VOLKSWAGEN: AN ELECTRIC PAST AND FUTURE

VOLKSWAGEN:

AN ELECTRIC PAST AND

FUTURE

ASPECTS OF THE BRAND’S RECOVERY PROCESS

Supervisor Copenhagen Business School Characters: 170.946

Karin Tollin Brand and Communications Management Pages: 137 (80 normal p.)

MSc in Economics and Business Administration

Hand-in: 15.05.19

Author Jón Kristófer Stefán Jónsson (14503)

http://www.mobes.info/article/360349948/

http://www.google.is/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiPnvzgxpviAhUi-YUKHVHGBl4QjRx6BAgBEAU&url=http://dineroclub.net/2018/06/24/publicidad-genial-de-volkswagen-imita-iconos-de-la-arquitectura/&psig=AOvVaw1TMDOveyDObgJrrN_LvSt9&ust=1557941485474544

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Abstract

The thesis investigates what aspects have influenced Volkswagen´s brand recovery process

following the emissions scandal in 2015. Recent studies and reports have indicated that the

brand is seemingly back on track. The focus of the thesis surrounds Volkswagen customers,

past and present. The communication processes amongst those customers is conceived as social

currency from a Volkswagen perspective. The purpose of the thesis is to understand the

association between social currency and brand trust, how it has impacted Volkswagen´s brand

recovery process following the scandal and its impact on Volkswagen’s future brand strategy.

The Volkswagen emissions scandal is explained in detail and an analysis of the Icelandic

automotive industry, with special interest in the development of hybrid and electrical vehicle

sales. A conceptual framework is presented based on the previous literature within the fields

of brand ethics, brand trust and brand social currency. Based on the conceptual framework a

qualitative research of Icelandic Volkswagen consumers is conducted.

The findings suggest that the emissions scandal did not have a lasting negative influence on its

consumers within the Icelandic automotive market. Volkswagen’s change of focus towards

sustainable mobility following the crisis, has seemed to have had a beneficial affect on

consumers trust and loyalty to the brand. With the trust towards the brand having a positive

impact on the loyalty. As consumers seem to perceive sustainable mobility as the future within

that industry. This is verified among research within the Icelandic automotive industry, where

electrical and hybrid vehicles are the fastest growing segment. The findings also suggest that

brand loyalty has led consumers to engage more in the dimensions of Volkswagen´s brand

social currency. With findings indicating that the dimensions of conversation, advocacy and

information being the most important to the consumers regarding Volkswagens brand social

currency. Finally, the findings indicate that Volkswagen´s decision to focus on sustainable

mobility bodes well for the future, as consumers view to the automotive industry has changed

significantly in the years following the infamous emissions scandal.

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Contents Abstract ................................................................................................................................................... 2

Table of Figures ....................................................................................................................................... 5

1. - Introduction .................................................................................................................................. 6

1.1 - Problem Statement ..................................................................................................................... 9

1.2 - Delimitations ............................................................................................................................. 11

1.3 - Research Outline ....................................................................................................................... 13

2 - Theoretical background ................................................................................................................... 14

2.1 - Brand ethics .............................................................................................................................. 14

2.2 - Brand trust ................................................................................................................................ 17

2.2.1 - Brand loyalty ...................................................................................................................... 18

2.2.2 - Brand authenticity ............................................................................................................. 19

2.3 - Brand Social currency ............................................................................................................... 22

3. - Volkswagen ..................................................................................................................................... 27

3.1 The Volkswagen Emission Scandal .............................................................................................. 27

3.3 – The ‘2025 strategy’................................................................................................................... 31

3.4 - Volkswagen in Iceland............................................................................................................... 33

3.4.1 - Volkswagen sales in Iceland ............................................................................................... 34

3.4.2 - Purchase intentions in the Icelandic automotive market .................................................. 35

3.4.3. - Sales of Electric and hybrid cars in Iceland ....................................................................... 39

4. - Conceptual Framework ................................................................................................................... 44

4.1. - Brand ethics from a Volkswagen perspective .......................................................................... 44

4.2. - Brand trust from a Volkswagen perspective ........................................................................... 45

4.2.1. - Brand Loyalty from a Volkswagen perspective ................................................................. 47

4.2.2. - Brand authenticity from a Volkswagen perspective ......................................................... 47

4.3. - Brands social currency from a Volkswagen perspective .......................................................... 49

4.4. - Presentation of Conceptual framework .................................................................................. 50

5. - Research Method ............................................................................................................................ 53

5.1- Philosophy of Science ................................................................................................................ 53

5.2 – Hermeneutic perspective ......................................................................................................... 54

5.3 – Ontology ................................................................................................................................... 55

5.4 – Epistemology ............................................................................................................................ 55

5.2. – Methodology ........................................................................................................................... 56

5.2.1.- Research Design ................................................................................................................. 56

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5.2. – Research methods ................................................................................................................... 57

5.2.1. – Interviews ......................................................................................................................... 57

5.2.2. – Respondents ..................................................................................................................... 58

5.2.3. – Transcription .................................................................................................................... 58

5.2.4. - Reliability and Validity ...................................................................................................... 58

6. - Data Analysis ................................................................................................................................... 60

Thematic analysis of the study ......................................................................................................... 60

Volkswagen past and future ............................................................................................................. 61

1st theme – Brand ethics ............................................................................................................... 63

2nd theme – Brand trust ................................................................................................................ 66

3rd theme – Brand Social currency ................................................................................................ 70

7. - Discussion ....................................................................................................................................... 73

Conceptual Framework ..................................................................................................................... 73

Empirical supportive questions ......................................................................................................... 75

How are consumers perceptions of the Volkswagen brand? ....................................................... 75

How has Volkswagen’s social currency impacted Icelandic consumers relationship to the

Volkswagen brand and what meaning does it have for them? .................................................... 77

Has Volkswagen´s future brand strategy had an influence on the brand recovery process? ...... 79

8. - Conclusion ....................................................................................................................................... 81

9. - Implications ..................................................................................................................................... 82

Theoretical implications ................................................................................................................ 82

Managerial implications – Volkswagen Iceland ............................................................................ 82

10. - Limitations .................................................................................................................................... 83

11. - Future research ............................................................................................................................. 84

References ............................................................................................................................................ 85

Appendices A – Emission scandal timeline ........................................................................................... 87

Appendices B – Interview structure .................................................................................................... 100

Appendices C – interviewee 1 ............................................................................................................. 105

Appendices D – interviewee 2 ............................................................................................................ 111

Appendices E – interviewee 3 ............................................................................................................. 116

Appendices F – interviewee 4 ............................................................................................................. 121

Appendices H – interviewee 5 ............................................................................................................ 126

Appendices G – interviewee 6 ............................................................................................................ 132

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Table of Figures

Figure 1 - Volkswagen '2025 strategy' (Volkswagen, 2018). ................................................................. 31

Figure 2 - Conceptual Framework (Portal et al, 2018) .......................................................................... 50

Figure 3 - Conceptual Framework (Singh et al, 2012) ........................................................................... 50

Figure 4 - Conceptual Framework (Lobschat et al, 2013). .................................................................... 51

Figure 5 - Conceptual Framework ......................................................................................................... 52

Table 1 - Volkswagen sales in Iceland: 2009-2018 (Samgöngustofa, 2019). ........................................ 35

Table 3 - What is the main reason for purchasing a given brand? (MMR, 2019). ................................ 36

Table 4 - Purchase intensions: engine type (MMR, 2019). ................................................................... 37

Table 5 - Purchase intentions: Age groups (MMR, 2019). .................................................................... 38

Table 6 - Total market - EV & PHEV sales in Iceland 2016-2018 (Samgöngustofa, 2019). ................... 40

Table 7 - Sales of new Electric cars in Iceland 2016-2018 (Samgöngustofa, 2019). ............................. 41

Table 8 - Sales of new Plug-in Hybrid cars in Iceland 2016-2018 (Samgöngustofa, 2019). .................. 41

Table 9 - Volkswagen - EV/PHEV sales & market share ........................................................................ 42

Table 10 - Volkswagen - EV/PHEV vs Petrol/Diesel sales (Samgöngustofa, 2019). .............................. 43

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1. - Introduction

The Volkswagen Group, which owns numerous car brands such as Volkswagen, Audi, Skoda

and Porsche, is the largest automaker in the world, regarding automotive sales. Throughout the

last decades, Volkswagen, has earned an excellent reputation and high brand loyalty (Valentini

& Kruckeberg, 2018). According to a study by Fombrum (2015), Volkswagen was one of the

most trusted corporate brands in the world, amongst socially responsible companies.

Furthermore, prior to the infamous events of September 2015, the brand was known for its

quality, honesty and commitment to its customers (Valentini & Kruckeberg, 2018, p. 534).

In 2009, Volkswagen’s main emphasis was on diesel engines. In order to explore the

automotive market in the United States in a larger scale, Volkswagen had to attract consumers

within that market with its diesel engines. The automotive market in the United States has for

many decades mainly focused on petrol vehicles, which has influenced consumers within the

market. Another problem Volkswagen faced was greater restrictions in the United States

regarding engine emissions, as their restrictions are greater than those set in Europe and Asia,

which are the largest Volkswagen markets (Longtailpipe, 2015).

Volkswagen decided to take the ‘easy way’, when they didn´t manage to develop their engines

to meet the set restrictions. They ‘dodged’ the system which resulted in many lawsuits,

especially in the United States. Volkswagen purposefully placed devices in their diesel-

powered vehicles that showed less pollution emitted into the atmosphere. What made this

deception even greater is that the defeat device registered when the car was being examined

and the emission numbers were then within the limits. However, when out on the road the

vehicle’s emissions were often 20 or 30 times above the allowed limit (Quirin, 2015). It did

work at first, as the Volkswagen Jetta diesel vehicle won the “Green Car of the Year” award in

2009 for its ground-breaking clean diesel engine (Valentini & Kruckeberg, 2018, p. 534).

However, it all collapsed when in September 2015 Volkswagen admitted having implemented

the cheating device.

The Volkswagen emissions scandal will be placed in textbooks in the years to come according

to scholars and not in a good way (The New York Times, 2016). The reputation and image of

the company has deteriorated greatly, as well as stakeholders trust in the company (O‘Boyle &

Adkins, 2015).

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Studies have shown that customers and non-customers lost trust in the brand following the

revilement of the Volkswagen scandal in September 2015. This impacted the Volkswagen

brand image in a negative way. Furthermore, according to McGee and Campbell (2016) this

impacted Volkswagen financially as well, with the company reporting a net loss of €1.6bn for

the market year of 2015. Which is the worst earnings report since the company was founded in

1937 (Valentini & Kruckeberg, 2018, p. 534).

In late September 2015, just days after the emissions scandal became public and being named

the CEO of Volkswagen Group, after the resignation of Martin Winterkorn, Matthias Muller

stated: “My most urgent task is to win back trust for the Volkswagen Group by leaving no stone

unturned and with maximum transparency, as well as drawing the right conclusions from the

current situation” (The Telegraph, 2015). He added in 2016 "We are using the current crisis

to fundamentally realign the Group. I strongly feel we now have the chance to build a new and

better Volkswagen" (Autoexpress, 2016). This realignment has led the company to change it’s

focus towards sustainable mobility, mainly electrical vehicles. Volkswagen implemented it’s

‘2025 strategy’ in 2018, with the focus on becoming a globally leading provider in sustainable

mobility by 2025. Furthermore, aiming to manufacture at least a third of their total vehicle

production with electrical engines by that time (Volkswagen, 2018). Volkswagen has pledged

to spend €20 billion to develop hybrid and electrical versions of its pre-existing models by

2030, which is the largest program of electrification in the global car industry (Bloomberg,

2018). The goal is to change the high-end market status of electrical vehicles into a cheap,

affordable and viable option for consumers. This is the brainchild of Matthias Muller and is

based on the 1960’s Volkswagen Beetle strategy, which was instrumental in bringing mass-

market driving to post-war Europe (Bloomberg, 2018).

Volkswagen seems to be “back on track” after the crisis. In 2017 it retained its prior crown of

being the largest car manufacturer in the world and the revenues, shares and profits have

reached the levels they were at before the crisis (Bloomberg, 2018). Furthermore, the

Volkswagen Group sold 0.9% more cars in 2018 than 2017, while the Volkswagen brand itself

increased sales by 0.2% during that period (Car Sales Statistics, 2019). The prior direction of

the company, emphasising on diesel vehicles has been shelved, and the direction towards

electric mobility has helped the company in dealing with the crisis (Bloomberg, 2018). In 2016

Volkswagen unveiled a new car, the Volkswagen I.D, a battery powered vehicle intended to

bring electrical mobility to the masses. Matthias Muller stated that the car is a symbol of the

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new Volkswagen (Bloomberg, 2018). Max Warburton, an automotive analyst at Bernstein

Research in London, stated: “Volkswagen is absolutely more ambitious on electrical vehicles

than other global giants” (Bloomberg, 2018).

It is obvious that there was a great deal of wrong doing on Volkswagen´s behalf in the years

leading up to the crisis. Many decisions were taken for short term profits that threatened the

brand in the long term. However, it seems that the worst is over for Volkswagen and the affects

of the crisis were not as bad as many had suspected. Considering this seemingly fast recovery,

what factors have influenced Volkswagen’s unexpected rise? Is it down to the corporate top

management focus on maximum transparency or the push towards electric mobility? Or is the

main drive to be found among the Volkswagen customers, in their trust towards the brand and

its communication processes?

The focus of this thesis surrounds Volkswagen customers, past and present. The

communication processes amongst those customers is conceived as social currency, or assets,

from a Volkswagen perspective. The purpose of the thesis is to understand the association

between social currency and brand trust, how it has impacted Volkswagen´s brand recovery

process following the scandal and its impact on Volkswagen’s future brand strategy.

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1.1 - Problem Statement

The purpose of this thesis is to investigate and understand the substance of a brand´s social

currency and its role when brand reputation is showing a negative trend. Furthermore, how

does brand trust, brand social currency and brand ethics influence the brand recovering process.

The specific case that will be assessed is the Volkswagen emissions scandal. Following the

crises, the Volkswagen brand was connected to negative opinion amongst its stakeholders and

sales numbers of new Volkswagen vehicles fell significantly. However, studies and global sales

numbers indicate that the brand has now recovered to its previous state, prior to the crisis.

Volkswagen has changed its focus for the future considering the difficulty following the crisis

towards sustainable mobility, which could be a reason for its seemingly quick recovery. This

thesis will explore whether Volkswagen´s brand social currency has impacted the seemingly

quick recovery of the brand following the crisis in 2015 and if it will have an impact on the

newly changed brand strategy.

Based on the introduction, the following research question is presented:

Based on the main research question the following supportive questions are presented below

and will be addressed. They are a combination of theoretical and empirical questions. The

purpose of these questions is to guide the research of this thesis. The supportive question

influences both the main question and the research of the thesis and their connection will be

explained in detail in the coming chapters. All the presented supportive questions play an

integral part to the research of this thesis.

The first three questions are theoretical, and are based on brand ethics, brand trust and brand

social currency. Brand ethics play an integral part in Volkswagen´s recent history and it is

important to answer how ethics in relation to brands are clarified for this research. Furthermore,

consumer’s trust in a brand is significant for the brand. It is important to clarify what brand

What dimensions of Volkswagen’s brand social currency have impacted the brands

recovery process following the emissions scandal?

