Corporate Communication 6th Edition Argenti Solutions Manual 1

Chapter 04 - Identity, Image, Reputation, and Corporate Advertising
Teaching Notes
Corporate Communication 6th Edition

by Argenti ISBN 0073403172
9780073403175
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Chapter 4
Identity, Image, Reputation, and Corporate Advertising
This is a rich chapter with strong ties to management and corporate communication
strategy. I find that students usually enjoy thinking about image, identity, and
reputation so you should have no trouble generating good discussions on the topic.
In addition, we are all bombarded with so much corporate advertising that it’s easy
for all students to feel like experts on the subject – after all, as consumers we are the
core constituent for this communications channel!
For the class itself, as I mentioned in the section on image in the last chapter, I
recommend reading Wally Olins’ book, Corporate Identity, from Harvard Business
School Press when teaching the concepts of identity and reputation. In addition, you
should gather many different examples of logos to use as illustrations in class.
Similarly, Charles Fombrun’s Reputation, also from Harvard Business School Press,
offers a wealth of information for you to use.
Teaching corporate advertising is easy to do because such rich examples are available
for you to use. For more general information, I would rely on Garbett's book,
Corporate Advertising, which I mentioned in the text. Garbett treats this subject in
depth and covers all major topics. You should also refer to Chapter Five in The Power
of Corporate Communication for a more managerial focus on this subject and
additional examples to use in class.
About a month prior to teaching this class, I start collecting a wide variety of good
examples to use in class. Business magazines are a good source for corporate ads as
are liberal-oriented magazines like New Republic, New Yorker, and Atlantic Monthly.
4-1
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Teaching Notes
Try to find ads that fall into the different categories that I list in the chapter. For
instance, I would look for some that are aimed at the financial community, some
aimed at clarifying or expanding on reputation and image, and some aimed at issue
advocacy.
You can find the best television ads on Sunday morning television, on Meet the Press
for example, as well as on the nightly network news broadcasts. One recent Sunday
on Meet the Press gave me all I needed to use for the class and included a great
example from GE. In addition, virtually any company or ad agency would be delighted
to have you show ads for them.
Show lots of examples, and simply let students talk about them. Try to see if the
company's strategy is clear (it usually isn’t), if it can be easily categorized (usually not
so easy), and whether the design and copy work together to form an effective
message.
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whole or part.
Teaching Notes
Another way to deal with the problem of finding ads is to assign the chapter and let
students find examples for a homework assignment. Tell them each to bring in four
or five ads and you will be well on your way toward building a collection that you can
use the following year when you come to this lecture. Be sure to make arrangements
for making them into slides or using them on overhead transparencies before class.
An interesting twist on these exercises would be to look at some of the anti-corporate

advertising now published. Not only is this a good way to show what consumers may
distrust in corporate ads, it can also be entertaining as the protest ads are often fairly
clever mockeries, such as the well-known ‘Obsession For Men’ spoof with a male
model staring down his pants. You could refer to several sources for examples; the
most well-known is the Canadian-based AdBusters, with a website at
www.adbusters.org.
The key discussion to have with students is about the notion of reputation for all
constituencies and image for specific ones in determining the success or failure of any
organization. I give the example of two hotels in my introduction to the chapter, but
you can personalize this by talking to students about any two organizations that
represent opposite ends of some spectrum – for example, consider Bergdorf
Goodman versus Wal-Mart. Why do we have certain impressions about some
organizations and not others? What elements go into creating these impressions?
A good exercise that will take 10 or 15 minutes to emphasize these points is to list
three or four companies or products within an industry (for example Cadillac,
Mercedes Benz, Lexus, Lincoln, and Infiniti) and ask the students to describe
differences among companies or products which are positioned similarly. In this
case, these are all luxury autos, but the Lincoln and Cadillac have a totally different
cachet from Mercedes Benz and Lexus. What goes into creating those impressions?
This is a fun exercise; personalize it to suit your own local information and what you
know best.
Another important concept for students to understand is the notion of image versus
identity. I have defined image as “a mirror image of the organization's reality” and
identity as “physical manifestations of that image.” This takes a while to understand,
but you can bring the point home very easily by using specific company examples.
Again, I would urge you to use examples that you are personally familiar with rather
than just sticking with the ones I’ve mentioned.
I have included two articles that I wrote several years ago. “The Name Game: How
Corporate Name Changes Affect Stock Price” was written with my colleagues from
Tuck to give you more insight into the importance of names. This article points out
the connection between name changes and stock price. It is based on very extensive
research and can be a nice addition to the other information you are covering in this
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whole or part.
Teaching Notes
class. “Managing Corporate Identity” looks at some of the same information covered
in this chapter, but it has more of a managerial focus. You should also look at Chapter
Four, “Identity, Image, and Reputation: From Vision to Reality”, in The Power of
Corporate Communication by Paul A. Argenti and Janis Forman (2002). This chapter
has different examples as well as a managerial slant.
The step-by-step guide to managing identity is another opportunity for an exercise.

