but even so little
was known about these effects. The little amount of research on reputation and client behavior to
date has determined that reputation affects clients indirectly and directly, through company’s
evaluation and purchase intention, but the effects are varied. The relationship between reputation
and trust specifically needs to be investigated. This research investigates the relationship
between reputation and brand trust, as well as the variables that best represent reputation. The
data for the study was collected in an office-intercept survey undertaken Siganga & Company
Advocates at their Mega Plaza offices. The findings show that two components represented
reputation which were legal & employee and ethics & economics. As these components
represent reputation, it would indicate there are different areas that both reputation and effect
brand trust. The ethics & economics component was the most influential component for the
overall data. Overall this study explores the linkages between reputation and brand trust. This
study provides a foundation for further research and identifies several important implications for
the leaders of organizations to consider in terms of PR activities and effects brands within their
portfolio.

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TABLE OF CONTENTS
Declaration……………………………………………………………………………………..…1
Acknowledgment…………………………………………………………………………….…...2
Abstract……………………………………………………………………………………….…. 3
List of Figures……………………………………………………………………………………..6
List of Tables…………………………………………………………………………………...…6
CHAPTER ONE: INTRODUCTION……………………………………………………………..7
1.1 Background of the Research Problem …..………..…………………………….…………7
1.2 Problem Statement………………….…..……………………….………………….……..9
1.3 Purpose of the study…………………………………………………………………...…10
1.4 Research Objectives...……………………………………………………………………11
1.5 Research Questions…...……………………………………………………………..…...11
1.6 Significance of the Study………………………………………….………………...…...11
1.7 Basic Assumptions………..……………………..………...……………………………..12
1.8 Research Methodology….……………………………………………….………………12
1.9 Limitations…………...………..………………………………………………..……..…13
1.10 Delimitations……………………………………………………………………….….…13
1.11 Definitions of Significant Term………………………………………………………….13
1.11.1 Conceptual Framework…………………………………………………………..………15
1.12 Organization of the Study…………………………………………………………..……15
CHAPTER TWO: LITERATURE REVIEW……………………………………………………16
2.1 Introduction…………………………………………………………………………..….16
2.2 Reputation………………………………………………………………………….….…16
2.2.1 Reputation definition………………………………………………………………..…...17
2.2.2 Corporate strategy………………………………………………………………….….…18
2.2.3 Litigation and reputation……………………………………………………………..…..19
2.2.4 Financial benefits of reputation……………………………………………………..…...20
2.3 Stakeholders & Shareholders………………………………………………………..…...21

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2.4 Measurement of reputation……………………………………………………..……..…21
2.4.1 Ethics and reputation………………………………………………………………….….22
2.4.2 Employees and reputation …………………………………………………………….…23
2.5 Reputation, Trust and CSR…………………………………………………………...….24
CHAPTER THREE: METHODOLOGY………………………..…………………….…….…..26
3.1 Introduction……………………………………………………………………………...26
3.2 Research Problem………………………………………………………………………..26
3.3 Research Approach………………………………………………………………….…...26
3.4 Survey Research method…………………………………………………………………27
3.5 Questionnaire design………………………………………………………………..……27
3.5.1 Questions…………………………………………………………………………………27
3.6 Data collection………………………………………………………………………..….29
3.7 Data preparation………………………………………………………………………….29
3.8 Data analysis methods……………………………………………………………….…..29
3.9 Ethical considerations………………………………..…………………………….…….29
3.10 Conclusion………………………………………………………………………….……30
CHAPTER FOUR: DATA ANALYSIS………………………………………………….….….31
4.1 Introduction…………………………………………………………………..….………31
4.2 Profile of the respondents……………………………….………………………….……31
4.3 Exploratory data analysis………………………………………………………….……..31
4.3.1 Descriptive statistics……………………………………………………………………..32
4.4 Conclusion…………………………………………………………………….…..……..36
CHAPTER FIVE: CONCLUSION & IMPLICATIONS………………………………………..37
5.1 Introduction……………………………………………………………………..………..37
5.2 Overview of the study…………………………………………………..….…………….37
5.3 Discussion of findings……………………………………………………………..……..38
5.3.1 Reputation data analysis………………………………………………………….….…..38
5.3.2 Reputation effects on brand trust…………………………………………………...……39

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5.4 Theoretical Implications…………………………………………………………………41
5.5 Managerial Implications………………………………………..……………….…….…42
5.6 Limitations of study……………………………………………………….………..……43
5.7 Future research suggestions…………………………………………………….…….….43
5.8 Conclusion……………………………………………………………………….…..…..44
REFERENCES………………………………………………………………………………....46
APPENDICES……………………………………………………………………………….…47
APPENDIX A: Questionnaire…………………………………………………………………47
LIST OF FIGURES
Figure 1.1 Reputation effects on trust
LIST OF TABLES
Table 3.1 Reputation dimensions and variables
Table 4.1 Survey outcome
Table 4.2 Descriptive statistics
Table 4.3 Legal component results
Table 4.4 Employees component results
Table 4.5 Ethics component results
Table 4.6 Economics component results
Table 4.7 Trust variable results

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CHAPTER ONE: INTRODUCTION
1.1 BACKGROUND TO THE RESEARCH PROBLEM
Client trust in a company is an intervening factor in the intended effect of trust, both good and
bad. The relationship between reputation and trust specifically needs to be investigated.
Reputation aids the building of brand equity especially when there is consistent commitment to
reputation efforts in the long term by an organization. In order to build this brand equity, clients
need to have faith in the company commitment to reputation.
The purpose of reputation is to promote an image, but trust helps maintain long term
relationships with the client. The reputation a company has involves an element of trust on behalf
of the client.
Client trust is a major component of brand loyalty, which reduces a clients desire to switch
services. Companies aspire to have loyal clients, in order to reduce the costs associated with
obtaining new clients as well as increasing client fulfillment in terms of service offering.
Rapid increase of e-commerce especially for online buying systems users facing more problems
about trust, make it hard for new sellers and buyers to establish trustworthy relationships. Online
buyer system provides ability for users to post their products for purchase. In most cases both
buyer and seller don’t know each other while making a deal of transaction. From buyers’ aspect,
it’s hard for buyers to trust on a new seller for establishing trustworthy business relationship.
Trust is “a psychological state composing the intention to accept vulnerability based on the
expectations of the intentions or behavior of another” (Rousseau, Sitkin, Camerer, 1998; pg 395).
Social trust is among the most potent variables in psychological research, predicting outcomes
including job satisfaction, employees’ willingness to stay with their company, cooperation in
economics games and client choices (Bigley & Perace, 1998). In part because trust is necessary
to coordinate behavior and achieve fundamental social goals (Boyd & Fehr, 2006), people are
sensitive to violations of trust (Koehler & Gershoff, 2002), find it difficult to withhold judgment
of others even when faced with contradictory and incomplete evidence about them, and weigh
negative acts more heavily than positive acts when forming opinions of others.

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An issue organizations have is determining which PR activities to participate in especially when
incorrect fit between a cause and a company have a negative effect on client perceptions. If the
client suspects the company is participating in PR activities for self-centered means, it also
creates negative perceptions. If a company could determine specific activities to be involved with
in order to influence trust towards a rand, which fits in with the company image, this could
provide an important channel for creating the client associations to foster client loyalty.
Evolutionary psychologists further argue human beings have “cheater detection module”
designed to ferret out untrustworthy group members (Cosmides & Tooby, 1989).
Consistent with this idea, participants are able to solve difficult logic problems much more easily
when reframed as cheater detection tasks (Cosmides, 1989). This led to predict harsh judgments
of a company that contributes money to charity and aggressively publicizes its contributions.
Such a pattern of behavior suggests a manipulative desire to gain a positive reputation through
duplicity.
A company that heavily advertises a charitable donation will be perceived as less trustworthy and
praiseworthy than a company that makes no donation. One can perceived as untrustworthy not
only for betraying other people, but also one’s own principles (Barden, Rucker, & Petty, 2005;
Wagner, Lutz, & Weitz, 2009). As a result, a person or organization that claims holier-than-thou
status and then violates their own standards becomes open to charges of hypocrisy. Recent
scandals involving sexual abuse by Catholic priests and frivolous perks provided to the heads of
the United Way and other charities provide anecdotal evidence of such effects. This led us to
expect frivolous expenses by the leader of a charity would be viewed as a betrayal, eliciting
harsher condemnation than similar behavior by a corporate executive.
Part of the reason betrayals anger people so much is they threaten their conviction that the world
is a just and orderly place (Koehler & Gershoff, 2003). Research suggests people have a
fundamental (although often unconscious) need to view the social system they inhabit as moral
and appropriate (Lerner & Miller, 1978; see also Jost & Banaji, 1994). Betrayals undermine this
conviction by suggesting individuals in position of trust are abusing their authority and the fates