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trust is and whether there is a connection between it and brand social currency, in order to

research Volkswagen´s brand recovery process.

The latter 4 questions are empirical questions, which relate to secondary sources about the

Volkswagen brand recovery process, and to primary sources dealing with consumer’s attitudes

in connection to Volkswagen. They entail an explanation on the proceedings of the

Volkswagen scandal, as it is necessary to enlist the aspects of the scandal in order to fully

comprehend its affects. Consumer’s relationships with the Volkswagen brand will be

investigated and how social currency has influenced Icelandic consumers relationship with

Volkswagen. Finally, as Volkswagen has presented a new and bold future strategy, with the

aim to regain their consumers trust, the influences of that strategy will be investigated.

• How are ethics in relation to brands clarified?

• What is brand trust and brand social currency?

• Is there a connection between brand trust and brand social currency?

• What were the main characteristics and developments of the Volkswagen emissions

scandal?

• How are consumers perceptions of the Volkswagen brand?

• How has Volkswagen’s social currency impacted Icelandic consumers relationship

to the Volkswagen brand and what meaning does it have for them?

• Has Volkswagen´s future brand strategy had an influence on the brand recovering

process?

Supportive questions

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The above-mentioned questions will be answered in interviews with six Volkswagen owners

in Iceland. The interviewees selected are of the Generation Y (1981-1995) or earlier part of

Generation Z (1995-). The author believes that these two generations are the best fitting for the

research. They are of the generations that are more likely to embrace the futuristic changes that

the automotive industry is going through, regarding sustainable mobility. More detailed

characterization of the generations will be discussed later in the thesis. The data collected for

this study will hopefully give answer both to the research question and the connected

supportive questions. Furthermore, this thesis will consider both theoretical and practical

contributions of the results. Below the delimitations of the research will be presented as they

influence the data collected, it is important to elaborate on them.

1.2 - Delimitations

The following chapter explains the delimitations of the research and the affect the data

collection could possibly have on the results of the thesis. The following limitations have been

set in order to increase the accuracy of the results presented in the thesis. The geographical

scope of the research has been narrowed to the capital region of Iceland. Firstly, all interviews

were conducted in Icelandic, to eliminate language barriers, as none of the selected participants

have English as their mother tongue.

Secondly, the aim of this thesis is to research Volkswagen consumers in the Icelandic

automotive industry. As over half the population of Iceland lives in the capital region, I believe

this region will give a general indication from Icelandic Volkswagen consumers. Also, as

Iceland is a large and rural country, the capital region offers more accessibility in terms of data.

Furthermore, hybrid and electric vehicles have been more popular in the capital region due to

accessibility to electricity and consumers drive less kilometres on average each day.

Thirdly, the generations selected for the research of this thesis are Generation Y (1981-1994)

and Generation Z (1995-), as according to prior research of the Icelandic automotive industry,

these generations are most likely to purchase hybrid or electric vehicles (MMR, 2019).

Furthermore, Generation Z is often characterised as a driver of innovation and change and show

an interest in new technologies (Priporas, Stylos & Fotiadis, 2017). Furthermore, Generation

Z are the first generation born into the digital world, often virtually engaging with its favourite

brands (Priporas, Stylos & Fotiadis, 2017). While Generation Y has some of these

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characteristics at a lower level, they also tend to have less brand loyalty than prior generations

(Fintikasari & Ardyan, 2018), making Generation Y an intriguing generation to research with

this study in mind.

Lastly, the research of this thesis will solely focus on the Volkswagen brand. Other automotive

brands owned by the Volkswagen Group were also affected by the emissions scandal, for

example Audi, Skoda and Porsche. In order to receive and examine the data from the research,

focusing solely on the Volkswagen brand will offer more accurate results. Furthermore, the

sister brands of Audi, Skoda and Porsche have flown more under the radar of the negativity

that followed the emissions scandal, due to the connection with the Volkswagen Group. Not

all consumers were aware that the three sister brands are owned by the Volkswagen Group.

Therefore, it is my belief that the Volkswagen brand was most affected by the scandal and is

the most exciting brand to research in this thesis.

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1.3 - Research Outline

The following presents an outline of the thesis and its sections.

1. Introduction

2. Theoretical

Background

3. Volkswagen

4. Conceptual

Framework

5. Research Method

8. Conclusion

9. Implications

10. Limitations

11. Future Research

6. Data Analysis

7. Discussion

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2 - Theoretical background

In this chapter the literature on brand ethics, brand trust and brand social currency will be

presented, in order to gain an overview of existing academic research within these topics. These

three topics are the foundations for the research of this thesis. The association between social

currency and the trust on the Volkswagen brand following the emissions crisis will be

examined. Secondly, literature will be reviewed and theoretical background of brand trust.

Furthermore, how it influences Volkswagen’s brand social currency based on the company’s

previous brand ethics. This is fundamental in reaching a conclusion on the main research

question, ‘What dimensions of Volkswagen’s brand social currency have impacted the brands

recovery process following the emissions scandal’. Brand ethics and brand trust will be

examined individually to better illustrate their importance. A chapter about social brand

currency will be presented and the dimensions that influence it. This can possibly show

connections between the three topics that will be associated with the Volkswagen case.

2.1 - Brand ethics

Brand ethics have become an important factor for companies in the more recent decades, as

purchasing decisions by consumers have changed during that period. Furthermore, this chapter

plays an important role in the case study in the thesis due to Volkswagen´s emissions scandal.

Their failure to congregate the importance of brand ethics has characterised the affects the

scandal has had on the company and its brand. The chapter will mainly be based on the research

by Singh, Iglesias and Batista-Foguet (2012) and Portal, Abratt & Bendixen (2018) with

important quotes from other researchers.

Prior literature indicates that ethical consumerism has developed into becoming an important

influence on business and that it is in the best interest for brands to behave ethically (Singh et

al, 2012, p. 541-542). The focus has changed regarding what drives consumers choice, as

quality and price are no longer the main influence when choosing products or brands.

According to a social equity research by Goodbrand and Company, innovation, ethical

standpoint and social behaviour have become important factors. These are often more

important than quality and price (Singh et al, 2012, p. 541). Brand stakeholders are becoming

more demanding that brands reflect their ethical concerns. European study 2001 on consumers

attitudes toward social responsibility suggests, that 70% of them believe that social

responsibility is important when choosing a product or a brand (Singh et al, 2012, p. 541).

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Szmigin et al. (2007) have added that brands need to incorporate and communicate the relevant

set of values of the brand to its consumers (Singh et al, 2012, p. 542).

Clegg (2007) argues, that there has been a trend for brands to portray themselves as clean,

green and socially responsible due to the development towards ethical issues regarding

consumption. Doonar (2005) says, that due to this development, brands claim to be more ethical

by using more ethical practices, offering more ethical or environmentally friendly products or

investing in social causes. This development has also impacted how companies regard social

responsibility and are therefore more concerned about their corporate responsibility, as it might

impact their profit or loss (Singh et al, 2012, p. 541).

In the last few decades, there have been a couple on incidents where high-profile brands have

acted unethically, which has decreased brand trust (Portal, Abratt & Bendixen, 2018). This is

often connected with corporate dissonance, when the trust is affected by the brands actions

which differ from the promises and values communicated by them (Portal et al, 2018, p. 1).

Burnett and Hutton (2007) argue, that this leads to consumers not being able to trust the

information communicated by the brand and has led to more demand for honest and trustworthy

brands (Portal et al, 2018, p. 1).

Singh et al. (2012) argue “that the trust between a brand and its consumer, in addition to

depending on the perception of fairness and lack of opportunistic behaviour toward a partner,

also depends on the perception of fair, responsible and accountable behaviour of the brand

toward a larger audience” (Singh et al, 2012, p. 543). Furthermore, they believe that corporate

brands that are perceived to be ethical are likely to offer products and services that are fair,

just, honest and trustworthy.

Balmer and Gray (2003) mention that literature on corporate branding focuses on the

importance of the perceptions that multiple stakeholders have of a certain company and its

brand reputation. Ethical companies perform better financially according to Ethisphere

institute, they additionally point out that it can benefit organizations greatly if they invest in

ethical practices (Singh et al, 2012, p. 542).

There has been a wide array of academic research within this field over the last few years.

These indicate the importance of corporate social responsibility, ethical corporate brand

identity, as well as influencing the perception of consumers and stakeholders of the brand or

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product (Singh et al, 2012). This research has mainly focused on the influence of Corporate

Social Responsibility (CSR) and ethicality in product or corporate evaluation, product purchase

intentions, as well as behaviour and market value and financial performance (Singh et al, 2012).

Recent literature on brand ethics, has focused on conceptualizing the ethical perceptions of

consumers and highlighting that there is a gap in views regarding ethicality when it comes to

businesses and consumers (Singh et al, 2012, p. 542). Fan (2005), argues that an ethical brand

focuses on not harming the public but instead promotes it. Furthermore, attributes such as

honesty, integrity, diversity, responsibility, quality, respect and accountability are attributes

often connected to these ethical brands (Singh et al, 2012, p. 542).

The findings of Singh et al. (2012) research suggest that there is “a direct relation between the

CPE of a corporate brand and the perception of product brands under a corporate umbrella.

Positive CPE of corporate brand is transferred into a positive evaluation of product brand

trust and product brand affect” (Singh et al, 2012, p. 546). Another aspect that the findings

suggest, is the importance of better understanding the emotional dimensions of the brand

experience as it can impact all brand stakeholders in an affective way. This is due to the

mediating role brand affect has in the relationship between CPE and brand trust (Singh et al,

2012). They also mention the indirect impact of a corporate brands CPE on product brand

loyalty, “through the mediating role of brand trust and brand affect” (Singh et al, 2012, p.547).

This aspect shows that there is a return on the investment companies have made on CSR and

other ethical policies at a corporate brand level (Singh et al, 2012). Furthermore, this supports

the idea that brands should behave ethically and be more transparent, as this is necessary to

succeed in a respected industry. The research also lays claim that CPE positively impacts the

product brand loyalty, which can help the brand in customer retention, securing future

purchases and fostering recommendations (Singh et al, 2012). If corporations want their brands

to be perceived as ethical, it is not enough to invest in corporate communications. The message

of ethical behaviour must be visible at every level and be transmitted to customers and all other

external stakeholders, through every transaction and all the brands products. “Under this

perspective the brand becomes the experience and, in order to provide an ethical experience,

marketing managers should invest in better employee recruitment and training, as well as in

facilitating internal communications at all levels so that all brand touchpoints reflect the

ethical values of the brand” (Singh et al, 2012, p. 547).

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2.2 - Brand trust

Brand trust is an important factor to this thesis, as brand trust plays a central role for consumers

when they make purchase decisions. A company that has not been trustworthy often suffers

when selling its products as there is a connection between brand ethics and brand trust.

Furthermore, trust can also be very difficult to gain back, therefore Volkswagen´s emissions

scandal impacted the brand´s trust. This chapter will explain that there are some aspects that

impact brand trust, such as brand loyalty and brand authenticity. The following is based on the

research of Singh, Iglesias and Batista-Foguet (2012) and Portal, Abratt & Bendixen (2018),

with important quotes from other researchers highlighted.

Prior literature explains trust as the confidence that a business partner is reliable and behaves

with integrity and that it is the central paradigm in relationship literature. Furthermore, brand

trust can envelop customer expectations of brand intensions when the brand is in situations of

perceived risk. Honesty, benevolence, reliability and sincerity are examples of features of trust

that are often developed between stakeholders and an organization over time (Singh et al, 2012,

p. 543).

Early studies on brand trust, suggest that trust is based on being able to depend on a certain

individual or brand. Furthermore, trust is the belief in the reliability and integrity of another.

McAllister (1995), argues that there are two types of trust, an emotional or warm trust and a

rational and cognitive one (Portal et al, 2018, p. 4). The emotional trust is explained as when

you feel the counterpart having your best interests at heart. While rational trust is explained as

when a person believes his counterpart has what it takes to accomplish a given task. Portal

(2018) mention that these early definitions of trust picked up on two important facets connected

to it, “the affective (intentions and integrity) and functional (behaviour and reliability)” (Portal

et al, 2018, pp. 4-5). Delgado-Ballester (2004) concur with this explanation, stating there are

two dimensions to brand trust, brand intentions and brand reliability. Brand intention is based

on whether the consumer believes that the brand will act in their best interest and brand

reliability explains whether the consumers believe the brand can fulfil its promises. He added,

that when consumers are uncertain about a purchase decision, they look for trustworthy brands.

Sung and Kim (2010) add if consumers believe that a brand will perform in a sincere and honest

manner, they are more likely to trust it (Portal et al, 2018, p. 6).

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Morgan and Hunt (2010) believe that opportunistic behaviour on behalf of the brand can have

a negative impact on the consumer trust. Therefore, it is possible to state that the relationship

between a brand and the consumer depends on the perception of mutual trust (Singh et al, 2012,

p. 543). Hatch and Schultz (2010) claim, that a consumer’s perception and connection with a

brand does not only depend on direct encounters with the brand, but also the interactions that

they have with other consumers and stakeholders (Singh et al, 2012, p. 543).

According to Chaudhuri and Holbrook (2001), “brand trust develops over time, through direct

experiences and occurs in the context of a relationship” (Portal et al, 2018, p. 5). This means

that brand trust is closely related with relational trust, which is a category of trust defined within

sociology. Relational trust is defined as trust that derived over time and builds on interaction

(Portal et al, 2018).

Hess and Story (2005) and other scholars believe that trust is becoming an ever-important

construct in branding due to the importance of relationship marketing. Morgan and Hunt (1994)

define relationship marketing as “having all marketing activities directed toward establishing,

developing and maintaining successful relational exchanges” (Portal et al, 2018, p. 5). They

add that to have a successful brand-consumer relationship, brand trust is a key concept. Vargo

and Lusch (2011) believe that positive and successful relationships between brands and its

consumers are interactive, connective and ongoing. Hiscock (2001) argues that creating a bond

between the brand and a consumer is the main goal of marketing and trust plays a big part in

enhancing this bond (Portal et al, 2018, p. 5).

2.2.1 - Brand loyalty

According to Oliver (1999) brand loyalty is the commitment of a consumer to constantly re-

purchase a brand or service in the future, even though “situational influences and marketing

efforts having the potential to cause switching behaviour” (Singh et al, 2012, p. 544). Other

previous literature state that brand loyalty creates a deep attitudinal bond with customers and

often encourages word of mouth recommendations and customer re-purchases (Singh et al,

2012, p. 544). Furthermore, brand loyalty is helpful when a brand is in a highly competitive

market, as it can help the brand successfully compete within the respected market (Singh et al,

2012, p. 544). Huber et al. (2010) believe “that brand misconduct has negative consequences

for customer-brand relationship, one of them being a negative impact on purchase intention”

(Singh et al, 2012, p. 544). Singh et al. (2012) add: „this negative impact is due to the reduction

19

in trust that mediates the relationship between CPE and brand loyalty/purchase intentions”

(Singh et al, 2012, p. 544). Previous literature suggests that brand trust is positively connected

to commitment and loyalty, which is important in developing long term relationships (Singh et

al, 2012, p. 544).

2.2.2 - Brand authenticity

Previous literature states that there is a link between brand authenticity and brand trust

Furthermore, that authentic brands are more committed on delivering the promises set by the

brand. Consumers are more likely to trust brands that fulfil their promises. Furthermore, brand

authenticity is perceived as the answer to the growing consumers scepticism and declining trust

on brands over the last decades (Portal et al, 2018, pp. 2-3).

