Corporate Communications: An International JournalEthical Positioning Index (EPI): an innovative tool for differential brand positioningMahim Sagar Rishabh Khandelwal Amit Mittal Deepali Singh

Article information:To cite this document:Mahim Sagar Rishabh Khandelwal Amit Mittal Deepali Singh, (2011),"Ethical Positioning Index (EPI): an innovative tool fordifferential brand positioning", Corporate Communications: An International Journal, Vol. 16 Iss 2 pp. 124 - 138Permanent link to this document:http://dx.doi.org/10.1108/13563281111141651

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Users who downloaded this article also downloaded:Ying Fan, (2005),"Ethical branding and corporate reputation", Corporate Communications: An International Journal, Vol. 10 Iss 4pp. 341-350Dr Christos Sarmaniotis and Dr Eugenia Wickens, Jaywant Singh, Stavros P. Kalafatis, Lesley Ledden, (2014),"Consumerperceptions of cobrands: the role of brand positioning strategies", Marketing Intelligence & Planning, Vol. 32 Iss 2 pp.145-159 http://dx.doi.org/10.1108/MIP-03-2013-0055Christoph Fuchs, Adamantios Diamantopoulos, (2010),"Evaluating the effectiveness of brand#positioning strategies from aconsumer perspective", European Journal of Marketing, Vol. 44 Iss 11/12 pp. 1763-1786

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Ethical Positioning Index (EPI):an innovative tool for differential

brand positioningMahim Sagar

Department of Management Studies, IIT Delhi, Delhi, India

Rishabh KhandelwalIndian Institute of Technology Delhi, Delhi, India

Amit MittalB. Tech Indian Institute of Technology Delhi, Delhi, India, and

Deepali SinghIndian Institute of Information Technology and Management, Gwalior, India

Abstract

Purpose – The purpose of this paper is to introduce the Ethical Positioning Index (EPI), aninnovative ranking scale based on the ethical issues in brand positioning. This paper is based on thecore idea that ethics can be used as a product differentiator and can create a strategic advantage.

Design/methodology/approach – Five basic elements of brand positioning, brand identity, brandimage, brand personality, brand awareness, and brand communication, are blended with the threebasic elements of ethics; beliefs, values, and symbols and customs. The EPI emerges from theestablished ethical brand positioning framework and the analysis from the conducted survey whichwas composed of brand positioning and ethics questions.

Findings – Consumer driven weights have been obtained and a mathematical model has beenproposed to evaluate the total score and finally the ranking of the brands.

Research limitations/implications – The EPI parameters’ weight will vary owing to thenon-existence of universal ethics and hence subsequently every cohort will have its own weight.

Practical implications – EPI will be an important tool from the managerial point of view as it servesas a step-by-step guide to compare the position of the brand in an integrated and ethical manner.

Social implications – The EPI will bring a change in the ideology of the brands, making them employmore ethical perspectives in their branding, which will be highly welcomed by consumers and society.

Originality/value – The role of ethics in brand positioning has been studied and blended to generatea novel-ranking scale (EPI).

Keywords Product positioning, Ethics, Brand identity, Consumer behaviour

Paper type Research paper

IntroductionMarketing has been at the centre of criticism for unethical activities of business (Murphyand Laczniak, 1981; Tsalikis and Fritzsche, 1989; Sagar et al., 2006). As marketinginvolves more consumer-centric interaction than the other functional areas, it remains inthe centre for unethical practices (Ferrell and Gresham, 1985; Swan and Nolan, 1985;Swan et al., 1985). Marketing managers have become ethically more sensitive and theyare largely convinced that trust is a fundamental expectation of the customers(Sagar et al., 2006). Srnka (1997) clearly states that development of the trust is the central

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Received May 2010Revised November 2010Accepted March 2011

Corporate Communications: AnInternational JournalVol. 16 No. 2, 2011pp. 124-138q Emerald Group Publishing Limited1356-3289DOI 10.1108/13563281111141651

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activity of the marketing managers. This is in resonance with the marketing theory inwhich all exchanges are based on trust (Kotler, 2003). Lee (1981) argues that conflicts arelikely to result if buyer and seller have an ethical deficit. Conflicts in the exchangeprocess create dissonance in marketing (Morgan and Hunt, 1994).

