The Impact of Brand Reputation on Industries in

Saudi Arabia on Mada carpet

Wejdan Mohammed Alharthi*, Arwa Abdullah Alarfaj, and
Maram Mohammed Alqahtani
Master of Business Administration, School of Management, Mid-Ocean University
*
[email protected]

Walid Soliman Sadek and Al-Faisal Abdul Hamid

School of Management, Mid-Ocean University

Abstract
This research investigates the impact of brand reputation on the Mada Carpet
industry in Saudi Arabia. The study aims to examine the relationship between brand
reputation and customer trust, as well as the subsequent effects on customer
outcomes. A theoretical model is proposed, wherein brand reputation serves as the
independent variable, customer trust acts as the mediating variable, and customer
outcomes represent the dependent variable. The research employs a quantitative and
qualitative research design, utilizing survey questionnaires to collect data from a
sample of customers and employees in the Mada Carpet industry. The findings of
this study contribute to the understanding of the significance of brand reputation and
customer trust in the carpet industry, providing insights for practitioners to enhance
customer outcomes. Theoretical and practical implications, limitations, and
suggestions for future research are discussed based on the results obtained.
Keywords: Brand Reputation, Marketing, Carpet Industry, Saudi Arabia.

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Introduction
Brand reputation plays a crucial role in determining the success and long-term
viability of a business. This research aims to explore the multifaceted nature of brand
reputation and its influence on various stakeholders' beliefs, perceptions, and
opinions. According to Warren Buffett (2014), It takes 20 years to build a reputation
and five minutes to ruin it. If you think about that, you'll do things differently. This
quotation underscores the significance of proactive reputation management in
guiding business decisions and strategies.Brand reputation significantly influences
the success and sustainability of a business. Warren Buffett's notable quote serves as
a reminder of the time and effort required to build a positive reputation and the
potential consequences of tarnishing it. By actively managing and safeguarding their
brand reputation, businesses can cultivate customer loyalty, gain market share, attract
investors, and navigate crises effectively, ultimately positioning themselves for long-
term success.
Statement of the Problem
The problem of the study is to understand how brand reputation impacts the success
and sustainability of businesses in Saudi industries. Currently, there is limited
knowledge about how brand reputation influences customer trust, loyalty, pricing
power, market share, employee morale, investor confidence, crisis management, and
competitive advantage. The study aims to bridge this gap by exploring these
relationships and providing practical insights and recommendations for effectively
managing and safeguarding brand reputation in Saudi industries.
Purpose of the Study
The purpose of the study is to investigate the impact of brand reputation on the
success and sustainability of businesses in Saudi industries. The study aims to
understand how brand reputation influences various factors, including customer

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trust, loyalty, pricing power, market share, employee morale, investor confidence,
crisis management, and competitive advantage. By examining these relationships,
the study seeks to provide valuable insights and recommendations for businesses in
Saudi industries to effectively manage and leverage their brand reputation for long-
term success.
Objective of the Study
The objective of the study is to Assess the current state of brand reputation
management practices in Saudi industries and identify areas for improvement.
By conducting a thorough analysis of the existing brand reputation management
practices in Saudi industries, the study aims to identify strengths and weaknesses in
how businesses handle their reputation. This objective seeks to provide insights into
areas where businesses can enhance their strategies and tactics for managing and
protecting their brand reputation effectively. The study aims to offer
recommendations for improving brand reputation management practices in Saudi
industries to ensure
Research Questions
- What are the current brand reputation management practices employed by
businesses in Saudi industries, and how effective are these practices in enhancing
and protecting brand reputation?
- What are the key challenges faced by businesses in Saudi industries in managing
their brand reputation, and what are the areas that require improvement?
Hypotheses
There is no significant relationship between brand reputation and customer trust in
the Mada Carpet industry in Saudi Arabia.

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There is a significant positive relationship between brand reputation and customer
trust in the Mada Carpet industry in Saudi Arabia.
Theoretical Model
To develop a theoretical model for the impact of brand reputation on the Mada Carpet
industry in Saudi Arabia, we can consider the following components:
- Independent Variable: Brand Reputation
Brand reputation refers to the overall perception and evaluation of the Mada Carpet
brand by customers, stakeholders, and the general public. It encompasses factors
such as brand image, brand awareness, brand associations, and brand equity.
- Mediating Variable: Customer Trust
Customer trust represents the confidence and belief that customers have in Mada
Carpet's brand reputation. It reflects their perception of the brand's reliability,
credibility, and integrity. Customer trust acts as a mediating variable that helps
explain the relationship between brand reputation and its impact on various
outcomes.
- Dependent Variable: Customer Outcomes
Customer outcomes refer to the effects or consequences of brand reputation and
customer trust on customer behavior and attitudes. These outcomes can include
customer loyalty, repeat purchase intentions, positive word-of-mouth, customer
satisfaction, and perceived value.
Based on this model, we can propose the following theoretical relationships:
H1: Brand reputation positively influences customer trust in the Mada Carpet
industry in Saudi Arabia.