In building brand trust, the brand must have good intentions and sound abilities (Portal et al,

2018, p. 1). Morhart, Malär, Guevremont, Girardin and Grohmann (2015) and Schallehn,

Burmann and Riley (2014) add, “this description of brand trust echoes that of authentic brands

which demonstrate their intentions through wholesome organisational values and their ability

to deliver on their brand promise” (Portal et al, 2018, p. 1). Multiple prior literature state that

brand authenticity has a positive effect on brand trust (Portal et al, 2018, p. 1).

Brand authenticity is based on the origins, originality and uniqueness of the brand. While

scholars believe that the key dimensions of brand authenticity are: individuality, originality,

naturalness, credibility, reliability, consistency, continuity, integrity and symbolism (Portal et

al, 2018, p. 3). Bruhn et al. (2012) describe originality as the uniqueness of the brand. Schallehn

et al. (2014) add that individuality is described in a similar manner, as the unique way in how

the brand delivers on its promise. “Originality and individuality in brand authenticity are then

two sides to the same coin” (Portal et al, 2018, p. 3). Shen and Kim (2012) believe that authentic

brands act in accordance to their true self (Portal et al, 2018, p. 3). Furthermore, if a brand is

perceived as natural it is generally also perceived as original. Connected to this, the dimensions

of individuality, originality and naturalness are aspects of a brand differentiating itself from its

competition, “through a novel approach to branding and embedding the brand within a

genuine context” (Portal et al, 2018, p. 3).

Continuity and consistency are the most frequently discussed dimensions of brand authenticity.

Bruhn et al. (2012) describe continuity as the way a brand can outlive trends in the market and

brands that offer continuity have a clear long-term concept and vision (Portal et al, 2018, p. 3).

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While consistency is described as when the marketing mix of a brand reflects its greater

intentions. Schallehn et al. (2014) believe that a brand is consistent when its identity, vision

and values are in coherence with the communications and customers experiences of the brand

(Portal et al, 2018, p. 3). Therefore, they believe that continuity and consistency lead to brand

credibility and reliability. Eggers et al. (2013) believe, for a brand to repeatedly deliver on its

brand promise, the brand values should be integral in the practices and actions of the brand

(Portal et al, 2018, p. 3). Brand reliability is connected to brand dependability, trustfulness and

credibility. If a brand delivers on its promises it is both reliable and credible (Portal et al, 2018,

p. 3).

Morhart et al. (2015) include integrity and symbolism as dimensions of brand authenticity.

They believe that authentic brands truly care for its consumers (Portal et al, 2018, p. 3).

Integrity is described through the consistent and fair behaviour of a brand and is reflected

through its intensions. While symbolism is defined as the sincerity of the brand as it adds value

for consumers (Portal et al, 2018, pp. 3-4). “Integrity and symbolism generally refer to the

moral standpoint of the brand” (Portal et al, 2018, p. 4).

Scholars believe that today’s consumers relate to brands in the same way they relate to people,

therefore, there is a need for more authentic brands. Furthermore, the social standards in

relationships between people also apply to the relationships between people and brands (Portal

et al, 2018, p. 4). Cuddy, Fiske and Glick (2008) mentioned that a theory based on social

psychology states that the judgements people make about others are based on warmth and

competence (Portal et al, 2018, p. 4). The traits connected to warmth generally benefit others,

whilst the traits connected to competence benefit the self (Portal et al, 2018, p. 4).

Prior literature states that there is a link between brand authenticity and warmth and brand

authenticity and sincerity. Hess and Story (2005) say that brands express their warmth by

“resolving problems quickly, being consistent, having efficient, friendly staff, and displaying a

genuine commitment to the community and customers they serve” (Portal et al, 2018, p. 4).

Porter and Kramer (2011) mention that this is similar to the attributes of authentic brands, as

they have a genuine commitment to the community and society (Portal et al, 2018, p. 4).

There is a conceptual similarity to brand trust and brand authenticity, however they are still

distinct from one another (Portal et al, 2018, p. 5). Brand authenticity assists with consumer

decision making and authentic brands are believed to be more committed to deliver on their

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promises. Furthermore, consumers are more likely to trust brands that they believe can perform.

Eggers et al. (2013) add that authenticity helps brands that are aiming to rebuild trust (Portal et

al, 2018, p. 5). Guevremont and Grohmann’s (2017) support this by indicating that consumers

show more leniency towards a brand when a scandal happens, if the brand is perceived as being

authentic (Portal et al, 2018, p. 1).

Portal et al. (2018) research, aimed at investigating the dimensions of brand authenticity

whether it has a positive impact on brand trust and whether warmth and competence mediate

that relationship. Their findings stipulate that the following four dimensions of brand

authenticity, continuity, integrity, originality and credibility are almost equally important

aspects when it comes to creating authentic brands. Furthermore, brand authenticity does have

a positive impact on brand trust based on the results and “warmth and competence partially

mediate the relationship between brand authenticity and brand trust” (Portal et al, 2018, p.

12). Based on these findings Portal et al. (2018) believe that brands that are perceived as

authentic and display human-like characteristics will succeed, as they are likely true to

themselves and their consumers. They are likely to develop meaningful relationships with their

consumers as they are committed to their values and deliver on their promises.

The findings of Portal et al. (2018) research have important managerial implications. Brands

that are viewed as being trustworthy are more likely to be successful. Therefore, it is important

that senior managers have a clear vision for the brand and develop organizational values. These

values must include integrity, credibility, ethics, sincerity and dependability. Authentic brands

must not only display commitment to their consumers, but also to their community. Thus, it is

important that organizations explore corporate social responsibility programs. Brand strategies

must be in place, that help the brand build reliability and continuity. “Quality, consistency,

originality, and relevance should be built into the product and communication strategies”

(Portal et al, 2018, p. 13). All employees of the brand must come across as sincere, friendly

and capable in order to advocate the warmth and competence of the brand to its consumers.

Furthermore, employees must first and foremost understand the brand values and preferably

live by them. This could be reinforced by introducing internal brand management programs.

This can help employees in delivering the brand promise to consumers, which is paramount in

building and maintaining the trust of the brand (Portal et al, 2018).

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2.3 - Brand Social currency

Brand social currency is at the centre of this thesis, as the research will focus on Volkswagen´s

brand social currency. How it has had impact on the brand´s trust, it´s recovery process

following the emissions scandal and it´s future brand strategy. In this section the existing

literature on brand social currency will be discussed. The literature presented will be from a

research by Lobschat, Zinnbauer, Pallas and Joachimsthaler (2013) where they discuss the

influence of social brand currency on brands and companies. Important quotes from other

researchers will also be highlighted.

According to Lobschat et al. (2013), brands play an important part in a firm’s value. Brand

value has been measured by the acceptance and interaction between consumers. Nowadays,

with digitalization, it is easier for consumers to engage and interact with other brand users. This

can possibly place challenges on companies, as it is out of their control. It is important that

they focus on understanding this phenomenon and deal with it in a strategic manner (Lobschat

et al, 2013).

Literature argues, that managers have previously built brands by focusing on building a strong

identity and maintaining it by constantly managing touch points with customers (Lobschat et

al, 2013, p. 125). Hennig-Thurau et al. (2010) argue that nowadays, consumers play a different

role, they no longer only receive information on the brand, they also play a role in sending this

information. “By giving brand recommendations, by expressing criticism, or by sharing

information with others” (Lobschat et al, 2013, p. 126). Therefore, consumers play an

important role in forming a brand’s perception and no longer does the company shape the

information circulating about the brand independently (Lobschat et al, 2013, p. 125). With

technology advancements this has become easier, as platforms such as Facebook and Twitter

enable consumers to retrieve and spread instantly information on brands. This leads them to

playing an important part in shaping the image and perceptions of brands, which can influence

the performance of the brand regarding sales (Lobschat et al, 2013, p. 125).

Lobschat et al. (2013) define the interaction between customers and a brand, such as sharing

information and the aspect of it being a social benefit for an individual, as social currency.

They add, that for companies to properly manage and build brands, they must understand the

value of having customers sharing information with peers, even though it is out of their control.

Other studies have mentioned aspects of social currency, such as word-of-mouth, user-

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generated content and brand communities. However, they fail to fully capture the complexity

and multidimensional nature of a brand’s social currency (Lobschat et al, 2013).

The benefits of assessing social currency from a company’s perspective, is for example helping

marketing managers make more informed decisions on resources and marketing improvement

efforts. By using this gained knowledge, companies can adapt their focus on different

dimensions of social currency, based on their findings. “The effect of customers’ brand-related

social interactions on a brand’s equity can provide clues for an optimized allocation of

marketing budgets in favour of brand communities, viral marketing and CRM programs”

(Lobschat et al, 2013, p.126). Therefore, it is important that companies continually try to find

new ways in measuring the social relevance of brands, in traditional ways and in digital media,

channels and platforms, to manage their brand in the most effective manner. This offers

managers better understanding of the influence customers social interactions have on the

brand’s value. By using a multidimensional approach, it is easier to understand which single

dimension constitute social currency. “Companies can assess the state of their brands’ social

currency in a dynamic customer-dominated context, benchmark their brands against

competing brands, and identify the specific dimensions that require action” (Lobschat et al,

2013, p.127).

Lobschat et al. (2013) conceptualize social currency as the measurement of all facets of the

social value of a brand through various social interactions. They believe that “it is important

to capture the multidimensionality of social currency by analysing research streams that deal

with customer-to-customer interactions and shape a customers’ perception of brands”

(Lobschat et al, 2013, p.127). The three social interactions highlighted by Lobschat et al. (2013)

are: Word-of-Mouth (WOM), Consumer-Generated Content and Brand Communities. Word-

of-Mouth is either company or consumer generated and focuses on the exchange of

information about a brand through speaking about it. Consumer-Generated Content is the

brand related information generated by consumers, independent from the company’s own

marketing messages. Brand Communities are an environment where customers can exchange

information and speak about a certain brand (Lobschat et al, 2013).

Lobschat et al. (2013) define six distinct social dimensions, that represent the different facets

of a customer’s social interactions with a specific brand and the social benefits they gain from

interacting with the brand. These are: conversation, advocacy, information, affiliation, utility

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and identity. Conversation is the positive information the consumer receives about the brand,

both in online and offline scenarios, and influences the brand’s social currency in a positive

manner. The more a brand is discussed online or in offline scenarios such as WOM, the brand

is more likely to be at the top of a customer’s mind, which is likely to influence the customers

purchase decisions regardless of where the information is coming from. Advocacy is when a

consumer has become an endorser of the brand. Relaying positive brand information and brand

experiences to others, which can positively shape other people’s image of a brand. Information

is the customer-to-customer interactions about a brand. Dholakia et al. (2004) believe that this

interaction and exchange of content can generate different benefits for customers (Lobschat et

al, 2013, p.130). Gruen et al. (2006) and Hennig- Thurau et al. (2004) added that the

informational value customers enjoy by sharing information about a brand relies on how easy

it is gaining relevant knowledge and the problems the brand solves with the usage of the brand

(Lobschat et al, 2013, p.130). “Affiliation refers to the feeling of being connected to other

brand users” (Lobschat et al, 2013, p.130). When brand users communicate with other brand

users, they can feel a sense of community. This emotional attachment or belonging are affected

by different scenarios, for some it is peer recognition, others it is direct interaction, or it could

be due to joint consumption experiences. Online anonymous communication via forums can

also have an impact on affiliation. Utility can influence a customer’s personal development,

such as an increase in self-esteem. Davidson and Cotter (1991) argue that belonging to a

community has a positive impact on a person’s well-being (Lobschat et al, 2013, p.130).

Lobschat et al. (2013) believe that this can have the same result in brand communities. Identity

centres on how consumers identify themselves by consuming a certain brand. They want to

associate themselves with other users of the brand for example, and in some cases, this can lead

to oppositional brand loyalty towards a competing brand. Lobschat et al. (2013) believe that

the social currency construct is formative, as changes in any of the six dimensions would affect

all of it. Furthermore, removing any of the dimensions would also affect the construct. They

also add that, each dimension is a defining characteristic and they do not necessarily covary

with each other (Lobschat et al, 2013).

When appraising a brand’s strength, all brand related interactions must be considered. It can

be greatly beneficial for customers to interact with other customers regarding a brand. It can

also be socially beneficial for them to identify with other members of a peer-group and become

members of a certain community. These aspects can influence decision making amongst

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customers as they are more likely to trust other customers which they share preferences with.

This can lead to more loyalty towards the brand. Therefore, a brands social currency works as

a precursor to the brands equity. In order to build social currency, “customers need to be aware

of and have positive associations with a given brand” (Lobschat et al, 2013, p.132).

Lobschat et al. (2013) examined the relationship between a brand’s social currency and its

brand equity. They focus on three brand equity matters, that is perceived quality, brand loyalty

and brand trust. Their three hypotheses aim to find a positive relationship between social

currency and the three brand equity matters listed above. Their research focused on the

automotive industry, due to high customer involvement within the industry. According to

Fischer et al (2010), there is also a high brand relevance level in this industry, which Lobschat

et al. (2013) argue that it reflects the importance of social currency within it (Lobschat et al,

2013, p.135). The findings of the research indicate that advocacy, conversation and identity are

the most important constituents of social currency. With information, affiliation and utility not

scoring as high within the automotive industry. They add that the findings support all three

proposed hypothesis and show a positive effect of social currency on brand equity.

Furthermore, the findings indicate prior statements on the importance of social currency in

increasing brand equity matters, such as brand loyalty and brand trust (Lobschat et al, 2013).

The digital technologies of today offer a new dimension in building social currency. Customers

proactively engage in conversations about brands and recommend certain brands preferably

over others. Many of these interactions happen online and are out of the control of the company.

On the other hand, companies must find ways to leverage these brand conversations in a

positive and innovative way. The automotive industry is regarded as a high involvement one,

meaning consumers seek ways in engaging and promoting brands. Companies could meet this

by offering online platforms such as blogs or Facebook pages where consumers can actively

communicate with each other. Furthermore, identifying with other owners of the same car

brand and showing them that you drive the same brand of vehicle is an important aspect of

social currency. “Thus, managers can actively enhance social currency by creating or

reinforcing a unique identity among their users by, for example, hosting brand-related events

or supporting owner get-togethers” (Lobschat et al, 2013, p.141).

From a marketing standpoint, social currency can help companies create new or improve

existing marketing resource allocation and helping to guide companies into making crucial

marketing mix decisions. Within the automotive industry, managers should allocate resources

26

to protect a strong identity amongst their consumers and facilitate conversation about the brand.

“At the same time social currency efforts have to be based on a brand’s original roots,

leveraging its strengths in a social context. Although social currency is of significant

importance for the automotive industry, managers should keep their core brand characteristics

in mind and not try to create marketing efforts to steer online conversation which do not comply

with these characteristics” (Lobschat et al, 2013, p.141). Social currency can also be used to

benchmark the brand against competing brands (Lobschat et al, 2013). Furthermore, a

company’s brand equity is dependent on its social currency. “In particular, social currency

serves as significant driver for perceived quality, brand loyalty and brand trust” (Lobschat et

al, 2013, p.141).

