Proposal for the Doctoral Colloquium of the 11th International Marketing
Trends Conference
Provisional Title: Reputation of non-profit service organizations. Examining the dimensions
and determinants of universities’ reputation for student recruitment.
Author information abstract: Dipl. Kffr. Anne Michaelis graduated in media economics in
2011. Since April 2011 she is a Ph.D. student at the department of marketing at Ilmenau
University of Technology. Her research field comprise higher education marketing with a
special subject on professor’s reputation in research and teaching as tool for communicating a
universities’ quality.
Keywords: reputation, non-profit service organisation, university, student recruitment
Academic and managerial marketing issue: reputation of non-profit service organisations,
international competition between universities, higher education marketing, reputation of
universities as recruitment instrument for students
Theoretical framework and literature review
The intense competition for markets and their customers require new differentiation strategies
for companies in the service sector. Intangible business assets offer companies the
opportunity to develop a unique selling proposition and differentiate themselves because
intangible assets are difficult to imitate by competitors.
A company’s reputation is one of these intangible assets. Characteristic for reputation as
intangible asset is that it cannot be influenced directly by companies (Hall 1992). The indirect
influence is shown in the definition of Fombrun and Wiedmann (2001). They define
reputation as “(…) the overall estimation of a firm by its stakeholders, which is expressed by
the net affective reactions of customers, investors, employees, and the general public.”
Companies are fully aware of the value and importance of their reputation as an instrument to
create competitive advantages and a sustainable business success (Argenti/Druckenmiller
2004). The relevance of reputation is especially evident for universities as non-profit service
organizations. Due to the increasing number of students and their high mobility as a part of
the bologna accord, universities are confronted with a national and, more over an intense
international competitive pressure (Voss 2006, p. 2f.). Due to the intense competition for
potential students, student recruitment becomes more important and hence, the higher
education marketing needs to be adapted to the enhanced competition requirements to recruit
new students. In Germany for example there are 106 universities that compete for 1.5 million
students. Those are more than the half of the total amount of students in Germany. Especially
for universities in the east of Germany it is important to recruit new students because they
have to accomplish a minimum number of students each semester.
If the previous mentioned definition of Fombrun and Wiedmann (2001) is transferred to
universities the following model can be formed.
Public
Employees
Cooperating
Companies
Students
University‘s
Reputation
Fig. 1: Universities’ stakeholder
It shows that the reputation of universities is influenced by different stakeholders like
students, employees, cooperating companies and the public. These stakeholders, their
attitudes, beliefs and convictions built the corporate reputation of a university. For example
for employees the payment and work environment is important, for the public research and
teaching results are important and cooperating companies are interested in know-how,
graduates and interns. Regarding student recruitment, students are the universities’ most
important stakeholders. Surveys were conducted by asking students directly for their decision
criterion when choosing a university. The results show that the reputation of the university is
one of the most important decision factors for potential students. One reason is that students
perceive the reputation of a university as an indicator for a good quality (Choudhury et al.
2009; Veloutsou et al. 2004).
The current research on reputation shows that a positive reputation increases the credibility,
trustworthiness and reliability. It also generates loyalty, satisfaction and positive word-ofmouth behavior. Furthermore it strengthens customer’s confidence in products and services
(Bouncken 2000; Schwalbach 2001, Rode 2001, p. 78f.). Fombrun and Wiedmann (2001)
state that a positive reputation has a magnetic effect on high qualified employees and new
customers. Schwaiger (2004) complete the positive impact of reputation by advantages in
politics.
While the positive effect of a high reputation is demonstrated by a number of studies, the
determinants
and
dimensions
of
reputation
still
require
considerable
research.
Schwaiger/Hupp (2003) define reputation as a two dimensional construct consisting of a
cognitive and affective component. Rindova et al. 2005 state that reputation is a combination
of the awareness of the company and its ability to produce products with a high quality. In
contrast, Fombrun (2001) defines six reputation dimensions. These include emotions,
products and services, social responsibility, job satisfaction, financial performance as well as
vision and leadership. Based on Fombrun’s results Walsh and Beatty (2007) identified five
dimensions of reputation including customer orientation, good employer, reliable and
financially strong company, product and service quality, social as well as environment
responsibility.
The different dimensions of reputation examined in research and described in literature led to
a large number and variety of reputation definitions (Schwaiger 2004). That is why several
approaches for modeling reputation exist (Schwaiger/Hupp 2003; Fombrun 2001; Rindova et
al. 2005, Fombrun/Shanley 1990). The previous reputation models considerations neglect
aspects that are characteristic to non-profit service organizations like universities. Generally
no organization type differentiations are made. Universities as non-profit service
organizations are marked by specific features, like knowledge intensive services that need to
be considered when modeling reputation.