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Literature Review
The significance of brand reputation in influencing consumer behavior and shaping
market dynamics has been a subject of extensive research in the field of marketing
and business studies. As businesses strive to gain a competitive edge in today's global
marketplace, understanding the impact of brand reputation on industries becomes
imperative, particularly in regions characterized by rapid economic growth and
evolving consumer preferences. Among such regions, Saudi Arabia stands out as a
burgeoning market with a diverse industrial landscape, where the influence of brand
reputation on consumer perceptions and industry performance is of paramount
importance.
In this context, this literature review seeks to explore the intricate relationship
between brand reputation and industries in Saudi Arabia, focusing specifically on the
case of Mada Carpet. By examining existing scholarly works, theoretical
frameworks, and empirical evidence, this review aims to provide insights into how
brand reputation influences consumer behavior, industry competitiveness, and
organizational performance within the Saudi Arabian context.
This chapter will delve into the theoretical underpinnings of brand reputation within
the context of industries and consumer markets, exploring key concepts and
frameworks that inform our understanding of this relationship. Following this
theoretical foundation, the review will examine Mada Carpet as the independent
variable in the study. This section will analyze the specific attributes and
characteristics of Mada Carpet and how they contribute to its brand reputation within
the Saudi Arabian market. Subsequently, attention will turn to the dependent
variable, focusing on the impact of brand reputation on industries in Saudi Arabia.
This portion will review existing research and empirical evidence to elucidate how
brand reputation influences consumer perceptions, industry competitiveness, and

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organizational performance within the Saudi context. Additionally, the literature
review will provide a comprehensive summary of past studies, synthesizing key
insights, methodologies, and empirical findings related to the interplay between
brand reputation, industries, and consumer behavior in Saudi Arabia.
Mada Carpets
With its headquarters in Yanbu, Saudi Arabia, Mada Carpet Company is a well-
known carpet company. Mada Carpet was founded with a dedication to creativity
and quality, and it has since established a reputation for creating luxurious carpets
that satisfy a wide range of client demands. The firm benefits from its advantageous
location, which gives it access to important transportation lines and enables effective
distribution both locally and globally. Yanbu is a bustling industrial city on Saudi
Arabia's western coast.
Mada Carpet Company stands out for its commitment to using cutting edge
technologies and contemporary manufacturing techniques. Modern gear and
equipment are used by the organization to ensure precision in manufacturing while
upholding the highest standards of quality. Mada Carpet's technological capabilities
enable them to provide a vast array of carpet designs, patterns, and textures, meeting
different needs and preferences in both home and business environments.
Mada Carpet Company also gives environmental responsibility and sustainability
first priority in its operations. Understanding how important it is to lessen its
environmental impact, the firm incorporates eco-friendly procedures from raw
material procurement to waste management into every step of the production process.
This dedication to sustainability is in line with international environmental initiatives
and appeals to consumers who are concerned about the environment and look for
items with as little of an impact as possible on the environment.

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Mada Carpet Company is very focused on client happiness in addition to quality and
sustainability. The organization endeavors to give outstanding customer service by
tailoring solutions and meeting deadlines for its customers. Whether working with
designers, architects, or private homeowners, Mada Carpet always keeps the
customer first, making sure that each and every encounter is marked by
dependability, professionalism, and honesty.
Being one of Saudi Arabia's top producers of carpets, Mada Carpet Company still
has a big influence on the development of the regional market. The firm is well-
positioned to further build on its reputation and increase its global and local footprint
because to its dedication to innovation, quality, sustainability, and customer
happiness.
Brand Reputation Effect on Industries
Brand reputation encompasses the perceptions, whether favorable or unfavorable,
that customers hold towards a specific brand. Several factors contribute to shaping
brand reputation, including the quality and performance of the product, the
effectiveness of advertising and marketing efforts, and the visibility of the brand in
various publications. Moreover, brand reputation plays a crucial role in fostering
positive customer expectations, as noted by Creed and Miles (1996).
According to Shandi (2011), brand reputation serves as a yardstick for customers to
assess the reliability of a brand. Additionally, Alam and Yasin (2010) highlight
several factors that influence brand reputation, such as past customer experiences,
word-of-mouth recommendations, media coverage, and the company's public
relations efforts. These elements collectively contribute to shaping the overall
perception of a brand among consumers.
Furthermore, Aaker (1991) proposes four key indicators for evaluating brand
reputation: memorability, uniqueness, and personality. These factors help gauge how

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well a brand stands out in the minds of consumers and the extent to which it embodies
distinct characteristics that resonate with its target audience. By understanding and
effectively managing these indicators, companies can proactively shape and enhance
their brand reputation, thereby fostering stronger connections with customers and
gaining a competitive edge in the marketplace.
The perception of a brand's name is often considered an external signal, known as an
extrinsic cue, associated with the product, as discussed by Zeithaml (1988), rather
than an inherent characteristic of the product itself. Brand reputation is dynamic and
continuously evolving, primarily shaped by the exchange of information between
users, as highlighted by Herbig and Milewicz (1993). It encompasses the collective
perception held by various stakeholders, including employees, customers, suppliers,
distributors, competitors, and the general public, as described by Fombrun and
Shanley (1990).
In essence, brand reputation reflects the overall esteem in which a company is held
within its ecosystem. Recognizing the significance of brand reputation, businesses
actively compete to cultivate a strong reputation across their products. This is
because a robust reputation allows companies to command higher prices for their
products, thereby gaining a competitive advantage over their rivals, as emphasized
by Loureiro and Kaufmann (2016).
To grasp consumers' perceptions of a brand's reputation, Walsh and Beatty (2007)
suggest evaluating the customer's comprehensive assessment of a company. This
assessment is formed through their experiences with the company's products,
services, communication efforts, interactions with company representatives, and
awareness of its corporate activities. Essentially, it encompasses the entirety of a
customer's encounters and interactions with the brand, including their impressions of
the company's offerings, the effectiveness of its communication strategies, and the

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quality of its interactions with various stakeholders such as employees, management,
and other customers. This holistic approach allows for a nuanced understanding of
how consumers perceive and evaluate a brand's reputation based on their
multifaceted experiences and interactions with the company.
As per Lau and Lee (2021), brand reputation embodies the perception held by others
regarding a brand's quality and trustworthiness. This reputation can be cultivated
through various means such as media exposure, advertising campaigns, and public
relations efforts. Moreover, the quality and performance of the brand also play a
significant role in shaping its reputation.
Furthermore, according to Dick et al. (2015), brand reputation represents the overall
evaluation of a brand by the company itself, where the brand serves as a reflection
of the company's identity and values.
Expanding upon this concept, the notion of brand reputation indicators, as discussed
by Selness in Makalew et al. (2016), encompasses several key elements. These
include having a favorable reputation compared to competitors, being widely
recognized, and being easy to recall. A good name and positive reputation in relation
to competitors are particularly important factors contributing to brand reputation, as
they signify the brand's standing within the market and its ability to differentiate itself
effectively.
Summary of Past Studies
Brand reputation encompasses consumers' understanding of a brand and the
collective perceptions held by others about that brand. It is shaped through various
means such as advertising and public relations efforts, while also being influenced
by the quality of products and the brand's performance in the market. According to
Creed and Miles (1996), as cited in Lau, Geok Theng, and Lee (1999), certain groups
within society have the ability to positively influence the expectations of others. This

