Reputation Management Aspects National Culture Individual Culture
Cultural Dynamics A relatively stable construct that reflects a shared knowledge structure within a nation-state and that attenuates variability in values, behavioral norms, and patterns of behaviors. A relatively fluid construct that reflects individual-based web of significance or meaning that goes beyond the constraints of group membership.

Subject to continued influence by the global culture which reshapes individuals’ ‘personal’ cultures.
Reputational Strategy Stress on managing reputation across vertical market segments in global markets: customers are assumed to be similar within a country. Stress on managing reputation across horizontal market segments in global markets: customers within the same segment (e.g., socio-economic status) are assumed to be similar across a group of countries, but different from other segments within the same country.
Customization vs. Standardization of Reputational Capital Potential for customization of reputational capital for each country.

Firms need to balance national culture with individual culture, by finding opportunities for standardization.
Potential for standardization of reputational capital for each cross-country horizontal segment.

Firms need to balance individual culture with national culture, by finding opportunities for customization.
Recommended Reputation-Building Approaches
Generalized Favorability: Reputation as Organizational Character Emphasis on generalized favorability (organizational character) is recommended for relatively individualistic countries. Across horizontal segments, generalized favorability is more likely to result in:
  • Customer-company identification for interdependent self-construal customers
  • Trust, customer-company identification and word-of-mouth intentions for independent self-construal customers
Reputation for Product and Service Efficacy (R-PSE) Impact of R-PSE on customer outcomes is homogenously positive across countries, and the strategies do not need to vary. Across horizontal segments, the impact of R-PSE is stronger for independent self-construal customers and should be emphasized.
Reputation for Market Prominence (R-MP) Impact of R-MP on customer outcomes is homogenously positive across countries, and the strategies do not need to vary. Across horizontal segments, the impact of R-MP is stronger for interdependent self-construal customers and should be emphasized.
Reputation for Societal Ethicality (R-SE) Impact of R-SE on customer outcomes is homogenously positive across countries, and the strategies do not need to vary. Across horizontal segments, the impact of R-SE is stronger for interdependent self-construal customers and should be emphasized.