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of innocent people are therefore unsafe and unpredictable. Because charities are thought to have
more laudable goals than corporations, their moral transgressions can count as acts of hypocrisy.
We therefore hypothesized misdeeds by a charity would shake participants’ faith in the world,
and that such feelings of social threat would be driven by violated trust.
The notion of trust
Manifestations of trust are easy to recognize because we experience and rely on it every day, but
at the same time is quite challenging to define because it manifests itself in different forms. The
literature on trust can also be quite confusing because the term is being used with a variety of
meanings. Two common definitions of trust which we will reliability trust and decision trust
respectively will be used in this study.
1.2 STATEMENT OF THE PROBLEM
For litigation practice to be effective, people need to trust you. There is no point in conveying a
message if people don’t trust the source. Therefore, the first requirement is for you to have
credibility. Credibility in litigation is the confidence that receiver have in the accuracy and
truthfulness of the message. Credibility is not the same thing trust, but is closely related. Like
trust, source credibility is a complex concept depending on a range of factors. Trustworthiness,
competence and honesty appear to be the most important factors contributing to credibility.
More specifically in litigation, lawyers are associated with liars thus they are not trusted much by
people. Reputation is very crucial for a lawyer as he is judged by that even to the extent of their
social personal lives. They are perceived to be overcharging their clients or disappearing with the
clients’ money. But not all lawyers are bad people but since it is a collective assumption, the
entire group should strive to bring back the good reputation to the litigation world.
Client trust is an asset, which companies can use to generate positive outcomes in every client
relationship or transaction. Coinciding with this is different levels of trust. Harnessing trust in a
business-to-consumer relationship influences the attractiveness of a brand or company and
possibly increases the positivity towards line extensions. Reputation could in turn be used to
influence brand trust and positive association.

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Reputation has become an increasingly important issue in business. The emergence of PR has led
to the investigation of Reputation in relation to many other aspects such as community, loyalty
and consumer-company fit.
Organizations need to enhance positive reputation, combat bad reputation or change consumer
attributes towards the brand or company. Reputation can also be used as a means for
organizations to attract quality employees and differentiate from competitors while building
positive reputations.
The development of positive reputations and consumer attributions by an organization serves two
purposes, to improve economic gains and address sincere social concerns. An example of a
company that has used reputation to help develop brand image is the Safaricom Company.
Safaricom chooses to have opens days every year in all major towns so that they can interact
with their customers and showcase their products, apart from that they also get to socialize with
the clients by organizing shows and festivals. The clients get to know their provider at a more
personal level thereby judge them by their PR activities.
Another example is where organization specifically the government has built hot lines in its
departments so that the ordinary Kenyan can call at any time depending on their problems. This
is because the government has always been accused of not caring for the ordinary person and
procedure usually take long in offices due to corruption and nepotism, so the government came
up with the hotlines so that people would bring forth their complaint so that they would be dealt
with faster therefore enhancing the reputation of the government.
Whether reputation will influence brand trust, as with company reputation and employee
attraction, needs to be determined.
1.3 PURPOSE OF THE STUDY
The purpose of this study is to establish the effects of reputation on trust in a law firm, both
positive and negative effects.

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1.4 RESEARCH OBJECTIVES
This study aims at addressing the following objectives:
1. To establish the effect of Reputation on trust.
2. To determine the effect of Reputation on brand performance.
3. To discover the impact of Brand performance on company profitability.
1.5 RESEARCH QUESTION
The researcher sought to address the following questions:
1. What effects does Reputation have on trust?
2. What effect does Reputation have on Brand performance?
3. What effect does brand performance have on a firm’s profitability?
I conclude that two factors representing reputation have some effect on brand trust. These two
factors are a combination of ethics and economics aspects and a combination of legal and
employee aspects.
1.6 SIGNIFICANCE FOR RESEARCH
Brand trust in relation to the general brand context has not been fully explored. Research that has
been previously conducted has placed brand trust in a brand loyalty, focus and prior to Delgado-
Ballester (2004) there was not a current trust scale in the brand setting that existed. Reputation is
used for brand building purposes through the marketing and brand promotion of positive
activities. Through brand building, reputation can affect brand identity, involving brand
influence which includes values, traits and objectives. Trust has a strong relation with satisfying
individual client needs and satisfaction in particular can influence brand attractiveness.
Reputation can be used as a tool to influence feelings, enhancing consumer trust and ultimately
increase brand attractiveness.
Reputation is an important concept for businesses. If it was found to have an effect on brand trust
it may encourage more engagement in client activities. Further information on reputation and
trust relationship could benefit businesses by identifying specific activities that could be
undertaken to strengthen trust with clients. The relationship between trust and reputation could
unleash untapped potential in businesses. The benefit of this research is the ability to conduct
exploratory research in an area which has not been fully explored.

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1.7 BASIC ASSUMPTIONS
Assumptions are made about the theory under investigation, the phenomenon under
investigation, the instrument, the methodology, the analysis, the power to find significance, the
participants in the study, and the results.
The names and privacy of the participants was highly maintained as they were not forced to
include their names and addresses. To assume, for example, that participants will answer
honestly, you can explain how anonymity and confidentiality will be preserved and that the
participants are volunteers who may withdraw from the study at any time and with no
ramifications.
That all the participants are literate was another basic assumption since the survey would be
completed by writing, maybe some of them were not in a position to read or write.
Maybe some participants were not willing to participate in the survey and since it was voluntary
they were not forced.
1.8 RESEARCH METHODOLOGY
The methodology for this study is exploratory which relies on observation as a means of
collecting data. It attempts to examine the situation in order to establish what is normal and what
can be predicted to happen again under the same circumstance. The basis of the strategy for
investigation is a survey. Questionnaires can provide accurate data from which conclusions can
be easily drawn. Other methods include analyzing financial and market reports against legal
activities and interviews.
In addition, personally administering questionnaires when face to face has many benefits,
including, ability to build rapport, provide clarifications to any questions asked by participants
and collecting surveys directly after completion (Cavana, Delahaye & Sekaran, 2001, Pg 243).
Participants can also remain anonymous when questions are used.
The method of data collection is an office-intercept survey in which every client entering or
leaving the office, Mega Plaza will be approached to fill a questionnaire. Sudman (1980) suggest
it provides an unbiased sample by sampling at the office. A quota sampling method will be used,
in which 10 participants will be chosen.

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1.9 LIMITATIONS
The study was limited to one law firm. The city has a large population of races and mixed
cultures, which provides a sample which is more likely to cover different ethnic groups. A larger
immigrant population leads to a greater chance of variety of participants, as well the ability to
target different age groups.
The study does not provide room for any other individual interpretation towards reputation and
brand trust such as an interview approach would. However, using the survey method allows both
the measurement scale of reputation to be tested and is a good basis for exploring the research
question.
1.10 DELIMITATIONS
Delimitations to the study include the area of location that was chosen and the method for data
collection.
The survey was done at Siganga & Company offices where I work so that means I was ablt to
interact freely with the participants. Since the research was regarding lawyers and litigation, I
was able to get in touch with various lawyers and get their perspective on the topic.
The office also provided materials for the study such as stationery and resources to fund my
research because it would benefit the firm in the long term as the finding would benefit the
growth of the firm.
1.11 DEFINITIONS OF SIGNIFICANT TERMS
Reputation – it is a stakeholder’s expectation of value vis-a-vis on company’s peers and
competitors. It is the overall quality or character as seen or judged by people in general, or a
place in public esteem or regard. It is also the collective measure of trustworthiness (in a sense of
reliability) based on the referrals or ratings from members in a community.
Reputation can relate to a group or an individual. A groups reputation can for example be
modeled as the average of all its members individual reputations, or as the average of how the
group is perceived as a whole by external parties.
Tadelis (2006) pg 66 study shows that an individual belonging to a given group will inherit and a
priory reputation based on that groups reputation. If the group is reputable all its individuals’
members will be perceived as reputable and vice versa.