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phenomenon arises from the establishment of reciprocal relationships among
different groups. Brand reputation represents more than just a consumer's awareness
of a brand; it embodies the collective image and esteem associated with that brand
within society. Positive brand reputation can be cultivated through strategic
marketing initiatives that enhance brand visibility and promote favorable
associations with the brand. Conversely, negative brand experiences or perceptions
can undermine brand reputation, leading to decreased consumer trust and diminished
market competitiveness. Moreover, the findings by Creed and Miles suggest that
social dynamics play a crucial role in shaping brand reputation. Through reciprocal
relationships among various social groups, positive perceptions of a brand can be
reinforced and spread, contributing to the overall enhancement of its reputation. This
highlights the interconnectedness of individuals and groups within society and their
collective influence on brand perceptions.
The findings from an empirical study conducted by Muhammad Rizan and Basrah
Saidani (2012) demonstrated a positive and significant relationship between brand
image or reputation and brand loyalty. This result was corroborated by Nila Kasuma
Dewi (2012), who also obtained similar findings. Furthermore, supporting evidence
from additional studies conducted by Kaisupy (2017), Mahmood et al. (2018),
Astono, Astuti, & Respati (2021), and Dewi Aurora Mikasari and Agung Edy
Wibowo (2021) further reinforced the notion that brand reputation positively
influences brand loyalty. Conversely, contrasting results were observed in studies
conducted by Oskar Sepriadi and Dahliana Kemener (2012) and Mochammad Edris
(2012), which suggested that brand reputation did not have a significant impact on
brand loyalty. Despite these differing conclusions, it is essential to consider various
factors such as methodology, sample size, and industry context when interpreting the
results of these studies.

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It is widely accepted that brand reputation is a crucial aspect of a brand's identity. A
positive brand reputation not only contributes to its financial success but is also
integral to brand building, alongside brand identity and brand image (De Chernatony,
1999). A favorable reputation also gives companies a competitive edge, helping them
outperform rivals in the marketplace. Fombrun and Rindova (1996) define brand
reputation as the collective perception of a brand's past actions and achievements,
illustrating its capacity to deliver valuable outcomes to various stakeholders.
Brand reputation represents consumers' enduring perceptions of a brand,
characterized by stability over time. This contrasts with the more volatile nature of
brand image, which tends to fluctuate frequently within shorter time frames, as noted
by Fombrun and Van Riel (1997). Companies actively cultivate brand reputation
through a variety of marketing signals and attributes associated with their brands.
These signals and characteristics are carefully crafted by companies and are then
picked up and interpreted by consumers, as discussed by Herbig and Milewicz
(1994). In essence, brand reputation serves as a cornerstone of consumer perception,
providing a foundation of trust and reliability that underpins consumers' long-term
relationships with brands.
Reputation is widely recognized as a critical asset that provides companies with a
competitive edge and helps establish a lasting presence in the market (Hall, 1992). A
brand's reputation serves as a foundation for building trust and loyalty among
consumers. However, if a brand's reputation is tarnished, it can jeopardize the
positive purchase intentions that the company has painstakingly cultivated since its
inception. This deterioration in reputation can have far-reaching consequences,
leading to negative perceptions among consumers. Conversely, companies with a
positive brand reputation are more likely to attract a larger customer base, as noted
by Herbig and Milewicz (1995). A positive reputation not only enhances consumer
trust but also strengthens brand loyalty, contributing to sustained success and
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profitability in the marketplace. Therefore, safeguarding and enhancing brand
reputation should be a priority for companies seeking to maintain a competitive
advantage and achieve long-term growth.
Mohammad Rishad Faridi and Mohammad Naushad (2021) - A study of brand
fidelity: Its contribution and impact on the Saudi market:
This study examines the level of brand fidelity among Saudi consumers and validates
the brand fidelity scale in the Saudi context. The findings reveal that Saudi
consumers demonstrate high loyalty to their favorite brands, and brand fidelity
factors such as accommodation, performance, cognitive interdependence, and
derogation of alternatives hold valid in the Saudi market. The study provides insights
for brand-related strategy formulation.
Hemaid Alsulami (2018) - Evaluating the Influence of Branding on Saudi
Consumers' Decisions: This study investigates the impact of branding, brand
perception, and brand knowledge on Saudi consumers' purchasing decisions. The
results indicate that brand name influences consumers' choice, and consumers are
more attached to internationally branded products than local brands. The study
emphasizes the importance of brand awareness and quality in attracting consumers.
Sheroog Alhedhaif, Upendra Lele, Belal A. Kaifi (2016) - Brand Loyalty and Factors
Affecting Cosmetics Buying Behavior of Saudi Female Consumers:
This study focuses on brand loyalty for cosmetic products among Saudi female
consumers. It explores brand preferences and identifies factors influencing the
purchase decisions of Saudi consumers. The results highlight the significant impact
of various factors on consumers' purchasing decisions, and brand loyalty is observed
among a significant percentage of consumers.
Methaq Ahmed Sallam (2015) - The Effects of Brand Credibility on Customers'
Word-of-Mouth Communication: The Mediating Role of Brand Commitment:

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This study investigates the relationship between brand credibility, brand
commitment, and customers' word-of-mouth communication. The findings reveal
that brand credibility positively impacts brand commitment, which, in turn,
influences customers' word-of-mouth communication. The study emphasizes the
importance of brand credibility in triggering customer commitment and positive
word-of-mouth.
Fethi Klabi, Abdulrahim Meshari (2023) - Factors Influencing Brand Love: A Case
Study of Apple in Saudi Arabia:
This study explores the factors driving brand love for Apple among Saudi Arabian
consumers. The findings highlight the role of self-image congruence and price
perception in developing brand love. The study also reveals the moderation effect of
prestige sensitivity on the relationship between self-image congruence and brand
love. The results provide valuable insights for marketers to enhance consumers'
emotional connection with their brands in Saudi Arabia.
Masood Hassan, Mehboob-ul Hassan, Imam Uddin (2021) - A Literature Review on
Dimensions of Brand Equity in the Insurance Industry of Saudi Arabia:
This literature review focuses on branding and brand equity in the insurance industry
of Saudi Arabia. It highlights the importance of brand distinctiveness and its impact
on brand equity. The paper provides an overview of the specialized literature in the
Saudi insurance industry and emphasizes the need for further analysis of takaful
insurance requirements.
Mohammed Arshad Khan, Abdullah A. Alakkas, Maysoon Khojah, Vivek, Hamad
Alhumoudie (2023) - Corporate Social Responsibility and Corporate Brand
Awareness: An Interface in the Kingdom of Saudi Arabia:
This study examines the relationship between corporate social responsibility (CSR)
and corporate brand awareness among Saudi Arabian consumers. The findings

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indicate a positive perception of customers towards CSR activities and a positive
association between CSR and brand awareness. The study emphasizes the
importance of CSR initiatives in today's era of sustainable awareness and customer
expectations.
Theoretical Framework of the Study
Throughout history, brand-related topics have emerged as a robust area of inquiry
within academia, solidifying the domain of branding as a significant focus of
marketing research (Bastos & Levy, 2012; Veloutsou & Moutinho, 2008). A
historical bibliometric study conducted by Martínez-López, Merigó, Valenzuela-
Fernández, & Nicolás (2018) revealed the prominence of 'brand' as one of the most
frequently published keywords in international marketing literature over the past five
decades. 'Brand management', 'brand equity', and 'brand image' also ranked high
among published keywords. Notably, 'brand reputation' was notably absent from this
analysis.
Given the importance of brand-related themes in academic research, it is pertinent to
examine the co-occurrences of key terms that shape the conceptual and knowledge
structure of classical literature in brand management (Aaker, 1991; Aaker, 1992;
Kapferer, 2008; Keller, 1993). The term 'brand' itself has been entrenched in
marketing literature since 1922 (Stern, 2006), initially representing a combination
expression encompassing the brand name and associated commercial terminology.
Early seminal works, such as Butler's study in 1914, highlighted the strategic
importance of branding in consumer choice, illustrating how advertising could
enable brands to gain a competitive edge among producers, manufacturers,
wholesalers, and retailers.
The concept of a brand transcends mere tangible attributes, evolving into a complex
and intangible market asset with multifaceted dimensions and functionalities (Bastos

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and Levy, 2012). Brands are recognized as multi-dimensional entities that
encompass various facets of consumer perception, market positioning, and strategic
value. Therefore, understanding the intricacies of brand management, including
reputation, equity, and image, is essential for marketers and scholars alike to navigate
the dynamic landscape of contemporary marketing practices effectively.
Over the years, scholarly discourse on the concept of 'brand' has undergone
evolutionary shifts, reflecting a deepening understanding of its various dimensions
and implications. These debates have encompassed diverse facets such as the
intrinsic value of a brand's name (Aaker, 1991), the multitude of touchpoints through
which a brand interacts with consumers and its fundamental essence (Kapferer,
1995), the imperative of creating and effectively managing brands (Aaker, 1996),
and the attribution of personality characteristics to brands (Aaker, 1997).
Additionally, scholars have explored brand perceptions and the strategic
management imperative they entail (de Chernatony, 1999), highlighting the need for
organizations to strategically align their operations with brand-building objectives.
Recognizing the strategic importance of brands, Kapferer (2012) emphasized the
urgent demand for their strategic management, underscoring the significance of
aligning strategic principles with brand strengthening efforts. Frost and Cooke
(1999) contributed significantly to this discourse by emphasizing the interdependent
relationship between brands and reputation, advocating for their tenacious
management as invaluable intangible assets. They contended that effective brand and
reputation management extend beyond mere communication, image, or identity
management, requiring a holistic approach that integrates performance, customer
service, ethics, and business practices. Such an approach necessitates a recognition
of responsibility at the highest levels of organizational governance.

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In subsequent years, scholars have delved deeper into specific aspects of brand
management, with a particular focus on brand satisfaction in service marketing
literature (Grönroos, 2007) and the paramount importance of consistency in brand
behavior and expression (Veloutsou, 2007). These discussions underscore the
evolving nature of brand management theory and practice, emphasizing the enduring
relevance of brands as strategic assets and the imperative of effectively managing
them in a dynamic and increasingly interconnected marketplace.
Another prominent perspective pertains to the relationship between brands and their
consumers, where brand tribes or communities emerge to collectively express their
affinity for specific brands (Veloutsou & Moutinho, 2008). Additionally, reputation
is perceived as the external perception of a corporation's significant attributes by
outsiders (Veloutsou & Moutinho, 2009), which serves to reinforce brand
engagement (Leckie, Nyadzayo, & Johnson, 2016). Customers' sensitivity regarding
their private and public self-concept is also influenced by their association with
certain brands (Moliner, Monferrer-Tirado & Estrada-Guillén, 2018), as well as by
their social media interactions (Choi & Burnham, 2021).
However, brand reputation is not solely determined by a company's ability to deliver
quality offerings but also by its capacity to fulfill societal obligations through
corporate responsibility (Johnson et al., 2019). Therefore, corporate reputation is
seen as a reflection of the public's cumulative perceptions regarding a company's
outstanding characteristics (Dowling, 2004; Dowling, 2006), or the reputation of
brands themselves (Corkindale), as both products and corporate images are identified
as outcomes of consumers' experiences with the brand (Corkindale & Belder, 2009).
Furthermore, brand reputation extends beyond customer satisfaction to encompass
their social status intentions (Choi & Burnham, 2021).