You can have students work with local companies, or have them conduct such an
identity audit based on public information about a well-known company.
Other Options
Other companies to consider that have made big changes recently are mentioned in
the text and should be explored in the context of this case. An excellent example is
AT&T, which is mentioned in the chapter. After undergoing a series of mergers and
acquisitions, AT&T needed to establish a new and updated identity to progress from
a company simply known for landlines to a brand known for wireless, media, data
and entertainment. It also had the challenge of achieving consistency among the many
companies that it acquired. On a smaller scale are popular companies that will be
familiar to most of your students. An example here would be McDonald’s new
inclusion of coffee in its advertising campaigns. You should also use whatever
examples are currently available when you are teaching this unit.
Another exciting approach is to look at the reputation or image of your college or

university and compare it to other institutions. Students will enjoy discussions of the
Wall Street Journal, US News, or Business Week rankings. Similarly, the college or
university’s identity program can be analyzed in the context of this chapter. (See the
material that accompanies this chapter for more on this.)
If you are interested in this subject beyond what I have provided in the chapter and
in this note, I would strongly urge you to look at some of the books in my bibliography.
Christopher Lorenz's book, The Design Dimension (Blackwell, 1990), takes the
discussion into the realm of product design as well as what we talk about in this
chapter. Adrian Forty's book, Objects of Desire (Pantheon, 1986), focuses on design
and society and is a fascinating book to read. Finally, you might want to review The
Expressive Organization (Schultz et al, Oxford University Press, 2000) which has
chapters by many of the leading experts in this field; it is probably the best collection
of essays by both academics and practitioners in this field.
You can also get a local graphic designer to come in and give a presentation when you
cover this material. They can talk about the importance of design elements and give
specific examples of their work. I do this every year, and find it to be the best way to
handle the subject.
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whole or part.
Teaching Notes
Teaching Note
JetBlue Airways
Purpose of the Case Study
1. To describe how an unexpected crisis can threaten the reputation of a highly