Ethical compatibility is thus a central prerequisite for trust (Ahmed et al., 2003;Ferrell et al., 1989; Schlegelmilch, 1998; Schlegelmilch and Goetze, 1999). The behaviourof brand marketers is affected by general societal trends which include shifts in values,culture, or ideology. Brand identity and communication to a large part of society has longbeen regarded as an important activity (Gardner and Levy, 1955; Grubb and Grathwohl,1967; Moran, 1973; Reynolds and Gutman, 1984; White, 1959). A well-communicatedidentity should help establish a brand’s position, insulate the brand from competition(Oxenfeldt and Swann, 1964), and therefore enhance the brand’s market performance(Shocker and Srinivasan, 1979; Wind, 1973; Sagar et al., 2006), whereas a negative brandidentity can adversely affect its brand equity (Aaker, 1991).

Marketing ethics has certain acceptable and non-acceptable norms which depend onthe social, cultural, and demographical conditions in which events take place.It generally includes marketing and marketing norms related to marketing mix such asproducts claims and safety, deceptive pricing, advertising, and discrimination indistribution (Smith and Quelch, 1993; Brinkmann, 2002). Smith and Quelch (1993),Brenkert (2008), Davidson (2002), Murphy and Laczniak (2006) and Murphy et al. (2004)have significantly contributed in this area.

Lot of research has been done in areas such as improving our understanding ofmarketers’ values, marketers’ ethical decision-making processes, andcross-cultural-related issues (Nill and Schibrowsky, 2007). Considering the undeniableimportance of business ethics (Nill and Shultz, 1997) and its frequent mention inmarketing journals (Hunt et al., 1984; Robin and Reidenbach, 1987; Dunfee et al., 1999),the lack of studies focusing on the interdependence of ethical decision making and brandpositioning presents both challenges and opportunities to marketing researchers. Ethicshas been studied from the various aspects of business activities but it remains untouchedfrom the branding perspective (Fan, 2005). Societal issues and basic normative questionsattracted substantially less interest from researchers (Nill and Schibrowsky, 2007).In fact, the role of ethics in brand positioning is a completely ignored area in theliterature. This has resulted in the realization of the research gap that no frame ofreference is available for the ethical issues in brand positioning and no study is availablewhich has mapped brands on various elements of brand positioning in reference to theethical aspects. Consequently, our research focuses on the development of an EthicalPositioning Index (EPI) and judging companies based on ethical behaviour as perceivedby the consumers. We strongly believe that bringing ethics into the brand positioningwill play a crucial step towards building a unique and differentiated brand.

Objectives of the researchThe primary problem of this research is to develop a EPI. To achieve this, the problemhas been divided into achieving the following two objectives:

RO1. To determine and blend the factors of brand positioning and ethics so as toobtain the elements of ethical brand positioning.

RO2. To obtain consumer-driven weights and develop a model of EPI.

EPI for brandpositioning

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Research methodology 1So as to support the research objective 1 (RO1), the following exploratory research hasbeen conducted to find the elements of brand positioning and ethics, followed by theirblending.

Construct of brand positioningRies and Trout (1982) expressed that the positioning “starts with the product [. . .] a pieceof merchandise, a service, a company, an institution, or even a person [. . .]” andpositioning is not what is done to the product/service, but rather what is done to the mindof the prospect. The essence of positioning is to place product in the mind of theconsumer. Kotler (1997) defines positioning as: “the process of designing the company’sproduct/services and image based on consumers’ perceptions relative to that ofcompetitors”. Consumer perceptions are central to this concept.

Aaker (1992) defines a brand’s positioning as a part of its identity and valueproposition, which is actively communicated to target markets. A strong brand is alwaysbuilt upon consumer associations with the brand. To Kapferer (1992), positioning is atwo-step process, in which the first step is to clarify which product category the brandshould be compared to and associated with. In the second step, the brand’sdifferentiating characteristics are identified and communicated.

Elements of brand positioningSagar et al. (2006) identified five fundamental elements of brand positioning, namely brandawareness, brand identity, brand image, brand personality, and brand communication.Of these, five fundamental tools of brand positioning, the brand identity, brand personality,and brand communication are three elements which are controlled by the company.

The brand identity (Kapferer, 1992; Aaker, 1992, 1996a, b) marks the first step in thebrand positioning framework; it is the central concept to building a strong brand andprovides direction, purpose, and meaning for the brand and is consequently vital to thebrand’s strategic vision. Brand personality (Aaker, 1997) is then the personification ofbrand identity. The personification of identity requires the blending of humanpsychological attributes into brand-related attributes. The outcome is in the form of asymbol or metaphor or a sound which “connects and develops” a relationship withcustomers. Personification of identity requires identification of persons, animals, visualimages, and colors which are in resonance with the company’s identity.