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Hence, "Reputation is an intangible yet invaluable asset that mirrors the level of
esteem and trustworthiness accorded to an organization by its diverse stakeholders"
(Corkindale & Belder, 2009). Similarly, "Reputation is commonly perceived as the
cumulative result of our past interactions: it represents the credibility that an entity
or entity garners through repeated engagements" (Origgi, 2019). As emphasized by
Harjoto and Salas (2017), "An organization's image can impact its brand valuation
and reputation." (p. 545). Additionally, it is acknowledged that factors pertaining to
corporate responsibility and irresponsible behaviors serve as pivotal determinants of
corporate reputation and vice versa (Tench, Sun, & Jones, 2012).
Adhering to this rationale, the management of a brand's responsibility and reputation
should align closely with the objectives and functions inherent in each stakeholder
relationship (e.g., shareholders, employees, customers, prospects, etc.). According to
Frost and Cooke (1999), harnessing the potential of corporate brand and reputation
management necessitates strategic accountability for certain internal factors,
including the development, assessment, and integration of a cohesive brand
reputation strategy.
The current study attempts to fill in a number of holes in the body of knowledge by
concentrating mostly on Western markets and paying little attention to developing
markets like Saudi Arabia. By analyzing the dynamics of brand reputation within the
distinct sociocultural and economic environment of Saudi Arabia, this study aims to
close this gap. Although a lot of research has been done on brand reputation in a
variety of sectors, there hasn't been much in-depth study done particularly on Saudi
Arabia's carpet manufacturing sector. The purpose of this study is to provide light on
how customer perceptions, market dynamics, and organizational tactics are
influenced by brand reputation in this particular industry. Although the theoretical
underpinnings of brand reputation have been examined in earlier study, more
integration of these ideas into empirical investigations in the Saudi Arabian context
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is required. By using pertinent theoretical frameworks to examine the effects of brand
reputation on Saudi Arabian sectors, with a specific focus on Mada Carpet, this study
aims to close this gap. Even though academic research offers insightful information,
there is sometimes a gap in how these results are applied to practical business
operations. In addition to adding to the body of academic knowledge, this study
attempts to offer actionable advice that Saudi Arabian companies, like Mada Carpet,
may use to improve their brand reputation and strategic positioning in the face of
competition.
Research Methods
To achieve the objectives and answer the research questions, the study will utilize a
mixed-methods approach. This approach combines qualitative and quantitative
research methods to provide a comprehensive understanding of brand reputation
management practices in Saudi industries.
By employing a mixed-methods approach, the study will provide a robust analysis
of brand reputation management practices in Saudi industries, offering insights into
current practices, challenges, and areas for improvement.
Research Design
Data Collection:
Qualitative methods: In-depth interviews with key stakeholders such as business
leaders, marketing managers, and communication professionals will be conducted.
These interviews will provide insights into the current practices, challenges, and
perceptions related to brand reputation management in Saudi industries.
Quantitative methods: Surveys will be administered to a representative sample of
customers in Saudi industries. The surveys will collect quantitative data on customer
trust levels, brand reputation attributes, and other relevant factors. Statistical analysis
techniques, such as regression analysis or correlation analysis, will be used to
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examine the relationship between brand reputation and customer trust. The findings
will provide numerical insights into the impact of brand reputation on customer trust
in the Saudi industries.
Data Tooles:
- Qualitative analysis: The interviews will be transcribed and analyzed using
thematic analysis. Themes and patterns related to brand reputation management
practices, challenges, and perceptions will be identified.
- Quantitative analysis: The survey data will be analyzed using statistical
techniques, such as descriptive statistics and inferential analysis, to examine the
relationship between brand reputation and customer trust. The analysis will
explore the extent to which brand reputation influences customer trust in the
context of the study.
Limitations:
- Human Limitations: The human limitations of this study were the impact of
brand reputation in the Mada Carpet Factory
- Spatial Boundaries: The study focused solely on the impact of brand reputation
within the Mada Carpet Factory in Yanbu Industrial City.
- Time Constraints: The study was conducted within a limited time frame from
February 2024 to April 2024.
Research Findings
The findings of an analysis done to look into the connection between consumer trust
and brand reputation are shown in the section that follows. The study included a
survey instrument that had ten questions that were sent to participants, with a
particular emphasis on evaluating attitudes on brand reputation and its impact on
customer trust. This study sought to clarify the degree to which consumer trust, the

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dependent variable, is impacted by brand reputation, the independent variable, using
the Statistical Package for the Social Sciences (SPSS).
Given that it includes customer attitudes, beliefs, and collective views of a brand,
brand reputation is a crucial component of organizational success. It has a crucial
role in shaping customer behavior, decisions about what to buy, and brand loyalty.
Businesses looking to build and hold a strong position in the market must
comprehend the relationship between consumer trust and brand reputation.
Conversely, consumer connections with brands are fundamentally shaped by
customer trust. Consumers' faith and confidence in a brand's capacity to fulfill
commitments, offer high-quality goods and services, and respect moral principles are
reflected in their level of trust. Furthermore, good word-of-mouth referrals, repeat
business, and brand loyalty are all significantly influenced by trust.
The question Do you believe that a positive brand reputation increases your level of
trust in that brand? Is set as the dependent variable that is correlated with other
questions.
Do you believe that a positive brand reputation increases your level of trust in that
brand? * Do you consider a brand's reputation when making purchasing decisions?
Symmetric Measures

