Turning inside out: perceived internal branding in customer-firm relationship building

Abstract

PurposeThis paper aims to examine the strategic importance of perceived internal branding in building symbolic and behavioral relationships with a corporate in the service sector. Research on internal branding has been confined only to how internal staff understand brand values. Despite the importance of alignment between internal and external communication, little emphasis has been placed on consumers’ perception of how internal staff understand brand values. Even before experiencing service, consumers can shape their overall evaluation on service based on external communication about internal training and its congruence with brand values.Design/methodology/approachThe theoretical model of cognitive, affective and behavioral responses is empirically tested using the structural equation modeling approach with a sample of 258 adults. Multiple group comparison is also conducted to identify the difference between user and non-user groups.FindingsThe findings indicate that perception of employees’ training and its congruence with external communication enables consumers to shape their cognitive and affective response toward a corporate, which is a source of future purchase intention. How consumers think about internal branding forms their attitudes and images of business and social conduct and enhances their behavioral intention.Practical implicationsThe results imply that internal branding should not be limited to organizational communications but should be stretched into a critical topic for external communications. In particular, notable differences between user and non-user groups determined in the model provide further implications for corporate communication.Originality/valueThis paper stretches the concept of internal branding into the area of public interest. Theoretically, it tests a dual process model that suggests cognitive and affective antecedents in predicting consumer intention. Practically, it provides new ground for viewing internal affairs as part of a continuum of external communication and not a separate element of a corporation. The results are conducive to robust customer-firm relationship building in the service sector.