The impact of brand portfolios on organizational attractiveness

Abstract

In this paper, we observe the effectiveness and boundary conditions of portfolio advertising, i.e. an advertisement in which a corporate brand is presented with its product brand portfolio or a part of it, in the context of recruitment. By drawing on signaling theory, we argue that using a brand portfolio is generally more effective for creating organizational attractiveness than merely advertising a single corporate brand. Using an experimental study (n = 173 graduate students) we find a) that portfolio advertising can be superior to mere corporate brand usage b) brand portfolio strength and brand portfolio fit are important conditions for this effect and c) the effect of brand portfolio strength is mediated by perceived person-organization fit and opportunities for professional development. The findings provide important insights for recruitment research and for organizations, which hold brand portfolios consisting of strong product brands, looking for new and talented staff.