Value Approximate Significance

Nominal by Nominal Phi .330 .001

Cramer's V .330 .001

N of Valid Cases 105

Figure 1. Symmetric Measures

The Phi coefficient in this study comes out to be 0.330. This value shows a somewhat
positive correlation between the conviction that a well-known brand builds trust and

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the practice of taking that reputation into account when making judgments about
what to buy. Less below the typical significance level of 0.05, the p-value linked to
the Phi coefficient is 0.001. This suggests that there is statistical significance in the
observed relationship between the two variables. Stated differently, the likelihood of
discovering such a link via chance alone is minimal.
Do you believe that a positive brand reputation increases your level of trust in that
brand? * Have you ever chosen one brand over another based on its reputation?
Symmetric Measures

Value Approximate Significance

Nominal by Nominal Phi .099 .312

Cramer's V .099 .312

N of Valid Cases 105

Figure 2. Symmetric Measures

The Phi coefficient in this study comes out to be 0.099. This number indicates a weak
positive correlation between selecting a brand over another based on reputation and
thinking that a positive brand reputation boosts trust. The Phi coefficient has a p-
value of 0.312, which is higher than the accepted significance level of 0.05. This
suggests that there is no statistically significant relationship between the two
variables as seen. Stated differently, the likelihood of discovering such a correlation
via chance alone is rather high.
Do you believe that a positive brand reputation increases your level of trust in that
brand? * Do you think a brand's reputation influences how likely you are to
recommend it to others?

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 Symmetric Measures

Value Approximate Significance

Nominal by Nominal Phi .469 .000

Cramer's V .469 .000

N of Valid Cases 104

Figure 3. Symmetric Measures

The Phi coefficient in this study comes out to be 0.469. This value shows a moderate
to high positive correlation between the perception that a brand's reputation affects
the likelihood of recommending it to others and the belief that a favorable brand
reputation improves trust. Less below the typical significance threshold of 0.05 is the
p-value linked to the Phi coefficient, which is 0.000. This suggests that there is
statistical significance in the observed relationship between the two variables. Stated
differently, the likelihood of discovering such a link via chance alone is minimal.
Do you believe that a positive brand reputation increases your level of trust in that
brand? * Have you ever given a brand a second chance after it improved its
reputation?
Symmetric Measures

Value Approximate Significance

Nominal by Nominal Phi .187 .056

Cramer's V .187 .056

N of Valid Cases 105

Figure 4. Symmetric Measures

The Phi coefficient in this study comes out to be 0.187. Giving a brand a second
opportunity once it has improved its reputation and thinking that a positive brand

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reputation enhances trust are positively correlated, according to this value. The Phi
coefficient's corresponding p-value is 0.056. This number above the traditional
significance threshold of 0.05. Consequently, at the conventional level, the observed
relationship between the two variables is not statistically significant. It is noteworthy,
therefore, that the p-value is in proximity to 0.05, suggesting a possible trend in the
direction of significance.
Do you believe that a positive brand reputation increases your level of trust in that
brand? * Do you believe that a brand's reputation impacts the overall quality of its
products or services?
Symmetric Measures

Value Approximate Significance

Nominal by Nominal Phi -.080- .413

Cramer's V .080 .413

N of Valid Cases 105

Figure 5. Symmetric Measures

The Phi coefficient in this study comes out to be -0.080. This number indicates a
weak negative correlation between the perceptions that a brand's reputation affects
the overall quality of its goods or services and the perception that a positive brand
reputation fosters trust. The Phi coefficient has a p-value of 0.413, which is higher
than the usual significance level of 0.05. Consequently, at the conventional level, the
observed relationship between the two variables is not statistically significant.
Do you believe that a positive brand reputation increases your level of trust in that
brand? * Do you trust brands that are known for their positive reputation more than
those with a lesser-known reputation?

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 Symmetric Measures
Value Approximate Significance

Nominal by Nominal Phi -.018- .858

Cramer's V .018 .858

N of Valid Cases 103

Figure 6. Symmetric Measures

The Phi coefficient in this analysis is given as -0.018. According to this value, there
is a very weak negative correlation between thinking that a brand's reputation
improves consumer trust and preferring to trust well-known businesses over less
well-known ones. The Phi coefficient's p-value is 0.858, which is much greater than
the accepted significance level of 0.05. Consequently, at the conventional level, the
observed relationship between the two variables is not statistically significant.
Do you believe that a positive brand reputation increases your level of trust in that
brand? * Have you ever been influenced by online reviews or word-of-mouth
recommendations regarding a brand's reputation?
Symmetric Measures
Value Approximate Significance

Nominal by Nominal Phi .089 .367

Cramer's V .089 .367
N of Valid Cases 104

Figure 7. Symmetric Measures

The Phi coefficient in this analysis is given as 0.089. This figure indicates a very
modest positive correlation between being swayed by internet evaluations or word-
of-mouth recommendations regarding a business's reputation and thinking that a
favorable brand reputation enhances trust. The Phi coefficient has a p-value of 0.367,
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which is more than the accepted significance level of 0.05. Consequently, at the
conventional level, the observed relationship between the two variables is not
statistically significant.
Do you believe that a positive brand reputation increases your level of trust in that
brand? * Do you think a brand's reputation affects its long-term success in the
market?
Symmetric Measures
Value Approximate Significance

Nominal by Nominal Phi -.072- .464

Cramer's V .072 .464

N of Valid Cases 103

Figure 8. Symmetric Measures

The Phi coefficient in this analysis is given as -0.072. According to this value, there
is very little correlation between the beliefs that a brand's reputation boosts trust and
that a brand's reputation has an impact on its long-term performance in the
marketplace. The Phi coefficient has a p-value of 0.464, which is more than the usual
significance level of 0.05. Consequently, at the conventional level, the observed
relationship between the two variables is not statistically significant.
Do you believe that a positive brand reputation increases your level of trust in that
brand? * Have you ever stopped purchasing from a brand due to a negative
reputation?