Brand communication (Keller, 1993) is a process by which a company projects notonly the product features and attributes but also the emotional aspect of the product orservices to the consumer which includes all means of media and communication(advertising, sponsorships, campaigns, direct marketing, trade fairs, word of mouthcampaigns, radio advertisements, print media, etc.) through which a companycommunicates to the customers. Effectiveness of brand communication is based onidentification of the right communication mix, media planning, and the right impact onthe customer. It starts from product packaging and ends at the point of purchase at theretail counter. Brand personality and brand identity are communicated to the customerthrough brand communication.

Effective use of the input variables leads to the two process output variables: brandawareness and brand image. Rossiter and Percy (1987) describe brand awareness asthe measure of the effectiveness of brand communication. There are three factors

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determining overall awareness of a brand: brand recognition, top of the mindawareness, and brand recall. Brand recognition is when we can recognize the brand bytheir logos, jingles, symbols, slogans, mascots, ambassadors, taglines, etc. Brand recall,which includes unaided brand recall and aided recall, is the ability to list the brands ina particular product category. Top of the mind awareness is the higher position of thebrand in the consumer’s mind and has the maximum chances of being bought if theconsumers decide to purchase a product in that category.

Brand image is also a process output. It is defined as “the set of beliefs held about aparticular brand” (Kotler, 1988) or “a set of associations, usually organized in somemeaningful way” (Aaker, 1992). The “brand” is often regarded as separate from thefunctional product, with the brand being grafted on by advertising, thereby completing thetransformation process from the functional product to the immortal brand. The brandimage is comprised of the consumer’s inner image of the brand and reflects brand’sexpectations, beliefs, and attitudes. Marketers strive to create a brand image resemblingvery close to the self-image of the target consumers (Aaker and Biehl, 1993; Kapferer, 1992).

The process variables further result in the output of the branding process, i.e. brandpositioning. Brand positioning (Ries and Trout, 1982) is the consumer’s perception andimage about the brand and the company cannot control it. The brand identity, whencommunicated through the brand personality via brand communication, constructsbrand awareness and brand image in the consumer’s mind and hence helps thecustomer in making the choices at the point of purchase. Hence, the frameworkinvolving the elements of brand positioning has been conceptualized diagrammaticallyas shown in Figure 1.

Construct of ethicsEthics is emerging as an essential ingredient of marketing and branding. Ethics can beclassified as normative and descriptive. Normative is basically what ought to be done

Figure 1.Brand positioning

elements

Brand identity(Kapferer 1992Aaker 1992)Chematony andMcDonald 1992)

BrandpersonalityLehmann 1993Plummer,1985Jennifer 1994

BrandawarenessRossiter andPercy (1987)Woodside andWilson (1985)

Brand imageSolomon, 1983Peter and Olsen,1994Kapferer 1992

Brand positioningRies and Trout1960

Output

Brandcommunication(Keller, 1993)

Inputvariable

Process variables

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and is generally represent the moralistic perspective. Various thinkers have contributedin this are like Kant and Hegel, where as descriptive is what people think is right aspeople voice makes it acceptable or unacceptable. Contractualist like Hobbes, Locke,Rousseau, and Neo Rawls have detailed out the descriptive ethics. Marketers havegenerally relied upon the hedonistic calculus which enunciated the maximization ofthe pleasure and minimizing the pain and referred both Mill and John Stuart, but thebalance is somewhat in between. Exploratory research in ethical issues in marketing hasresulted in synthesis and tabulation of cultural and ethical conventions. Beliefs(Inglehart et al., 1998) are taken as starting point of descriptive ethics where as values(Rokeach, 1973) evolves and customs (Gelder, 2003) dictates acceptable behaviour in thesociety. Research on marketing ethics has so far been confined to general marketingissues, such as product safety, pricing, advertising, and marketing research (Laczniak,1993; Smith, 1995; Murphy, 1999); little attention has been paid to branding (Fan, 2005).

