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EJM
56,10 Dynamic brand positioning: a
firm-customer synergistic
strategy of brand meaning
2774 cocreation in a
Received 31 October 2021
Revised 29 April 2022
hyperconnected world
30 June 2022
31 July 2022 Jiaxun He and Fan Zhang
2 September 2022 Faculty of Economics and Management, East China Normal University,
Accepted 3 September 2022
Shanghai, China and Institute for Nation(al) Branding Strategy,
East China Normal University, Shanghai, China

Abstract
Purpose – This study aims to explore how cocreated brand meaning builds and affects dynamic brand
positioning in a hyperconnected world.
Design/methodology/approach – The authors conducted a qualitative study of Casarte, a high-end
appliance brand, as an instrumental case for conceptualizing and theorizing. This study constructs a matrix
of dynamic brand positioning as the key analysis framework using in-depth interview data, firm materials
and user-generated content from online brand communities.
Findings – The matrix of dynamic brand positioning has two dimensions: brand core and peripheral meaning,
and firm- and customer-led orientation. The interaction between the firm and its customers strengthens the
understanding of a brand’s core meaning and consistency perception, expands the scope of brand peripheral
meaning and improves the perception of brand meaning diversity. The mutual transformation of the
ambidexterity of core and peripheral meanings facilitates the dynamic positioning of brands.
Research limitations/implications – This study is a qualitative case study; the relevant conclusions
have not been tested empirically. If longitudinal data of actual tracking support the effect of dynamic brand
positioning, the theory’s reliability can be more rigorously tested.
Practical implications – It provides managerial logic and a tool for firms to practice dynamic brand
positioning in a hyperconnected world, which contributes to the implementation of the emerging firm-
customer synergistic strategy.
Originality/value – This study proposes a construct of dynamic brand positioning supported by
qualitative evidence. It disputes the traditional view that brand positioning is determined by the perception of
core meaning consistency and creatively puts forward the view that brand positioning evolves dynamically
with the mutual transformation of the ambidexterity of brand core meaning and peripheral meaning.
Keywords Brand meaning cocreation, Brand positioning, Dynamic capability,
Hyperconnected world, Marketing strategy
Paper type Research paper

Introduction
The method of brand meaning construction and positioning is changing with the
widespread use of social media marketing (Borges-Tiago et al., 2021; Koay et al., 2022;
European Journal of Marketing
Vol. 56 No. 10, 2022
pp. 2774-2803
© Emerald Publishing Limited This article was supported by the National Natural Science Foundation of China (Grant No. 72072059;
0309-0566
DOI 10.1108/EJM-10-2021-0813 Grant No. 71772066).
Koivisto and Mattila, 2020). This is entirely different from firms’ independent development Dynamic
of unified brand positioning and value proposition and the subsequent conveying of brand brand
meaning to the customer. Social media provides two-way communication channels that
enable instantaneous sharing of different types of content between brands and customers
positioning
(Hollenbeck and Kaikati, 2012), and such exchanges alter the approach and process of
meaning creation (Muniz and Schau, 2005). Given the ubiquitous and fragmented digital
marketing channels, the brand image perceived by customers will not necessarily be the
consistent one conveyed by firms, but a complex, scattered, different and dynamic brand 2775
image. Firms can no longer buy off and control all communication channels with the
emergence of owned and earned media and the increase of information carriers (Verhoef
et al., 2021). It is also difficult for firms to deliver consistent brand information to customers
based on their inherent brand positioning (France et al., 2021), which triggers a difference in
brand perception between firms and customers (Iglesias and Bonet, 2012). Thus, the original
immutable brand positioning strategy seems unable to adapt to this hyperconnected
environment. This is different from product positioning at the marketing mix (4Ps: product,
price, place and promotion) level: brand positioning gives the additional brand value besides
product value at the strategic level (He, 2021); that is, brand connotation or meaning is the most
important part of brand positioning (Han and Zhao, 2004; He, 2021). Therefore, customer
engagement and the generation of brand meaning in the hyperconnectivity era have had a
fundamental impact on the practice of brand positioning, which is worthy of further study.
In recent years, brand meaning has played a fundamental role in the theory of brand and
branding (Batra, 2019; Swaminathan et al., 2020), and scholars have paid considerable
attention to brand meaning cocreation in the hyperconnected world. First, existing studies
have suggested that customers contribute to the cocreation value of brands through
experience and cognitive and emotional feedback in a digital environment (Choi et al., 2016;
Payne et al., 2008). However, what is the composition of brand meaning cocreation? How can
the gap between firm-intended and customer-perceived brand meaning be narrowed down
in the hyperconnected environment? Scholars have scarcely explored these issues.
Second, the new research direction on brands and branding in the hyperconnected world
proposes that the blurring and expansion of brand boundaries inspire scholars to focus on
how much control firms should relinquish over the brand meaning perception in the process
of cocreation and the impact on brand positioning (Swaminathan et al., 2020). However, no
scholars have conducted further research on this issue.
Finally, traditional brand positioning practice should be reconsidered considering the
brand cocreation trend in the hyperconnected era and the important role of brand meaning
evolution in brand positioning. Extant research has only explored the cocreation value of
brand meaning from the perspective of customer perception (Hamzah et al., 2021; He et al.,
2021; Kemp et al., 2021; Nangpiire et al., 2021) but did not consider the critical influence of
brand meaning cocreation on the practice of brand positioning at the strategic level.
Scholars have recognized that brand positioning is not static (Jewell and Saenger, 2014) but
have not considered the extraordinary contribution of coevolution theory and dynamic
capability that may explain the practice of brand positioning.
Given the limited studies in brand meaning cocreation and brand positioning, this
study explores how cocreated brand meaning drives brand positioning dynamically in the
hyperconnected world using a case study. In contrast to previous studies, this study explores the
dimensions of brand meaning, classified into core and peripheral meaning, and proposes a new
construct and analysis framework called dynamic brand positioning. Based on this approach, the
firm-customer synergistic strategy reveals the managerial power and the organizational actions
to guide the practice of dynamic brand positioning in a hyperconnected world.
EJM Literature review
56,10 Brand and branding in the hyperconnected world
Brand and branding work involve all operations and management at the firm level (He,
2021). Scholars generally believe that theoretical research on brand and branding has two
corresponding perspectives: firm and customer (He, 2016; Swaminathan et al., 2020).
However, factors may differ in the context of hyperconnectivity. The concept of
2776 hyperconnectivity refers to the proliferation of networks of people, devices and other
entities, as well as continuous access to other people, machines and organizations using
multiple means of communication, regardless of time or location (Quan-Haase and Wellman,
2005). The nature of hyperconnectivity makes it easier for customers to interact with a firm,
unlike the traditional way of building brand meaning in which customers passively receive
brand information and generate a brand image in their minds (Pulh et al., 2019).
Existing research suggests that hyperconnectivity has led to three major changes in
branding. First, hyperconnectivity results in the “blurring” of branding boundaries
(Swaminathan et al., 2020) and cocreation among stakeholders (Sarasvuo et al., 2022).
Specifically, brands are shifting away from single to shared ownership, as the heightened
access to messages and people allows more stakeholders to cocreate brand experiences and
meanings alongside traditional brand owners, which makes firms no longer the primary
source of brand messages (Swaminathan et al., 2020). As marketers lose control of brand
meaning perceived by consumers, more brand-related stakeholders are involved in shaping
brand associations and images (Swaminathan et al., 2020).
Second, hyperconnectivity allows existing brands to broaden their geographic reach and
enrich brand meaning (Batra, 2019; Swaminathan et al., 2020). On the one hand, entities
other than corporations (e.g. ideas, people) are becoming more systematic in their branding
efforts (Thomson, 2006), and firms can not only establish contact with their stakeholders
(Swaminathan et al., 2020) but can also establish cross-border alliances with other firms and
brands to expand their business scope (Golesorkhi et al., 2019). On the other hand, many-to-
many communications on ubiquitous social media platforms have ushered in an era in
which dynamic and real-time conversations occur among consumers on a massive scale
(Berger and Milkman, 2012; Tellis et al., 2019). More importantly, such user-generated
content (UGC) has allowed marketers to derive unique insights into customer needs and
wants, thus enriching brand meaning (Netzer et al., 2012).
Third, brand cocreation value is very prominent in the hyperconnected environment. As
mentioned earlier, the channels for customers to connect with businesses have increased,
and they actively, rather than passively, access brand information in a hyperconnected era
(Herhausen et al., 2019); conversations taking place among consumers have allowed
marketers to derive unique insights into customer perceptions and needs (Netzer et al., 2012;
Swaminathan et al., 2020). Managers then learn their perceptions and selectively apply them
to develop better products and services. Customers who accept newly provided products or
services contribute to value cocreation (Choi et al., 2016). In addition, customer interaction
(i.e. the communication of brand information and meaning perception) not only shows the
importance of successful value cocreation (Payne et al., 2008; Wang, 2021) but also
significantly influences the evolution of brand positioning.