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 Symmetric Measures
Value Approximate Significance

Nominal by Nominal Phi -.109- .265

Cramer's V .109 .265

N of Valid Cases 104

Figure 9. Symmetric Measures

The Phi coefficient in this analysis is given as -0.109. This value indicates a modest
negative correlation between the belief that a brand's reputation enhances trust and
the experience of ceasing to purchase from a brand because of a bad reputation. The
Phi coefficient has a p-value of 0.265, which is more than the accepted significance
level of 0.05. Consequently, at the conventional level, the observed relationship
between the two variables is not statistically significant.
At the end we can answer the question whether There is or there is no a significant
positive relationship between brand reputation and customer trust in the Mada Carpet
industry in Saudi Arabia. Obviously, there is a significant positive relationship as
survey results and interview shows how reputation is effects on hoe people
purchasing and in purchasing power itself. The relationship between the Brand and
the customers is very important, and in new world and social media we can see how
the advertising now is the first thing that helps the brand to build their reputation.
Mada Carpet company have a trusted relationships between brands and customers its
evident that a strong good reputation is one of the important reasons to increased
customer trust, loyalty and positive feedback.

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Interview with Mr. Samer Al-Dhashan, Marketing and Sales Manager with over 10
years of experience in the Saudi Arabian industries:
How does your organization define and measure brand reputation?
Our organization defines brand reputation as the level of trust and confidence that
customers have in our products. We measure it by evaluating the frequency of
customer orders and assessing whether customers continue to choose our brand over
competitors. If customers repeatedly order our products, it indicates that they trust
the quality and reliability of our brand, reflecting a positive brand reputation. By
monitoring customer behavior and tracking their purchasing patterns, we can gauge
the strength of our brand reputation in the market.
What strategies or tactics does your organization employ to enhance and protect
its brand reputation?
To enhance and protect our brand reputation, our organization employs several key
strategies. Firstly, we prioritize registering our brand locally and globally, securing
our legal rights and safeguarding against counterfeit products that could undermine
our reputation. Additionally, we invest in strong marketing campaigns closely
aligned with our parent company, leveraging their credibility and reputation to
provide confirmation and protection for our brand. By aligning ourselves with a
trusted and established entity, we enhance the perception of our brand as reliable and
trustworthy, further bolstering our brand reputation in the eyes of customers and
stakeholders.
How do you monitor and assess the perception of your brand among customers
and stakeholders?
Monitoring and assessing the perception of our brand among customers and
stakeholders is essential for maintaining a strong brand reputation. We employ

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various methods to gather feedback and insights from our target audience. This
includes conducting customer satisfaction surveys, analyzing online reviews and
ratings, monitoring social media platforms for mentions and discussions about our
brand, and engaging in direct communication with customers through customer
service channels. By diligently collecting and analyzing this feedback, we can gain
valuable insights into customer satisfaction, identify areas for improvement, and
measure the level of trust and confidence customers have in our brand. This ongoing
assessment allows us to make informed decisions and take proactive steps to enhance
our brand reputation.
Can you share any specific examples of reputation crises your organization has
faced and how you handled them?
One instance involved a customer registering our brand in Indonesia, leading to a
decline in sales and potential confusion among consumers. To address this issue, we
took a multi-faceted approach. Firstly, we pursued legal actions to protect our brand
and intellectual property rights. Simultaneously, we engaged in discussions with our
other customers in Indonesia to address any concerns and clarify the situation.
To mitigate the impact on our brand reputation and regain market share, we
developed a new brand specifically for the Indonesian market. This involved
improving our product offerings and tailoring them to meet the unique needs and
preferences of Indonesian consumers.
Furthermore, we implemented extensive marketing campaigns in Indonesia to
introduce our new brand and increase awareness and demand. These campaigns
utilized various channels, including digital marketing, advertising, and
collaborations with local influencers and media outlets.
By taking these proactive measures, we were able to navigate through the reputation
crisis effectively. Our legal actions protected our brand, the introduction of a new
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brand addressed any confusion, and the marketing campaigns helped rebuild trust
and regain market share in Indonesia.
How do you involve employees in managing and promoting the brand
reputation of your organization?
Employee involvement is vital in managing and promoting our organization's brand
reputation. We achieve this by providing comprehensive training programs that
educate employees on brand principles and values. We also foster a positive culture
that aligns with our brand, encouraging teamwork and a customer-centric mindset.
Clear and transparent communication strategies are implemented, ensuring
consistent messaging and engaging employees through regular updates. Negative
feedback is addressed empathetically, with a focus on finding solutions and
implementing continuous improvement measures. By involving employees in these
ways, we empower them to become brand ambassadors, actively contributing to the
management and promotion of our brand reputation.
What communication strategies do you use to build and maintain trust with
customers and stakeholders?
To build and maintain trust with customers and stakeholders, we employ a range of
communication strategies. We prioritize clear and consistent messaging across all
communication channels, ensuring that our brand values and offerings are effectively
conveyed. Transparency is key, and we strive to share timely and relevant
information openly, keeping stakeholders informed about important updates and
initiatives. We actively engage with customers and stakeholders on appropriate
platforms, responding promptly to inquiries, concerns, and feedback. Additionally,
we utilize storytelling techniques to create emotional connections, sharing narratives
that resonate with our audience and highlight the positive impact of our brand. By