regarded and profitable company;
2. To illustrate how an unlikely series of events can reveal critical business
problems and communication issues;
3. To enable the reader to evaluate and apply potential image restoration
strategies to a recent corporate communication dilemma;
4. To demonstrate how a bold idea can potentially transform the way a company
does business and relates to its key stakeholders; and
5. To encourage critical analysis and stimulating discussion of corporate crisis
communication practices and strategies.
Identifying the Business Problem
Valentine’s Day 2007 changed the course of history for JetBlue Airways. The upstart
low-fare airline – which had enjoyed unprecedented acclaim from customers and
industry observers during its first eight years – suddenly found itself in the midst of
its first major operational catastrophe. A winter storm that enveloped the New York
metropolitan area and JetBlue’s hub at John F. Kennedy International Airport left
scores of the company’s passengers stranded in planes on the tarmac for six hours or
longer. Thousands of other customers waited in vain at the airport for flights that
would inevitably be cancelled.
The flight disruptions at JFK plunged JetBlue’s entire operation into chaos. The
company’s planes and flight crews were soon out of place, forcing the carrier to cancel
approximately 1,200 flights over a six day period.i The cancellations cost the airline
an estimated $20 million in revenue and $24 million in flight vouchers to customers
who were impacted by the disruptions.ii JetBlue founder and CEO David Neeleman
attributed the crisis to a combination of bad weather; inadequate communication
processes to direct the company’s 11,000 pilots and flight attendants on where to go
and when; an overwhelmed reservation system; and the lack of cross-trained
employees who could work outside their primary area of expertise in an emergency.
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whole or part.
Teaching Notes
JetBlue representatives issued repeated apologies in the days that followed the
meltdown at JFK, but these words did little to quell customers’ frustration. Worse,
members of Congress soon threatened to intervene if the airline industry failed to
take action. Neeleman challenged his executive team to develop a bold, compelling
solution to JetBlue’s newfound image problem. After considering multiple image
restoration strategies, JetBlue settled upon two: mortification and corrective action.
Mortification occurs when a party accused of causing a crisis admits responsibility for
the wrongful act and asks for forgiveness.iii Corrective action involves restoring the
situation to the state of affairs before the crisis and taking steps to prevent a
recurrence of the crisis.iv
The corporate communication team arranged for Neeleman to appear on more than
a dozen television news and talk show programs on February 20, including The Today
Show and The Late Show with David Letterman. Neeleman had already starred in
videos posted to JetBlue’s Web site and YouTube in which he said he was “humiliated
and mortified” by the company’s failures.v Through numerous written and spoken
mea culpas, Neeleman begged JetBlue’s customers for forgiveness.
The most daring component of Neeleman’s redemption plan was the JetBlue Airways
Customer Bill of Rights. The CEO described the bill of rights as a written covenant
between the company and its customers. The bill of rights specified in no uncertain
terms the monetary compensation customers would receive if JetBlue failed to meet
certain performance benchmarks, such as ground delays after landing. After days of
frenzied and contentious meetings, Neeleman and his team came to an agreement at
the conclusion of the weekend after Valentine’s Day. Neeleman announced the
groundbreaking and unprecedented initiative to the public on February 19, 2007.
Despite the best efforts of JetBlue’s leaders to make amends for the crisis, fallout was
inevitable. JetBlue founder David Neeleman ceded the CEO position to second-in
command Dave Barger on May 10, 2007, but retained his role as chairman of the
board.vi European carrier Lufthansa swooped in and announced the purchase of a
19% stake in JetBlue in December of 2007.vii
Time will tell whether JetBlue’s public apologies and its customer bill of rights are
enough to repair the company’s reputation among customers, employees, investors,
the government, competitors, and the media. Regardless of the outcome, JetBlue’s
bold strategies for image restoration promise to inform corporate communication
discourse for years to come.
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whole or part.
Teaching Notes
Assessing Critical Constituency Issues
Like all U.S. commercial airlines, JetBlue Airways serves and appeases a complex
network of interdependent constituencies. Company leaders must continually
evaluate the specific needs of each constituency and tailor outreach efforts
appropriately. JetBlue counts among its most important stakeholders:
• Customers. Bad weather and a series of miscues on the part of JetBlue officials
left hundreds of passengers stranded in planes on the tarmac at JFK
International Airport on February 14, 2007, while thousands more across the
country waited in vain to complete their travel. As the crisis unfolded,
Neeleman and his leadership team knew they had to find a way to make
amends to customers who were impacted by the service disruptions. Company
officials also had a broader public relations nightmare on their hands. JetBlue,
once regarded as the darling of the airline industry, became the punch line for
late night talk show hosts like Jay Leno. Now both disgruntled and unaffected
existing JetBlue customers – as well as members of the general public who
might one day fly with the airline – represent the focal point of the company’s
image restoration campaign.
• Employees. Even David Neeleman admitted that JetBlue let its employees
down in the wake of the operational crisis that began at JFK on Valentine’s Day
2007. Exemplifying JetBlue’s renowned customer-centric, “can do” attitude,
many of the company’s employees sought to help the carrier recover from the
meltdown. Their offers to assist were frequently lost or ignored, however, due
to communication breakdowns and flawed protocols. Internal communication
vehicles, such as company e-mail and the “Blue Notes” electronic bulletin,
were insufficient in helping JetBlue leaders connect with employees who were
willing and able to pitch in. Although new CEO Dave Barger and his staff have
vowed to correct internal communication gaffes uncovered by the 2007 crisis,
there is still work to do. JetBlue employees need to feel connected to leaders
and one another now more than ever, especially in light of the announcement
of the purchase of a 19% stake in the company by Lufthansa.
• Shareholders. With over a thousand flights cancelled in six days, JetBlue