Definition of ethical positioningEthics does not mean any moral discourses but is used as a word that describes complexinterdependence of culture, religion society, and business, which results in variousundisclosed but yet very clear set of pattern and behaviours of the society that lead to theacceptance or rejection of a concept. A brand which identifies these acceptable referencepoints and positions the product on those lines is able to outclass the competitors andbecame a winner in the market. An ethical brand positioning is sensitive to variousconcerns, such as consumer satisfaction, environment protection or even the pricesensitivity. Ethically incorrect brands are viewed as marketed in a manner ignorant tothese issues of race, consumer satisfaction, gender, and the environment. Now, all theelements of brand positioning can be then blended with the three basic ethical elements:beliefs, values, and symbols and customs to generate the novel ethical brand positioning.

Blended elements of ethical brand positioningIf the marketers can adjust the elements of branding with ethical and cultural issues,i.e. make a link between brand identity, brand personality, and brand communicationwith the beliefs, values, and customs of the local people and if the elements of brandingare similar to ethical and cultural issues, the result will be a high brand positioning.Exploratory research resulted in blending of the cultural and ethical conventions withthe brand positioning elements which have been shown in Figure 2.

Research methodology 2This step of achieving the research objective 2 (RO2) includes the derivation of EPIfrom the determined factors of the blended ethical brand positioning along with theobtained consumer-driven weights with the help of questionnaire design and theconducted survey.

EPI derivationThere are several steps involved in deriving and calculating the EPI. First, a set ofblended variables of “brand positioning” and “ethics” is identified, consisting offive elements of brand positioning sub-divided into 15 and ten sub-elements of ethics.Then, consumer ratings are obtained for all the elements on a 1-5 scale, which in totalmakes 25 values ranging from 1 to 5. The sub-element scores are then averaged over

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the whole sample to obtain an average score for each sub-element. Thus, a set of25 average score is obtained.

Second, the sub-elements of brand positioning are taken and combined to obtainfive sub-elements of brand positioning. The calculation of scores for the five brandpositioning variables is done which is by evaluating the arithmetic mean of the varioussub-elements that a brand positioning variable includes. Thus, a set of five averagescores, labeled as SB1-SB5, is obtained which reflect the consumer preference for thevarious attributes. Similarly, a score is obtained for the ten sub-elements of ethics andare labeled as SE1-SE10. A high score reflects greater liking while a low score indicatesdislike and insignificance.

Third, the weights are obtained for the various elements. To obtain the weight foreach of the five brand positioning variables, the average score of the variable wasdivided by the sum of the average scores of all the five brand positioning variables. Theweights so obtained were labeled WB1-WB5. Similarly, 15 weights, labeled WE1-WE10,were obtained for all the ten ethic variables from the analysis of the conducted survey.

Finally, the EPI score is calculated and arranged in descending order to obtain theEPI (Figure 3).

Sample selectionIn the study for the generation of weights for EPI, non-probability sampling was used.A judgment sample (Deming, 1960) is selected on the basis of the judgment of theresearcher. Only those consumers are involved who are very well aware ofthe connotations of brands and have experience of dealing with brands and have

Figure 2.Blending of ethical

elements with thoseof brand positioning

attributes

BrandIdentity

BrandPersonality

BrandCommunication

BrandAwareness

Brand Image

ProductPhysiqueDesignCompany’sClaims aboutthe VariousPhysical;Attributes ofthe productCorporateBrandidentityCountry oforigin (brandheritage)Pricing

Personification ofBrand(intangibleattributes ofBrand)Projection ofBrandIdentityWhat will happenif Brand Becomes apersonBrand Ambassador

Input variable Process variables

Content and mediaPlanExecution of BrandIdentity andpersonality,Development ofBrand AwarenessRetailCommunicationPunch Line taglineand JinglesPromotion Matrix

Top Of The MindBrandRecognitionBrand Recall(Unaided andAided Recall)

AssociatedBeliefs, Feelingand ThoughtsWith The BrandAssociatedSocialMetaphors andSymbolsAssociatedImagery WithThe Brand

Source: Sagar et al. (2006)

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purchasing power. Thus, a sample size of 52 was chosen for the research with the genderratio as 5:8. In total, 20 females were chosen and rests (32) were male. Four age groupswere chosen:

(1) 14-23;

(2) 24-33;

(3) 34-43; and

(4) 44 above.