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3. - Volkswagen

Volkswagen was founded in 1937 in Germany. Nowadays the Volkswagen Group consists of

11 different automotive brands. Volkswagen, Audi, Seat, Skoda, Bentley, Bugatti,

Lamborghini, Porsche, Ducati, Scania and Man are automotive brands owned and run by the

Volkswagen Group (Volkswagen, 2018). Although they are all owned by the Volkswagen

Group, they are all run as individual brands. The company does however share technology

between each brand and for instance many brands use the same engines in their vehicles

(Volkswagen, 2018).

The Volkswagen group is the largest automotive company in the world regarding sales. They

regained top seat from their close competitors Toyota Group in 2017, following losing the seat

after the emissions scandal emerged in the autumn of 2015. The Volkswagen Group is also the

largest company in Germany, both in revenue and employees, as almost 600.000 people are

employed by the Volkswagen Group in Germany alone (Volkswagen, 2018).

In the following chapter, more light will be placed on the Volkswagen emission scandal. This

is necessary in order to fully comprehend the scale of the scandal and the implications it has

had not only on the brand and company, but also on the car industry as a whole. This is one of

the largest corporate scandals of all time and has had impact all around the world. Firstly, the

emission scandal will be explained, what happened and how the reformed future plans of

Volkswagen following the crisis will be discussed. Lastly, a segment on the standing of

Volkswagen in Iceland will be presented.

3.1 The Volkswagen Emission Scandal

The Volkswagen Group is the largest car manufacturer in Europe and the biggest company in

Germany. The years before the scandal had been prosperous for Volkswagen regarding the

yearly growth of the company. The company set a target to be the biggest car manufacturer in

the world. The growth of the company was largely down to their new line of economical and

environmentally friendly diesel engines. These engines gained large popularity in Europe and

were becoming more popular in the United States, even though there had not been a great

demand for diesel engines in that market. The company placed immense focus on these engines

and convinced both consumers and regulators that they were economical, powerful and

environmentally friendly. On paper they were. However, the International Council on Clean

Transportation (ICCT), a small regulator company in the United States, found otherwise after

28

conducting tests on various Volkswagen models (Blackwelder, Coleman, Santoyo, Harrison &

Wozniak, 2016).

In 2013, the ICCT, decided to research the difference in emissions from vehicles sold in the

United States and in Europe. The emission standards are higher in the United States than in

Europe. The goal of the research was to see how they met these higher emission standards in

the United States and encourage them to do the same in Europe (Blackwelder et al, 2016).

In collaboration with a research team from the University of West-Virginia in the United States,

a real time emission measurement of three different vehicles was decided. This real time

measurement would be conducted while driving from San Diego to Seattle. Two Volkswagen

vehicles were chosen and one BMW. The main reason the Volkswagen vehicles were chosen,

was due to their ‘clean diesel’ technology that was gaining praise and popularity in the United

States. The result of the test showed that one of the cars, the Volkswagen Jetta, had 15-35 times

higher emissions of ‘nitrogen’, better known as NOx, than stated by the producer (Krall &

Peng, 2015). NOx is one of the harmful substances that diesel engines emit into the atmosphere.

The regulations regarding NOx emissions are very high in the United States, as it is one of the

substances that forms smog, which has become a big problem in many larger cities in the

country. In Europe, there are no regulations on NOx emissions as the regulatory system has

mainly focused on CO2 emissions. NOx can also have a negative impact on people’s health,

which is one of the reasons this scandal has received great attention (Franco, Sanchez, German

& Mock, 2014).

When similar vehicles were measured at the California Air Resources facilities, they all passed

regulations regarding emission standards. NOx emission was within the set regulations in the

United States. After sending Volkswagen these conflicting reports, with the difference of on

the roads versus the laboratory emissions, Volkswagen admitted that a defeat device had been

placed in their diesel vehicles. The device in question, lowered the emissions of the vehicle

when it was in the laboratory in order to be within the regulatory limits. On the other hand,

when the vehicle was on the road the emissions were well above the set limit. The reason was

that the engine needs to use more diesel to become more environmentally friendly and

Volkswagen didn´t want to offer their customers uneconomical vehicles. Furthermore,

Volkswagen’s market share wasn’t large in the US and they didn’t foresee improving it while

29

offering vehicles that were uneconomical. To meet the emission standards in the US they

decided to implement these defeat devices (Krall & Peng, 2015).

International actions on fighting global warming and decreasing the amount of carbon dioxide

(CO2) released into the atmosphere led to less regulations on diesel engines in the decade

before the scandal. Diesel engines emit less CO2 than their petrol counterparts, leading for

example to the European Union’s decision to regulate the diesel engine less than their petrol

counterparts. By doing so there was a financial benefit for consumers to purchase diesel

vehicles rather than petrol ones (Franco et al, 2014).

According to Krall and Peng (2015), human health has been set aside. During the last decade,

many have questioned the governments and regulators methods following the emergence of

the Volkswagen scandal. Many cities in Europe have now decided to ban diesel engines in the

near future. The solution for many experts is the recent increase in electrical vehicles thus, the

need for diesel vehicles will decrease (The Guardian, 2016).

Public opinion on Volkswagen´s corporate social responsibility has decreased significantly.

Diesel vehicles have been a large part of new car sales in Europe over the last two decades.

Many of these vehicles are from the Volkswagen Group and many of the purchases were

probably with the intention that they were relatively environmentally friendly. In some way

that is correct, as diesel engines are more economical and emit less CO2. However, they pollute

with other substances that are dangerous, such as NOx (Bovens, 2016). The NGO Transport &

Environment institution, located in Brussels, has indicated for many years that the provided

magnitude of emission from vehicles stated by car manufactures are only achievable in

laboratories and not in daily use on the road (Franco et al, 2014).

“Trust takes years to build, minutes to break and forever to repair” (Howard, p.184, 2017).

After the emissions scandal emerged Volkswagen immediately lost most of its trust equity. The

remaining trust equity Volkswagen had with its stakeholders slowly eroded, whether it was its

consumers, car owners, dealers, employees or the public (Howard, 2017).

A scandal of this magnitude can have serious implications on various stakeholders’ trust on the

brand and their attachment to it. Over the last decade, there have been a few high-profile

incidents where brands have come under the spotlight for unethical behaviour, often resulting

in decreased brand trust (Portal et al, 2018). O’Dwyer, Kraus, Vallaster and Güldenberg (2013)

30

connect this to corporate dissonance, when the actions of the brand differ from the promises

and values they have communicated to stakeholders. This can often lead to a breakdown in

trust. Burnett and Hutton (2007) believe this can lead to consumers being unable to trust the

information presented to them from the brand. Nowadays there is a growing demand for honest

and trustworthy brands (Portal et al, 2018, p. 1). These statements can be closely linked to

Volkswagen, as the company’s communication with its stakeholders were, that their diesel

engines were both economical and environmentally friendly (Krall & Peng, 2015).

Furthermore, they advertised these diesel engines with the slogan ‘clean diesel’, which has led

to multiple lawsuits in the United States, due to falsified claims (The Wall Street Journal,

2016).

Since the Volkswagen scandal, commonly known as ‘Dieselgate’, the company has

transformed their strategy and product range for the coming years. This new strategy, “Strategy

2025”, states that by the year 2025 one third of the vehicles the Volkswagen Group produces

will be electrical vehicles (EV) or plug in hybrid vehicles (PHEV) (Volkswagen, 2018). The

company is set to invest up to $ 13.7 billion in the coming years on EV infrastructure and EV

development to meet the set goals by 2025 (PR Newswire, 2017). In 2016, Matthias Müller,

the then CEO of Volkswagen, stated: "We are using the current crisis to fundamentally realign

the Group. I strongly feel we now have the chance to build a new and better Volkswagen"

(Autoexpress, 2016).

Volkswagen’s new vision statement is: “We are a globally leading provider of sustainable

mobility” (Volkswagen, 2018). It is clear, that Volkswagen is heading in a totally different

direction and aims to be a market leader in EV’s in the coming years, with the aim to improve

its reputation after the scandal. Clegg (2007) argues, that there has been a trend for brands to

portray themselves as ‘clean, green and socially responsible’ due to the development towards

ethical issues regarding consumption (Singh et al, 2012, p. 541). Doonar (2005) says, that due

to this development, brands claim to be more ethical by using more ethical practices, offering

more ethical or environmentally friendly products or investing in social causes (Singh et al,

2012, p. 541). This development has also made an impact on companies regarding social

responsibility and are therefore more concerned with their corporate responsibility as it might

impact their profit or loss (Singh et al, 2012).

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3.3 – The ‘2025 strategy’

In the years following the crisis Volkswagen has refocused their future plans towards

sustainable mobility, with the main focus on electrical vehicles. They have invested heavily in

this field and other technological aspects such as autonomous vehicles (self-driving cars), and

plan to be leaders of the market in this field within the next few years.

Figure 1 - Volkswagen '2025 strategy' (Volkswagen, 2018).

“Fundamental issues need visionary answers. In launching its future program TOGETHER –

Strategy 2025, Volkswagen has kicked off the biggest process of change in its history. Its

overarching vision is to become a world-leading provider of sustainable mobility. The path

there will be dominated by harmonious coexistence and exchange as equals. For one reason:

new times call for new forms of collaboration” (Volkswagen, 2018).

Volkswagen’s new vision statement built on their aim of being a global leader in Electric

powered vehicles by 2025 is: “We are a globally leading provider of sustainable mobility”

(Volkswagen, 2018). Furthermore, Volkswagen has outlined four mission statements to back

up their overall vision. “We offer tailor-made mobility solutions to our customers”, “We serve

our customers’ diverse needs with a portfolio of strong brands”, “We assume responsibility

32

regarding the environment safety and social issues” and “We act with integrity and build on

reliability, quality and passion as the foundation for our work” (Volkswagen, 2018).

They believe the connection between excellent employers, excited customers and competitive

profitability, as well as being role models for environment, will lead to the sustainable growth

of the company (Volkswagen, 2018).

With the target dimension of excited customers, Volkswagen aims to focus on the diverse needs

of its customers and on offering them tailor-made mobility solutions. Their aim is to exceed

customers’ expectations, which offers the need for the best products available, efficient

solutions, exceptional service and unprecedented quality, as well as outstanding image.

Volkswagen aims to excite existing customers, try to gain new customers and focus on

retaining their loyalty for the long term as they believe only loyal and faithful customers will

recommend the brand to others (Volkswagen, 2018). “The strategic KPIs include, for example,

the loyalty rate, conquest rate and breakdowns” (Volkswagen, 2018).

Volkswagen believes that having excellent, skilled and dedicated employees, is one of the keys

to sustainable success. An attractive working environment and a forward-looking work

organization is possible by promoting satisfaction and motivation through equal opportunities.

Having the leadership, the corporate culture that amplifies this aspect, Volkswagen believes

they can retain their core workforce and attract new talent (Volkswagen, 2018). “The strategic

KPIs of this target dimension include the Group’s attractiveness as an employer as determined

internally by means of the opinion survey and as perceived externally, as well as the equality

index” (Volkswagen, 2018).

The Volkswagen Group aims to assume and exercise its responsibility regarding the

environment, safety and society. They mention that these thoughts are processed when any

decision is made. The uses of resources and the emissions of the product portfolio are

particularly important to the company. Furthermore, its locations and plants are also important

as the aim is to continuously reduce their carbon footprint and lowering pollutant emissions.

These decisions should not have an impact on the safety of the products offered in the product

portfolio. “We want to regain and strengthen the trust of our customers and restore the

Group’s positive public image” (Volkswagen, 2018). They state the importance of following

set principles in the process. That includes compliance with laws and regulations and secure

processes, by being transparent regarding mistakes. Thus, future mistakes can be avoided or

33

rectified. They aim to be a role model for a “modern, transparent and successful enterprise”

(Volkswagen, 2018). “The strategic KPIs of this target dimensions include the decarbonization

index and emissions figures, as well as compliance, process reliability and a zero-defect

culture” (Volkswagen, 2018).

By listing competitive profitability, Volkswagen investors judges the company on whether they

meet obligations on interest payments and debt repayments. As equity holders, they expect

dividends and an increase in value of their shares. Volkswagen mentions that they make

investments to achieve profitable growth and strengthening their overall competitiveness,

which makes Volkswagen an attractive investment option. The set goals by the company are

to achieve operational excellence in all business areas the company has invested in. Also to

become a benchmark for the entire automotive industry. “The strategic KPIs are

operationalized for internal management purposes: target and actual data are derived from

Volkswagen Group figures” (Volkswagen, 2018).

3.4 - Volkswagen in Iceland

Volkswagen has a long and lustrous history in Iceland. In 1952 HEKLA, an import company

in Iceland, became the registered importer of Volkswagen vehicles in Iceland. Since then,

Skoda and Audi have been added to the company’s line-up. Since import started, Volkswagen

has been one of the most successful and popular car brands amongst consumers (Hekla, 2019).

Due to more competition in the last few decades, as more car brands have been available for

the Icelandic consumer to choose from, Volkswagen´s market share has slowly decreased.

However, it has often been amongst the top five most sold car brands each year

(Samgöngustofa, 2019).

In this chapter the sales of Volkswagen vehicles will be analysed over the last decade, which

is especially interesting in light of the emission´s scandal in 2015. Whether the scandal has had

impact on sales in the three years following the crisis. The Icelandic car industry is however

closely connected to the Icelandic economy and often one of the first industries to suffer if the

economy is in a bad state. Therefore, as will be discussed later, during this period economic

issues have had impact on the sales of cars in Iceland. Another issue that will be looked at, is

a yearly research by a marketing company in Iceland about brand awareness and purchase

34

intentions amongst consumers in the Icelandic car industry. This is also an interesting aspect

following the previous mentioned emission´s scandal and Volkswagen’s changed focus

towards sustainable mobility. Finally, a conclusion of the impacts will be discussed based on

the sales numbers and research.

3.4.1 - Volkswagen sales in Iceland

Table 1 shows the total car sales in Iceland from 2009-2018 and the Volkswagen sales and

market share over that period. During the first few years of the mentioned period, car sales

were low. This is mainly to due to the economic crash in 2008, which had devastating results

on the Icelandic economy and its inhabitants. The sales rose slightly year by year and in 2015

they reached similar heights as before the economic crisis and peaked in 2017. During this

period, Volkswagen’s market share has fluctuated between 6-13 % with the omission of 2009

when their market share was approximately 3%. This decline could be caused by the impact of

the economic crisis on the Icelandic importer for Volkswagen, Hekla. It is likely that Hekla did

not have enough capital to order cars and were only able to sell the stock they had in the

country. Consequently, Hekla changed ownership due to the bad financial standing. From

2010-2015 the market share for Volkswagen was quite stable, between 10-13,5%. However, in

the following three years, 2016-2018, the market share had been decreasing and was around

6% in 2018. As mentioned, the Volkswagen emissions crisis became public knowledge in

September 2015, which can lead to the assumption that it has impacted the sales of new

Volkswagen vehicles in the last three years. The sales numbers show that at least for the

Icelandic market, sales and market share have decreased significantly for Volkswagen in the

years following the emissions crisis. Whether it is the crisis that has made this impact or other

combinations of aspects, it is impossible to tell from the sales numbers alone.

35

Table 1 - Volkswagen sales in Iceland: 2009-2018 (Samgöngustofa, 2019).

3.4.2 - Purchase intentions in the Icelandic automotive market

Markaðs- og miðlarannsóknir ehf. (MMR), known for marketing research in different

industries in Iceland conducted a research on vehicle purchases among 2061 Icelandic

consumers. They research yearly purchase intensions among Icelandic consumers within the

automotive industry.

