Influence on the Brand’s image and reputation

The consumers express how the DriveNow initiative make BMW appear as an innovative company, that addresses the issues of sustainability within the industry. Referring to Keller’s categorization of important image associations, one can see how DriveNow influences BMWs image in terms of its product attributes, as well as its values and programs. DriveNow influences the consumers’ image associations of BMW with regards to the product attributes as the initiative creates image associations in the minds of the consumers related to the innovativeness of BMW. Even though the consumers do not view DriveNow as an explicit CSR initiative, it positively influences their image associations concerning BMWs values and programs. The consumers view DriveNow as an initiative that has a positive impact on the environment in terms of decreased CO2 emission and decreased car density.

Research (Keller and Aaker, 1998) has shown that an innovative corporate image is the only image association that influences perceptions of corporate expertise. When the consumers highlight how DriveNow positively influences their perception of BMW as an innovative brand, it indicates that DriveNow, in combining a sharing initiative with an integrated CSV approach, exhibits expertise and create corporate credibility among its stakeholders. The positive influence on BMWs image as an innovative company, thus also impacts its’ image as an expert within its industry.

Figure 7 - Important Corporate Image Associations (own illustration, inspired by Keller, 2000)

This illustrates how the four different types of important corporate image associations are strongly connected, and obtaining and sustaining legitimacy as a long term process that includes establishing the company in a favorable position, requires that consumers and stakeholders hold positive image associations within all four types regarding the company.

CSR and CSR communication have often been a discussion of greenwashing and how corporations should use this to enhance their image and create brand value and it is commonly known that communicating about CSR can pose negative attention (Morsing et al., 2008). Keller (2000) describe image associations that reflects the company’s values and programs as activities that “do not always relate directly to the products” (Keller, 2000;

121), but DriveNow exemplify how a company through a sharing initiative can link the consumers’ image associations concerning its values and programs directly to the product and to such an extent that the users do not explicitly recognizes it as a CSR initiative, because they first and foremost evaluate the product. It can be argued that a such connection is of great value to BMW, as it can overcome the issue of “commodification”

of CSR and the paradox of CSR communication, because the initiative 1) is strongly tied to the company’s core business and 2) communicates implicitly about CSR through the actions taken.

DriveNow provides consumers with enhanced functional value because of the service provided, whereas the associations about CSR are more implicit; they exist, but are not the main motivation for using DriveNow.

Consumers prioritize functional value in relation to CSR higher than emotional and social value. The actual benefits a customer gets from a product or service is considered the functional value of the product or service. Research have shown that functional value is the leading driver when consumers integrate CSR into their decision making as it is comparable with a greater consideration for purchases revolving around price and product quality attributes, whereas emotional and social values related to CSR was found to be less important. It can be argued that the level of activation is also higher as it directly involves consumers as with the case of DriveNow, where the users, by merely driving the cars, are actively involved (Green & Peloza, 2011).

Up until now, most researchers have agreed that CSR and price and product quality have had little to do with each other and Hoeffler and Keller (2002) argue that programs related to communicating corporate responsibility “would not be expected to have much impact on more functional, performance-related considerations” (Hoeffler & Keller, 2002; 79), but as the consumers recognize the CSR value of DriveNow, it can be argued that a such initiatives can provide consumers with connections between CSR and price and product quality as the sharing economy by nature influences the price and product quality. This is different from many other CSR initiatives that is not as strongly linked to company core activities and where

into the core of the service, companies may overcome the issue of bad publicity and green washing. By exhibiting expertise BMW might expand its license to operate a way that in the long run might turn BMW into an opinion leader, from whom stakeholders seek advice, when they are to develop e.g. regulations concerning private mobility and a green transitioning of automobiles.

BMW has recognized how the norms and values within society are changing and how an increased interest in the environment is influencing what consumers and other stakeholders expect from companies. DriveNow can be seen as an attempt to adapt to these changing norms and values within society in order to retain cognitive legitimacy, while driving a change that can give them a competitive advantage in the future. Even though the communication of CSR is considered to be a key driver of reputation, especially if communicated by a third party (Heding et al., 2009; 59) a single initiative like DriveNow, cannot stand alone, if it is to make an impact on BMWs reputation, as reputation is the result of a long term process. It can act as a part of a longer process towards establishing BMW as a company with a positive reputation among its consumers and stakeholders, and provide BMW with “license to operate” and perhaps a license to talk, if BMW in the long run employs the principles of CSV to a such degree that they become considered to be experts within sustainable personal mobility.