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Trust – it is the assured reliance on the character, ability, strength or truth of someone or
something. It is the willingness to accept vulnerability based upon positive expectation about
another’s behavior.
However trust can be more complex than Gambett’s definition indication. For example Falcone
& Castelfranchi (2001) pg 18 recognize that having high (reliability) trust in a person in general
is not necessarily enough to decide to enter into a situation or dependence on that person. On pg
18 they write ‘For example it is possible that the value of the damage per se (in case of failure) is
too high to choose a given decision branch, and this independently either from the probability of
the failure (even if it’s very low) or from the possible payoff (even if it’s very high). In other
words, that danger might seem to the agent an intolerable risk.’ In order to capture this broad
concept of trust, the following definition inspired by McKnight & Chervany 1996 pg 46 can be
used.
Decision trust
Trust is the extent to which one party is willing to depend on something or somebody in a given
situation with a feeling of relative security even though negative consequences are possible. The
relative vagueness of this definition is useful because it makes it more general. It explicitly and
implicitly includes aspects of a broad notion of trust which are dependence on the trusted entity
or party, the reliability of the trusted entity or party, utility in the sense that positive utility will
result from a positive outcome and negative utility will result from a negative outcome, and
finally a certain risk resulting from previous elements.
Reliability trust
Trust is the subjective probability by which an individual A expects that another individual B
performs a given action on which its welfare depends. This definition includes the concept of
dependence on the trusted party, and the reliability (probability) of the trusted party, as seen by
the trusting party.

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1.11.1 CONCEPTUAL FRAMEWORK
Reputation is a multi dimensional subject and for the purpose of this study the reputation aspects
include employees, ethics, economics and legal factors. These factors are explored to determine
if any effects are apparent on clients brand trust.
Figure 1.1 Reputation effects on trust
1.12 ORGANIZATION OF THE STUDY
Chapter one discusses the background of the study, methodology and thesis structure. Chapter
two will be a review of both past and current literature surrounding reputation and brand trust.
Chapter two also includes the empirical findings from the major literature related to reputation.
Chapter three, methodology, will cover research procedures such as sample and method of data
collection, ethical considerations and method of data analysis. Followed by chapter four which
includes a description of the subjects surveyed, patterns found in the data, extraction of the final
components and the analysis results.
Lastly, chapter five will make final conclusions on the research and overall findings. Chapter
five includes conclusions on the relationship between reputation and brand trust and implications
for managers. Limitations to the study will be outlined and opportunities for further research will
be discussed.
Reputation
Internal
employment
Economics
Ethics
Legal
Brand Trust

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CHAPTER TWO: LITERATURE REVIEW
2.1 INTRODUCTION
To quote Porter and Kramer (2002, p.3), ―When corporations support the right causes in the
right ways...they set in motion a virtuous cycle. But the question is, does this virtuous cycle
simply support a company‘s bottom line or are there further marketing benefits? Supporting the
right causes through a good reputation may have benefits to a brand and this chapter discusses
both reputation and brand.
This chapter covers a wide range of topics relating to both reputation (i.e. strategy, cause
marketing and stakeholders) and branding, including the connections that occur between the two.
Firstly, a general reputation background is discussed which includes defining reputation,
corporate strategy, leadership, stakeholders and importantly, reputation and financial
performance. The literature demonstrates the influence of reputation and the ideal conditions for
good reputation. Secondly, empirical evidence supports the topic discussed. Thirdly, different
measurement areas of reputation are described.
The measurement section includes a discussion on the relationship between reputation and
employee, ethics, and economics backgrounds. A variety of literature covering aspects such as
organizational commitment and reputation, ethical reasoning and economic performance is
examined. Fourthly, linkages between branding and reputation are examined, highlighting
consumer attributions and consumer reputations as important factors. Fifthly, brand trust is
examined. Lastly, a conclusion is made.
2.2 REPUTATION
Reputation has received increasing attention in business and the media (De Los Salmones et al.,
2005; Pivato et al., 2008). Although research does suggest client behavior are affected in a
positive way by good reputation. Delgado-Ballester and Manuera-Aleman (2004) also suggest
there has been limited analysis of brand trust in terms of clients. Further research on the impact
of reputation and trust specifically is required. Reputation could have a direct impact on brand
trust, appealing to the emotive side of clients by making the companies appear reliable, but there
needs to be more supporting evidence.

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Reputation is a powerful tool for leaders to use in strategy. However, not all firms will achieve
the same positive outcome. This is because the execution (leadership), support (employee) and
exploitation (cause-related marketing communication and branding) of reputation building
activities are not the same in every organization.
This section includes definitions of reputation, strategy, leadership and financial performance in
relation to reputation. Firstly, definitions of reputation will be discussed, it is important to decide
on a definition prior to completing the research to identify which areas contribute to good
reputation.
2.2.1 Reputation definition
Reputation, as distinct from image, is the process and the effect of transmission of a target
image. To be more precise, we call reputation transmission a communication of an evaluation
without the specification of the evaluator, if not for a group attribution, and only in the default
sense discussed before. This covers the case of example 3 above. More precisely, reputation is a
believed, social, meta-evaluation; it is built upon three distinct but interrelated objects:
a cognitive representation, or more precisely a believed evaluation - this could be somebody's
image, but is enough that this consist of a communicated evaluation;
a population object, i.e., a propagating believed evaluation; and
An objective emergent property at the agent level, i.e., what the agent is believed to be.
In fact, reputation is a highly dynamic phenomenon in two distinct senses: it is subject to change,
especially as an effect of corruption, errors, deception, etc.; and it emerges as an effect of a
multi-level bidirectional process. Reputation is also how others know and perceive you as an
individual.
While image only moves (when transmitted and accepted) from one individual cognition to
another, the anonymous character of reputation makes it a more complex phenomenon.
Reputation proceeds from the level of individual cognition (when is born, possibly as an image,
but not always) to the level of social propagation (at this level, it not necessarily believed as from
any specific agent) and from this level back to individual cognition again (when it is accepted).
Moreover, once it gets to the population level, reputation gives rise to a further property at the
agent level. It is both what people think about targets and what targets are in the eyes of others.
From the very moment an agent is targeted by the community, his or her life will change whether

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he or she wants it or not or believes it or not. Reputation has become the immaterial, more
powerful equivalent of a scarlet letter sewed to one's clothes. It is more powerful because it may
not even be perceived by the individual to whom it sticks, and consequently it is out of the
individual's power to control and manipulate.
More simply speaking for those who want a working definition of reputation, reputation is the
sum of impressions held by a company's stakeholders. In other words, reputation is in the "eyes
of the beholder". It need not be just a company's reputation but could be the reputation of an
individual, country, brand, political party, industry. But the key point in reputation is not what
the leadership insists but what others perceive it to be. For a company, its reputation is how
esteemed it is in the eyes of its employees, customers, investors, talent, prospective candidates,
competitors, analysts, alumni, regulators and the list goes on.
2.2.2 Corporate strategy
Strategy is the long term vision and goals for an organization. Reputation can involve long term
participation and support from an organization which needs to be integrated into corporate
strategy. There is emphasis placed on incorporating good reputation into corporate strategy for
companies. There are three dimensions that must be addressed in order to incorporate good
reputation successfully into strategy. These are governance (including communication with
stakeholders), ethics and learning (increasing awareness of the organization). Having a flexible
and strategic process when it comes to implementing reputation building policies could help a
company compete; business leaders need to create the flexibility to respond to different
situations and develop policies proactively.
The good reputation a company develops can help counter the bad publicity and shareholders
impact from a negative event, which means less impact on the brand trust. Reputation is
strategically managed in order to produce competitive advantages for companies. There are a
number of factors that affect the ability to develop competitive advantages which include
organizational values, stakeholders’ relationships and management decisions, reputation can
affect these aspects. Competitive advantages can be gained by enhancing company reputation
and positive association, as well as attracting better equipped employees. A company’s good
reputation can attract quality employees and this can provide a competitive advantage for a
company.

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A reputation building strategy, similar to a general strategy, is a long term plan developed in
terms of specific activities and investments aligned with the organization. It is a suitable plan that
builds upon a brand. Reputation and image maintenance which incorporates client trust drives a
company to develop a focused strategy. Employees are a component of image maintenance.
Brammer, Millington & Rayton (2007) propose if an organization wishes to influence
commitment and performance of staff, the company should consider employees in the long term
strategy.
The strategy of the organization is executed by the managers and leaders in the organization, and
the leadership has important affiliations with reputation. The review thus far has covered a
definition of reputation and incorporating strategy, the next sections examine litigation and
financial performance in relation to reputation.
2.2.3 Litigation and reputation
The legal industry is one that has traditionally struggled with its reputation. Part of the initial
findings by Sir David Clementi, then Chairman of Prudential plc, when appointed to undertake
the review of legal services that instigated the implementation of the LSA was a ‘considerable
concern’ regarding the way in which consumer complaints were handled. As noted by The
Times, for years ‘there has been a feeling that the legal profession operates a closed shop that
deters real competition and provides a cloak of mystification, not least about fees, under which
tardiness and obscurity can flourish’. For commentators outside the legal sector ‘Tesco Law’ is a
positive prospect for consumers: ‘Competition delivers in ways that government bureaucrats
cannot anticipate…Consumers can expect more choice, innovative services and lower prices.’
(FT, 2006).
A white paper produced by legal research company Jures entitled ‘The Big Bang Report:
Opportunities and threats to the new legal services market’ evaluates extensive research into the
market and the potential impact of the LSA. The paper begins by examining the public profile of
the legal profession in general. Whilst some respondents were positive when asked if lawyers
have a good reputation, many were not so optimistic. The report revealed that just 38% of
leading lawyers believe the profession is regarded in a positive light by members of the public,
and 62% believed the importance of their reputation will significantly increase as a result of the
LSA.