In the following question, participants were asked ‘what is the main reason for purchasing a

given brand’. In the question, six different answers were available for the consumer to choose

from, which were explained as follows. Experience: personal experience of a car from a

selected brand. Quality: The quality of the car from a brand. Trust: the trust the participant

has in products from the brand over other brands, for example: lower breakdown frequency.

Efficiency: Good quality, regarding the price of the car. Design: The design of the cars from

a specific brand. Engine type: The brand offers cars that are electric, hybrid or powered by

methane gas. Other: none of the above is the most important aspect (MMR, 2019). The results

of this question, as seen in Table 3, show that most consumers purchase a given brand due to

their personal experience of it. Next is the perceived quality of the brand, followed closely to

the consumers trust in a brands product. Efficiency, design and engine type all scored lower

than 10%. Notable differences over the last three surveys are that trust, and experience have

69 369 614 1063 888 952 1662 1605 1342 10602211

3095

5054

7896 7267

9490

14179

18442

21345

17967

3,1%

11,9% 12,1%

13,5%

12,2%

10,0%

11,7%

8,7%

6,3% 5,9%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

0

5000

10000

15000

20000

25000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

VW SALES IN ICELAND: 2009-2018

Volkswagen Total market market share

36

become more important, while efficiency, design and engine type have become less important.

The only age group that did not regard experience as the most important factor, was the age

group of 18-29, they regarded quality as the most important factor. Furthermore, the higher a

participant’s education was the more likely it was that the engine type was the most important

factor. As 10% of participants that have a University degree answered that engine type is the

most important factor. Similarly, the younger the age group, the engine type is more important.

Table 2 - What is the main reason for purchasing a given brand? (MMR, 2019).

When consumers where asked about which type of engine they are most likely to purchase in

their next vehicle, 43% answered hybrid or electric, 31% diesel, 25% petrol and 1% methane

gas (MMR, 2019). As seen in Table 4, the likelihood that Icelandic consumers will buy electric

or hybrid vehicles has increased significantly over the past few years. At the same time Diesel

vehicles have decreased significantly. One can assume that the Volkswagen emission scandal

has played a significant part in that development, as mentioned it became public knowledge

late in 2015. Although the decrease in diesel vehicles didn’t register until 2017, it decreased by

almost 20% in one year. During the same period electric and hybrid vehicles increased by 17%.

35%

18%

11% 10%8% 8%

10%

35%

18%

10% 9% 9%6%

15%

37%

18% 16%

8%6% 5%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Experience Quality Trust Efficiency Design Engine type Other

WHAT IS THE MAIN REASON FOR PURCHASING A GIVEN BRAND?

2016 2017 2018

37

Table 3 - Purchase intensions: engine type (MMR, 2019).

Regarding the highest level of education of participants, 56% of University graduates would

purchase an electric or hybrid vehicle, while 23% would purchase diesel and 21% petrol. 42%

of College graduates would purchase electric or hybrid vehicles, 31% diesel and 25% petrol

(MMR, 2019).

Individuals in management jobs, specialists and students are the most likely to purchase electric

or hybrid vehicles, with over 50% of each segment stating that. While farmers, fishermen and

craftsmen being the most likely to purchase diesel vehicles (MMR, 2019).

The most likely age group to purchase an electric or hybrid vehicle is surprisingly 68 years and

older, as seen in Table 5. However, the number of participants in that age group was

significantly lower than in others. Both age groups of 18-29 and 30-49 are more likely to

purchase electric or hybrid vehicles than other types. However, the age group of 50-67 is more

likely to purchase a diesel vehicle than an electric or hybrid one.

20%

46%

32%

2%

25%

47%

27%

2%

42%

28% 28%

1%

43%

31%

25%

1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Electric & Hybrid Diesel Petrol Methane Gas

PURCHASE INTENSIONS: ENGINE TYPE

2015 2016 2017 2018

38

Table 4 - Purchase intentions: Age groups (MMR, 2019).

Based on this survey, experience, quality and trust towards a brand plays a big role in

purchasing decisions amongst Icelandic consumers. Toyota has managed to implement a

certain trust in their brand and services over the last two decades, which is emphasised by its

sales in the Icelandic market and the results in this survey. They are by a long way the most

likely brand consumers would buy and score the highest in brand awareness. This emphasises

the importance of a brands trust and quality of service, which influence the past experience a

consumer has with a certain brand. Based on a study by Bochmann Consulting (2017), 70% of

car owners are likely to repurchase a car from its previous owned brand when it is time to

replace a vehicle (Informatica, 2018, p. 4). Furthermore, research by Bain & Company (2017)

indicates, that 60% of consumers have decided the make and model of a car before entering a

showroom (Informatica, 2018, p. 5). This emphasis the importance of a brands reputation in

the car industry. How important it is for a brand that the experience and trust in the brand is

positive, as shown from the study by Bochmann Consulting, consumers are more likely to

purchase the same brand again.

Volkswagen was as mentioned the fifth highest selling brand in Iceland in 2018. However, in

the Survey by MMR (2019), they scored 8th when consumers were asked what brand they were

most likely to purchase, with 5% of participants selecting Volkswagen. This is a 2% decrease

from the previous year, which is worrying for the brand. Although, the sales numbers argue a

45% 44%

36%

53%

23%

33%37%

16%

30%

23% 24% 26%

1% 0% 0%5%

0%

10%

20%

30%

40%

50%

60%

18-29 30-49 50-67 68 & older

PURCHASE INTENTIONS: AGE GROUPS

Electric & Hybrid Diesel Petrol Methane Gas

39

different scenario to the survey. Volkswagen did however score 5th when consumers were

asked about which brands they would possibly purchase, with approximately 31% and

increasing their percentage from 2017 by 3,5%. One can assume that Volkswagen was possibly

many consumers second choice, and for some reason some consumers purchased Volkswagen

rather than their first intended brand. Volkswagen were also 5th when consumers were asked

about which brand comes first to mind, with 5%, the same as in 2017. Volkswagen have

however decreased in all three of the above-mentioned questions since 2015 and combined

with the decrease in market share over that period, one can assume that the emissions scandal

has impacted the Volkswagen brand significantly in the Icelandic market. Especially

considering the importance of brand trust, quality and experience for the Icelandic consumer.

The positive aspect for Volkswagen is the changed purchase intentions of Icelandic consumers

regarding electric and hybrid vehicles. Which has increased significantly over the last few

years. This could have a positive impact on the Volkswagen brand in Iceland considering

Volkswagen AG ‘2025 strategy’ and its changed focus towards electric and hybrid cars.

Volkswagen in Iceland could reap the benefits of this change of focus by Volkswagen in

Germany, as many new electric models will become available in the coming years. It also

seems that the purchase intentions of Icelandic consumers of electric and hybrid vehicles will

carry on increasing in the coming years.

3.4.3. - Sales of Electric and hybrid cars in Iceland

Volkswagen´s future brand strategy, towards sustainable mobility is an important aspect of this

thesis. Therefore, in this section, Volkswagen sales of Electric (EV) and plug in hybrid vehicles

(PHEV) will be examined. Five different tables will be presented, including the top selling

brands of EV´s, top selling brands of PHEV´s, the total sales of new EV´s and PHEV´s,

Volkswagen sales of EV´s and PHEV´s combined and their total market share within these

segments of the Icelandic automotive industry. The years in question are 2016-2018, which are

the years following the emissions scandal. Each table will be discussed individually before a

discussion will be presented at the end of this section.

What defines PHEV´s from normal hybrid vehicles, is the option of charging the car straight

from a normal electrical socket. Some hybrid vehicles use the combustion engine to make

electricity, which many feel is not sustainable. Therefore, only PHEV´s will be analysed in this

40

section along with EV’s. EV´s are for definition purposes, vehicles that only have an electrical

motor.

Table 6 shows the combined sales of electrical and plug-in hybrid vehicles in Iceland over the

past three years, 2016-2018. During that time period, the amount of registrations of these

vehicles has more than tripled (Samgöngustofa, 2019). In 2016, there were 840 new

registrations for EV´s and PHEV´s. By 2018, the registrations were 2.669. New car

registrations decreased by about 18% from 2017 to 2018, during that time however,

registrations of EV´s and PHEV´s increased by 42%. This shows that even though the market

seems to have become saturated within the Icelandic automotive industry, EV and PHEV sales

are rising year from year.

Table 5 - Total market - EV & PHEV sales in Iceland 2016-2018 (Samgöngustofa, 2019).

Table 7, shows the top selling brands of electrical vehicles in Iceland over the past three years,

2016-2018. Volkswagen, Nissan, Kia, Renault and Hyundai are the only brands that sell a

significant number of EV´s each year (Samgöngustofa, 2019). As Table 6 showed, the EV and

PHEV market is growing year by year in Iceland, by a significant rate. Most of the brands

mentioned are growing as well, in correlation to the market. The main risers are Volkswagen

and Nissan, with Nissan taking a market leading role, mainly due to their ever-popular Nissan

Leaf (Samgöngustofa, 2019). Volkswagen however more than doubled their sales in EV´s from

2017-2018, which is a good indication for the years to come. Especially regarding their

intensions of offering a large product line of EV´s in the coming years.

84

0

18

78

26

99

2 0 1 6 2 0 1 7 2 0 1 8

TOTAL MARKET - EV & PHEV SALES IN ICELAND 2016-2018

41

Table 6 - Sales of new Electric cars in Iceland 2016-2018 (Samgöngustofa, 2019).

Table 8 shows, the registrations of new PHEV´s from 2016-2018 in the Icelandic market. The

PHEV market is more competitive at the moment, with more brands offering vehicles with a

combination of a normal combustion engine and an electrical motor. In this market, Mitsubishi

as gained a market leading position, due to its ever popular Mitsubishi Outlander PHEV

(Samgöngustofa, 2019). Volvo, Volkswagen, Audi and Kia make up the next positions.

Volkswagen has increased its sales in this market during the time period mentioned, but Volvo

leapfrogged them in 2018. However, Volkswagen seems to maintain its position of being one

of the most popular brands in this segment.

Table 7 - Sales of new Plug-in Hybrid cars in Iceland 2016-2018 (Samgöngustofa, 2019).

52

12

9

38

5 0 14

77

17

8

33

78

19 4

7

16

7

34

9

38

85

71

21

V O L K S W A G E N N I S S A N K I A R E N A U L T H Y U N D A I O T H E R

SALES OF NEW ELECTRIC CARS IN ICELAND 2016-2018

2016 2017 2018

17

9

15

1

70

68

67

0 39

23

5

15

1

59

9

12

6 16

7

12

5

10

2

65 94

17

23

7

77

6

32

3

19

1

95

17

9

34 56 77

SALES OF NEW PLUG-IN HYBRID CARS IN ICELAND 2016-2018

2016 2017 2018

42

Table 9 shows, Volkswagen´s total EV’s and PHEV´s sales in the Icelandic automotive

industry for the years 2016-2018. Furthermore, it also displays the Volkswagen´s market share

within that segment of the Icelandic automotive industry. Even though, total sales have nearly

doubled during this time period, market share has approximately halved. This shows the ever-

increasing competitiveness within this segment. It is also the fastest growing segment within

the Icelandic automotive industry (Samgöngustofa, 2019). In 2018, Volkswagen had the

second most registrations of EV´s and the third most of PHEV´s. This made them the second

largest brand within these combined markets. Only Mitsubishi sold more vehicles within this

market in 2018. Furthermore, in 2018 only Volkswagen, Kia and BMW offered both EV´s and

PHEV´s in their product line-up. Even though Volkswagen´s new brand strategy is relatively

new, this gives an indication that they are heading in the right direction to become a market

leader within these segments.

Table 8 - Volkswagen - EV/PHEV sales & market share

Table 10 shows, Volkswagen´s sales of EV´s and PHEV’s in comparison to petrol and diesel

sales, within the Icelandic automotive industry. This table shows the quick and significant shift

Volkswagen in Iceland is taking towards EV´s and PHEV´s. In 2016, EV and PHEV sales

regarded to 16% of total Volkswagen sales, in 2017 it was 21% and in 2018 it was 42%. By

this rate half of Volkswagen sales in Iceland in 2019 could be EV´s and PHEV´s. There are

two factors that can possibly of influenced this significant change. The first one is that

consumers are demanding EV´s and PHEV´s rather than petrol and diesel engines. The second

reason could be that with each year Volkswagen´s product line-up of EV´s and PHEV´s is

increasing and they are therefore reaching new customers. This bodes well for Volkswagen in

Iceland regarding Volkswagen´s new brand strategy.

231 228

40428%

12%

15%

0%

5%

10%

15%

20%

25%

30%

0

100

200

300

400

500

2016 2017 2018

VOLKSWAGEN - EV/PHEV SALES & MARKET SHARE

Volkswagen Market share

43

Table 9 - Volkswagen - EV/PHEV vs Petrol/Diesel sales (Samgöngustofa, 2019).

The Icelandic car industry has been changing quickly and significantly over the last three years.

Consumers have been purchasing EV´s and PHEV´s at a larger rate, making it the fastest

growing segment within the Icelandic car industry. Whether the discussions surrounding the

emissions scandal in late 2015 have pushed consumers in this direction, or that during these

years the selection of variable EV´s and PHEV´s has increased have influenced this increase is

difficult to say. Another aspect worth mentioning, is that the Icelandic government has put in

place temporary financial discounts on EV´s and PHEV´s, as no customs are added to these

vehicles. One thing is for sure, that Volkswagen has managed to place itself as one of the

leading brands within this segment of the market, also being one of a handful of brands that

offer both EV´s and PHEV´s to it´s customers. This bodes well for the future of Volkswagen

in Iceland, as during the next few years the company will be able to offer an even larger product

line-up. Volkswagen AG statement of being a market leader within this field by 2025 can also

have positive implications for Volkswagen in Iceland. In 2020 Volkswagen will start delivering

the new Volkswagen I.D, a brand-new electrical car. According to Volkswagen AG this is the

most important car in the company´s history (Bloomberg, 2018). Emphasising the importance

of sustainable vehicles for Volkswagen’s future. Pre-ordering started on the 8th of May 2019,

and according to Jóhann Ingi Magnússon, Brand Manager Volkswagen Iceland, they sold 20%

of their 2020 quota in the first day (Magnússon, 2019). This gives an implication that the

excitement for EV´s and PHEV´s is growing even more year by year. Which is tremendous

news from a Volkswagen perspective.

23

1

22

8 40

4

12

47

84

1

55

3

2 0 1 6 2 0 1 7 2 0 1 8

VOLKSWAGEN - EV/PHEV VS PETROL/DIESEL SALES

EV & PHEV Diesel & Petrol

44

4. - Conceptual Framework

In this chapter the conceptual framework for the thesis will be presented. It will be based on

the prior literature chapter enlisted earlier in this thesis. Each individual topic, brand ethics,

brand trust and brand social currency will be discussed individually from a Volkswagen

perspective, as the Volkswagen brand plays an important role in this thesis. Arguments on the

connection of these aspects will also be presented. Discussions on how the presented literature

affects the Volkswagen brand, the emissions scandal and the future brand strategy will be

discussed. Finally, based on these discussions the conceptual framework of this thesis will be

presented.

4.1. - Brand ethics from a Volkswagen perspective

The previous literature on brand ethics can be connected to the Volkswagen emissions scandal

quite clearly. Following the emissions scandal Volkswagen´s reputation and image has

deteriorated greatly, as well as stakeholders trust in the company (O‘Boyle & Adkins, 2015).