To this day there is a research gap related to the investigation of reputation. Especially a
consistent definition of reputation as well as the influencing determinants and dimensions of
reputation for companies in general and for non-profit companies in specific need further
research to close the existing research gap.
Therefore, the following research questions can be formed:
1. What is reputation and how it is influenced?
2. Which determinants are influencing reputation of universities as non-profit service
organizations?
3. How do individual determinants influence the development and perception of
reputation?
4. Which higher education marketing measures are capable to increase the reputation of
universities?
Proposed methodology
To close the previous described research gap a closer look at reputation described in literature
is necessary. That is why the research methodological approach is based on a comprehensive
English and German literature review. Different approaches to define reputation are analyzed,
summarized and derived to a reputation definition for non-profit service organizations. At the
same time reputation is distinguished from image, identity and brand.
Based on the literature and research results the dimensions, determinants and consequences of
reputation for non-profit service organizations are identified and transferred to universities.
Then, a structural equation reputation model is formed to show causality relationships
between reputation of universities and students’ choice for a certain university using a
combination of statistical data and qualitative assumptions. Subsequently hypotheses are
derived. These hypotheses are tested by conducting an exploratory study. A questionnaire is
developed and an online survey is conducted by asking national and international students.
Anticipated results or preliminary findings or results
The anticipated result of the survey is the better understanding of reputation, its development
and impact on non-profit service companies. Especially for universities it will be interesting
to see of what dimension reputation consists of from the student’s point of view when
choosing a certain university. However, the developed reputation model would not only
applicable to universities, its determinants and dimension can also be transferred to other nonprofit service companies to use reputation systematically in terms of creating sustainable
competitive advantages.
Conclusion, theoretical and managerial implication
The aim of the study is to define reputation consistent based on a comprehensive theoretical
foundation and to identify the dimensions as well as the determinants of reputation to develop
a reputation model with its antecedents and consequences for non-profit organizations in
general and universities in particular.
Developing a reputation model implies a lot of benefits for non-profit service companies in
general and universities in particular. With a reputation model universities reputation could be
built in a specific and systematic way. Subsequently, the strategic position of a university
could be strengthened and advantages in the national and international competition for
students could be created. Furthermore, universities have on the one hand the opportunity to
differentiate themselves because reputation is difficult to copy by competitors. On the other
hand universities can differentiate themselves by fielding marketing instruments based on a
reputation model. These advantages are also valid for non-profit organizations in general.
Reputation is an instrument that can help to achieve competitive advantages. With the help of
appropriate marketing instruments, reputation can be built and communicate systematically.
Main references
Argenti PA, Druckenmiller BD. 2004. Reputation and the corporate Brand. Corporate
Reputation Review 6 (4): 368-374.
Bouncken R. 2000. Vetrauen – Kundenbindung – Erfolg? Zum Aspekt des Vertrauens bei
Dienstleistungen, in Jahrbuch Dienstleistungsmanagement, Bruhn M, Strauss B. (ed.).
Gabler: Wiesbaden; 2-22.
Choudhury RA, Bennett R, Savani S. 2009). University marketing directors’ views on the
components of a university brand. International Review Public Nonprofit Marketing
Fombrun CJ. 2001. Corporate reputation – Its measurement and management. Thexis 18. (4):
23-26.
Fombrun CJ, Wiedmann KP. 2001. Unternehmensreputation und der „Reputation Quotient”
(RQ). PR-Magazin 32 (12): 45-52.
Fombrun C, Shanley M. 1990. What’s in a name? Reputation building and corporate strategy.
Academy of Management Journal 33 (2): 233-258.
Hall R. 1992. The strategic analysis of intangible resources. Strategic Management Journal
13 (2): 135-144.
Rindova VP, Williamson IO, Petkoca AP, Sever JM. 2005. Being good or being known: An
empirical examination of the dimensions, antecedents, and consequences of organizational
reputation. Academy of Management Journal 48 (6): 1033-1049.
Rode N. 2001. Wissensmarketing. Gabler: Wiesbaden.
Schwaiger M. 2004. Components and parameters of corporate reputation – An empirical
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Schwaiger M, Hupp O. 2003. Corporate Reputation Management – Herausforderung für die
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Schwalbach
J.
2001.
Unternehmensreputation
als
Erfolgsfaktor.
Available
at
http://www2.wiwi.hu-berlin.de/institute/im/publikdl/2001-4.pdf [accessed on 09.09.2011].
Veloutsou C, Lewis JW, Paton RA. 2004. University selection: Information requirements and
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R.
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–
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