Numbers of respondents in the above-mentioned groups were 16, 14, 10 and 12,respectively. To have further diversity in the opinions, the sample was judgmentallysampled in the following categories with the following respondents:

. house wives – 15;

. post-graduate students – 11;

. government employees – 8;

Figure 3.Derivative frameworkof EPI

Identification of factors of brandpositioning

Identification of factors ofethics

Blending

15 Brand positioning factors 10 Ethical factors

Questionnaire development

Survey

Scores

Calculation of weights(consumer driven weights)

Development of EPI(mathematical model)

• Brand identity(Aaker 1992)

• Brand personality(Jennifer 1994)

• Brand communication(Keller 1993)

• Brand awareness(Rossiter and percy 1987)

•

• Beliefs(Ingelhart 1998)

• Values(Rockeach 1973)

• Customs and symbols(Gelder 2003)Brand image

(Kapferer1992)

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. corporate employees – 11; and

. senior citizen – 7.

Questionnaire designThe questionnaire was split into two parts. In part I, the questionnaire was formed bytaking various brand-positioning factors (15 in total) and combining them with ethics,taken as a single word. This questionnaire was aimed at judging the relative importanceof various brand-positioning variables from the ethical perspective. In questionnairepart II, various “ethic” variables were combined with brand taken as a single word. Thisquestionnaire (ten questions) identified the preference and importance of ethicalvariables in consumer purchase decisions.

In part I, only the direct/input variables namely brand identity, brand communication,and brand personality were taken forward for arriving at the attributes. To express theterminologies in the simplest terms, the above three input variables were further broadlyclassified into the following five categories namely, brand design and manufacturing,brand packaging, brand imagery, brand sales and promotion, and brand advertisements.

Similarly, ethic’s attributes were made easy and the formulated questions includedidentifying consumer’s economic beliefs, deep-rooted values about charity, role offamilies in purchase decisions and finally the endeavor towards the biologicalenvironment. A question was added to judge consumer preferences for brands that areassociated with festivals, customs, and rituals besides asking preference for brandsthat were actively involved with corporate social responsibility. Finally, a list often ethical attributes was formed which was used to find out the individual weight.

Consumer-driven weights derivationAll over the world, various rankings are being employed, based on some arbitraryweights, to compare the brands and companies which help the consumers ascertainbrands that hold leadership position in the area of interest. For example, Fortunemagazine uses “company revenue” to determine the list of top 500 global corporations;Interbrand uses corporation’s discounted value to derive the list of 100 most valuablebrands. Although the above approaches are very robust as illustrated by thepopularity of these rankings, it is not always possible to come up with one factor thatdetermines the rank or use the concept of discounted value.

The importance of determination of appropriate weights cannot be emphasizedenough. The aim of the research is to arrive at a consumer-determined EPI that reflectsthe consumers’ choice of most ethically positioned brands. Hence, it was important toarrive at a set of weights that capture consumer behaviour and assign more importanceto variables that a consumer values more in his/her purchase decision.

Data analysisA sample size of 52 and 25 questions, led to a total 1,300 data points which wereactually the consumer preferences, analyzed using MS Excel.

The identified 15 sub-elements of brand positioning, as used in the questionnaire,are as follows along with their calculated average scores on the Likert scale (Table I).

These various brand-positioning sub-elements on condensing gives the followingfive attributes along with their average scores as mentioned in Table II. The pie chartdistribution of weights has been shown in Figure 4.

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Similarly, attributes of ethics, the indicators in the designed questionnaire to measureethics, are as follows in Table III along with their calculated average scores and weights.

Weights of the attribute of ethics are also represented in the bar chart representationas shown in Figure 5.

Research findings and discussionFrom the obtained data, we can make following prepositions:

P1. Product design, function, and contents as per the ethical beliefs seem to havethe most impact on the consumer’s brand preference and hence a strong factorin developing differentiating brand positioning. Companies targeting andimbibing these ethical attributes will have an edge owing to their uniquespecifications along with their alignment to the region specific ethical andcultural values in this newly competitive environment.

P2. Ethical packaging, quality standards, brand heritage, right advertisement,and the sale/discount promotional schemes have acquired intermediaryconsideration from the customers. With the growth of economy andadvancement of proper communication channel, promotional schemes willbe delivered to the mass communication which will further enhance the brandreach and ultimately the brand positioning.

