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!


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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