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The legal profession is often unfairly mistrusted and law firms have a lot to prove to avoid losing
work to established household brands. As Co-operative Legal Services managing director Eddie
Ryan recently told The Lawyer whilst brands like the Co-op aren’t synonymous with the law
they are based on ethical values and trust, and that translates easily into legal services. Law firms
aren’t in the business of selling “things” it is intangible services that are offered so the reputation
of the firm plays a particularly crucial part in the decision to buy. The implementation of the
LSA and subsequent shake-up in the market presents an opportunity for forward thinking law
firms to utilize their reputations to carve out a place for themselves in the market. Whether to
attract external investment or simply to continue to succeed by communicating professionalism
and expertise firms have the potential to differentiate themselves from their competitors.
2.2.4 Financial benefits of reputation
Reputation and financial performance have a strong relationship. Reputation has demonstrated
both have a negative and positive impact on financial performance. Businesses that have a
positive financial situation are more likely to have a good reputation. Ultimately activities that
build reputation of a company involve greater financial commitment but benefit is a development
of brand and client relationship in the long term.
Competitive, or organizational advantage, has an impact on and financial performance.
Organizational advantage can be obtained when strategy develop for building reputation is
tailored to the organization. Incorporating good reputation into business policies can also reap a
competitive advantage; part of the strategy needs to involve balancing financial goals and
sustainability of PR programs.
Reputation can be used as a means to achieve corporate social performance. Building moral
capital through good reputation could prove a good way to preserve economic benefits that the
company has gained. This presents an alternative to the concept of Reputation directly affects
financial profit.
The next section outlines the stakeholders and shareholders relationship with reputation.

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2.3 STAKEHOLDERS AND SHAREHOLDERS RELATIONSHIP WITH REPUTATION
Stakeholders and shareholders group are a main priority when developing company strategy.
Stakeholder groups include clients, employees. Shareholders are considered by the company
when choosing PR activities, they provide the benchmark for social activities as the company
needs to keep shareholders content to maintain financial performance, while attracting more
clients. Good reputation influences stakeholders into purchasing brand as well as strengthening
the overall relationship. Implementing PR activities to foster stakeholders’ relationship is
important, as individual stakeholders such as shareholders and employees may have multiple
relationships with the company.
Stakeholders need to be informed of the organizational policy or goals, the communication
increases the stakeholders confidence in the company activities (Bansel & Roth, 2000).
Shareholders value can be built by PR activities like giving ‘insurance’ for companies in bad
times, meaning the positive reputation which would foster the brand trust and loyalty, can help
reduce the effect of a negative event (Godfrey et al, 2008). There is also an indication that
companies that are socially and morally responsible can positively change investor attitude by
having a greater moral responsibility ranking.
2.4 MEASUREMENT OF REPUTATION
The terms image, reputation, good name and prestige are very similar in their definitions and
barely distinguishable in measurements.
Standardized surveys are used to investigate attitudes and opinions regarding the test article, in
most cases the respondents' overall impression of an organization or brands. As an intangible
variable, reputation can be an indicator for the outflow of communication, as the support
potentials (including customer relationships, supplier partnerships, good employer) associated
with the construct have an indirect effect on commercial success, EVA or brand value.
The various measurement methods differ largely in terms of the chosen test article, the depth of
the questions, and with respect to the reference groups questioned. "Sub reputations" can be
determined by questioning specific target groups. Most methods enable comparisons between
how something is viewed by others (outside view) and how it is viewed by the subject (self-
image, Corporate Identity).

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Measurements can take place at three levels: at the cognitive level, knowledge diagnostics takes
place which enables the strengths and weaknesses of the test article to be identified. On an
emotional-affective level, analysis of self-image and third party image can help to determine the
extent of individual image dimensions. The co native level finally measures internal activation
and embedding or utilization of the item under consideration – a specific brand, for instance – in
everyday life or everyday business.
Numerous benchmarking projects exist alongside discrete analyses investigating a specific test
article. Examples of benchmarking project offerings range from surveys in various magazines
(e.g. Manager Magazin, Fortune) to studies by specialist consultants (e.g. CEO-Reputation
Burson Masteller; Corporate Reputation Watch Hill & Knowlton; Reputation-Survey Trimedia)
to international research projects of the Reputation Institute based on the reputation quotient.
However, most such comparisons enable only a limited insight into key factors influencing
reputation or certain sub-reputations. Moreover, individual, one-off reputation measures are
static variables that do not completely cover the dynamic properties of image or reputation
change. To achieve the latter, repeated measurements at intervals of time would be necessary.
PR activities and the reputation is measured is a byproduct of overall company culture, which is
reflective of the company leadership and overall strategy toward reputation. The following
section discusses relationship between reputation and ethics and employees as variables drawn
from these areas were used to represent reputation in the final scales.
2.4.1 Ethics and reputation
Agatiello (2009) states ethics is made up of roles, responsibilities and interactions between
people. Creyes & Ross (1999) advocates that the behaviors a company engages in can affect the
way the client views a product or service, clients may even be more willing to reward good
moral behaviors by actions such as paying a higher price for product or service. Creyer & Ross
(1999) discovered if consumers perceived no difference between companies offering a similar
product or service, it may be the marketing manager promoting ethics of the firm that sways the
purchase decision. Carrigan & Atalla (2001) suggest consumers are more informed in the
modern age and may cause less sympathy with causes they feel they can not relate to.

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A high level of transparency is a further factor that adds to an ethical culture. Since transparency
is synonymous with openness and honesty and involves sharing all relevant information, it builds
and maintains trust. (Note that sharing ‘relevant’ information accommodates the need for client
confidentiality.)
Maintaining a high level of ethical awareness in the workplace, and regularly measuring and
reporting on the practice’s ethical status all support the preservation of a high-trust, ethical
culture.
The commitment which the pursuit of an ethical culture requires is more than met by the
rewards. Apart for enjoying clients’ trust, it reduces the risk of ethical failure, fraud or corruption
and the associated costs. More importantly, it should also create a source of competitive
advantage, which is as relevant for the legal profession as other businesses.
Since many sources of competitive advantage are limited because of the ease and speed with
which they can be copied, it places greater value on a unique source of competitive advantage.
Workplace ethics offers such a source: it is not easy to copy, cannot be bought or sold, cannot be
owned, but rather must be lived every day so that it becomes an inherent part of the culture.
When ethics and trust are so integral to the success of an industry – as is the case for the legal
profession – the only question which remains is why they are not acting accordingly and visibly
advocating and nurturing an ethical culture.
While ethics is – or should be – important in all businesses, it is especially relevant for
businesses that are trust-based, such as legal practices.
2.4.2 Employees and reputation
Delivering on the targets set for billable hours is generally in employees’ best interests, earning
them benefits such as recognition, promotion, salary increases or bonuses. This can easily lead to
expanding the scope of work unnecessarily or, worse, to inflating billable hours. Although
unethical, it can foster an ‘ends justifies the means’ view and sub-culture.
Leaders therefore need to consider what behaviors their business goals and measures are likely to
encourage, and to avoid ill-conceived goals in an effort to avoid unintended consequences. In the
case of billable hours, this means that billable hours cannot be the only criterion for evaluating
someone’s performance or contribution to the practice.