Brand meaning and brand meaning cocreation

Brand meaning is an overall subjective perception and complete associative network of
a brand in consumers’ memories (Escalas and Bettman, 2005; Keller, 2003); it is the
psychological connection between brand name, image and cognition in consumers’
impressions (Holt, 2002; Keller, 2003).
 Scholars often confuse brand meaning with brand personality, brand value and other Dynamic
concepts (Batra, 2019). We summarize the concepts and relationships related to brand brand
meaning in Table 1.
Studies have shown that brand identity is essential in acquiring cultural meaning
positioning
(Fournier and Alvarez, 2019). From the concept of brand meaning presented in Table 1,
brand association refers to consumers’ perception of a brand’s core and peripheral meanings
(He, 2021). Brand personality is a group of brand-related human characteristics (Aaker,
1997) and is the abstract result of consumers’ perception of brand meaning; that is, the scope 2777
of brand meaning is much larger than that of brand personality (Batra, 2019). Brand
personality is only generalized from a part of the perceived brand meaning associated with
the metaphor of people’s personality. Furthermore, scholars have argued that brand value is
the final judgment of brand meaning agreed upon by brand managers (He et al., 2018;
Schwartz, 1992). Therefore, in practice, brand meaning is a theoretical concept that is
generally more abstract and holistic. It can also be seen as the connection and core hub of a

Constructs Definition Relationship with brand meaning

Brand meaning An association network of brands

(Holt, 2002; Keller, 2003), subjective
perception and impression of what a
brand is in consumers’ minds (Escalas
and Bettman, 2005)
Brand identity Brand identity as a unique set of
associations and benefits that the
brand offers the consumer (Aaker,
1996), which refers to the eternal
essence, nature and value of a brand
(Aaker and Joachimsthaler, 2000)
Brand association Brand association refers to the
associations a consumer holds about a
brand in memory (Romaniuk and
Nenycz-Thiel, 2013), representing
consumers’ overall impressions of a
brand (Barich and Kotler, 1991). They
can be understood as points-of-parity
associations and points-of-difference
associations used to guide the
formulation of brand positioning
(Keller, 2013)
Brand personality A set of human-like characteristics
associated with a brand (Aaker, 1997)
Brand values Brand values can be viewed as abstract
brand concepts that represent human
values (Torelli et al., 2012), which are
the basic beliefs and goals brands
advocate in pursuing business success
(Schwartz, 1992)
Brand positioning It is to find a unique place for the brand
in the consumer’s mind (Alden et al.,
1999; Ries and Trout, 1981), which is
supported by the actions taken by the
firm (Kotler and Keller, 2016)
It provides the brand’s direction,
purpose and meaning (Aaker and
Joachimsthaler, 2000), and a way to
gain brand meaning (Fournier and
Alvarez, 2019)
A mixed perception of the core
meaning and peripheral meaning of
brands is driven by the actions related
to a certain brand associations (He,
2021)
It is a part of the brand meaning
associated with the metaphor of
people’s personality (Batra, 2019)
It is a highly abstract form of brand
meaning, reflecting the purposive value
of brand meaning (He et al., 2018;
Schwartz, 1992)
It is the strategic meaning of the brand
and represents the result that the firm Table 1.
wants customers to perceive and Brand meaning:
understand (He, 2021) related concepts and
relationships
EJM series of related concepts, given the more direct and close two-way relationship between
56,10 brand meaning and brand positioning: the core meaning of a brand is the interpretation and
expression of brand positioning (He, 2021). Thus, this study discusses dynamic brand
positioning based on brand meaning rather than other constructs.
The sources of brand meaning. McCracken (1986, 1989) argues that firms transfer brand
meaning to products and then to consumers; however, a brand can acquire cultural meaning
2778 in many sources in hyperconnectivity (Swaminathan et al., 2020).
Tangible and intangible. From the perspective of product form, brand meaning comes
from tangible and intangible elements of brands or products, and the generated brand
meaning of the two sources is transformed into each of them. Specifically, brand meaning
comes not only from the tangible elements of the product itself, such as product-related
attributes, packaging, logos, product category associations, brand names, symbols,
advertising messages, product quality, color and function (Aaker, 1997), but also from
intangible elements, such as brand image, reputation, style and anthropomorphization
(Batra, 2019; Batra et al., 1993). The brand meaning acquired by customers from tangible
elements of a product may affect the perception of intangible elements of a brand;
conversely, brand meaning in intangible elements can affect the perception of brand
meaning reflected by tangible elements (He, 2021).
Utilitarian and hedonic. From the perspective of product attributes, brand meaning
comes from both the utilitarian and hedonic attributes of goods. It has been shown that the
hedonic attributes of products are more likely to stimulate customers’ perceptions of brand
image, while the utilitarian attributes of products are more likely to inspire customers’
perceptions of brand quality (Lim and Ang, 2008). As mentioned above, both tangible
(quality) and intangible (image) elements of a brand are the sources of brand meaning; thus,
we speculate that both the utilitarian and hedonic attributes of products are related to the
generation of brand meaning. Furthermore, perceptions of brand meaning from utilitarian
and hedonic attributes have different effects on consumers’ attitudes toward the brand
(Homer, 2008).
Firm-led and customer-led. From the standpoint of product owners, extant research
shows that brand meaning comes not only from firms but also from customers
(Swaminathan et al., 2020). For a company, choosing appropriate brand values may help
them to establish brand image and positioning (Keller, 1993), while the symbolic meaning
reflected by brand values can also help consumers build their identity (Torelli et al., 2010);
brand purpose is tightly linked to the brand’s culture and values; a clearly articulated
purpose shapes the vision, goals and strategies providing guidance and direction
(Gartenberg et al., 2019); and the positioning hierarchy of brand portfolios (from top to
bottom, luxury brand, high-end brand, mid-range brand and mass brand) results in
significant differences in brand pricing and consumer targets so that each brand is endowed
with different meanings (He, 2021). Besides tangible and objective brand features,
consumers also look for subjective and conceptual human-like cues, categorizing brands
based on their style and tone and the meanings they communicate (Aaker, 1997; Batra,
2019). Generally, consumers construct multiple meanings depending on their values, social
variables, consumption contexts and frames of reference (Mick and Buhl, 1992).
However, compared with the traditional views, the source of brand meaning may come
more from the collaboration between firms and customers in hyperconnectivity
(Swaminathan et al., 2020), where all the sources are potential factors affecting the position
of brands in consumers’ minds. Therefore, it is worthwhile to explore the driving effect of
brand meaning from the synergistic perspective of firms and customers.
 Core and peripheral meanings of brand. We explored the source of brand meaning from Dynamic
the standpoint of consumer perception above, but this is far from sufficient in brand
hyperconnectivity; thus, a strategic perspective of brand meaning classification needs to be
discussed. Traditionally, a large number of studies have focused on the characteristics,
positioning
classification and different impacts of content generated on social media (García-de-Frutos
and Estrella-Ramon, 2021; Puligadda et al., 2021; Rasool and Pathania, 2021; Sheiner et al.,
2021; Soylemez, 2021), but from the strategic management perspective, it is critical to divide
the brand content into core and peripheral meanings. 2779
Following the pioneering research of Asch (1946) and Gestalt psychology (Koffka, 1999),
the kernel theory holds that a brand is a system composed of kernel traits and secondary
traits: the kernel traits are the nonconditional and necessary traits of a brand. The core value
of a brand is a core communication concept condensed by in-depth consumer research
regarding firms’ resource and capability advantages. It can help brands find their positions
in consumers’ ideologies. Secondary traits are conditional and may or may not exist
depending on product segmentation or extension (Kapferer, 2012). In terms of the long-term
development of a brand, secondary traits may transform into kernel traits in certain
situations and conditions (Asch, 1946; Kapferer, 2012). Furthermore, following ascription
theory, consumers’ perceptions of the object’s uses, affiliations and identity are changeable
by varying the context within which an object (or brand) is displayed (Kleine and Kernan,
1991). This suggests that meaning ascription is neither top-down nor bottom-up but rather a
middle-out process (Kinchla and Wolfe, 1979), reinforcing the view that brand meaning is
cocreated (Thomson, 2006). According to the meaning ascription and kernel theory, this
study divides brand meaning into core and peripheral meanings from the perspective of
marketing and strategic management in the hyperconnected world.
Traditionally, scholars have viewed online brand meaning as dynamic textual
expressions of what stakeholders have in mind about a brand (Hatch and Rubin, 2006) and
argued that brand positioning needs to show the core brand value, which is the
interpretation and expression of brand positioning, while the peripheral meaning of the
brand is not used for brand positioning (Alden et al., 1999; Hollenbeck et al., 2008). However,
in a hyperconnected world, a brand’s core and peripheral meanings undergo more
interactive evolution (He, 2021). Consumers’ views of brands generated by their interactions
constitute a significant part of the peripheral meaning of brands and have an important
influence on consumer experience. This means that the peripheral meaning of brands
impacts brand positioning, which challenges traditional brand positioning theory and its
practice.
Brand meaning cocreation. As discussed above, brand meaning is generated by the
interaction between the consumer and the brand and the formal and informal
communication about brands in the hyperconnected context (Swaminathan et al., 2020);
thus, the concept of brand meaning cocreation can be viewed as a process in which multiple
actors collaboratively engage in brand meaning creation (Tierney et al., 2016). Table 2
summarizes the literature related to brand meaning from two aspects: research
contributions and limitations.
It can be seen from Table 2 that although existing studies have paid attention to the
source, process and influencing factors of brand meaning cocreation between firms and
customers, few studies have examined its effects and results (Berthon et al., 2009; Iglesias
and Bonet, 2012; Tierney et al., 2016). There is also a lack of research on the level of
involvement of firms and customers in the process of brand meaning cocreation (Dean et al.,
2016). Furthermore, some scholars have noticed that brand meaning is no longer static
due to the increased interaction between the brand and customers in the digital era
EJM Contributions
56,10
How brand meaning is cocreated (Brodie et al., 2017;
Fournier and Alvarez, 2019; Iglesias et al., 2019)
Brand meaning gaps exist, and its dynamics are led
by brand touch points changing (Berthon et al., 2009;
Iglesias and Bonet, 2012)
2780 The crucial role of brand cocreation in guiding
employees’ brand promise delivery (Dean et al., 2016)
Brand meaning results from simultaneous
interactions (Baker et al., 2022; Choi et al., 2016;
Vallaster and Von Wallpach, 2013)
How shared and stable brand meaning is generated
(Eckhardt et al., 2015)
Branding as a dynamic capability enables an actor to
facilitate meaning creation (Brodie et al., 2017;
Iglesias et al., 2019)
Table 2. How cocreated brand meaning evolve (Tierney et al.,
Summary of brand 2016)
meaning cocreation
literature
Limitations
Lack of research on the role and effect of the
cocreated brand meaning
It only emphasizes the gaps in brand meaning
perception between employees, firms and
customers, not focusing on the effect of the gaps
Not exploring how brand meaning is negotiated
in social interactions
Lack of research on the role and participation
degree of firms and customers in the interaction
Only the consistency of brand meaning
perception is considered, but lack of discussion
of the diversity
Although the relationship between dynamic
capability and brand meaning creation is
discussed, the role and influence of cocreating
meaning are not discussed
The evolution of cooperative brand meaning is
only discussed from the interaction perspective
but lacks a further discussion on the role and
consequence of brand meaning evolution