It is assumed this is in some case down to Volkswagen´s failure to value the importance of

their ethical standpoint as a brand towards consumers. Many consumers believed they were

purchasing environmentally friendly vehicles, as they were advertised by the brand. The

company deceived their consumers by not offering the products they accepted, which lead to

the brand suffering. Honesty, integrity, responsibility, quality, respect and accountability are

attributes Singh et al. (2012) connect to ethical brands. During and in the aftermath of the crisis

Volkswagen failed on each of these matters. They deceived consumers, meaning they were not

honest, and their integrity was not in place. They failed in taking responsibility and

accountability for their mistakes when the scandal emerged but took steps towards that later.

They failed to provide their consumers with quality products and did not treat them with

respect. Furthermore, Volkswagen showed a lack of respect for numerous things such as the

environment, regulators and the automotive industry as a whole. This impacted the

Volkswagen brand greatly following the crisis, and as mentioned had a significantly negative

effect on the brand’s trust. Volkswagen also failed at offering products that stood by their

values and promises, and failed at showing accountable and responsible behaviour, which is a

fundamental aspect in being perceived as an ethical brand. This led customers to question the

trustworthiness and ethicality of the brand.

45

Following the scandal Volkswagen has transformed its future strategy towards sustainable

mobility in order to gain back the trust of its consumers and “build a better Volkswagen”

(Autoexpress, 2016). Volkswagen´s future brand strategy as explained earlier, is to become a

market leader in sustainable mobility. This is in line with the literature presented above, a

positive CPE often leads to a positive brand trust. Based on prior studies suggesting the

Volkswagen brand is back on track, one can assume that this change of direction towards

providing ethical products has influenced that, at least to a degree. Furthermore, in correlation

with previous literature, Volkswagen has focused on the ethicality of the company at all levels,

with their new strategy. Not only offering ethical and environmentally friendly products. They

also mention in their strategy that it is important that the whole company, it´s employers

included, are focused on and heading in the same direction.

It is interesting that this literature points out the financial benefits of brands acting ethically, as

this is central to the Volkswagen emissions case, both the scandal itself and the aftermath and

change of focus by the company towards sustainable mobility. It is twice as expensive for a car

manufacturer to introduce an electrical or hybrid vehicle to the market, then a petrol or diesel

one, but is expected to decrease in the next few years (BCG, 2018). Which means Volkswagens

change of direction in its brand strategy was a bold move, but as the literature suggests, it could

be a financially savvy one. Also, regarding the factor that ethical brands are likely to have

higher brand retention and more recommendations amongst its customers. Another point worth

mentioning, is that if the brand is perceived as ethical, their products are likely to perceived as

fair, honest and trustworthy. If Volkswagen is able to stand by its new values and set promises,

act in an accountable and responsible manner, this can lead to them being perceived as offering

fair, honest and trustworthy products.

Even though it seems Volkswagen has taken a positive step towards becoming an ethical brand,

it will take time for everyone to perceive the brand that way. So large was this deception on

Volkswagen´s behalf. It will be an interesting to see how this aspect is perceived in the research

later in the thesis.

4.2. - Brand trust from a Volkswagen perspective

As stated in the literature, brand trust is often split into two different dimensions. The names

often differ, but the basic descriptions are the same. Following the emissions scandal, it is

obvious that Volkswagen failed in both aspects, and as mentioned, these aspects are interlinked,

46

meaning they cannot work without each other. Volkswagen failed in giving the perception of

good intentions, as the company did not follow the set regulations in the US market and put

forth a defeat device in their vehicles to meet those set regulations. By doing this, they deceived

their consumers among others, therefore failing in the affective part of brand trust.

Furthermore, Volkswagen showed that they were unable to meet the set regulations and what

they had advertised. They could have met the regulations without the defeat device, but then

the vehicles had to be advertised as not being as ‘economical’. Meaning they failed at the

functional part of trust, which stipulates the believe consumers have in the brand at delivering

on these intentions. As mentioned multiple times, the scandal had a huge impact on

Volkswagen´s brand trust, understandably. As many consumers trusted that Volkswagen had

good intentions and believed they had what it takes to meet them. This can also be linked to

the literature, where it is stated that brands that perform in an honest and sincere manner are

likely to be trusted.

Volkswagen failed at realizing that the decisions of the company can influence trust, as trust is

built on the mutual trust between the brand and its consumers. They also failed in realising how

important consumers are for the brand in the whole, rather than maintaining this trust and

offering products that were ethical and in coherence with regulations, they rather focused on

short time growth. Which has impacted the company in the long term.

Trust is built trough interactions and must be established, developed and maintained. This is

the core aspect of building and maintaining brand trust. Throughout the years of decision

making leading up to the emergence of the emissions scandal in 2015, Volkswagen focused on

growing its brand and reaching more customers, rather than focusing on its own consumers and

maintaining the brand trust those consumers had. This opportunistic behaviour, as stated in the

literature, can have a negative impact on consumer trust, which it did.

Having a positive brand trust is a key aspect for all companies. Volkswagen seems to have

realized this, and as mentioned have taken steps to gain back the trust of its consumers and

other stakeholders. Their ‘2025 strategy’ is a ground-breaking strategy. Their aim to be a leader

of sustainable mobility in the future, is a step in the right direction. But as the literature states,

trust takes a long time to rebuild, and there are many steps along the way that are necessary for

it to be successful. Volkswagen must aim to establish, develop and maintain the trust it has and

47

proceed at not making another opportunistic mistake. This is a fundamental issue Volkswagen

must realize to gain back its consumers and other stakeholders trust.

4.2.1. - Brand Loyalty from a Volkswagen perspective

As brand loyalty is influenced by a consumer´s brand trust, the negative aspects of the

Volkswagen emissions scandal impact the brand´s loyalty among consumers. As mentioned

the scandal had a significant impact on the Volkswagen´s brand trust, which can be assumed

to have influenced the brand loyalty amongst consumers as well. The literature states that brand

misconduct has an influence on a consumer´s trust in the brand, which leads to less loyalty,

which is argued as being the case for Volkswagen. However, as mentioned, Volkswagen new

brand strategy has the aim to regain consumer´s trust in the brand, if successful this can have a

positive influence on the brand loyalty as well.

4.2.2. - Brand authenticity from a Volkswagen perspective

Eggers et al. (2013) believes that brand authenticity helps brands that are aiming to rebuild

trust. As in Volkswagen´s case, that is the aim. Whether Volkswagen is an authentic brand is

up for discussion. Furthermore, Guevremont and Grohmann’s (2017) mention that consumers

tend to show more leniency towards a brand if a scandal happens, if the brand is perceived as

being authentic. This is one of the foundations for the thesis, as it aims to research what aspects

have influenced the seemingly quick recovery of the Volkswagen brand. Whether Volkswagen

is perceived as being authentic, and more leniency was shown due to this fact by consumers

will be answered in the research.

Authentic brands are often described as caring for its consumers and delivering on their set

promises, which Volkswagen clearly did not do in the years leading up to the scandal.

Although, one can argue that Volkswagen did deliver on their promises, by offering seemingly

economical and environmentally friendly products. However, their execution of delivering

those promises and the ethicality of the decisions surrounding that, was not done in the correct

manner. Leading consumers to not feeling that the brand actually delivered on those promises

following the emergence of the scandal.

The aspects that influence brand authenticity are as stated, individuality, originality,

naturalness, credibility, reliability, consistency, continuity, integrity and symbolism. The

Volkswagen brand´s future brand strategy of being a leader in sustainable mobility does appear

48

to tick many of these boxes. The vision of the company is clear, and at the moment they seem

to have the ability to deliver on the set promises, by offering more sustainable cars. Their

product line-up of sustainable vehicles is expanding each year, in accordance to prior

statements by the company. Its continuity is seemingly intact, as the company is able to outlive

trends in the market, like the diesel trend. Its integrity, is furthermore, seemingly heading in

the right direction. Whether its continuity, consistency and reliability are heading in the right

direction is difficult to assume. As these aspects rely on the consumer’s perception it is

impossible to stipulate whether this has been successful on Volkswagen´s part. Therefore,

these aspects mentioned will be researched later in this thesis.

Volkswagen’s values, promises and intention seem to be clear, due to their ‘2025 strategy’.

This can influence the perceived warmth or affective trust consumers have towards the

company. Whether their perceived competence or functional trust has been influenced is

difficult to say, as that issue surrounds the believe consumers have in the company to have the

ability to carry out those values, promises and intentions. The scandal did have an impact on

this aspect, as Volkswagen failed to live up to them. This failure could have impacted the

Volkswagen’s brand trust following the emergence of the scandal, as brand authenticity can

impact brand trust.

The key aspects drawn from the Volkswagen ‘2025 strategy’, indicate in the believe of the

researcher of this thesis, that they have set forth a clear vision for the brand. The organizational

values are argued to be ethical, sincere, with integrity and credible. Whether they are

dependable is difficult to say with such a new strategy, but time will tell on that regard. This

step taken by Volkswagen, can lead to the brand being perceived as being trustworthy. The

brand must support this vision, by implementing brand strategies that benefit the vision. This

can have a positive impact on the perceived reliability and continuity of the brand. Volkswagen

has also seemingly taken into perspective the importance of not only offering products that

benefit its consumers, but also the community at a whole. Which they largely failed at, when

it emerged that their diesel vehicles had up to 40 times the amount of harmful emissions

allowed. However, their new strategy, offering sustainable cars with down to zero emissions,

is the step in the right direction in benefitting the community. They aim to be a market leader

in this area of the automotive industry, setting a benchmark for other automotive companies. It

is well known the negative impact car emissions have on the environment and public health,

especially in urban areas.

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4.3. - Brands social currency from a Volkswagen perspective

As a brand´s social currency centres on the feelings of consumers, it is difficult to

argument it. However as stated before, a scandal as vast as the emissions scandal,

perceivably did have a negative impact on Volkswagen´s social currency. Furthermore,

as Volkswagen´s brand trust decreased following the emissions scandal and literature

states that social currency impacts trust, an assumption can be made that Volkswagen´s

brand currency was affected following the scandal.

It is likely that some criticism on consumers behalf was distributed, either in online or

offline scenarios following the crisis, which presumably had a negative impact on the

brand. Volkswagen must realize the importance of its social currency, especially in light

of the scandal, as it can have a beneficial impact on brand trust. Furthermore, it is vital

for the company to act in an appropriate manner and act in coherence with its new brand

strategy. Volkswagen is under the limelight following the scandal and as much of the

information surrounding brands these days are out of their control, it is vital that

Volkswagen live up to the set promises.

The automotive industry is regarded as a high involvement industry, which reflects the

importance of social currency within it. As consumers seek ways in engaging with and

promoting brands. Brands can meet this by offering online platforms where consumers

can actively communicate with each other. Consumers would be able to identify with

other brand owners, which is one of the fundamental aspects of social currency (Lobschat

et al, 2013, p.135). Lobschat et al. (2013) argue that managers within this industry should

focus on protecting a strong identity among its consumers and create talking points for

them. It is furthermore vital that brands in this industry don´t vary away from their core

brand characteristics, and their marketing efforts should comply with those

characteristics (Lobschat et al, 2013, p.141).

Volkswagen´s new brand strategy, even though it is a radical change for the company,

has seemingly not strived away from the brands core characteristics. As mentioned, it is

an important aspect for consumers and the brands social currency. They also have an

Identity in place, again in connection to their new brand strategy, which bodes well

according to the literature.

50

It will be interesting to investigate the six dimensions of social interaction that affect the

social currency of a brand in the research later in this thesis. This will enable the

researcher to clarify the standing of Volkswagen´s brand social currency from an

Icelandic consumer´s point of view and if Volkswagen need to take steps to improve any

of the mentioned dimensions.

4.4. - Presentation of Conceptual framework

The conceptual framework of this thesis is built on the prior researches of Lobschat et al.

(2013), Singh et al. (2012) and Portal et al. (2018). Their respected conceptual frameworks will

be presented in Figure 2-4. Followed by the presentation and discussion of the conceptual

framework of this thesis.

Figure 2 - Conceptual Framework (Portal et al, 2018)

Figure 3 - Conceptual Framework (Singh et al, 2012)

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Figure 4 - Conceptual Framework (Lobschat et al, 2013).

The conceptual framework for the research of this thesis is based on the before mentioned three

researches. Firstly, the researcher agrees with the findings presented by Portal et al. (2018),

that brand authenticity can have an impact on brand trust. As mentioned in this chapter, Portal

et al. (2018) believes this happens through a mediating relationship with perceived warmth and

competence on a consumer’s behalf to a brand. The research of this thesis will not investigate

that specifically but does agree that those feelings of a consumer towards a brand, might assist

authentic brands in influencing brand trust.

Secondly, the researcher agrees with the findings presented by Singh et al. (2012), that brand

ethics, or consumer perceived ethicality can impact brand trust which can influence brand

loyalty. The aspect of brand affect presented by Singh et al. (2012) will not be used in the

research of this thesis however.

Thirdly, the researcher agrees with some aspects of the findings presented by Lobschat et al.

(2013). The aspect of a brands social currency influencing brand trust is agreed. Furthermore,

as the findings of Singh et al. (2012) also present, that brand trust has an impact on brand

loyalty is also agreed. However, the opinion of the researcher does not agree that social

currency affects a consumer´s perceived quality. In the belief of the researcher, perceived

quality is an aspect that is not is affected by social currency, but rather an aspect within brand

ethics. As quality is believed to be one of the attributes connected to brand ethics according to

52

Singh et al. (2012). Furthermore, the researcher believes that social currency does not directly

impact brand loyalty. It can impact brand loyalty indirectly through the impact social currency

has on brand trust. The belief is that all the mentioned dimensions of brand social currency,

enlisted by Lobschat et al. (2013), can influence a consumer’s trust in a brand and that trust

might lead to consumer brand loyalty. Therefore, it can eventually lead to brand loyalty, but

always through the mediating role of brand trust.

Another aspect the researcher assumes, is that brand loyalty impacts social currency, as brand

loyalty ‘nudges’ consumers into for example, engagement in brand related communications,

an aspect of social currency. Furthermore, a consumer that has loyalty towards a brand is

assumed to engage more frequently in this activity, meaning his or her loyalty impacts the

brands social currency. This means a certain cycle is in place, as consumers loyal to a brand

might engage more in brand related communication which can influence other consumers. That

can lead those consumers to having a certain trust towards the brand and finally loyalty towards

it. This is presented in the conceptual framework of this thesis, Figure 5.

Figure 5 - Conceptual Framework

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5. - Research Method

This section will enlist the scientific positioning of the thesis. That aspect will be coordinated

with the research approach of the thesis and the chosen methods for data collection and the

analysis of that data. It is necessary for the benefit of the readers understanding of the thesis to

present the philosophy of science used. As it enlists how data is interpreted by the author, his

understanding and his view of the world and underpin the strategy and methods chosen

(Saunder, Lewis, & Thornhil, 2009). Following the elaboration of the philosophy of science,

methods of data collection and analysis will be discussed. As that is an integral part of the

thesis considering the affect it can have on the results, there will be an argumentation on why

specific methods have been chosen.