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Appreciating that employees are one of the most important stakeholders of a firm is also crucial.
Employees should be ambassadors of their companies and contribute positively to the reputation
of an organization. It is easy to be so focused on the external perception of a firm that the
disenchantment of employees can go unnoticed. Disgruntled employees pose a threat to
something as fragile as reputation – a fact many firms have learned the hard way during tough
economic times and a spate of redundancies. Implementing a comprehensive internal
communications strategy can ensure employees feel valued in the hardest of times, but will
additionally encourage them to promote the reputation of the firm in a positive light.
Incorporating employees into the organizational strategy could be used as an effective way for
employees to maintain connections and identification with their firm. Employees’ attraction is
important along with the happiness of the employees in regards to organizational activity.
Albinger & Freeman (2000) considered the support of employee participation and diversity as a
major attraction for potential employees. Similarly Kim et al, (2010) concluded employee-
company identification was highly affected by the way employees perceived outsiders to view
their company, the positive the outsiders viewed the company, the more the employees identified
with it. Companies that have a good reputation attract a quality work force that ultimately helps
develop a competitive advantage.
2.5 REPUTATION, TRUST AND CSR
CSR, specifically the building of corporate reputation, has several connections with brand trust.
Castaldo et al. (2009) explored the missing links between CSR and brand trust and concluded
when ethical or social values are apparent in a product positive CSR associations are assumed.
Castaldo et al. (2009) also suggest consumers develop trust in organizations with strong
reputations, which can deliver the promises on their products. However, each stakeholder will
develop trust in a different way to different CSR activities and policies (Castaldo et al., 2009).
This could be the difference between an environmental policy and an employee policy.
The most important aspect in Castaldo et al. (2009) concluded that trust could result in the
success or failure of a socially responsible organization. Where the social reputation of a
company is developed enough to evoke trust, this can influence consumer choices and thus help
develop a competitive advantage. Investment in social reputation and CSR initiatives should be

25. 25
combined with product lines that have good fit to appeal to a variety of stakeholders (Castaldo et
al., 2009).
Trust is depleted when consumers become suspicious about corporate activities. Vlachos et al.
(2009) revealed that suspicious consumers are more affected by negative CSR attributions and
this directly influences trust and buyer intentions. Companies that exhibit high service quality
can in turn reduce the negative effects ill-fitting CSR activities can have on trust. Vlachos et al.
(2009) also suggest that trust may be a mediating factor between CSR and financial performance.
Vlachos et al. (2009) identified giving benevolently through CSR increases loyalty and likewise
profit-motivated giving is seen to reduce consumer loyalty. A trust mechanism can moderate the
effect to which the consumer feels loyalty (Vlachos et al., 2009). This is an alternative thought to
trust simply being a part of brand loyalty; it may be a mediating force in itself for consumers to
assign attributions, but it requires further investigation.
The trust that a consumer places with a brand has effects on, and builds, brand loyalty (Pivato et
al., 2008; Keller, 2008; Chaudhuri & Holbrook, 2001). De Los Salmones et al. (2005) state brand
loyalty can be build through service evaluation. This section covered corporate reputation and
the connections to CSR and brand trust, the next section explores cause marketing and the
association with brand trust.

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CHAPTER THREE: METHODOLOGY
3.1 INTRODUCTION
This chapter begins by describing the methodology in this study, followed by the research
methodology which describes survey formation. The method is office-intercept survey in which
10 participants will be chosen using a quota sampling method. Every person entering the office
will be approached to fill a questionnaire.
3.2 RESEARCH PROBLEM
The goal of a firm is to build strong brands in the market and foster long term relationship with
clients (Delgado-Ballester & Munuera-Aleman, 2005).
The question this study seeks to answer is: What effects does reputation have on brand trust?
This study is exploratory, exploring the relationship between Reputation and trust. The
exploratory, or inductive, process allows opportunity for future research by creating a foundation
from which to form hypothesis.
3.3 RESEARCH APPROACH
Research approach describes and justifies the metholodgy for data collection. The research uses
quantitative data collection in form of a survey. This provides the opportunity to use scales of
measurement already developed.
A quantitative approach was taken as it is highly structured which the questionnaires
representing reputation and be precisely analyzed to determine which effect trust. It usually
involves collecting and converting data into numerical form so that statistical calculations can be
made and conclusions drawn. Quantitative research is associated with exploring connections
between variables (Bryman & Bell, 2007 p.426). Quantitative research is appropriate to use
under a positivist paradigm and natural science approach, which helps explain the links between
theory and research (Bryman & Bell, 2007 p.154). Science aims to explain the natural world and
positivist research uses precise, objective measures (Cavana et al, 2001, p 8), which makes a
quantitative method ideal.

27. 27
3.4 SURVEY RESEARCH METHOD
The following section discusses the survey method and sampling design and size. Surveys are
conducted in an attempt to answer certain questions. It represents attempts to identify why
something happens, what causes some event, or under what conditions an event does occur.
Although there are many survey methods that could have been chosen, due to time constraints
and the need to access a variety of age groups, an office-intercept survey was determined the best
method.
The survey method has both advantages and disadvantages. Office-intercept surveys are more
flexible, have lower costs and gain access to a larger population, however, it is prudent to
consider the disadvantages before deciding on the specific method of collection. The advantages
are the ability to speak face-to-face and maintain a rapport with the participants which could
mean a higher response rate. It also means greater flexibility, lower cost and more control for the
researcher.
3.5 QUESTIONNAIRE DESIGN
Questionnaire design describes the scale of measurement for Reputation and Trust, explains the
firms scenarios that were used for the questionnaire.
3.5.1 Questions
The data collected was based on 5 main constructs, brand trust (the dependent variables) and the
elements of reputation being employees, legal, economics and ethical. The questions that have
been chosen to represent Reputation are: (See table 3.1)
Employee variables
The firm’s policies encourage the employees to develop their skills and careers.
The managerial decisions related with employees are fairs.
The firm supports employees who want to acquire additional education.
The firm has flexible policies to provide good work-life balances for employees.
The firm is concerned with the employees’ needs and wants.
Ethical variables
The firm provides full and accurate information about its services to clients.
The firm respects the client’s rights beyond the legal requirements.

28. 28
Customer satisfaction is highly important for the firm.
The firm contributes to campaigns and projects that promote the well being of the society.
The firm emphasizes the importance of its social and moral responsibilities to the society.
Legal variables
The firm complies with the legal regulations, safety and promptly.
The firm avoids unfair competition.
The firm would cooperate with its competitors.
The firm always pays its taxes on a regular and continuing basis.
The firm endeavors to create employment opportunities.
Economic variables
The firm implements programs to minimize its negative impact on the moral environment.
The firm targets sustainable growth which considers future generation.
The firm participates in activities which aim to improve the quality of the services rendered
Brand trust will be constructed of 6 questions representing al aspects of trust including help,
interest and perceived value:
The firm will offer services with constant quality level
The firm will help solve any problem the client may have with the services rendered
The firm will offer any new services the clients may need
The firm will be interested in the clients’ satisfaction
The firm will value the client
The firm will offer recommendations and advice on how to make most of its services.
LEGAL EMPLOYEE ETHICS ECONOMICS TRUST
3a 3h 3b 3d 15
12d 4 3c 3f 16
12e 5 3e 3g 17
12h 12a 12b 12g 18
12o 12j 12f 12i 19
12s 12m 12l 12c 20
12t 12n 12r 12k
Table 3.1: Reputation dimensions and variables

29. 29
3.6 DATA COLLECTION
After the questionnaire was finalized, permission was sought to engage the firm’s clients so that
data collection could begin and the data collection times were finalized. Permission was granted
by the administrator after the research purpose and benefits had been explained to them. The data
was collected in May 2013 over a period of a week.
The participant decides whether they wish to take part in the study. By completing the
questionnaire, the participant gives consent. The researcher will be in close proximity to the
participant should they need to clarify anything while filing the survey. Each questionnaire will
then be checked after completion to make sure there were no missing answers.
3.7 DATA PREPARATION
After the ten completed questionnaires are collected, the data coding and preparation can begin.
In this process the hard copy will be transferred into a form suitable for data analysis.
3.8 DATA ANALYSIS METHODS
After the data was cleaned where data is inspected and erroneous data are- if necessary,
preferable, and possible- corrected, it was tested to meet the assumptions of data analysis. The
data analysis begins with the profiling of respondents which includes gender, response rate and
missing data.
Second, the exploratory data analysis will be conducted, which includes descriptive statistics.
The reliability and validity of the variables will then be checked using a couple of different
methods.
The first part involves developing finalized components to represent Reputation. The reputation
variables will be tested for correlation between each variable.
3.9 ETHICAL CONSIDERATIONS
This research protects all the participants involved as it does not cause indirect or direct harm to
the participants or researcher. The participation is voluntary and consent is required. All the
information is anonymous, which protects the participant’s confidentiality. Participants can come
from a range of cultural backgrounds and have the right to decide their own actions.