(Hollenbeck et al., 2008; Iglesias and Bonet, 2012; Swaminathan et al., 2020). Therefore, the
dynamic capability of a firm has an important impact on brand meaning cocreation (Baker
et al., 2022; Brodie et al., 2017; Choi et al., 2016; Iglesias et al., 2019; Vallaster and Von
Wallpach, 2013); that is, the narrowing of the difference in brand meaning perception
between the firm and the customer is the driving force for brand meaning cocreation (Brodie
et al., 2017; Fournier and Alvarez, 2019; Iglesias et al., 2019). However, there is no further
study on how and to what extent firms and customers can affect the diversity and
consistency of brand meaning perception, let alone on how changes in the brand meaning
perception gap affect the evolution of brand positioning.

Brand positioning, coevolution and dynamic capability

Traditional brand positioning needs to be reconsidered in view of the brand cocreation trend
in a highly connected environment and the significant evolution of brand meaning. In
marketing, positioning is considered an action taken by a company for its product or image
to occupy a unique position in the mind of target customers (Kotler and Keller, 2016), but
how should these actions change and adjust in a volatile environment?
Scholars have noted that brand positioning is not static (Jewell and Saenger, 2014). In a
volatile marketplace, a firm must proactively manage its brand position to retain its
advantage (Punj and Moon, 2002), which may require modification of its original positioning
over time (Danneels, 2011; Porter, 1996). Over time, as the brand strengthens associations
with the attributes that comprise its existing positioning, the familiar brand simultaneously
precludes associations with new attributes (Jewell and Unnava, 2003). Consumers may reject
any new attribute association they perceive as incongruent with a familiar brand’s existing
positioning (Desai and Ratneshwar, 2003; Herr et al., 1983). Thus, brand association is
congruent, defined as the extent to which a brand association shares content and meaning
with another association (Keller, 1993). Extant research on brand positioning considers
competitors’ differences and external market environment factors, but given the long-term Dynamic
nature of the strategy, research on the evolution and approach of brand positioning in brand
marketing management is lacking.
Coevolution theory emphasizes the interdependence between two subjects, specifically
positioning
referring to a trait of one species evolving in response to a trait of the other and vice versa
(Ehrlich and Raven, 1964). This theory is best poised to explain how firms create meaning
with their customers; that is, the brand meaning perceived by consumers is reinterpreted
and recycled at each point of contact in the brand interface defined by consumers and firms 2781
(Iglesias and Bonet, 2012), in which continuous interaction between them cocreates brand
meaning (Ramaswamy and Ozcan, 2016). In addition, dynamic capability theory can explain
a firm’s dynamic and evolving resources and capabilities to support brand positioning
(Danneels, 2011). In marketing management, the brand positioning strategy emphasizes that
firms should develop all marketing mix elements so that the product features match the
selected target market (He, 2021; Kotler and Keller, 2016), which involves the firm’s
resources and capabilities. The dynamic capabilities framework analyzes the sources and
methods of wealth creation and capture by firms operating in environments with rapid
technological changes (Teece et al., 1997). Therefore, in the hyperconnected world, the
resources and capabilities of collaboration between firms and customers support dynamic
brand positioning, which requires us to borrow dynamic capability theory in strategic
management.
Existing research mainly focuses on the direct interaction between firms and consumers,
their dynamic capability and the role of consumers in brand value (Jewell and Saenger,
2014), but scholars have not considered the application of collaborative dynamic capabilities
to brand positioning research. From the perspective of dynamic capability, brand
positioning is the unique core value of the brand reflected in the collaborative construction
of brand meaning between firms and consumers. Through brand positioning, firms deliver
brand messages to consumers who perceive the information and shape a brand image in
their minds. In continuous information interaction, brand meaning cocreation results from a
firm’s brand positioning. This brand positioning, in turn, stimulates the generation of
meaning perception among consumers, which, in turn, affects brand positioning and
facilitates the adjustment and evolution of the brand positioning strategy.

Methodology
Research object and method
This study used a qualitative research methodology, conducting a single case study
designed through a data-processing approach based on grounded theory. Firm-consumer
joint construction of brand meaning is a dynamic, gradual and iterative process, and the
case study is more suitable for analyzing the process and mechanism issues. In addition, the
case study is helpful in discovering the micromechanism that cocreated brand meaning uses
to constantly drive the evolution of brand positioning, which is more suitable for
constructing a dynamic process model (Yin et al., 2002).
Following the typicality and theoretical sampling principles, the study selected Casarte, a
high-end brand of Haier Group, as the research object. There are four main reasons for
choosing Casarte. First, Casarte is a prestigious household appliance brand recognized as a
high-end brand leader in the home appliance industry in China. With digital marketing as its
core strategy from the beginning of its establishment, it is highly in line with our
hyperconnectivity research context. Second, although Casarte is a household appliance
brand, its product types and consumption scenes are diverse. Most importantly, it is a
representative brand whose products are utilitarian and hedonic, which is conducive to our
EJM research on the source of brand meaning cocreation. Third, existing research shows that the
56,10 Haier group has a remarkable capability to cocreate an innovative business model, and
Haier’s Casarte has high customer loyalty in the market because of its high-quality customer
service (Liu and Li, 2002). Thus, loyal customers may have witnessed its long-term growth
and development, contributing to the study of dynamic brand positioning. Finally, Casarte
is better at interacting with customers who actively write high-quality shopping notes, more
2782 than 30,000 a year. Casarte records the journey of its customers in written form, and its user
stories have been updated to the fourth issue, which helps in data collection.

Data collection and analysis

To ensure the credibility of the case study, the study strictly followed the triangulation
validation strategy (Flick, 1992) of data collection, and various methods were used to ensure
long-term tracking of Casarte, accumulating relatively comprehensive data. There were five
main sources of data, including primary and secondary data. The first is in-depth
interviews: the data obtained from Casarte (coded as FI), its clients (coded as CI) and its
customers (coded as UI); the clients are Casarte’s sales agencies. The second is the field
observation of Casarte (coded as A1), its clients (coded as B1) and users (coded as P1). The
third is informal interviews with Casarte (coded as A2) and its clients (coded as B2) and
users (coded as P2). The fourth is firm external documents, including Casarte’s official
website (coded as A3), news media coverage (coded as B3) and social media platform (P3;
e.g. related information about Casarte on Weibo and WeChat). The fifth is Casarte’s internal
documents, including user stories (coded as A2), user consumption experience records
obtained from Casarte’s official website, as well as public documents (coded as B4), such as
the “Casarte brand publicity in 2021” and video of Casarte’s small private party obtained
from a Casarte brand manager in Shanghai and “Interaction unified standards of Casarte’s
product sales terminal in 2020” obtained from a Casarte retail manager. Table 3 presents the
results.
To collect the primary data, the authors visited Casarte and its loyal customers and
conducted in-depth interviews four times from 2020 to 2022. Specifically, the authors
interviewed a brand director (FI-01) and four employees (coded as FI-02, FI-03, FI-04 and FI-
05) at Shanghai headquarters in December 2020, visited three sales agencies (coded as CI-01,
CI-02 and CI-03) in Shanghai in April 2021 and interviewed four regular customers in
Casarte’s stores in Shanghai in July 2021. Finally, in January 2022, a return visit was made
to Casarte’s director (FI-01), one employee (FI-04) and two users (UI-03 and UI-02) who had
been visited previously. The average interview time was 76 min. The interview content
mainly involved brand meaning perception, brand communication, consumer interaction

Code
Firm Customer
Data sources Data classification Casarte Casarte’s clients Casarte’s users