5.1- Philosophy of Science

The adopted research philosophy sheds light on the way in which the researcher views the

world and will underpin the research strategy and methods selected (Saunder et al, 2009). The

adopted philosophy is generally influenced by practical considerations, while the main

influence is most commonly influenced by the researchers view of the relationship between

knowledge and the process in which it is developed (Saunder et al, 2009). A researcher who is

concerned with facts is likely to have a different view on how research should be conducted

than a researcher concerned with feelings and attitudes. Their strategies and methods would

probably differ significantly, as will their views on what is important and what is useful

(Saunder et al, 2009). According to Saunders et al. (2009), the different philosophies are

Positivism, Realism, Interpretivism and Pragmatism. All philosophies differ from each other

and none is better than another, but as mentioned they shed light on the perceptions of the

researcher in a different way (Saunder et al, 2009). This thesis can be characterised as an

interpretative research. Interpretivism advocates the necessity for the researcher to comprehend

the difference between humans in our role as social actors. This emphasis the difference

between conducting research on people than machines for example (Saunder et al, 2009). The

researcher´s view of the role of values in research, known as Axiology, is described within the

interpretative research philosophy as: “Research is value bound, the researcher is part of what

is being researched, cannot be separated and so will be subjective” (Saunder et al, 2009, p.

119). The data collection techniques most used in the selected philosophy are, qualitative, small

54

and often focus on in-depth interviews, which is what will be used in this thesis. In the

following section the hermeneutic perspective will be described, as it is the most dominant

scientific paradigm within this thesis.

5.2 – Hermeneutic perspective

This segment will describe the hermeneutic perspective and how it correlates with the aim of

this thesis. “Hermeneutics is an interpretive method of deriving understanding from narrative”

(McKenzie, 2008, p. 128). This correlates with the focus of the thesis being on individuals and

their interpretations and opinions, which the researcher articulates from his preconceptions.

The human is often viewed as intentional within the hermeneutic perspective, meaning all

actions have some intentions whether they are visible or not (McKenzie, 2008). Transferring

this to the thesis, is that to partake in brand activity and become part of Volkswagen´s brand

social currency, customers are viewed to have some intentions for doing so. Connected to this,

customers are seen as utilitarian. Utilitarianism is based on an ethical theory that determines

right from wrong based on the outcome (McCombs School of Business, 2019). Furthermore,

it argues that decisions are made based on ethical reasoning and in some instances for the

greater good (McCombs School of Business, 2019). This means within utilitarianism, a

customer’s engagement requires a certain benefit the customer receives from that engagement

with the brand. This thesis investigates the effects the negative brand ethics on Volkswagen´s

behalf had on their customers. Customers that are perceived as utilitarian must see a benefit to

partake in engagement with the brand, and in this case considering Volkswagen´s future brand

strategy, perceiving customers as utilitarian fits into the perspective of ethical reasoning behind

purchasing a sustainable vehicle.

The aim of this thesis is to investigate Volkswagen´s brand social currency and how it has

affected the seemingly quick recovery of the brand following the emissions scandal, and

whether it is having a positive effect on the brands future strategy. This results in an

interpretative approach, as the purpose of the research is to collect the interpretations and

opinions of participants within the interviews, whether they are embedded implicitly or

explicitly (Saunder et al, 2009). As the researcher has certain preconceptions due to his

connection with the Volkswagen brand prior to the research and the respondents are perceived

to have as well, those preconceptions of the researcher could possibly approach those of the

respondents. This can be explained as a hermeneutic spiral (McKenzie, 2008). The researcher’s

55

prior preconception is likely to become more qualified and nuanced while conducting

interviews, which is likely to gradually approach the prior preconceptions of the respondents

(McKenzie, 2008). Below the Ontology and epistemology aspects of the hermeneutic

perspective will be discussed in order to enhance the understanding of the thesis, its analysis

and the forthcoming results.

5.3 – Ontology

“Ontology is concerned with nature of reality. This raises questions of the assumption

researchers have about the way the world operates and the commitment held to particular

views” (Saunder et al, 2009, p. 110). The most important question addressed by ontology is

often regarded as whether the social phenomena we study should be understood as existing

objectively, external to observers or whether they are ‘made real’ by humans through activities

and the meanings they attach to them (Bryman & Bell, 2011). The last explanation is of

constructionism or constructivism, which is an ontological position. It implies that social

phenomena and categories are produced through social interaction and this happens constantly

(Bryman & Bell, 2011). The hermeneutic perspective often employs a constructionist

positioning when it comes to ontology and will do so in this thesis. Furthermore, it also

coincides with the previous mentioned interpretivist philosophy (Bryman & Bell, 2011). The

researcher’s goal is to understand the subjective reality of the respondents of the research to be

able to comprehend their intentions, actions and thoughts. The constructionism aspect of

ontology and its implication that phenomena are produced constantly through social interaction

is fitting regarding the research of this thesis, the brand social currency of Volkswagen.

5.4 – Epistemology

“Epistemology concerns what constitutes acceptable knowledge in a field of study” (Saunder

et al, 2009, p. 112). Epistemology is underpinned by ontology, meaning the ontological

position derived earlier impact the epistemological position of a research (Bryman & Bell,

2011). Meaning the ontological position, which is a particular understanding of what reality is,

influences the epistemological position, on how we can gain knowledge of that reality (Bryman

& Bell, 2011). Having previously adopted a constructionist ontology in this thesis, Bryman

and Bell (2011) argue that by observing and interviewing social actors is how a researcher

might attempt to understand how they shape and understand the world. This thesis takes the

epistemology position of interpretivism which is also coherent to the hermeneutic perspective

56

discussed earlier. By taking the interpretivism position within epistemology, this thesis aims to

understand the world through the participants interpretation of it. This can be achieved through

a deductive or inductive research approach (Bryman & Bell, 2011). For this thesis the inductive

stance has been selected, meaning theory is the outcome of the research (Bryman & Bell, 2011).

Furthermore, the researcher takes a subjectivist view on his understanding of the concepts of

brand ethics, brand loyalty and brand social currency. This can also be implied of the

interpretations of the answers by participants in the research of this thesis. Qualitative research

tends to be subjective and it often tends be extremely difficult to separate those interpretations

form the researcher (Bryman & Bell, 2011). This also implies that knowledge is unable to be

objective as personal feelings or opinions do impacts individuals when considering and

representing facts (Bryman & Bell, 2011). This thesis aims to accept the consistency of

statements regarding knowledge, meaning a statement is regarded true by the researcher if it is

consistently represented by participants without contradiction.

5.2. – Methodology

The hermeneutic positioning that will be applied in this research as mentioned above, is most

often used in combination with a qualitative research. Qualitative researches are regarded better

when trying to access thoughts and attitudes of the participants. This research will also take

that direction as a large aspect of the research is based on the thoughts and attitudes of

Volkswagen consumers.

5.2.1.- Research Design

This section will describe the research design of this thesis and present the framework of the

data collection and analysis of data. As mentioned, the research of this thesis will use a

qualitative approach based on in-depth interviews. Furthermore, as this thesis will focus solely

on qualitative data, it can be characterized as a mono-method approach (Bryman & Bell, 2011).

It is however worth mentioning, that there may be some discussion based on the sales numbers

of Volkswagen in the latter chapters of this thesis in correlation with the findings of the

research. However, the research, as mentioned, will only be based on these in-depth interviews.

Qualitative data often focuses on words, rather than numbers. It is often characterized as having

an interest and interpretivism of understanding the social worlds and on the individual and his

or her meanings and impetrations of the world. However, qualitative data is often criticised for

being subjective and impressionistic (Bryman & Bell, 2011). Even though qualitative data has

57

its critics, it is the best way in accessing the interpretations of individuals on a certain aspect

(Bryman & Bell, 2011). Which is in line with the objectives of this research. As mentioned,

this thesis will take an inductive approach to analysing the data, which implies observing

individual aspects and making some assumptions based on them.

The study consists of six interviews with current Volkswagen owners from generations Y and

Z. All the participants have that in common, that they currently own a Volkswagen electric or

hybrid vehicle. Furthermore, they are all resided in the Greater Reykjavík area. There will not

be any comparison between the answers from each generation, as they believe of the researcher

is that they will not state any major differences. Furthermore, some of the respondents are born

either in the last year of generation Y or the first year of generation Z, meaning they could

assume to have traits of both these generations. The reasoning for selecting current owners of

Volkswagen electric or hybrid vehicles, is based on the future brand strategy of Volkswagen.

As the objective of this research is to investigate what aspects have impacted the brand´s

seemingly quick recovery, the researcher found it necessary to base the research on consumers

that are possibly in line with that strategy. Furthermore, as the main research question centres

on the dimensions of Volkswagen´s brand social currency, selecting participants that possibly

agree with that strategy was key. The aim of the interviews is to access the thoughts and

attitudes the participants have towards Volkswagen and identify the differences and similarities

from the responses. Based on this knowledge, theories and generalizations will be presented.

5.2. – Research methods

This chapter will present the research methods applied in this thesis. As mentioned, this thesis

is applying an inductive research approach. Interviews have been selected as the research

method. The aim of the interviews is to gain a deeper understanding of the consumers

connection with Volkswagen and the selected theoretical aspects.

5.2.1. – Interviews

Interviews can help gather valid and reliable data in a research. Interviews can depend on the

skills and knowledge of the interviewer, also on the interaction between interviewer and

interviewee. Therefore, the quality of an interview of depends on the interviewer. The

interviews of the research of this thesis, will be based on a structured format. Meaning there

will be structure to the interview, but it will allow the interviewee to deviate from the structure

58

ones in a while. This will possibly lead to the interviewee being able to reveal more detailed

perspectives from the participant (Bryman & Bell, 2011).

5.2.2. – Respondents

As mentioned in the delimitations chapter, the generations selected for the research of this

thesis are Generation Y (1981-1994) and Generation Z (1995-), as according to prior research

of the Icelandic automotive industry, these generations are most likely to purchase hybrid or

electric vehicles (MMR, 2019). Furthermore, the selected participants are all current

Volkswagen consumers and have that in common of owning an electrical or hybrid vehicle. As

this thesis aims to investigate the aspects of communications between the brand and its

consumer, it was vital that the participants are current consumers of the brand. Furthermore, as

this research also aims to investigate whether Volkswagen´s new brand strategy has impacted

the brand recovery process, it was important to gain further understanding from current

electrical or hybrid vehicle owners. Furthermore, as mentioned, all respondents will be situated

in the Greater Reykjavík area. As the thesis aims to investigate these aspects within the

Icelandic automotive market.

5.2.3. – Transcription

All the interviews were reordered and later transcribed. The transcribed interviews can be

found in the appendices. All interviews were conducted in Icelandic to eliminate language

barriers. Due to that, the interviews had to be translated to English, in order to implement the

findings in the analysis chapter. There is also an issue, as written language often differs from

spoken language (Saunder et al, 2009). Therefore, it is sometimes necessary to ‘clean’ the

language used (Saunder et al, 2009).

5.2.4. - Reliability and Validity

It is important when writing a thesis to ensure the quality of it by focusing on reliability and

validity (Bryman & Bell, 2011). High reliability and validity is gained by trying to minimize

errors. Therefore, it is important to take that into consideration when analysing the data to

ensure the quality of the findings (Bryman & Bell, 2011).

Reliability is often dived into external and internal reliability (Bryman & Bell, 2011). Internal

reliability refers to when more than one researcher take part in the research and can affect the

59

result. This does not impact this thesis as there is only one researcher. External reliability refers

to the research being replicated, with the same methods of analysis applied, but at another time

or at another place, and that they should replicate the findings of the first research. In order to

ensure high external reliability, the research method, data collection and data processing must

be structured, so other researchers have the possibility to replicate it (Bryman & Bell, 2011).

Based on this the researcher attempted to structure the research methods appropriately for this

to be the case. The interview is based on prior interviews within qualitative research and the

questions appropriately worded. Furthermore, the analysis of the data will be conducted in the

most exact way possible, regarding language, in order to minimize the possibility of errors

based on the participants answers. Qualitative research is in essence difficult to recreate, as

they are often subjective to the researcher, which can affect the findings of the research.

Therefore, regarding external reliability, those interviews are likely not to produce the same

results (Bryman & Bell, 2011).

Validity centres on what the intendent aspects being measured are in fact the aspects being

measured. There are three types of validity. Internal refers to the observations and the

theoretical ideas develop and that they should match (Bryman & Bell, 2011). External validity

refers to the degree to which the findings within the research can be generalized despite other

social settings (Bryman & Bell, 2011). Construct validity explains whether the questions of the

research genuinely measure what was intended to measure (Bryman & Bell, 2011). Each aspect

of validity was taken into account during this research. Interviews with respondents were taken

at their home, in a place they felt comfortable and the researcher tried to take external aspects

away from the process. As the sample size for qualitative research is small, it is nearly

impossible to not have negative external validity. In order to clarify whether the questions of

the interview were measuring the intended aspect, a test study was performed on a college and

adjusted accordingly.

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6. - Data Analysis

In this chapter the data analysis of the research of this thesis will be presented. The data will

be presented structurally from the study conducted. As mentioned, the study consists of 6

interviews of current Volkswagen owners, from Generation Y (1981-1994) or Generation Z

(1995-). All the participants have that in common to own a plug-in hybrid or fully electric

Volkswagen vehicle at the moment.

The data will be structured and presented within three themes, based on the conceptual

framework presented. These themes will also involve the Volkswagen brand, as it is the

foundation of this research. Based on the theoretical analysis and conceptual framework

presented in this thesis, the researcher found these themes necessary to examine. The findings

discovered within the themes will work as the foundation for answering the research and

empirical supportive questions presented at the beginning of this thesis. Furthermore, the

findings gathered within these themes will help answer whether they are in coherence with the

priory presented conceptual framework of this research. These aspects will be discussed and

presented in more detail within this chapter. The aim of the analysis is to be able to verify

whether the prior literature and adapted conceptual framework can be connected to

Volkswagen´s brand recovery. Furthermore, to analyse what aspects impacted the brand´s

social. Based on these findings, managerial implications for Volkswagen can be presented.

Thematic analysis of the study

The analysis focuses on the participants perspectives and thoughts related to the three themes

put forth. Each theme will be presented individually, based on the data retrieved from the

interviews. A short summary will be presented at the end of each theme, based on the presented

data. As mentioned the themes are based on the conceptual framework of the thesis and are as

follows: Brand Ethics, Brand Trust and Brand Social Currency. Each theme will be presented

from the aspect of Volkswagen. Some aspects will be presented from the consumers view of

brand in a whole, without the aspect of Volkswagen. This is done to further support the changes

within the conceptual framework of this thesis, in contrast to prior literature. The themes are

presented to gain an understanding of the participants connection with brands. Those themes

are then connected to the Volkswagen perspective from the participants point of view. At the

beginning of the chapter, data will be presented from the participants perspective of

Volkswagen, their personal connection to the brand and their view of its past and future.

61

Volkswagen past and future

The following section aims to present data from the research based on the interviewee’s history

and connection with the brand. Furthermore, their personal feeling to the emissions scandal

and Volkswagen’s future brand strategy will also be presented.

The following will present what the interviewee´s current view of the Volkswagen brand is.

This is an important aspect regarding their further statements regarding the brand in this

research. All interviewees view of the brand is positive, with aspects such as trust in brand

(Interview: I4), belief in the brand (Interview: I6), quality and knowledge (Interview: I2)

positive aspects that the interviewees connected with Volkswagen.

“Volkswagen is a great brand. In my view it is one of the best brands in the world. I would say

there are not many brands that come close to it” (Interview: I1).