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implementing these strategies, we foster trust, credibility, and long-term
relationships with our customers and stakeholders.
Do you utilize social media channels for managing your brand reputation? If
yes, how do you leverage them?
Yes, we do utilize social media channels as a part of our brand reputation
management strategy. Social media platforms provide us with valuable insights into
the market and customer needs. We actively monitor and follow customer comments,
opinions, and feedback, considering them as opportunities for improvement and
development. During the COVID-19 pandemic, social media channels played a
crucial role in our communication with customers, allowing us to provide timely
updates, address concerns, and maintain engagement. Our presence on social media
has helped us increase our follower base and enhance customer engagement,
fostering a closer connection with our audience and strengthening our brand
reputation.
How does your organization respond to negative feedback or criticism
concerning the brand?
When faced with negative feedback or criticism concerning our brand, our
organization views it as an opportunity for growth and improvement. We respond to
such feedback in a constructive and proactive manner. Firstly, we listen attentively
to the concerns raised and acknowledge the customer’s perspective. We then take
prompt action to address the specific issue, whether it is a product quality concern,
service-related matter, or any other aspect impacting the customer experience. Our
aim is to find effective solutions and resolve the problem to the customer's
satisfaction. Simultaneously, we use this feedback to identify broader areas for
improvement within our organization, such as refining our processes, enhancing
product offerings, or implementing additional training for our staff. By treating

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negative feedback as an opportunity to learn and evolve, we demonstrate our
commitment to continuous improvement and strive to turn dissatisfied customers
into loyal advocates for our brand.
Can you explain the crisis management plan your organization has in place to
address reputation challenges?
Our organization has a comprehensive crisis management plan to effectively address
reputation challenges. This plan consists of several key components. Firstly, we have
established procedures to identify and assess potential threats to our reputation. This
involves continuous monitoring of relevant channels and stakeholders to detect any
emerging issues. We also appoint designated spokespersons who are trained to
handle communication during a crisis, ensuring a consistent and controlled message
delivery. Predefined communication channels and messages are prepared in advance
to ensure
timely and accurate dissemination of information. Additionally, our crisis
management plan involves close coordination with relevant departments, such as
legal, PR, and customer service, to align actions and responses. After a crisis, we
conduct thorough evaluations to learn from the experience and make necessary
improvements to our crisis management approach. By having this plan in place, we
are well-prepared to address reputation challenges and mitigate their impact on our
organization.
How does your organization measure the effectiveness of its brand reputation
management efforts?
To measure the effectiveness of our brand reputation management efforts, we employ
a combination of quantitative and qualitative measures. We track brand sentiment by
monitoring online mentions, reviews, and social media conversations related to our
brand. Customer satisfaction surveys and feedback help gauge the overall perception
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of our brand and the quality of customer experiences. Brand awareness is measured
through metrics such as website traffic, social media followers, and reach. Online
engagement metrics, including likes, shares, and comments, provide insights into the
level of engagement with our brand. Additionally, we periodically conduct brand
perception surveys to assess how our brand is perceived in the market and identify
areas for improvement. By analyzing these indicators and feedback, we can evaluate
the effectiveness of our brand reputation management efforts and make informed
decisions to enhance our brand's impact and customer trust.
Recommendations
Based on the findings of the analysis, the following recommendations can be made
to enhance the relationship between brand reputation and customer trust:
- Strengthen brand reputation: Since a positive brand reputation has a significant
impact on customer trust, businesses should focus on building and maintaining a
strong brand reputation. This can be achieved through consistent delivery of high-
quality products and services, fulfilling commitments, and adhering to ethical
principles. Implementing effective reputation management strategies, such as
monitoring online reviews and addressing customer concerns promptly, can also
help in enhancing brand reputation.
- Emphasize the link between reputation and trust: Businesses should educate
customers about the connection between a positive brand reputation and customer
trust. Marketing and communication efforts should highlight the reputation-
building initiatives, customer testimonials, and positive experiences to reinforce
the relationship between brand reputation and trust. This can be done through
various channels, including social media, website content, and advertising
campaigns.

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- Encourage positive word-of-mouth: As the analysis suggests, there is a
correlation between brand reputation and the likelihood of recommending a brand
to others. Companies should focus on providing exceptional customer
experiences and encourage satisfied customers to share their positive experiences
through word-of-mouth. This can be facilitated by offering incentives for
referrals, implementing customer loyalty programs, and actively engaging with
customers on social media to amplify positive brand sentiment.
- Address negative reputation issues promptly: While the analysis indicates that the
relationship between a negative brand reputation and customer trust is not
statistically significant, it is still important for businesses to address any negative
reputation issues promptly. This includes transparently addressing customer
complaints, taking corrective actions, and communicating the improvements
made to the brand's reputation. By demonstrating a commitment to resolving
issues and rebuilding trust, businesses can mitigate the negative impact of a poor
reputation.
- Monitor and respond to online reviews: Online reviews have a modest positive
correlation with the perception that brand reputation enhances trust. Businesses
should actively monitor and respond to online reviews, both positive and
negative, to show customers that their feedback is valued. By promptly addressing
customer concerns and publicly acknowledging positive reviews, businesses can
build trust and credibility among potential customers who rely on online reviews
for decision-making.
- Consistently deliver high-quality products and services: The perception that a
brand's reputation influences the overall quality of its products or services has a
weak negative correlation with the belief that a positive reputation enhances trust.
To overcome this, businesses should focus on consistently delivering high-quality
products and services that align with their brand reputation. This can be achieved
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 through robust quality control measures, continuous improvement initiatives, and
customer feedback integration into product/service development processes.
- Continuously monitor and assess brand reputation: It is essential for businesses
to continuously monitor and assess their brand reputation through various
channels, including social media, online reviews, and customer feedback. This
allows them to identify any emerging reputation issues, address them promptly,
and track the impact of reputation management efforts over time. Regular
assessments will help businesses make informed decisions and adjustments to
their strategies to maintain and enhance customer trust.
By implementing these recommendations, businesses can strengthen the relationship
between brand reputation and customer trust, leading to increased customer loyalty,
positive word-of-mouth referrals, and long-term success in the marketplace.
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