30. 30
The core role of the participation is to provide equal opportunities for all the people involved in
the process. The participants’ role in this instance is to complete the questionnaire.
Partnerships represents a shared decision making process. In this research the participants have
the decision to voluntary participate and withdraw at any time. The researcher will at all times
respect the individual participant and ensure all inquiries are answered to the best of their
knowledge.
The surveys are anonymous and confidential, there is no privacy issue. There was no obligation
for a participant to complete the survey.
Lastly, no personal questions or details were asked of the participants.
3.10 CONCLUSION
The methodology was descriptive. This study is a quantitative approach which supports the
exploratory testing of the scale variables. The method of office intercept survey to collect the
quantitative data was chosen as it provides a good basis for data collection for an exploratory
study and aids in sampling.
Participation in the research study is confidential, at the participants’ discretion and they can
withdraw at any time. After the data is collected, it will be prepared and cleaned followed by a
data analysis. Data analysis includes an exploratory data analysis to determine which reputation
component if any had the greatest effect on brand trust.
The next chapter will examine the results of the data analysis.

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CHAPTER FOUR: DATA ANALYSIS
4.1 INTRODUCTION
In this chapter, the data analysis explores the effects of Reputation on brand trust. The
Reputation components will each be analyzed against the brand trust component.
This chapter examines the profiles of respondents including gender and response rates. Secondly,
the data analysis begins with and exploratory analysis of mean, mode and median.
The research question to be answered is: What effects does Reputation have on brand trust? The
data analyzed throughout this chapter provides a foundation for the conclusions. The conclusions
and implications, both theoretical and managerial, will be discussed in further details in Chapter
five.
4.2 PROFILE OF THE RESPONDENTS
This section discusses the gender of respondents and response rates.
As each client was approached at the office reception, a range of different ethnicities had the
opportunity to fill the survey. For this study, the demographic observed in the sampling was
gender. Participants were continually approached until each gender was filled equally.
The response rate was hard to measure as it was a two person data collection at the office,
including busier periods such as Monday morning. The response rate was not as high as expected
as many participants approached were not willing to take part.
4.3 EXPLORATORY DATA ANALYSIS
This section covers descriptive statistics of the data including the mean scores, mode and
median. (See table 4.1)
RESPONDENTS
1 2 3 4 5 6 7 8 9 10
MALES FEMALES
3a 3 3 3 2 2 1 2 3 3 2
b 1 2 2 2 3 3 1 2 3 3
c 2 2 3 3 1 3 3 1 1 1
d 3 3 3 3 2 3 3 2 3 3
e 3 3 3 3 3 3 3 3 2 3
f 2 2 1 2 1 1 1 2 1 2
g 3 1 3 2 1 3 2 2 1 3
h 1 2 3 1 2 2 2 3 2 2
4 2 2 2 3 3 3 3 3 2 2

32. 32
5 3 3 3 3 3 3 3 3 3 3
12a 3 2 2 2 1 1 1 3 3 3
b 3 3 3 1 3 2 2 2 1 2
c 2 3 1 1 3 3 3 3 3 3
d 2 2 2 2 1 2 2 2 1 3
e 3 3 3 3 3 3 3 3 3 3
f 2 2 3 2 3 2 1 3 2 2
g 1 2 2 2 2 2 2 1 2 2
h 2 1 3 1 2 2 1 1 3 1
i 3 3 3 3 3 3 3 3 2 3
j 2 3 1 2 3 1 2 3 1 2
k 2 3 2 3 2 3 2 3 2 3
l 3 2 1 2 3 1 1 2 3 2
m 1 3 2 1 3 2 2 3 1 1
n 2 1 1 2 2 2 2 3 1 1
o 3 3 3 3 3 3 3 3 3 3
r 2 3 2 3 2 3 2 2 3 3
s 1 3 3 2 2 1 1 2 3 1
t 2 2 2 2 2 2 2 2 2 2
Table 4.1: Survey outcome
4.3.1 Descriptive statistics
The mean, median and mode of the data can help give an overview of the way participants are
answering the questions. The scale of measurement for this study was a 3-point scale, which
ranged from 1-disagreeable range, 2-neutral and 3- agreeable range.
Table 4.2 outlines the mean, mode and median of brand trust and reputation components of
employees, legal, economics and ethics.
The employee items ranged in mean from 1.8-3. The item described as being concerned with the
firms policies providing the employees with a good work-life balance had the highest mean at 3.
The item which describes the employees’ timeliness to respond to clients averaged at 1.8, which
was the lowest score. The remaining items had a range of 1.9-2.5; the items described managerial
fairness and employees acquiring additional education. (See Table 4.4)
Ethic items ranged in mean from 2-3. There was a positive view of client satisfaction being
important. The item that describes the firm’s good quality of work had the highest mean of 3.

33. 33
The item that describes the firm’s ability to solve issues within a limited time had the lowest
mean of 2. In the range of 2.2-2.5, the remaining items outlined the firm respecting the clients’
rights beyond legal requirements, providing accurate information and promoting the well being
of the society. (See Table 4.5)
The legal items ranged in mean from 1.7-3. The item that asks whether the firm complies with
legal regulations safely and promptly had a greater positive reaction than the other items. The
items describing paying taxes, cooperating with competitors and avoiding unfair competition had
a mean of 1.7-2.4. (See Table 4.3)
The economic items ranged in mean from 1.5-2.9 which reflects positivity. The firm participates
in activities which aims to improve the quality of services offered was viewed as a slightly more
positive item at 2.9. The remaining items concerned investing in future generations and ensuring
sustainable growth for future generations with a mean range of 1.5-2.8.(See Table 4.6)
In the legal items the mean ranged from 1.8-3 in men and 1.6-3 in women. Both genders agreed
that they would like a firm that avoids unfair competition and would cooperate with its
competition since competition is healthy in any business.
In the employees items the mean ranged from 1.6-3 in men and 1.8-3 in women. Both agreed that
for them to get good quality services, the employees should have a conducive environment to
work in and the firm should be concerned with the needs and wants of the employees.
In the ethics items the mean ranged from 2-3 in men and 1.2-3 in women. Customer satisfaction
was highly important to both genders as that would mean good quality of services rendered.
When the client is happy, the company is also happy as there will be benefits from the client
satisfaction.
In the economics items the mean ranged from 1.4-3 in women. Both genders were concerned that
the firm should target sustainable growth which considers future generations. This in turn would
create continuous job opportunities.

34. 34
In the trust variable, the mean ranged from 2-2.5. This means that trust is very crucial and should
be upheld in a company for it to succeed. Also client satisfaction and value should be company’s
top priority. Most clients would want to be valued and their needs taken seriously by the firm.
CONSTRUCT VARIABLES MEAN MEDIAN MODE
Brand Trust The firm will be interested in my
satisfaction
2 3 2
The firm will value me a client of its
services
2.5 3 3
The firm will offer me
recommendations and advice on how to
make the most of its services
2.1 3 2
The firm will help me solve any
problem I may have with their services
2.2 2 & 3 2
The firm will offer me new services I
may need
2.1 3 2
The firm will offer me services with a
consistent quality level
2.1 3 2
Employees The firm’s policies encourage the
employees to develop their skills and
careers.
2.1 3 3
The firm supports employees who want
to acquire additional education
2 2 2
The firm has flexible policies to
provide good work-life balance for
employees
1.9 1 2
The managerial decisions related with
the employees is usually fair
2 2 2
The management of the firm is
primarily concerned with employees
1.8 2 2

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needs and wants
Ethics Client satisfaction is highly important
for the firm
3 3 3
The firm provides full and accurate
information about its services to clients
2.2 2 & 3 2
The firm emphasizes the importance of
its social and moral responsibilities to
the society
2.2 3 2
The firm contributes to campaigns and
projects that promote the well being of
the society
2.2 2 & 3 2
The firm respects client rights beyond
the legal requirements
2.5 2 2
Legal The firm complies with legal
regulations safely and promptly
1.9 1 2
The firm always pays taxes on a
regular and continuing basis
2 2 2
The firm would cooperate with its
competitors
3 3 3
The firm avoids unfair competition 3 3 3
The firm endeavors to create
employment opportunities
1.9 2 2
Economics The firm makes investments to create a
better life for future generations
1.9 2 2
The firm targets sustainable growth
which considers future generations
2.5 3 3
The firm implements special programs
to improve the quality of services
rendered
2.9 3 3
Table 4.2: Descriptive statistics

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4.4 CONCLUSION
This chapter discussed the profile of the research respondents, exploratory data analysis to give a
general view of the reputation brand trust variables. The implications of this study, both
theoretical and managerial, as well as conclusions from the findings are discussed in the next
chapter.