S. no. Brand positioning sub-element Average score

1 Product design, i.e. shape, size, and features 4.212 Images and colors on the packaging and packaging material 3.213 Product function 4.424 “Product contents” and “date of manufacturing” on the packaging 4.215 Quality standards such as ISI mark, Woolmark, Cotton mark, and Child

Labor mark 3.386 Jingles/sounds of the brand 2.717 Place of manufacturing, e.g. Chinese, Japanese, and Italian origins 2.768 Brand heritage 3.429 Right advertisement by brands 3.17

10 Language of advertisement 2.6811 Depiction of actor and actress 1.8012 Brand ambassadors in advertisement 1.8413 Promotional schemes such as free gifts/vouchers/coupons/membership

points 2.6114 Promotional schemes such as sale/discount offers 3.1115 Promotional schemes such as “buy one get one free” 2.88

Table I.Various brandpositioningsub-elements/indicatorswith the obtained averagescores

S. no. Brand positioning attributes Average score (SBi) Weights (WBi)

1 Product design and manufacturing 4.01 0.252 Product packaging 3.71 0.233 Product imagery 2.97 0.194 Product advertisements 2.38 0.155 Product sales and promotion 2.87 0.18

Table II.Final brand positioningattributes with theobtained average scoresand weights

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P3. Brand jingles/sound, manufacturing place/origin, advertisement language,and promotional schemes does not seem to have much significance andcontribution to the brand positioning. Although we may suspect ethicaljingles/sound touching our heart and developing unique branding, but theoriginality cannot be validated which is making this attribute less important.

P4. Product advertisement like depiction of actor/actress and brand ambassadorsis not playing a major role in branding from the ethical perspective. This clearlyillustrates that advertisement is not considered ethical, although most of themarketing involves heavy advertisement. So, the marketers can take a lessonso as to change the existing focus of marketing towards other highly relevantattributes.

Figure 4.Obtained weights

for the brand positioningattributes in context

of the ethical perspective

Weights

0.25

0.230.19

0.15

0.18Product design and manufacturing

Product packaging

Product imagery

Product advertisements

Product sales and promotion

S.no Brand positioning attributes

Product design and manufacturing

Product packaging

Product imagery

Product advertisements

Product sales and promotion

Weights Average score

1 0.25 4.01

2 0.23 3.71

3 0.19 2.97

4 0.15 2.38

5 0.18 2.87

S. no. Ethics attributes Average score (SEi) Weights (WEi)

1 Nature and environment 3.50 0.112 Sex-related images 2.96 0.103 Jealousy, fear, and violence 3.27 0.114 Family values 3.38 0.115 Contribution to social causes 3.21 0.106 Customs and festivals 2.83 0.097 Leadership claims 2.46 0.088 Indianness and ethnicity 3.35 0.119 Depiction of animals 2.94 0.10

10 Connotations of luxury 3.00 0.10

Table III.Ethics attributes with the

obtained average scoresand weights

EPI for brandpositioning

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P5. On ethical grounds, all ten factors have similar considerations, but leadershipclaims are the weakest amongst all. This implies that themarketing/advertisement based on the leadership claims do not have muchimpact in the branding and positioning.

P6. Sex-related images have obtained a very high weight which comes as a surpriseand it may be due to the changing cultural values. Although, it is a clear conflictwith the existing cultural values, but this might be reflecting the innate desireof the customers. In fact, many advertisements depict these images irrespectiveof any relevance to their brand. Sometimes this kind of advertisement leads tothe customer segmentation, with some considering the brand ethical whereasthe others unethical.

P7. Family values, social cause contribution, and nature environmentconsideration have as usual reflected the cultural values by obtaining veryhigh weights. It is surprising to see family values acquiring high weights eventhough we are moving towards the nuclear family environment. This reflectsthe culture, values, and beliefs we have been developed in. Giving high weightsto environment is an emerging and upcoming trend which would help in thesustainability of the brand and those brands which start building and aligningthemselves on this line will emerge as the winner.

Mathematical model for rankingEPI score can be evaluated with the help of this mathematical model:

EPISCORE ¼ ðW*B1SB1 þ · · ·W*

B5SB5Þ þ ðW*E1SE1 þ · · · þ W*

E10SE10Þ

where:

WB1-WB5 are the calculated weights, as shown in Table II, for the mentionedbrand-positioning variables.

SB1-SB5 are the brand-positioning scores (unique for a particular brand)corresponding to the attributes mentioned in Table II.

Figure 5.Bar chart representationof the obtained weightsfor the ethics attributesin context of the brandpositioning

Weights

0.11

0.10

0.11

0.11

0.100.09

0.08

0.11

0.10

0.10Nature and environment

Sex related images

Jealousy, fear and violence

Family values

Contribution to social causes

Customs and festivals

Leadership claims

Indian-ness and ethnicity

Depiction of animals

Connotations of luxury

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WE1-WE10 are the calculated weights, as shown in Table III, for the mentionedethical variables.