Primary data In-depth interview FI CI UI

Field observation A1 B1 P1
Informal interview A2 B2 P2
Secondary data External documents A3 (official website) B3 (media reports) P3 (social media
Table 3. platform)
Framework of case Casarte’s internal A4(user stories) B4 (publicity
data coding documents documents)
approaches, brand positioning and brand operation management. During the interviews, we Dynamic
recorded the main points in written form and taped them at the same time with the consent brand
of the interviewees. After the interviews, the sound recordings were sorted; the recorded
documents totaled about 190,000 words in Chinese, as shown in Table 4.
positioning

Data coding, reliability and validity

Following analytical recommendations of existing case studies on qualitative data, the data
coding and analysis process was divided into three phases: data reduction, display and
2783
conclusion and verification (Voss et al., 2002; Whittemore and Knafl, 2005), which were
carried out iteratively and interdependently. In the conclusion and verification stage, if
insufficient data or incomplete logic is found, we return to the data collection stage to
supplement key data or track and correct unlikely data.
Specifically, the cocreated meaning and dynamic brand positioning discussed in this
study are relatively abstract, and the data collected need to be interpreted and understood in
a certain background environment. First, a coding analysis was conducted on interview
records and secondary data. Then, according to the grounded theory data processing
program, the data were analyzed through “open coding, principal axis coding, and selective
coding” (Strauss and Corbin, 1998). To ensure the reliability and validity of the study, the
encoding process strictly followed the grounded theory category induction and model-
building steps to conceptualize and categorize the interview data and make revisions and
deletions based on expert opinions to avoid the influence of the coder’s subjective opinion on
the coding results and improve coding objectivity.
In open coding, 638 original sentences were obtained from the brand-meaning category
based on synergic construction between firms and customers. The “original” rule was
adopted to name the initial concepts, and 253 initial concepts were reduced into 10 core
concepts. Finally, four categories were formed by comparing, refining and integrating
similar concepts. Next, the principal axis coding combined the categories obtained from
open decoding and concluded with four categories of cocreated brand meaning from which
two main categories were extracted: brand core meaning and brand peripheral meaning.
The final step was selective coding. The core category was extracted from the main
category, and a grounded theory model was constructed after system integration. Based on
this, the study constructs a dynamic brand positioning matrix according to the extracted
main category, category and core concepts.

Research findings
Source of brand meaning cocreation
The analysis of our data suggests that cocreated brand meaning is composed of a matrix of
firm- and customer-led core and peripheral meanings. The firm-led core meaning is
embodied in the brand purpose, positioning and value proposition, while customer-led
orientation is reflected in core brand associations, key customers and main user
characteristics. In addition, firm-led brand peripheral meaning is generated from brand
themes, personality, style and tone, whereas customer-led brand peripheral meaning is
generated from brand imagery, brand community identity and scene-based meaning. In
continuous interaction, the core and peripheral meanings of brands are influenced and
transformed by each other, promoting the evolution of dynamic brand positioning.
Firm-led core meaning. The core meaning of the firm-led orientation is the consistent
meaning determined by the firm according to its strategy for the brand’s long-term
development. It is the core component of the brand positioning message and the core source
of the brand’s added value (Keller, 1993). Furthermore, the brand core meaning can be
 EJM
56,10

2784

Table 4.

interviews
Profile of in-depth
Firm interview
Position Length of
No. Gender Education Position time/years Interview content interview/mins