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CHAPTER FIVE: CONCLUSIONS AND IMPLICATIONS
5.1 INTRODUCTION
The current study investigates reputation and the effects on brand trust. This chapter covers the
conclusions and implications from this study. This chapter begins with an overview of the study,
followed by a discussion of the findings and the theoretical and managerial implications.
Limitations of this study and areas for future research are discussed.
This chapter then provides an overall conclusion for the research.
5.2 OVERVIEW OF THE STUDY
This study focused on the marketing topics of reputation and branding specifically brand trust.
This study aimed to explore reputation and the impact on brand trust, while determining which
variables best represent good reputation for clients.
Empirical research has explored the relationship between reputation and financial performance,
organizational performance, leadership and client attributes. Reputation is linked to corporate
strategy, leadership and financial performance, each of these concepts influencing on another.
These general foundations of business are important for fostering good reputation in the
organization and ultimately affecting the way the consumer views that organization.
The purpose of good reputation is to promote image but trust helps maintains long term
relationships with the client. Client trust is a major component of brand loyalty, which reduces a
clients desire to switch services. Consumer loyalty allows companies to maintain a strong
financial position by reducing costs associated with continually attracting new clients to the
service.
Brand trust has not been explored to a great extent in a general brand context, nor has there been
a large amount of empirical evidence obtained. This research gap has promoted this study’s’
exploratory research into the effects of reputation on brand trust. The exploration between
reputation and trust was important to determine which reputation components would have the
largest effect on trust. The aim was to contribute to reputation and branding literature while

38. 38
supporting the literature that establishes good reputation as having a positive effect on the client.
If good reputation’s positive effects can be substantiated, awareness and integration of good PR
into everyday practices and policies can begin to occur.
This study is exploratory, exploring the relationship between reputation and trust. The
exploratory nature creates the opportunity for future research by creating a foundation from
which to form hypotheses.
A quantitative research approach was chosen, allowing exploration into the connection between
the two variables. This method of study was an office-intercept survey, sing quota sampling. For
example 10 participants were surveyed, 5 males and 5 females.
5.3 DISCUSSION OF FINDINGS
5.3.1 Reputation data analysis
The reputation scale used had some items which were removed in the study and in the final scale
there were four factors representing reputation on which the remaining items loaded. In this
study the items loaded onto two final components. This section describes the items that were
deleted, loaded significantly and which final components represented reputation.
The study has cross loaded items which indicates how strongly each item loads on a component,
two of which were the same. In reference to the scale, the items cross loaded and deleted were,
the firm, avoids unfair competition, the firm would cooperate with competitors on projects and
the firm pays taxes on a regular basis.
Every item from the economics and employee constructs were retained in the study. The
employee items loaded with the remaining legal items onto the legal and employee final
component of reputation. The employee items described employees developing their careers,
employee needs, flexible policies, fair managerial decisions and ability to acquire additional
education.

39. 39
These findings suggest that ethics are an important component to reputation and including ethics
variable in reputation is wise. Good ethics is a defining factor of PR activities. Particularly, the
managerial investment into employees can increase both commitment and participation in PR
activities.
Good ethics is important for PR activities, as well as financial investments. All economics items
were loaded along with the ethics items onto a final component of ethics & economics. The
economic variables contained items described sustainability for future generations and
preserving good morals. Economics offers the most representation for the second component of
reputation. Research concluded that preserving good morals has a positive impact on financial
performance, although there was mixed results. It can be suggested that both ethics and
economic items offer a greater representation of reputation.
5.3.2 Reputation effects on trust
The data analyzed suggested the reputation had a significant but small effect on brand trust.
The two components that represented reputation were legal & employee and ethics & economic.
The data analysis discusses the creation process. The variables of ethics and economics offer the
most representation for reputation, combined with items from both employees and legal to make
the final components.
Interestingly, the most descriptive component of reputation was ethics and economics, which
included the firm providing accurate information, client satisfaction, targeting sustainable
growth, respecting the clients’ legal rights and improving quality of services. Judging by this
finding, focusing on good ethics, communication and development is a good strategy for
organizations in the future. Employee commitment and involvement towards PR activities is also
key component, which could explain the representational power of employees for reputation.
It was concluded that specific reputation dimensions such as employee relations and concern for
good morals, may be more crucial than others. The significant clean loading for the items in the
final components for both economics, with a focus on good morals, and employees with a focus

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on managerial relations and opportunities for employees, justifies the importance of these
dimensions.
This finding demonstrates that the greater engagement a company has in PR activities, the
greater the effect reputation has on trust. Good reputation efforts need to be communicated both
internally and externally to receive the benefits.
Organizations that do not engage in PR activities have other factors that impact on client trust
which can include continued service satisfaction to build trust in a brand. Good reputation is an
informed, controllable and effective way for organizations to influence brand trust in order to
build, rather than relying on service purchasing alone.
It is an important point to mention in the final conclusions as the items of reputation that were
considered important to business professionals, from an organizational perspective, would be
different to members of the public, who would answer from a client perspective. Participants in
this study were members of the public and ultimately answered the survey from the perspective
of a client.

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5.4 THEORETICAL IMPLICATIONS
The reputation scale variables explored four areas of legal, employee, economic and ethics. The
actual definition of reputation varies based on different theoretical literature, but a broader, more
encompassing definition is favored. This study helps to justify a multidimensional perspective
for reputation with the inclusion of employee and legal variables.
A majority of the investigation into the relationship between reputation and employees has been
through employees perceptions towards a company. The employee component for this study
contained items addressing support of employees and concern about employee well-being by the
organization. All employee variables were used to develop the final legal & employee
component, which offered a great representation of reputation on brand trust in the overall
analysis. A suggestion would be that employee treatment by an organization, as well as
employee perception of that company’s PR activities should both be considered.
This study also has theoretical implications for brand trust and the general client-brand
relationship. The research into brand trust in a general brand context has not occurred to a large
context and much of the research remains conceptual in nature. This study contributed to the area
by researching brand trust in a client context and used a brand trust scale that was tailored to
measure brand trust in client loyalty.
There is limited research on the client in reference to brand trust. The data collected in this study
was conducted on members of the public, who represented clients.
In terms of developing marketing and client behavior theories, this study helps identify the
importance of the PR activities in order to produce benefits. As suggested, the more a company
participates in socially and morally responsible programmes, the greater the effect they will have
on client trust. This could also be expanded in terms of the effect on the other client attributes.

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5.5 MANAGERIAL IMPLICATIONS
This study has several important implications for company managers and business owners. It has
identified reputation as an important concept when it comes to developing brand trust and could
help provide some guidance as to the more important aspects of good reputation, for example, fit
between cause and organization. The development of PR programmes is conducted and approved
by the leaders of the company. Managers also determine the extent to which the programmme is
incorporated into the long term strategy of the organization. Business managers could begin in
investing in socially responsible activities, both internally and externally a reputation has a small,
but significant effect on brand trust.
The strongest emphasis for managers should be placed on providing a supporting and nurturing
environment for employee and ethic variables being the most descriptive for reputation. This
could include offering better work-life balance or training and development programmes.
The more socially responsible the company the larger the percentage the effect reputation on
brand trust. This suggests that managers that choose to participate in moral and social causes can
begin to accelerate the development of brand trust faster than relying on services alone to build
trust. There are other factors effecting brand trust that are underdetermined, meaning the money
could be spent in areas of the business offering little development to the business-client
relationship.
The concept of brand trust from a managerial perspective is important, or should be considered
as such. This study on brand trust helps develop insight into client and brand relationships, which
are considered one of the most important relationships by the organizations. On a managerial
level, the leverage of client and brand relationship is an important management practice. Trust is
a part of the client and brand relationship and helps consumers develop a strong bond with a
brand.

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5.6 LIMITATIONS OF STUDY
It is important to outline the limitations of this study. Pervious delimitations outlined that on
office was used as the location for data collection. Although the office provided a location with a
large number mixed ethnicities and ages, this method did not allow for individual interpretation.
A qualitative methodology could be tested, to explore descriptive reasons for individual clients.
The limitation is that the study was conducted solely from a general public perspective. The
research could have been conducted on both business professionals and the general public, as
both these stakeholders can be clients.
The sample size that was used for data collection was 10 participants. The sample was smaller
due to it being exploratory research, as well as the limitations in resources including researchers
to collect data. Although it was taken using quota sampling, which allowed for a wider range of
age groups and 50/50 gender splitting, it would be interesting to conduct the study again with a
larger sample number. A larger sample size could be significant from a data analysis perspective,
as a larger sample number could identify relationships between components that have a smaller
significance (Hair et al., p.174) or produce different final components to represent reputation.
5.7 FUTURE RESEARCH SUGGESTIONS
Future research can be conducted from the findings in this study. However, the specific
definitions and measurements of reputation vary and a range of stakeholders may not be
considered. There is an opportunity to test further dimensions of reputation on brand trust, with
variables that have been identified as being important to different stakeholder groups.
Brand equity can be developed by brand trust (Delgado-Ballester & Munuera-Aleman, 2005).
The reputation scale developed in this study could be applied to other aspects of brand equity
other than brand trust, such as awareness and CSR.
Leadership and reputation is an area for further development. Leadership is also closely
associated with strategy and employees in the organization. Different leaderships have been
examined for the implementation of PR activities; there was a gap when investigating leadership
styles on the external activities of PR programmes rather than maintaining the internal activities.

