Contract Space and branding: Part II

You might be interested to review part I before reading this part.

When it comes to branding, whenever a customer is picking your product from the shelf, s/he is getting into a psychological contract with that brand. S/he has performance expectations that the brand is promising to fulfill or actually fulfills. If it meets his/her expectations (or exceeds), then promise is fulfilled (or fulfilled in even better ways). Contract space is honored. Here is the problem: unlike written contracts, where both the parties outline their duties, responsibilities, and expectations, psychological contracts are based on estimates, measurements, and to some extent – “guess” by both the parties. Since customers’ expectations change over time, so does the nature of psychological contract, thus affecting the dimension of contract space. The marketer has to keep a constant eye on shifts in customers’ minds to figure out what should be added or deleted from that contract space. The smarter a marketer is, the sooner s/he figures what changes are necessary in that unwritten space. Watching the invisible is the key to branding today!

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About 1mmarketing

Working as Associate Professor, School of Business, United International University, Bangladesh; a North-American graduate, with doctoral studies from UUM, Malaysia; cherishing a wide-view of the world, with multiple interests in culture, people, traveling, and specifically marketing science. I have a colorful and diversified background with a blend of corporate experience, research, consulting, training, public speaking and teaching. I love to write about marketing issues that affect our lives, and talk about its direction that would promote the greatest human welfare.
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