FI-01 Female Bachelor Brand marketing director 8 Company mission, vision and values, organization 166
mode, marketing activity’s theme, brand imagery
FI-02 Female College Team leader 10 Customer interaction and relationship 105
FI-03 Male Bachelor Store manager 8 Firm-customer touch points, brand imagery 90
FI-04 Female Bachelor Operations manager 6 Operation pattern, brand imagery, consumption 152
experience
FI-05 Male Master Product engineer 5 Operation pattern, brand imagery 34
CI-01 Male Bachelor Business partner 10 Customer value and relationship, brand imagery 63
CI-02 Male Bachelor Sales manager 5 Customer value and relationship, brand imagery 42
CI-03 Male Bachelor Sales manager 8 Customer value and relationship, brand imagery 70
UI-01 Female Master Housewife 2 User characteristics, consumption experience, brand 34
imagery
UI-02 Female Master Clerk 10 Customer value, interaction ways, brand imagery 43
UI-03 Male Master Company boss 5 Customer value, interaction ways, brand imagery 47
UI-04 Male Doctoral Lecturer 2 User characteristics, consumption experience, brand 40
imagery
viewed as the brand congruent core association that the firm wants its target customers to Dynamic
feel. brand
Brand purpose. Firm-led orientation refers to the role and power of the firm in leading the
collaborative cocreation process as the customers follow the firm’s ideal and purpose. Firms
positioning
should not only consider meeting customers’ needs when determining their mission and
vision but also go beyond their needs and consider their long-term and societal values
(Smith and Stevens, 2010). Brand purpose is the embodiment of the long-term and social
values pursued by a firm at the business and product layers. In view of the similar nature of
2785
brand purpose and corporate mission and vision – a kind of strategic orientation of value
and long-term development – brand purpose will not constantly change with changing
customer needs but is led by the firm, and it is stable and long-term (A1).
Brand purpose is indispensable and usually covers multiple product categories, product
lines or product types. Different products have various ingredients, attributes, functions and
benefits. The brand name used in various products must have a unified brand purpose as
the lead. This purpose must be concise and highly inclusive, as it also shows the core nature
of the brand. Brand purpose is an abstract form of meaning beyond a specific product value,
which is the source of brand added value (Keller, 1993). It usually goes beyond the rules of
the product life cycle and plays a role in the fundamental goal of leading the brand’s long-
term development:
Casarte creates a whole ecological brand for all the people to co-create and integrates users,
customers, firms, and pre-type cooperation resources to realize the comprehensive transformation
from a self-created brand to a co-created brand (A4).
Casarte’s brand purpose is unique, and from our data, it is also a component of its brand
identity. This brand purpose not only summarizes the clear goal of Casarte to implement the
business’s ecological model but also emphasizes its pursuit to coordinate the various actors
in the ecological network to achieve brand leadership. “Ecological brand,” a new concept,
highlights the uniqueness of Casarte’s brand purpose.
Brand positioning. Brand positioning is a firm’s action to determine the level of a brand
in a competitive market according to its brand value, reputation and premium ability (He,
2021). Corporate strategy plays a role in brand portfolios and architecture. In emerging
markets such as China, the increase in residents’ income promotes consumption, which
makes consumers more conscious of the quality of products and consumption experience
(A1). High-end brands are often regarded as symbols of high quality and excellent service,
so consumers’ demand for high-end brands increases accordingly (B2, P2). In fact, in
western developed countries, to meet the needs of different market segments, firms usually
develop multibrand portfolios with different value positioning (Kumar, 2003), which
indicates brand positioning based on brand grade in the brand architecture system; that is,
brand hierarchy positioning.
Brand positioning requires firms to master all related corporate activities and actions
according to the positioning hierarchy to ensure that the brand meaning reflected by
corporate behavior is consistent with the one reflected by the brand positioning hierarchy
(He, 2021).
Brand hierarchical positioning determines the basic direction of brand core meaning and
is a component of brand identity (B1). Brand hierarchy reflects the brand positioning in the
basic role of brand architecture and supports the realization of customer commitment (FI-
04); therefore, there is a need to maintain the stability of brand positioning and consistent
long-term development of the core meaning to ensure that brands for different consumer
targets convey a relatively consistent brand core meaning:
EJM We create a leading brand of high-end home appliances for our customers with Casarte (FI-02);
Casarte is an international brand (FI-03; CI-01).
56,10
In the mature Chinese home appliance market, Casarte is the first high-end home appliance
brand to break through the fierce competition in the market through high-end brand
positioning to strengthen its competitive differentiation advantage. According to the high-
end brand positioning, Casarte integrated the high-end brand image into its marketing
2786 activities through extremely rich, diversified, scene-based marketing means to establish a
well-recognized and strong high-end positioning association in the mind of customers,
making its high-end positioning the core meaning of the brand.
Brand value proposition. Branding is a tool by which a firm strategy is executed at both
the business and product-levels (Swaminathan et al., 2020). The firm management needs to
set corresponding tasks and objectives for business and product layers according to a firm’s
overall strategy (FI-01). Under the overall brand portfolio and brand architecture system, the
firm can formulate the purpose and positioning of each brand (A3, A4), which is reflected in
its core meaning.
A brand is also the carrier and footprint of entrepreneurship, which expresses the
ownership form of intangible assets through which a firm creates value and results
(Chrisman et al., 2016). The cultural spirit contained in it is stable, continuous and long-term.
The senior management jointly follows the firm’s mission, vision and values and integrates
them into the business’s common goals and corresponding actions and product layers (FI-01,
A2). This puts forward basic requirements for collaborative management activities, which
require firms to determine a consistent brand purpose and spirit and embody them in the
brand’s core meaning (A3, A4).
In the hyperconnected environment, customer engagement does not affect the firm’s
ability to determine its core meaning from a strategic perspective (Nangpiire et al., 2021).
Instead, firms formulate strategic policies and require management and employees to grasp
the brand’s core meaning and reflect its role and influence through various management
activities (FI-01, FI-03).
From the organizational management perspective, brand meaning comes from all
management activities, behaviors and actions that affect brand association and image.
Specifically, on the one hand, the firm’s resources and capabilities are the basis for realizing
the brand’s core value, which determines the direction of brand association and brand
image. On the other hand, the work and performance of all departments and employees in
the firm is an important way to convey the brand’s core meaning and ensure that customers
can obtain an experience consistent with the brand value proposition (FI-03). Therefore,
based on the comprehensive and global nature of brand and branding, firms can only boost
the generation of consistent meaning inside and outside the organization by clarifying the
brand’s core meaning. Moreover, once all the work details, business processes and
management activities of the firm are coordinated, the firm can increase its brand’s core
meaning. Therefore, the brand value proposition is the embodiment of the firm-led brand
core meaning, the basic element ensuring the strength of a competitive brand and an
important means of establishing and realizing a brand strategy. Below is Casarte’s core
value proposition that forms the brand identity:
Casarte, an international high-end household appliance brand, creates exquisite products with the
ultimate high-end original technology, perfectly combines technology and art and leads the trend
of household appliance life art (A4).
This core value proposition was determined at the beginning of Casarte, reflecting Haier
Group’s overall strategy. Over the past two decades, Haier Group’s global strategy has been
“going out, going in, and going up.” The development of high-end positioned brands is the Dynamic
way the company implements the “go up” strategy, which enriches and improves the brand brand
portfolio system of Haier Group. With Haier brand as the boundary, it developed its own
independent high-end brand Casarte, acquired luxury brand Fisher & Paykel, and
positioning
developed a popular household appliances brand leader, forming a pyramid brand
framework. The core meaning of Casarte, strategically led by the Haier Group, is the
fundamental assurance for continuous investment in Casarte’s brand construction, leading
all marketing and management activities and building its high-end brand status. 2787
Firm-led peripheral meaning. To achieve the brand’s market performance, the diversified
marketing strategies formulated by the firm according to market demand contribute to the
brand’s peripheral meaning – a complementary component of brand positioning messages
and a supplemental source of brand added value (Keller, 1993). Unlike the consistency of
firm-led brand core meaning, firm-led brand peripheral meaning has a certain diversity: the
diversified meaning determined by the firm to meet the concreteness of the product benefit
attribute, the differentiation of communication theme in the targeted market and the change
in consumers’ lifestyle and values. However, it should be pointed out that this diversification
of meaning is not arbitrary and over scattered but limited and moderate.
Brand themes. Specific value carriers and actions are needed to reflect the true vitality of
the brand’s core meaning. With the continuous development of corporate strategy and
branding projects, new brand-related discourses and high-frequency content expressions
are generated in business development and management. These can be collectively referred
to as brand themes and become important components of brand peripheral meaning.
Generally, firm management determines the communication theme according to different
market demands when the firm formulates a marketing strategy for the brand (A2, B2), as
well as the core attributes and benefits for their different products and technological support
(FI-05). To achieve market performance, these strategic messages become an action plan for
managers to carry out their work internally (CI-01), so they need to establish a flexible
development space beyond the brand’s core meaning.
As mentioned above, the core meaning of firm-led orientation is formed by establishing a
consistent and long-term brand meaning to enhance brand strength. Unlike the core
meaning, the firm-led brand peripheral meaning is obtained by maintaining relevance and
targeted brand perception with the market and customers. Peripheral meaning is the limited
significance surrounding the brand’s core meaning, rather than the over scattered and
constantly changing marketing message. The complementary effect formed by the
coordination of peripheral meaning and core meaning is an element of the brand identity
system and becomes the basis of brand positioning decisions (Kapferer, 2012):
Through brand promotion, users can resonate with the brand, and users can feel that they are
advanced people for using such a good product (FI-01); Casarte launches different themed
activities according to customers’ preferences, holidays, or commemorative days (FI-02); We
hold small private parties in first-tier cities to invite potential consumers to engage in our brand
activities, while in third-tier and fourth-tier cities, we build large booths and hold singing and
dancing performances to provide potential consumers information about our products and brands
(FI-04).
Although Casarte has a distinct brand core meaning and has established a unified high-end
brand positioning, its management determines different strategic brand themes according to
different local markets’ subcultural characteristics and demands. For example, in the third-