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Further research should be conducted into perceptions of stakeholders in terms of both internal
and external PR activities. This research could develop information in terms of important goals
or activities for organizations, depending on which stakeholders the organization wanted to
influence.
Further research could be conducted into the relationship between reputation and philanthropy,
which is considered with donating to social causes. Philanthropy could be developed as another
component of a reputation scale, specifically relating to money donations, to examine the impact
on branding.
Greater analysis of employee and legal attitudes, as that component explained the majority of
reputation effect on brand trust, is required.
5.8 CONCLUSION
Reputation in general has a vast amount of literature linking it to different aspects of a business
such as financial performance and strategy. However research into reputation and brand trust is
very limited. Acknowledging the limited amount of research in these topics areas, this study
sought to investigate the relationship between brand trust and reputation while examining the
significant components to represent both constructs.
This study empirically measured reputation using a scale. The method used was an office-
intercept survey undertaken in Mega Plaza with a total of 10 questionnaires collected. The data
analysis was a multivariate method composed of a factor analysis. In terms of the final
components that were developed to represent reputation, the legal & employee construct was the
most descriptive for reputation.
Finally, the study concludes that reputation has a larger effect for a socially responsible
organization. The results suggest reputation provides an opportunity for companies to develop
stakeholder relationships, while companies already participating in PR activities should
communicate effectively in order to receive benefits.

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Further investigation into the impact of reputation on different client characteristics is imperative
for developing research into client and brand relationships. Further research into brand trust,
reputation and the client-brand relationships is suggested. Despite the limitations, this study has
provided a foundation for further investigation into reputation and brand trust while examining
the connections between the two concepts.

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REFERENCES
Bill Merrilees & Marie-Louise Fry (1999), Marketing and Intelligence Planning. MCB UP Ltd,
UK
Byrman A & Bell E (2007) Business research methods (2nd ed.). Oxford University Press Inc,
NY
Cavan R, Delahaye B.L & Serakan U (2001). Applied business research: Qualitative and
Quantitative methods. John Wiley & Sons Australia Ltd, Queensland
David Bickerton (1996). Journal of Corporate Communications. MCB UP Ltd,UK
David Arnott (2007). European Journal of Marketing. Emerald Group Publishing Ltd, UK
Dowling, Grahame R (1994). Corporate Reputation: Strategies for developing the corporate
brand. Kogan Page,London
First, Ivan (2009). Six Rules of Brand Revitalization: Learn how companies like McDonalds can
re-energize their brand. Emerald Group of Publishing, UK
Gurnhan-Canli Z & Fries A (2009). Branding and Brand Management: Contemporary research
perspective. UK Psychology Press, London
J.Milewicz & Herbig (1992). Journal of Product and Brand Management. MCB UP Ltd, UK
Lassar W, Mittal B & Sharma A (2011). Measuring customer-based brand equity. MCB UP Ltd,
UK
McCole P (2002). International Journal of Contemporary Hospitality Management: The role of
trust for electronic commerce. MCB UP Ltd, UK
Pride, Elliot, Rundle-Thiele, Paladino & Ferall (2006). Marketing: Core concepts and
applications. John Wiley & Sons Australia Ltd, Queensland
Ronald J B, Graeme M & Cooper C (2011). Corporate Reputation. Gower, UK
Trueman M, Klemm m & Giroud A (2003). An International Journal of Corporate
Communications: Can a city communicate? Emerald Group of Publishing, UK
Wheeler D & Sulanpaa M (1997). The stakeholder Corporation: A blueprint for maximsing
stakeholder value. Pitman,London
www Virtual Library
Internet

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Client Service Questionnaire
1. Siganga & Company Advocates
1. Please take a few moments to answer the following questions. Please feel free to add your
comments at the end of each question. The questionnaire is anonymous unless you
choose to include your name and email address or case number here:
2. Which advocate or paralegal assisted you?
3. Please rate the following areas regarding our firm:
3 2 1
Advocate/Paralegal's
understanding of your
case and goals Very Satisfied
Needs Work Dissatisfied
Communication with
advocate/paralegal
throughout case Very Satisfied Needs Work Dissatisfied
Responsiveness
Very Satisfied Needs Work Dissatisfied
Service and
effectiveness of
advocate/paralegal Very Satisfied Needs Work Dissatisfied
Quality of work
Very Satisfied Needs Work Dissatisfied
Reasonableness of
advocate fees Very Satisfied Needs Work Dissatisfied
Understandable,
accurate and timely
legal bills Very Satisfied Needs Work Dissatisfied

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3 2 1
Concern for you as a
client Very Satisfied Needs Work Dissatisfied
4. Would you recommend our services to your family, friends or colleagues?
Yes 3
No 2
Maybe 1
If you would not recommend this firm to another person, please state your reasons, especially if
not detailed elsewhere in this survey
5. Please describe how you were treated on your most recent visit to our office:
Courteously 3
Casually 2
Indifferently 1
If not courteously, please explain
6. Do you have any suggestions on how we could improve our written and verbal
communications (telephone calls, emails, correspondence, personal meetings) with clients?
7. What are the biggest areas where we need the most improvement?
8. What suggestions do you have for improving our billing process?

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9. Do you believe we are providing exceptional value for the fees we charge?
10. Were you adequately kept up-to-date on the progress of your cases?
11. Did you consider another law firm(s) for your litigation needs? If so, why did you choose
Siganga & Company Advocates?
12. Which qualities are most important to you? 3 2 1
Ease of reaching desired party at the firm
Promptness in returning calls
Results
Quality of recommendations and advice
Understanding of legal issues/expertise
Helpfulness/Courtesy
Estimation & communication of fees
Case status reporting
Value received for fees paid
Range of service
Timely invoices
Problem solving abilities
Hours of operation
Timeliness of response
Ability to meet deadlines
Professionalism and integrity
Keeping you abreast of changes in the law
Billing practices

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13. If you are no longer being served by our firm, what was the primary reason why you left?
14. Are there any other comments, suggestions, complaints or concerns you would like to voice?
3 2 1
15. Does our firm offer you with services with constant quality level?
16. Does our firm help you solve any problems you have the services?
17. Does our firm offer you new services you may need?
18. Is our firm interested in your satisfaction?
19. Does our firm value you as a client?
20. Does our firm offer you recommendation and advice on
how to make most of its services?

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CHAPTER FIVE CONCLUSION AND IMPLICATIONS
5.1 INTRODUCTION
The current study investigates reputation and its effects an brand trust. This chapter begins with an
overview of the study, followed by a discussion of the finding and the theoretical and managerial
implications. Limitations of the study and areas for future research are discussed. This chapter then
provides an overall conclusion for the research.

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5.2 OVERVIEWOF THE STUDY
This research focused on the marketing topics of reputation and branding specifically brand trust. This
study aimed to explore reputation and the impact on brand trust, while determining which variables
represent reputation for consumers.
Empirical research has explored the relationship between financial performance, organizational
performance, leadership and client attributes. Reputation is linked to corporate strategy, leadership and
financial performance, each of these concepts influencing one another. These general foundations of
businesses are important for fostering reputation in the firm and ultimately affecting the way the client
views that firm.
The purpose of a good reputation is to promote an image but trust helps maintain long term relationships
with the client. Client trust is a major component of brand loyalty, which reduces clients desire to switch
services. Client loyalty allows firms to maintain a strong financial position by reducing costs associated
with continually attracting new clients to a service.
Presumably the initial study was to contribute to reputation and branding literature while supporting the
literature that establishes reputation as having a positive effect on the client. If reputations positive
effects can be substantiated, awareness and integration of reputation into everyday practices and policies
can begin to occur.
This study is exploratory, exploring the relationship reputation and brand trust. The exploratory nature
creates the opportunity for future research by creating a foundation from which to form hypothesis.
A quantitative research approach was chosen, allowing exploration into the connection between the two
variables.

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CHAPTER FIVE COCLUSIONS AND IMPLICATIONS

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