investors knew the company would suffer financially from the Valentine’s Day
2007 crisis. What they did not know at the time: JetBlue was willing to do
whatever it took to win back customers who had been impacted by the service
disruptions. Tens of millions of dollars in refunds and travel vouchers were
issued to affected passengers. Soon David Neeleman was on national television
announcing a new initiative called the JetBlue Airways Customer Bill of Rights,
a program designed to attract and reassure customers. The financial impact of
the bill of rights, the CEO transition from David Neeleman
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whole or part.
Teaching Notes
to Dave Barger, and the Lufthansa investment all represent key ongoing issues
in the minds of JetBlue shareholders in 2008.
• Federal Government. JetBlue’s operational crisis as a result of the 2007

winter storm attracted significant media coverage, and in turn became a hot-
button issue on Capitol Hill. Several members of Congress soon took to the
airwaves to denounce JetBlue’s handling of the situation at JFK on Valentine’s
Day. Many promised to support legislation that would hold airlines
accountable for such transgressions. While many of the legislators were
appeased by Neeleman’s voluntary announcement of a customer bill of rights,
company leaders know that federal regulators and officials will continue to
keep a watchful eye on JetBlue and its industry counterparts.
• Competitors. Before its launch, low-fare upstart JetBlue shocked the legacy
carriers by announcing that every seat on its planes would come standard with
a personal television featuring satellite-fed live programming. Eight years
later, JetBlue again surprised its competitors by putting a laundry list of
performance guarantees in writing in the form of a customer bill of rights.
None of JetBlue’s rivals – not even those recently affected by similar weather-
related service disruptions – have announced intentions to follow suit.
Companies such as Delta, American, Southwest, United, and Continental will
surely follow the success or failure of JetBlue’s image restoration efforts with
great interest. Following a financially challenging 2007, JetBlue leaders must
continue to distinguish the carrier from its rivals and set the pace in a highly
competitive industry.
• Media. As the ice storm wreaked havoc on JetBlue’s operations in New York
on Valentine’s Day 2007, company officials witnessed firsthand how quickly
the media can turn on an industry favorite. Shortly after the crisis commenced,
broadcast, print, and online outlets churned out tales of woe from outraged
JetBlue customers. In the public eye, JetBlue was suddenly transformed from
an offbeat and customer-friendly low-fare carrier to what it feared most: just
another bumbling major U.S. airline. JetBlue leaders found themselves in the
midst of turmoil as 2007 progressed, and as media experts are quick to point
out, conflict sells. Media reports chronicled the change in executive leadership
at JetBlue, as well as the company’s shaky financial performance and
subsequent buy-in by Lufthansa. To effectively reach many of its other key
constituencies, JetBlue needs to find a way to stay in the good graces of the
media in 2008 and beyond.
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whole or part.
Teaching Notes
Articulating the Most Desirable Outcomes
• Restore the faith of disillusioned JetBlue Airways customers whose travel