tier and fourth-tier markets of China, the brand association of Casarte is “high price” and
“sense of face-saving,” which is related to the conspicuous marketing activities implemented
frequently in the local market. However, in first-tier cities like Shanghai, customers’
EJM preference for Casarte is mostly the pursuit of quality and authenticity, not for unrealistic
56,10 social comparison. Therefore, the brand association of “high price,” “high sense of face-
saving” and “high quality” constitutes the peripheral meaning of the brand by integrating
the brand themes in different local markets.
Brand personality, brand style and tone. To enhance customers’ understanding of the
external expression of the brand, the management team needs to identify the brand
2788 personality, style and tone that are compatible with the core meaning (FI-01; FI-02; B2).
Brand style and tone can be regarded as external presentations of a brand personality.
Following the inherent nature of brand personality, brand style and tone are also diverse in
the art design perspective. On the one hand, in different cultures, people’s preference for
style shows basic differences; for example, some prefer modern and simple styles (U1-03),
while others prefer classical styles (UI-01). On the other hand, style changes with time, and
people’s preferences for style change and evolve at different times (P1). For the brand, its
style and tone also have similar features: they evolve along with the changing market
environment and customer demand, but given that the brand’s core meaning has strong
stability and continuity, the firm will grasp the evolution of brand style and tone according
to different market demands. However, brand style and tone generally evolve around the
brand’s core meaning (B1, B2 and CI-03).
The core meaning of each brand should be unique, but the styles and tones of the
different brands may be similar (A1, B1). Based on the unique requirements of brand
identity, brand personality, brand style and tone play a complementary role in shaping
brand identity and brand image (FI-01); they are the means to establish the peripheral
meaning of the brand:
The tone and color of Casarte’s washing machines are very advanced, which has a lot to do with
the aesthetics and taste of the senior leadership, and the group will have a tone grasp on the whole
(FI-01).
Casarte established a distinct brand style and tone, reflected in its unified product
appearance design, online and offline retailer style design and unified identification
elements of all communication media and forms. The tone and design reveal its superior
style, which strongly supports Casarte’s core meaning.
Customer-led core meaning. Customer-led brand core meaning is the congruent core
meaning formed in the minds of target customers (B1, P1). These congruent associations
come from the positive influence of brand positioning and strategic messages from the firm,
as well as from the consensus brand recognition and evaluation formed by customer
interaction and word-of-mouth communication in the hyperconnected environment (A2),
informing customers’ perceptions of brand positioning and brand identity. There are
commonalities, but inconsistencies, between the brand’s core meaning led by customers and
the firm. As time evolves, there is an evolution between commonality and inconsistency,
which constitute the dynamic characteristics of brand positioning.
Core brand associations. In the hyperconnected world, brand meaning perceived by
customers is fragmented (Swaminathan et al., 2020), which may be happened at any time in
terms of receiving context, as well as the contact channels and paths are pervasive and
scattered. Hyperconnectivity weakens the power of firms in leading brand strategic
messaging – common in the traditional offline media – while enhancing the ability to
generate brand core meaning led by the customer.
It becomes customer-led core meaning because the main brand association is consistent
and congruent among the targeted customer groups, which forms prominent topics in
customer interactions and shapes key consensus views in the evaluation of word of mouth Dynamic
(UI-01): brand
The overall feeling and first impression of Casarte is high-end, atmospheric, and tasteful (UI-04); I positioning
saw Casarte located their chain store nearby a shabby dumpling restaurant, and I was very
unhappy; Casarte, such a high-end brand, how can its store be located next to the dumpling
restaurant! (UI-01).
Once customers have a brand core meaning in their mind, it becomes a criterion for judging 2789
whether their commitment to the brand is consistent with their behavior. The core meaning
of Casarte is high-end and tasteful, which has become the consensus of customers. If the
associative meanings generated by Casarte’s retail shopping spaces are not consistent,
customers will express dissatisfaction.
Key customers and main user characteristics. Brand image is directly affected by its
users’ image. In a hyperconnected world, communication between customers becomes
extremely common (Swaminathan et al., 2020). Many elements, such as the words and
behaviors in customer-to-customer interactions, background, identity and demographic
characteristics of users, as well as the lifestyle and values revealed by them, become
information sources for consumers to perceive and understand brands. Customer
characteristics in the main targeted markets become core brand associations led by
customers. Many people, such as the key opinion leaders in the brand community (FI-04),
influencers among key users who spread spontaneously on social media and representative
volunteers who are invited to contribute to the company’s brand publicity (B3, B4), have a
significant influence on the formation of the primary user characteristics of the brand. These
user characteristics outline the core meaning of the brand.
In a wide range of consumer groups, only the main user characteristics widely
recognized by customers can become the source of the brand’s core meaning. Generally,
these users are the key target customers determined in the firm’s brand strategy (FI-01, A3
and A4), the target representative user group and the group with a positive influence on the
broader consumer group (FI-03). These users’ image becomes the brand’s core meaning as it
stimulates customer ideals and enhances their experience of social value:
Our users are those who focus on family well-being, product value, and desire to go beyond
themselves (A5); The average annual income of our users is more than 800,000, and most of
them are private business owners and senior executives of state-owned enterprises, foreign-
funded enterprises, governments and national institutions (A5); Our users are those people who
are elegant and desire to pursue the release of personality, they pay attention to the quality of
food, and have multiple houses; also they will pay attention to aviation magazines in business
trips (A5).
After years of market development, Casarte has experienced a continuous increase in
market share and sales volume, and its representative and key customer groups have
formed a stable opinion, which is not a summary of the characteristics of all Casarte’s users
but may become their consensus.
Customer-led peripheral meaning. Customer-led oriented brand peripheral meaning is a
limited variety of associations formed in the minds of the targeted customers about the
brand beyond its core meaning. This moderate diversity is the multidimensional meaning
caused by differences in customer cognition and consumption scene experience. Usually,
customers cannot tell the core meaning of a brand on an abstract level but understand the
brand in their minds on a more concrete level related to the elements of the marketing mix.
Therefore, customer-led oriented brand peripheral meaning is the core message regarding
marketing mix information that has gained consensus in customers’ minds.
EJM Brand imagery. In the hyperconnected environment, brand users or potential customers
56,10 not only spread brand information on social media but also take the initiative to write brand
comments, take photos, make videos and upload them to owned media or earned media
platforms (F1-04, A4, B4). This customer-led force is expansive and powerful (FI-02). A large
amount of information and content from users is constantly generated and iterated in the
dynamic evolution, and some themes with individuality gradually precipitate into brand
2790 images and become peripheral meanings.
In contrast to the consistency and conciseness of customer-led oriented brand core
meaning, the brand imagery generated by the customer from the self-driven approach is rich
and diverse, and its prominent aspects constitute the peripheral meaning of the brand.
However, not all the imagery generated by customers is the peripheral meaning of the
brand. Only influential and prominent imagery in the customer group can be transformed
into the peripheral meaning of the brand (CI-01, CI-03):
In my impression, Casarte is Haier’s high-end brand, which is expensive and targeted at middle
and high-end consumers (UI-01); The appearance of the product design is also relatively grand, so
my impression of Casarte is noble, grand, and elegant (UI-04).
Product appearance design is the element that most stimulates the customer’s brand image.
The communication among customers regarding product appearance forms convergent and
rich cognition and evaluation, which becomes the brand’s peripheral meaning.
Brand community identity. In a hyperconnected world, consumers frequently initiate or
are invited to a variety of communities (Swaminathan et al., 2020), and consumers can
establish some connection with experienced users or businesses from the beginning of their
intention to purchase there to understand the general profile of existing users (FI-04, CI-02).
For a high-involvement product, salespeople can start online contact with consumers
through “add buddy on WeChat” in all stages of consumption (Bao and Wang, 2021).
Subsequently, consumers are usually arranged into different WeChat groups according to
their characteristics and backgrounds, which builds long-term relationships with consumers
for salespeople (FI-04). In such brand communities, consumers’ self-identity as perceived by
each other through interaction becomes the source of peripheral meaning.
Customers will be connected in online communities because they have the same
purchasing experience and create the atmosphere and feel of the brand community together
(FI-04). In contrast to the core brand association driven by key customer characteristics, the
association formed by such an extensive brand community is diversified (P1), thereby
contributing to the peripheral meaning of the brand:
Since the users in the community are all loyal users of Casarte, they may be the same or similar in
taste and interests; Casarte has thus become a social platform for its community members (FI-02).
Casarte is a link and a platform for customers to build social relationships. The connection
between Casarte and the customer’s self-concept facilitates the building of a relationship
among users, which, in turn, promotes Casarte’s brand community identity.
Scene-based meaning. The function of a product is to help customers solve practical
problems in their lives, while the meaning of a brand is the epitome of consumers’ lifestyles
and reflects their values (Batra, 2019). Consumers place the brand in the scene of life and
experience the life interest brought about by the brand’s meaning (UI-02, UI-04). In a
hyperconnected world, scenes of consumption are interwoven with the roles of brands and
their products, presenting a rich landscape widely shared on social media (Villarroel
Ordenes et al., 2019), enabling consumers to shape brand image perception and brand
meaning understanding in their minds.
 The UGC that influences social media represents a brand’s symbolic meaning. The brand Dynamic
integrated into the consumer’s life scene is vivid, so the brand’s meaning is rich and diverse. brand
Its prominent elements constitute the brand’s peripheral meanings (B1 and A2):
positioning
I particularly enjoy the winter sunshine while watching the quiet and steady operation of the
Casarte washing machine in the afternoon on weekends. At that time, I can feel its unique luster
in the sunshine, which makes it look practical, stable, and warm (P3); Casarte’s soft air system
makes users feel that they are in nature (A4, P3); Casarte’s Ice Bar makes me feel like I’ve moved 2791
my own little bar home (UI-02).
Casarte’s typical and beautiful life scene is a positive force driving potential customers’
desire to purchase. Such a demonstration of user lifestyle strengthens consumers’
engagement and attachment to the brand and wins positive word-of-mouth among
consumers.