SE1-SE10 are the ethic scores (unique for a particular brand) corresponding to theattributes mentioned in Table III.

So, the total score can be evaluated for a brand with the help of the above-calculatedweights and the scores corresponding to each factor of brand positioning and ethicswhich can be taken from using the same survey, but now especially for a particular brand,so as to score the factors pertaining to a particular brand. Once, total scores are evaluatedfor the all the brands in a particular industry, ranking can be done amongst them.The best rank will be corresponding to the highest total score amongst all the brands.

LimitationsThe quest for universal ethics’ parameters is very challenging. It is required to identifyuniversal elements of ethics. Marketers can very well identify cohorts of regionembedded in near similar cultural ethical norms. In this scenario, the EPI parametersweight will vary and subsequently every cohort will have its own weights.

ConclusionEthical positioning is an outcome of conscious and deliberate blending of brand andethics. Ethics can become a product differentiator and a cutting edge tool. Ethical brandpositioning when measured through consumer-driven weights creates EPI. EPI is acomparative ranking index on which brands are ranked and it can become a robustindex for differential positioning. In this era of enlightened consumers and consumermovement, EPI can be responsive tool for their concerns and can become a strategic toolon which companies can position themselves. Marketing, in particular branding is basedon trust. Branding is an outward face of that trust and ethics is the foundation on whichbrands have created. Brand equity is a quantifiable outcome of continuous faith of thecustomer in the brand. The attempt to create EPI was based on the above premise.

The significance of EPI is strategic as well as tactical. As brands are strategic toolsand positioning is a strategic differentiator. In this era, when product attributes andtechnologies do not have more than a marginal difference, positioning is based onhuman emotions. Emotionality is a projection of habitual way of thinking by thecustomer. Thinking is culture religion and belief specific. Brands which incline theirbranding/marketing strategy with these emotions are ethically positioned. EPI is a toolfor both companies as well as customers. Companies can utilize EPI as a tool fordifferentiation. At a later stage, EPI can be used as an affiliation as a brand identity.For consumers, it is a parameter to make an opinion about the various brands.

EPI as such is an innovative tool which lays down the importance of variousindicators/elements of brand positioning and ethics as being perceived by the customers.It has its relevance in the field of academics by laying down the foundation for capturingthe consumer preference and researching over the newer marketing/branding strategies.To make it more relevant, this consumer behaviour can be studied across variousgeographies which will be highly relevant for the multinational companies havingpresence over the large parts of the globe. Brand positioning and ethics’ indicators can befiltered out in specific to the culture and same can be useful in developing the properstrategy for the business. For business/companies, although an exhaustive list

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of indicators has been provided, still they can research/explore the weights of theseindicators as per their market and the geography.

Just as the Human Development Index is being used to judge the development ofnations, similarly EPI can be used to judge the brands from the ethical perspective ofcustomers. This ranking can be used by the customers in establishing trust to the brand.So, from the brands perspectives, it will be favorable for them to align themselves, theirbranding in lieu of the culture of the society. Keeping this in mind, brands can followsuitable marketing strategy so as to incline themselves with the favorable indicators, asbeing mentioned in the results and conclusion, and disorient themselves from theunfavorable/unimportant indicators. Since EPI captures the consumer preference, thegiven indicators and obtained conclusion can be used by the brands to formulate theirmarketing strategy so as to reap the maximum benefits by satisfying the consumerneeds. So, in this way ethics in branding can become a product differentiator and acutting edge strategic tool. So, this EPI as a tool has its relevance to both the consumers,whose opinions/preferences are being expressed about brands, and the brands, whichalways try to match up with the consumer preferences and requirements and hence canutilize it as a tool for differentiation. Hence, this EPI creates the balance between the twoand has the ability to become the foundation for consumer movement.

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Further reading

Freestone, O.M. and McGoldrick, P.J. (2007), “Ethical positioning and political marketing:the ethical awareness and concerns of UK voters”, Journal of Marketing Management,Vol. 23 Nos 7/8, pp. 651-73.

Hall, J. (1999), “Corporate ethics and the new commercial paradigm”, Journal of BrandManagement, Vol. 7 No. 3, pp. 38-47.

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Corresponding authorMahim Sagar can be contacted at: mahimsagar@gmail.com

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