plans were affected by the 2007 winter storm-related crisis
• Win over new customers by differentiating the company from legacy airlines
and other low-cost carriers
• Earn favorable coverage by U.S. media outlets as JetBlue continues to expand
• Reassure shareholders and Wall Street that JetBlue remains a viable and
promising vehicle for investment
• Ensure employees feel like they are empowered to perform their
responsibilities effectively, as well as contribute to recovery efforts in the
event of a crisis
• Convince federal government regulators and legislators that JetBlue’s top
priorities continue to include safety and customer service
• Continue to set the pace in the U.S. commercial aviation industry for high
performance and the implementation of innovative programs
Applying Communications Best Practices
The Page Society’s “Page Principles” can be effectively applied to the JetBlue case as a
means of evaluating their corporate communication:
• Tell the truth. JetBlue officials never attempted to deny the company’s
culpability in the operational meltdown that began at JFK International
Airport on Valentine’s Day 2007. While the crisis was initially caused by an
untimely ice storm in the northeast United States, company officials soon
revealed that errors in judgment and a lack of effective communication were
also at fault. The corporate communications team at JetBlue advocated the
image restoration strategy of mortification, whereby then-CEO David
Neeleman and other company spokespersons took responsibility for the crisis
and apologized to impacted customers.
• Prove it with action. “Talk is cheap,” said David Neeleman on February 19,
2007. “Watch us.”viii Neeleman backed up his talk with the announcement of
an ambitious new initiative less than a week after the onset of the crisis. The
JetBlue Airways Customer Bill of Rights represented a first for the U.S.
commercial aviation industry: a written agreement that stipulated the specific
compensation passengers would receive if the airline failed to meet certain
service levels.
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whole or part.
Teaching Notes
• Listen to the customer. After stumbling badly in the days that followed
February 14, 2007, JetBlue began methodically repairing the damage it had
caused by first listening to its loyal customer base. Many devoted JetBlue
customers were caught in the operational meltdown in New York and across
the country, and Neeleman vowed to win back as many of these air travelers
as possible. JetBlue employees listened to countless horror stories from
passengers who had been stranded aboard planes onthe tarmac at JFK for
hours. Officials heard from scores of other customers whose travel plans had
been derailed and those whose bags the airline had lost. JetBlue then set about
correcting its mistakes and taking steps to prevent a recurrence of the crisis.
• Manage for tomorrow. Although JetBlue officials saw the tide of public
opinion toward the company turn quickly following its so-called “Valentine’s
Day Massacre,” the goodwill it had generated since its launch eight years
earlier did serve to alleviate the situation. David Neeleman and his executive
team knew public apologies for the crisis would only go so far. After all, many
airlines had failed to fulfill promises to “make it right” after past
transgressions. The institution of JetBlue’s written bill of rights, however,
eschewed a short-term financial Band-Aid in favor of a long-term commitment
to the company’s valued customers.
• Conduct public relations as if the whole company depends on it. In this

instance, the very survival of JetBlue Airways was contingent on the success of
its public relations efforts. The company lost tens of millions of dollars in less
than a week and alienated scores of loyal customers thanks to the crisis.
JetBlue officials therefore knew that accountability and credibility would be of
paramount importance when formulating a strategy for restoring the
company’s reputation.
• Realize a company’s true character is expressed by its people. JetBlue’s

considerable annual expenditures on employee recruitment and training
seemed to payoff during this crisis. While some employees were hampered in
their efforts to help the company, many took it upon themselves to devise
solutions and workarounds in the absence of direction from JetBlue
headquarters. Case in point: the two JetBlue pilots who took a $360 taxicab
ride to upstate New York, flew one of the company’s idle jets to JFK
International Airport, and subsequently transported dozens of stranded
customers to their destination in Florida.ix Passengers on this make-up flight
heaped praise on the pilots and JetBlue received positive media coverage for
its employees’ heroics.
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whole or part.
Teaching Notes
• Remain calm, patient and good-humored. Perhaps the hardest time to