Dynamic brand positioning: the matrix and its organizational mechanism

We analyzed how Casarte builds and develops the firm- and customer-led core and
peripheral meanings to construct the brand positioning system. The two core dimensions,
namely, the synergy and evolution between firm-led orientation and customer-led
orientation and the synergy and evolution between core and peripheral meanings, forge a
structural relationship and present a new characteristic of brand positioning in the
hyperconnected environment (see Figure 1), which is expressed in terms of dynamic brand
positioning. In the hyperconnected context, the coevolution of the power of firm-led and
customer-led orientations in the generation and evolution of the ambidexterity of brand core
meaning and peripheral meaning jointly contributes to the dynamic balance of brand

Figure 1.
Matrix of dynamic
brand positioning
EJM meaning consistency and diversity. This impacts the relationship between brand value
56,10 promises and systematic customer experience.
Dynamic brand positioning requires the support and assurance of a company’s
organizational mechanism (FI-01). The wide use of digital technology boosts firms’ digital
transformation in the hyperconnected context, which has brought fundamental influence
and change to the traditional and unilateral brand strategy-making (FI-05). Following the
2792 interview records, we elaborate on the approach of dynamic brand positioning from the
perspective of organizational mechanisms.
Consistency of brand meaning perception and brand core positioning. In a hyperconnected
world, firms and customers establish a seamless communication mechanism through many
digital platforms (FI-01). These digital interactive platforms include websites established by
firms, mobile apps, the WeChat Mini Program, third-party e-commerce platforms, various
social media platforms, WeChat moments and owned media (A3, B3, A4). These approaches
link the functions of marketing communication, channel sales, after-sales service and
customer consultation, thus providing a better consumer experience for customers (UI-04,
B1, P1). We learned that Caserta has implemented a comprehensive digital marketing
strategy since establishing the brand and realized the user interaction of the whole process
and multiplatform through the Haier Open Partnership Ecosystem platform (A3, A4).
The interaction between firm and customer is spaceless, direct, high-frequency and
traceable, helping firms grasp the ideas and actions of customers anytime and anywhere,
and convey the core points of brand meaning in the whole process, which enhances the
perception of consistency of brand meaning (FI-03, UI-01) to actuate the sustainable
realization of brand positioning. In in-depth interviews, a top-down brand management
organization system was established in Casarte (FI-01). The elements of the top-level design
of Casarte’s brand strategy, including brand purpose, core value, core message and style of
publicity, have unified the requirements of marketing policy (FI-01). Casarte implements
these requirements through internal management, seminars and employee training and
ensures the consistency of strategic brand message dissemination (FI-01, CI-01, CI-02).
Meanwhile, in the usual process of high interaction between firms and customers, firms
acquire customer messages and important ideas promptly and then deal with the critical
aspects of inconsistency between customer-oriented and firm-oriented brand meaning
through communication, dialogue or even negotiation. In addition, front-line employees
collect convergent feedback from the market front-end in time (FI-02, FI-04) and report it to
the management to help modify and evolve the firm-oriented brand core meaning (FI-02, FI-
03); hence ensuring the dynamic development and evolution of core meaning between firm-
led and customer-led orientations.
Diversity of brand meaning perception and brand complementary positioning. In a
hyperconnected world, every employee may act as a marketer and disseminate brand
information on social media platforms using rich digital tools, which realizes holistic
marketing and allows customers to experience the brand promise systematically (FI-02 and
FI-04). Usually, people who are in direct contact with customers are front-line employees, but
they communicate with customers about marketing strategies and tactics because of their
performance goals (FI-03, CI-03, UI-02). Thus, to maintain a greater relevance between firm
actions and customer demands, the communication of brand meaning must have flexible
diversity, making customers’ brand experience more authentic.
With readily available digital means such as WeChat, salespeople can easily develop
long-term connections with customers (FI-04). The firm establishes different WeChat groups
according to market regions and customer characteristics and tries to ensure that members
of each WeChat group have the same or similar backgrounds and interests (FI-04). In this
way, there is a specific community identity in each group. Once established, the WeChat Dynamic
group becomes a daily platform for firms to communicate and interact with customers. For brand
example, in the interviews, we learned that users share new ways to use the product and
offer expert-like opinions in WeChat groups (FI-04; CI-02). In addition, Casarte is a premium
positioning
brand, and its users generally have a higher social status than salespeople (P3). Thus, users
often have a high level of influence in the two-sided communication, which strongly triggers
the diversification of customer-led oriented brand peripheral meaning.
The interviews revealed a top-down brand management system: headquarters, regional 2793
branches, distribution and retailers (FI-01, A3, A4). Meanwhile, firms, distributors and
retailer sales staff often communicate with customers directly using social media, widely
receive meaningful feedback and contribute ideas from customers, and then pass them to the
company’s leader through workshops, training activities and WeChat working groups until
headquarters management (FI-03, CI-03). Eventually, this meaningful feedback becomes an
important outcome shared across the company (FI-01), impacting the evolution of brand
peripheral meaning.
In summary, the firm- and customer-led orientation synergy and their mutual promotion
contribute to the consistency of brand core meaning and the moderate diversity of
peripheral meaning, that is, brand core and complementary positioning. This dual
combination and its evolution form dynamic brand positioning in the online environment,
which changes the traditional brand positioning in that only firms determine the brand core
meaning and maintain consistency through actions.
Four forces of dynamic brand positioning. The components of the four quadrants of the
dynamic brand positioning matrix are described above. These four quadrants represent the
four forces of dynamic brand positioning, which interact and influence each other to
facilitate the dynamic evolution of brand positioning. Its main characteristics are as follows.
From the perspective of firm-led orientation, the interaction between brand core meaning
and peripheral meaning creates a dynamic balance between the consistency and moderate
diversity of brand communication. From the perspective of customer-led orientation, the
interaction between brand core meaning and peripheral meaning forms a dynamic balance
between the consistency and moderate diversity of brand perception among customers.
Furthermore, three conditions exist in the interaction between customer-led and firm-led
core meanings. The first is a complementary boost, which enhances the consistency or
congruence of brand communication and perception, and strengthens the core or peripheral
meaning; the second runs parallel, expanding the scope of perception and communication of
brand meaning, as well as enriching the core or peripheral meaning; third, conflicts and
contradictions increase the inconsistency between meaning communication and perception,
weakening the core or peripheral meaning of the brand.
The influence of firm-led brand core meaning. Firm-led brand core meaning mainly
carries the power of brand communication consistency, plays a guiding role in firm-led
peripheral meaning and affects the formation of customer-led core and peripheral meanings
through strategic and consistent marketing and management actions.
At the beginning of its establishment in 2007, Casarte determined its core value
proposition as “Born for Love,” which is in line with the “Art of Home” gene contained in its
brand name (A4). The core value elements of brand positioning are “Technological,”
“Sophisticated” and “Artistic” (A4). In firm management, the brand core meaning is
conveyed, interpreted and deduced to employees through various forms, such as policy
implementation, workshops, seminars, training and team activities, to promote collaboration
between the peripheral and the core meaning of the brand (F1-01, F1-03) and to achieve a
dynamic balance between perceived consistency and diversity. Casarte has done much work
EJM in these aspects (F1-01), for instance, its internal documents saying, “High-end brands are
56,10 conducted by high-end people, while high-end people should have high-end professional
competence.” Based on this, a series of internal training textbooks called Casarte’s Advanced
Competence were edited to enhance the professional competence of employees (B4).
This management work is both innovative and significant for high-end brands. The details
of all words and deeds of employees that reflect the peripheral meaning, such as the working
2794 manners, philosophy, tasks and styles, are permeated by the extensive role of the core meaning
and then affect the overall brand experience. Furthermore, explicit visual elements that were
shown on the carrier and medium of product and marketing promotion, such as identification
color and design, which communicate the brand style and tone, all support Casarte’s brand
positioning, as well as facilitate perceived fluency and coordination between core and
peripheral meaning in customers’ minds. This not only strengthens the consistency of the
brand’s core meaning but also activates the diversity of perceptions.
The influence of firm-led brand peripheral meaning. Firm-led brand peripheral meaning
mainly undertakes the power to make brand communication congruence, plays a specific
protective and supportive role in firm-led core meaning, and influences the formation of
customer-led core meaning and peripheral meaning through strategic and integrated
marketing and management actions.
As mentioned above, the brand theme is a basic component of brand peripheral meaning,
focusing on the core value proposition and strategic orientation. Casarte’s brand strategy
has evolved iteratively every five years. In the second five-year plan (2012–2016), Casarte
implemented the diversification strategy and proposed the theme of “Progress for Love”; in
the third five-year plan (2017–2021), Casarte implemented the “Industry-leading” strategy
and proposed the theme of “Extraordinary for Love”; in the fourth five-year plan (2022–),
Casarte implemented the “Scene Ecology” strategy and proposed the theme of “Rebirth for
Love.” In this process, the core value proposition of “Born for Love” has been used for
16 years, and the theme proposed later is used alternately, which reflects the interaction,
coordination and evolution between core meaning and peripheral meaning.
In recent years, Haier launched a scene brand, “Three-winged Bird,” to provide full-scene
solutions for smart families. The concept is that “Every user’s ideal home is different” (A3).
In the Internet of Things era, all home appliances are network devices that are highly
connected, and products become part of the scene, creating value that the product itself
cannot create. With the brand “Three-winged Bird,” Casarte provides users with a full range
of services, from selecting products to exclusive customized living spaces (A3). “Intelligent
Scene Experience” has become the new brand theme of Casarte, which is also the strong
support and innovative development of Casarte’s core value proposition of “Born for Love.”
The influence of customer-led brand core meaning. The customer-led core meaning
supports or interferes with the firm-led meaning from the characteristics of accurate users,
influences opinion leaders and word-of-mouth information and plays an important role in
demonstrations and references for customer-led peripheral meanings.
In early strategies, based on the two-dimensional coordinates of social influence and
wealth value, Casarte identified its target customers as the elite group, accounting for 0.3%
of China’s population, namely, China’s high net-worth users with individual investable
assets between 600,000 and RMB 6 million, including executives of large companies, middle
and senior management of firms and small and medium enterprises entrepreneurs. In this
targeting strategy, Casarte used an online multiplatform environment to communicate
accurately and continuously develop and accumulate relevant users. Furthermore, in-depth
dialogue and communication among targeted users may enhance the effect of word-of-
mouth communication through a combination of online upper circles and offline activities
(e.g. family marathons). In this process, UGC and the actions of targeted user groups Dynamic
show their values and influence online and offline interactive environments, thus brand
positively influencing potential and atypical consumers with different backgrounds and
characteristics and improving their ideal selves. Imitating the opinions and behaviors of
positioning
relevant users not only strengthens the consistency of brand perception among customers but
also increases the diversity of brand perception due to the differences in their background
characteristics. In hyperconnectivity, customers receive all kinds of brand information from
other customers anytime and anywhere, so the consistency and inconsistency of brand 2795
perception are in a state of dynamic balance or evolution, affecting each other.
However, conflicts exist between the customer-led and the firm-led brand core meaning
in the interactions. This is mainly due to the differences in consumers’ motivations for high-
end consumption in China, an emerging market and the corresponding differences in user
characteristics. There are two distinct groups: one, the group motivated by conspicuous
consumption, in which users live in a three- or four-tier city, is characterized as having a low
educational background and high wealth possession, and their UGC (such as residential
photos) highlights luxurious and ostentatious living scenes (F1-01, A4, B4). Furthermore,
they focus on the symbolic meaning of high prices, not the brand itself. The second is the
group with self-gratification consumption motivation; they live in first-or-second-tier cities,
are characterized as middle class with a high level of education and appreciate their lives in
UGC but are reluctant to participate in companies’ propaganda in the social media space (F1-
01, F1-04, A4, B4). Furthermore, they focus on product quality and brand style. Therefore,
the content generated by the flaunting consumption group is more likely to be used by
Casarte as marketing materials to expand sales, which undermines the brand core meaning
of “Born for Love”; also the high-grade style blurs Casarte’s real connotation of leading the
high-end lifestyle.
The influence of customer-led brand peripheral meaning. Customer-led peripheral
meaning adapts, animates or interferes with firm-led and customer-led core meanings.
On open and owned social media, Casarte’s users generate a wealth of content and tell
various brand stories in their lives (A3, A4). This content is selected and edited by the
Casarte management team and published in the official approach (F1-01, F1-02), establishing
the brand synergy between firm- and customer-led brand meanings. After analyzing these
contents, we found that the users narrated their own life stories and the living scenes of each
family were highly colorful. However, in the kaleidoscope of life stories told by users, we
find a high degree of consensus on what they are talking about: customer satisfaction with
Casarte’s outstanding product performance and the satisfying experience of living with
Casarte. The core associations of “Happy” and “Joyful” generated by users related to Casarte
play a complementary role in promoting the core meaning of the brand “Born for Love” led
by the firm, while “Performance” and “Satisfactory” go hand in hand with the firm-led core
meaning “Technological,” “Sophisticated” and “Artistic” (A3, B3).
In the hyperconnected environment, Casarte establishes a relationship between
salespeople and users through various social media and digital marketing tools and
extensively collects the scene information of high-end users’ experiences from sales
terminals all over the country (F1-01, F1-04). The information from users is shared by the
grassroots staff in the work group of WeChat or gathered to submit to the management
team of the company, and then sent to all grassroots staff or salespeople of Casarte to
learn and guide them to use their social media accounts for publicity (F1-01, F1-03, A4),
which is a process of synergy and enhancement between firm-led and UGC. The firm-led
peripheral meaning is reflected in the selection and judgment of UGC, that is, whether it is
consistent with the brand positioning. Much of the real content from high-end users’
EJM living scenes consistent with brand positioning is sent to potential customer groups
56,10 through WeChat (F1-04, A3), which promotes consistency between brand communication
and brand perception.
In an open online environment, many innovations from users form Casarte’s peripheral
meaning, which plays a vital role in the brand’s core meaning. The testers of the
Engineering Lab Team at Casarte simulate different product usage scenarios based on
2796 online and offline user feedback and then make optimization recommendations to the R&D
department on behalf of users based on the test results. For example, when visiting users,
the testers found that Casarte users often used the quick-laundry program of the washing
machine before resting at night because of their busy daily work. In this scenario, users are
most concerned about whether the running of the washing machine will disturb the rest of
their families (A2, B2 and P2). Therefore, noise inspection is crucial when testing a product
(A3 and A4). Based on this, the core association of users for Casarte products with the
ultimate mute function may be “Full of Love,” which also demonstrates and reflects
Casarte’s brand imagery of “Caring and Thoughtful” and “Warm.” On the other hand, the
process of perfecting the product according to the needs of user scenarios makes full use
of users’ innovation. It enables users to experience Casarte’s scene-based meaning of
“Personalized” and “Tailor-made,” which makes Casarte’s core association perception of
“Creative” and “Professional and Wise” more vivid and concrete.
In the social media context, numerous WeChat groups that can be regarded as Casarte’s
brand communities have become tools for Casarte’s salespeople to establish, maintain and
develop customer relationships. The establishment of each WeChat group is due to some
similarities among members, but in fact, they are distinctive. The characteristics, identity,
expression style and behavior of members within the group constitute the uniqueness of a
certain meaning related to the brand (FI-04). This consistent uniqueness perceived by users
within their respective WeChat groups may differ but may be complementary to the core
meaning of the brand they perceive outside the groups. Casarte’s salespeople, for example,
gathered all their customers, who were engineers, into one WeChat group. Each member is
an independent individual before entering the group; they may think that “High-end and
Grand” is the most obvious feature of Casarte, just like most customers, due to the influence
of unified advertising and UGC (FI-04, FI-05). However, when all engineer users come
together in a group to share intraindustry insights into the details of Casarte’s products, this
community will create a “Professional” atmosphere; that is, the “Rigorous and Technical”
characteristic of the engineering group may cause community members to gradually
generate a brand imagery perception of “Professional and Wisdom” to Casarte.