maintain one’s composure and sense of humor is during a crisis. Numerous
stories nevertheless emerged about the poise, patience, and creativity
exhibited by JetBlue employees aboard stranded planes, behind ticketing
counters, and in front of reporters’ microphones. For example, flight
attendants aboard delayed planes at JFK kept restless children busy by
allowing them to push the beverage cart and hand out snacks. For his part,
David Neeleman tried to appear at ease and confident during his appearances
on television programs such as The Today Show and The Late Show with David
Letterman.
Discussion Questions
1. What image restoration strategies should JetBlue Airways employ to rebuild

its reputation as a customer-centric company?
2. If you were in charge of JetBlue’s external communication effort, how would
you try to make amends with customers who were delayed aboard planes or
in terminals for hours?
3. How could JetBlue have better communicated with its internal stakeholders
across the country on Valentine’s Day and during the days that followed?
4. When addressing the company’s stakeholders, how much blame for the crisis
would you place on the inclement weather on Valentine’s Day?
5. What is the best way to publicly explain the hundreds of additional flight
cancellations that were necessary because of JetBlue’s decision to “reset” its
operations?
6. Should the corporate communications team at JetBlue arrange for CEO David
Neeleman to appear on the national television news and talk show circuit
following the crisis? What are the potential benefits and risks to the company’s
reputation?
7. What are the financial and reputational risks of publicly committing to an
initiative like the JetBlue Airways Customer Bill of Rights?
8. What concerns might JetBlue’s shareholders as well as members of its legal
and finance departments have about a proposed JetBlue Airways Customer
Bill of Rights?
9. Could JetBlue ever retract its Customer Bill of Rights once it is made public?
10. If implemented, how would you market the JetBlue Airways Customer Bill of
Rights to external and internal stakeholders?
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whole or part.
Teaching Notes
i Elsasser, J. (2007). True blue: After a customer relations crisis, lessons learned at
JetBlue. Public Relations Strategist, 13(3), 14-19.
ii Ibid.
iii Benoit, W. (1995). Accounts, excuses, and apologies: A theory of image restoration
strategies. Albany, NY: State University of New York Press.
iv Ibid.
v Bailey, J. (2007, February 20). JetBlue to begin paying penalties to its stranded
passengers. The New York Times, p. C1.
vi JetBlue Airways names Dave Barger president and chief executive officer. (2007,
May 10). Retrieved November 2, 2007, from

http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irolnewsArticle&
ID=998672&highlight=
vii Lufthansa to Make Equity Investment in JetBlue; Will Buy Up to 19% Stake For
$7.27 Per Share. (2007, December 13). Retrieved December 26, 2007, from
http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irolnewsArticle&
ID=1087283&highlight=
viii Bailey, J. (2007, February 19). Chief 'mortified' by JetBlue crisis. The New York
Times, p. A11.
ix Daly, M. (2007, February 18). How two pilots put silver lining in JetBlue clouds.
New York Daily News, p. 12.
4-12
whole or part.

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Chapter 04 - Identity, Image, Reputation, and Corporate Advertising

Corporate Communication 6th Edition

An interesting twist on these exercises would be to look at some of the anti-corporate

The step-by-step guide to managing identity is another opportunity for an exercise.

Another exciting approach is to look at the reputation or image of your college or

Purpose of the Case Study

1. To describe how an unexpected crisis can threaten the reputation of a highly

Identifying the Business Problem

Assessing Critical Constituency Issues

• Shareholders. With over a thousand flights cancelled in six days, JetBlue

• Federal Government. JetBlue’s operational crisis as a result of the 2007

Articulating the Most Desirable Outcomes

• Restore the faith of disillusioned JetBlue Airways customers whose travel

Applying Communications Best Practices

• Conduct public relations as if the whole company depends on it. In this

• Realize a company’s true character is expressed by its people. JetBlue’s

• Remain calm, patient and good-humored. Perhaps the hardest time to

1. What image restoration strategies should JetBlue Airways employ to rebuild

May 10). Retrieved November 2, 2007, from

New York Daily News, p. 12.

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