Discussion
This study explores how Casarte, a high-end household appliance brand with digital marketing
as its core strategy since its birth, successfully established a clear and unique brand positioning
by cocreating brand meaning with customers. Our research shows that in the hyperconnected
environment, firms can narrow the gap between the brand positioning made by firms and that
perceived by customers through two approaches. On the one hand, firm-led orientation and
customer interaction facilitate the consistent perception of brand meaning and construct the
core positioning. On the other hand, firm-led and customer-led orientation synergistically
activate diversified perceptions of brand meaning, thus building complementary positioning.
Extensive customer engagement and value cocreation significantly reduce the distance
between customer perception and firm action, which greatly increases customers’ acceptance
and understanding of the peripheral meaning beyond the brand’s core meaning, thus
improving customers’ real brand positioning experience.
Theoretical contributions Dynamic
Our research focuses on the proposed construct of dynamic brand positioning and makes brand
exploratory theoretical contributions to the intersection of cocreation value, branding in a
hyperconnected world, and brand meaning. First, our research advances the cocreation
positioning
value theory into the specific field of brand strategy. The role of cocreation value in brand
strategy formulation is presented through the analysis of Casarte’s brand positioning
practice. Extensive customer power has changed the traditional top-level idea of brand
strategy controlled by firms from top to bottom (Swaminathan et al., 2020). Our case study 2797
provides evidence for the theoretical construction of a new paradigm for branding in a
hyperconnected era. Second, our study links the evolution of brand meaning and positioning
in the hyperconnected environment and resolves the contradiction between the universality
and ambiguity of brand meaning and the focus and clarity of brand positioning with the
theoretical construction of the ambidexterity of brand core meaning and peripheral
meaning.
Most importantly, our study highlights the need to establish a theoretical perspective on
collaboration between firms and customers in constructing and developing future-oriented
brand and branding theories. In the past many years, there has been a lack of research on
brand positioning in the social media environment. Many studies are from the perspective of
consumer behavior but not from the perspective of strategy (Bao and Wang, 2021; Mostafa,
2021). Most scholars conduct research on brand meaning from the perspective of culture and
consumer cognition (Batra, 2019; Choi et al., 2016; Payne et al., 2008), while this study
rethinks the meaning of a brand and elevates it to the hyperconnected environment at the
theoretical level of brand strategy formulation. Our conclusions imply that brand meaning is
a strategic resource for firms to formulate their brand positioning in a hyperconnected
context. Traditionally, the theory of brand equity based on customers (Keller, 1993) has
revealed that customers’ brand cognition, emotion and attitude are the sources of brand
value. On the surface, in a hyperconnected world, extensive customer engagement and the
contribution of open user innovation highlight the significance of studying branding theory
from customers’ perspectives. However, our research findings show that to fully use the
power of customers, firms need to interact extensively with customers from the theoretical
perspective of dynamic capability and coevolution to prompt dynamic brand positioning
practices. In general, in the hyperconnected context, we need to study brand and branding
from the perspective of the firm-customer synergistic strategy. The joint theoretical
perspective of marketing and strategy is an important approach for brand and branding
theory innovation.

Managerial implications
Our study provides practical guidance for firms to formulate dynamic brand positioning
strategies in the hyperconnected environment to obtain greater effectiveness of brand
strategies, that is, how to make good use of the power of customer engagement and
cocreated value and change the traditional static brand positioning method through
collaboration between firm and its customers (Jewell and Saenger, 2014). First, from the
perspective of positioning, the formulation of brand positioning needs to shift from
emphasizing consistent brand value proposition to the combination of consistent brand
meaning and moderate diversity brand meaning; that is, brand positioning is composed of
brand core positioning and brand complementary positioning, which constitute the
ambidexterity of the brand positioning system. Brand core positioning plays a consistent
role in brand meaning and builds brand strength through a constant core value, whereas
complementary brand positioning plays a moderating role in the diversity of brand
EJM meanings and builds brand strength by maintaining relevance to products, customers and
56,10 markets. The clarity and conciseness of the former and richness and freshness of the latter
contribute to a customer’s brand experience.
Second, from the perspective of the organizational mechanism, brand positioning needs
to evolve from the one-dimensional organizational mode to the firm and customer
cooperation mechanism, which can improve the implementation effectiveness of brand
2798 positioning. This differs from the past when firms had to combine their advantages,
customer demands and competitors to build brand positioning (Alden et al., 1999; Keller and
Lehmann, 2006). In the hyperconnected environment, firms and customers in the market live
in a world of digital platforms and social media, and extensive and frequent interactions
between them make the acts and actions of brand positioning infinitely routine and
universal. From this perspective, it is particularly important to strengthen internal learning
and branding within the organization to ensure that all employees consistently understand
the brand’s core meaning. At the same time, mutual learning between employees and
customers also has greater significance, and users’ innovation can be better absorbed by
firms and used in brand building through this learning mechanism, which is more likely to
narrow the gap between the brand positioning proposition and the customer’s brand
positioning perception, thus strengthening the effectiveness of brand positioning.
Finally, from the brand positioning perspective, positioning is no longer static; it is a
dynamic iteration, and the reasoning of strategy makers should also be dynamic.
Traditionally, it is held that brand positioning changes after several years (Herrmann and
Huber, 2000). One reason is that brand positioning is limited to recognizing the core meaning
(Alden et al., 1999), and the other is that brand positioning is only considered in the offline
context (Fuchs and Diamantopoulos, 2010). From the perspective of enhancing customers’
perception of brand positioning, we need to transform the single abstract expression of
brand positioning into concrete, vivid and touchable communication. The diversity and
richness of the latter determine the possibility that brand peripheral meaning can evolve
over a shorter period. In addition, the interaction that can occur anywhere and anytime in
the online world fundamentally changes the slow-paced market feedback mechanism of the
traditional offline world, thus strengthening the possibility of shorter cycle iterations of
brand peripheral meaning. Simultaneously, the consistency of brand meaning and the
combination of moderate diversity reflect its dynamic nature. From the perspective of long-
term brand development, some peripheral meanings are turned into core meanings due to
many customers’ cognitive congruence, while some brand core meanings need to be
transformed into brand peripheral meanings due to strategy changes. These changes cause
brand positioning to rise from a marketing strategy to a firm strategy. Therefore, firms
should emphasize enhancing dynamic capability – supporting the development and
implementation of a firm-customer synergistic strategy. This reflects the core idea of brand
ambidextrous nature theory, which is called the meta-theory of brand and branding; that is,
a brand is strategy-driven and customer-oriented, not just one of them (He, 2021).

Limitations and further research

There are still some limitations in the methodology used in this study. First, we only studied
a single case, and the home appliance industry to which the case study object belongs has a
certain particularity. It is possible that in another industry, such as the fast moving
consumer goods industry, industrial production or internet industry, there may be other
important situations in the generation, organization, development and evolution of brand
meaning and the coordination, interaction and dialogue between firms and consumers,
which are not considered in this study. Second, although heavy research and in-depth
interviews were conducted, we do not know the internal operations of the case object Dynamic
company. For a large-scale and complex group company, we inevitably miss some actual brand
situations and have deficiencies in analyzing the organizational mechanism of brand
meaning. Finally, we establish a new positioning approach for the mixture of core and
positioning
peripheral meanings of the brand and propose an evaluation of brand experience based on
the combination of consistency and freshness. However, dealing with the relationship
between the two can achieve the best performance and requires empirical research.
2799
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Corresponding author
Jiaxun He can be contacted at: jxhe@dbm.ecnu.edu.cn

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