Based on the data, all interviewees seem to have a positive connection and feeling towards the

Volkswagen brand currently, with one of the interviewees mentioning it as being one of the

best brands in the world.

The following will present what the interviewee´s present and prior connection to Volkswagen

is. The interviewee’s all have that in common, that they currently own a Volkswagen electric

or hybrid vehicle. Four of the interviewees currently own a Volkswagen Golf GTE, a plug-in

hybrid version of the Volkswagen Golf (Interview: I1, I2, I3, I4). The other two interviewees

currently own a Volkswagen e-Golf, an electrical version of the Volkswagen Golf (Interview:

I5, I6). Furthermore, all six interviewees have owned a Volkswagen previously, with five of

them switching from their old Volkswagen directly to their new one (Interview: I1, I2, I3, I4,

I5, I6). All the interviewees also mention that they are very pleased with their current vehicles

and claim that the vehicle has lived up to their expectations (Interview: I1, I2, I3, I4, I5, I6).

Most of the interviewees mentioned that the reason they bought their current vehicle was due

to the electrical aspect of the vehicle (Interview: I2, I3, I4, I5). While other aspects such as,

Consumer view of the Volkswagen brand

Present and prior connection to Volkswagen

62

good service, experience, quality, the brand itself and the self-esteem gained by owning the

brand, were the defining factors for the other two interviewees (Interview: I1, I6). Although

the majorities main reason for purchasing the vehicle was the electrical aspect and function of

it.

“Personally, I feel that electrical cars are the future and the hybrid vehicle I purchased offered

me the best solution for now, the best of both worlds. It offered me the chance to experience

what it is like to own an electrical vehicle, without being to bound to electricity” (Interview:

I4).

Based on this data it is clear that the electrical aspect of the vehicles played a significant role

for the interviewees when making their purchase decision. This bodes well for the future of

Volkswagen, based on this data, considering their focus on sustainable mobility.

The following will present what the interviewee´s view on the future of Volkswagen, from

their perspective. All interviewees found it more than likely that they would purchase a

Volkswagen as their next vehicle (Interview: I1, I2, I3, I4, I5, I6). Furthermore, all the

interviewees mention they are likely to purchase a hybrid or electric car as their next vehicle

(Interview: I1, I2, I3, I4, I5).

“I find it very likely that I will purchase either a hybrid or electric car as my next vehicle. I

find these cars a positive step as the car is environmentally friendly and decreases oil usage”

(Interview: I2).

Interviewee 6 mentioned, that he would purchase an electric or hybrid car as his next vehicle

if he stays in Iceland, as he thinks electrical cars and their development are a certain bubble.

“I believe this development is a bubble, as it is based on European regulations to decrease

Co2 values. These cars don’t suit everybody, some people in Europe drive many hundred

kilometres each day. Another aspect is that Germany for instance, burn coal and use nuclear

power plants to make electricity, what is environmentally friendly about that” (Interviewee:

I6).

Consumer view on the future of Volkswagen

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This is a valid point, as electrical vehicles do suit Iceland extremely well as 100% of the

electricity in Iceland is made in a sustainable way. All of them stating that it is a positive step

regarding the future of the car industry (Interview: I1, I2, I3, I4, I5). Furthermore, stating this

development is a positive step regarding the environment.

Although one of the interviewees feels that the development of electrical vehicles is a certain

bubble that will pass over, the other respondents disagree with that statement, feeling that this

is the right way for the car industry to evolve. They all agreed that they are likely to purchase

a hybrid or electrical car as their next vehicle, even the interviewee that doesn’t see a future in

electrical cars, but he believes they are a perfect match for the Icelandic market. This shows

that these consumers are happy with their product, even though some may have been sceptical

at first, as electrical vehicles are still regarded as a novelty. Furthermore, none of the

interviewees have owned an electrical or hybrid vehicle prior to their current one (Interview:

I1, I2, I3, I4, I5, I6). Meaning the product, the Volkswagen brand has delivered to them, has

met their set expectations, and in some scenarios exceeded them. Leading them not only to be

likely to purchase a Volkswagen as their next vehicle, but a Volkswagen hybrid or electrical

vehicle. Considering the emphasis Volkswagen is putting on these types of vehicles, this is a

positive for the brand.

1st theme – Brand ethics

The first theme presented is brand ethics. The data presented within the theme will be based on

the participants perceptions of brand ethics.

The following in connection to theme 1 will present whether Volkswagen is perceived as an

ethical brand from a consumer perspective. Issues such as the emissions scandal and their future

brand strategy will be touched upon. Half of the interviewees claim to know in detail what

aspects impacted the emissions scandal (Interview: I1, I5, I6), while the other half don’t have

any knowledge, didn´t want to have any knowledge or only have a small knowledge about the

emissions scandal (Interview: I2, I3, I4). All but one of the interviewees owned a Volkswagen

vehicle when the scandal emerged in 2015. None of those interviewees felt that the scandal had

Perceived perception of Volkswagen’s ethicality from a consumer perspective

64

any personal implications on them nor did they feel that the Volkswagen brand betrayed them

(Interview: I1, I3, I4, I5, I6).

“I wouldn´t say that the scandal affected me personally, as to my believe other automotive

companies were doing the same thing, Volkswagen was just the first to be accused” (Interview:

I4).

Based on this data, none of the interviewees that owned a Volkswagen vehicle at the time the

scandal emerged were affected by the scandal, in their feelings towards the brand. It is though

noteworthy that none of the interviewees owned a diesel vehicle at the time, they all owned

petrol Volkswagen vehicles. Whether owning a diesel vehicle would have changed their

thoughts about the scandal is a possibility, but difficult to say. Furthermore, five of the

interviewees said the emissions scandal did not affect them when purchasing their current

vehicle (Interview: I1, I2, I3, I4, I6). While Interviewee 2 said:

“It did not affect the brand I purchased, but it did affect the type of vehicle I purchased”

(Interview: I2).

Meaning, the emissions scandal did not have an effect when he was selecting the brand to

purchase, in this case Volkswagen. But it did lead him to purchase an electric vehicle, as he

has formed a certain dislike to normal petrol or diesel vehicles following the emergence of the

scandal. The data therefore shows that Volkswagen´s unethical behaviour did not influence any

of the consumers to purchase other brands, even gaining a customer that did not own a

Volkswagen at that time. As mentioned, there is a possibility that the interviewees did not feel

betrayed because the scandal did not impact them directly due to not owning a Volkswagen

diesel vehicle.

Two of the interviewees do not have the knowledge about whether they believe Volkswagen

handled the crisis well or not (Interview: I2, I3). One of the interviewees believed that

Volkswagen should have been more straightforward and admit their wrong doing sooner

(Interview: I6). While the rest of the interviewees felt Volkswagen handled the crisis well

(Interview: I1, I4, I5).

“They handled it well in my opinion, from day one. They put forth a certain plan to make up

for their mistakes, which of course took some time. They got rid of the people accountable and

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invested money in trying to rebuild their image, all of this was very visible in my opinion”

(Interview: I1).

Interviewee 2 and 3 did not have much knowledge of the scandal and therefore that leads to

them not necessarily knowing how Volkswagen handled it. Of the three interviewees that had

good knowledge on the aspects of the scandal, all felt Volkswagen did a good job, although

interviewee 6 mentioned they could have been more straight-forward (Interview: I1, I5, I6).

Furthermore, all the interviewees believe that Volkswagen´s new brand strategy is a good one

(Interview: I1, I2, I3, I4, I5, I6). Interviewee 6, still believes it is a good strategy, even though

he believes that electrical vehicles are a bubble, but considering the scandal, he believes it is

the right strategy. Some also mention that the strategy is a great example for other companies

in the automotive industry (Interview: I1, I2, I6).

“It is great that such a big company like Volkswagen is going to take electrical vehicles

seriously. This will hopefully lead to more innovation and development within this technology

and push other companies to do the same” (Interview: I2).

“I like the fact that Volkswagen is going all the way with this strategy, not only producing

economical vehicles, but the whole process right through the company will be ‘environmentally

neutral’. They are totally changing the company” (Interview: I1).

The interviewees agree that the future brand strategy of Volkswagen is a positive one and that

the company is setting a benchmark in the automotive industry, which is likely to lead to more

innovation and development within this field. Furthermore, as highlighted by interviewee 1,

they are taking this process to all levels of the company, making each segment of the company

as environmentally neutral as possible. Most of the interviewees agree that by owning an

electric or hybrid vehicle they are behaving ethically themselves (Interview: I1, I2, I3, I4, I5).

While interviewee 6 doesn’t feel that that is an issue for him.

All but one of the interviewees have a believe that Volkswagen is an ethical and honest brand

as of today (Interview: I1, I3, I4, I5, I6). Interviewee 2 feels he can’t make his mind up about

that issue, as he still has recollection of the Volkswagen emissions scandal and that affects his

view.

Based on the data collected and presented in this section, one can assume that the emissions

scandal did not have any lasting impact on most of the interviewees and did not stop them

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buying the brand again. They also feel the future brand strategy is a positive and a good reaction

considering the scandal. This could be an underlying factor to why most of the interviewees

feel that Volkswagen is an ethical and honest brand today, also as most of the interviewees feel

that electrical vehicles are the future within the automotive industry.

2nd theme – Brand trust

The second theme presented is brand trust. The data presented within the theme will be based

on the participants perceptions of brand ethics, within brands. Furthermore, data that relates to

brand loyalty and brand authenticity will be presented within this theme.

The following in connection to theme 2 will present what the definitions of brand trust are from

a consumer perspective, what are the most important aspects in their view that affect their

perceived brand trust. Aspects such as service, the product living up to expectations, personal

experience, reliability, honesty and consistency were mentioned by the interviewees

(Interview: I1, I2, I3, I4, I6). Some of the interviewees also touched upon the aspect on how a

brand conducts themselves when faced with a product defect or how they deal with a scandal

(Interview: I4, I5).

“If a brand confesses to their mistake from the beginning and are not trying to hide it or blame

someone else for their wrongdoing, that can influence my trust in a certain brand, in a positive

manner. For example, if a product has a certain defect, it can have much worse implications if

there is some kind of war taking place in the media. The main aspect is that the brand takes

responsibility for its own mistakes” (Interview: I5).

This gives an example of what this interviewee believes influences his perceived brand trust.

Based on this, he does still trust brands even though they do something that is perceived as

negative or wrong. However, the implications of the wrongdoing can have positive or negative

implications on his trust towards the brand, based on the actions the brand takes following the

wrongdoing. If the brand takes responsibility for its mistakes and takes steps in fixing the

wrongdoing, this can lead the above-mentioned interviewee to have more trust in the brand

than before. As he states: “most companies and brands don’t make the right decisions all the

time, but if you have the believe that they will take responsibility and make up for it, it can

Definitions of brand trust from a consumer perspective

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make you trust the brand even more” (Interview: I5). Meaning that his brand trust is based on

the brand always doing the right thing in the end, even though mistakes are made along the

way.

“I believe that if I trust a brand, I am more likely to purchase it. As it makes me feel quite

certain I will receive a quality product that live up to my expectations” (Interview: I4).

The other interviewees also agreed that having trust for a certain brand is an important aspect

when purchasing it (Interview: I1, I2, I3, I5, I6). Although many interviewees mentioned that

it can depend on the price, as if it is a cheaper purchase, they are more likely to give a brand

they don’t know a chance. While feeling a certain trust in a brand plays an important role when

purchasing a more expensive product (Interview: I1, I2, I5, I6).

The following in connection to theme 2 will present what the impact a brands perceived

promise, and whether they deliver on it, effect brand trust. All interviewees agree that if a brand

deliver on its set promise and the product meets the expectations they set, built on that promise,

it will lead to them trusting the brand (Interview: I1, I2, I3, I4, I5, I6). Furthermore, they also

mention that if the promise is met, they are likely to purchase the brand again (Interview: I1,

I2, I3, I4, I5, I6).

“It is also convenient for me to keep on purchasing the same brand or product. For example,

yesterday I went to check the same jeans that I own, as I recently destroyed my old pair. You

automatically check the product or brand you were happy with first and in most cases, you

don’t even check other possibilities” (Interview: I5).

The other interviewees didn´t go into detail why they are likely to purchase the brand again,

but one can assume it is because they were happy with the product and it lived up to their

expectations. Interviewee 5, as mentioned above, argues for the convenience of purchasing the

same brand again, not having to go and look and compare other products. This shows the

importance of brands meeting their promises and the set expectations of customers, based on

their promises. As that will often lead customers to trusting the brand and repurchasing it, also

leading them to be loyal to the brand.

Delivery of the brands promise and its effects on brand trust

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The following in connection to theme 2 will present what the impact a brands perceived loyalty

has on brand social currency, from a consumer’s perspective. Based on the data all interviewees

mentioned that they have loyalty to some brands (Interview: I1, I2, I3, I4, I5, I6).

“The brands that I know that offer quality and good service are brands that I am loyal too. For

example, the Lindbergh glasses I am wearing, they are my 5th pair in a row. I know I can

probably get glasses that do the same thing for half the price, but I know first hand about the

quality and always receive good service”. (Interview: I6).

This statement indicates that the interviewee often doesn’t focus on the price of the brand, but

rather the quality and service which leads him to be loyal towards it. Meaning that a certain

loyalty towards a brand is often held more highly among consumers, rather than the price.

Furthermore, all interviewees mentioned that they had talked about or recommended a brand

which they are loyal towards, to friends, relatives or on the internet (Interview: I1, I2, I3, I4,

I5, I6). All of them as well adding that they have encouraged people to purchase a brand they

are loyal to (Interview: I1, I2, I3, I4, I5, I6).

This highlights the importance for brands to have loyal consumers, as they are likely to speak

positively about the brand and encourage other people to buy it. By focusing on making their

consumers happy and offering them aspects that could lead them to loyalty, could have the

affect that more customers purchase the brand, due to these recommendations. This is

highlighted by interviewee 4 “If you are happy with a brands product and loyal to it, you also

want other people to know about it, so you share it” (Interview: 4). This states the fact that

consumers that are loyal to certain brands are likely to let people know about, as they want

them to know what they are missing out on.

The following in connection to theme 2 will present what the perception of consumers brand

trust and loyalty towards Volkswagen is, based on its recent past and future plans. Most of the

interviewees believe that the emissions scandal did not affect their trust towards the brand

Brand Loyalty´s influence on Brand Social Currency

Perceived perception of brand trust & loyalty to Volkswagen, from a consumer perspective

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(Interview: I1, I2, I3, I4, I6). With aspects such as the quality, and how they handled

themselves, as important in maintaining their trust (Interview: I1, I2, I4). Interviewee 5

mentions however:

“It decreased following the scandal but has increased back to the same levels as before and is

just continuing to rise” (Interview: I5).

Interviewee 5 is very fond of the development of electrical vehicles and his trust in Volkswagen

has increased following the release of their new brand strategy (Interview: I5). The emissions

scandal does not seem to have affected the majority of the interviewees and their loyalty

towards Volkswagen was not affected either, based on the data (Interview: I1, I2, I3, I4, I6).

With interviewee 5, mentioning that his loyalty towards the brand corelated with his trust

towards it. Furthermore, all interviewees believe they trust Volkswagen and have loyalty

towards the brand, as of now (Interview: I1, I2, I3, I4, I5, I6). Furthermore, five of the

interviewees believe their trust and loyalty towards Volkswagen has increased following the

release of the company’s new brand strategy towards sustainable mobility (Interview: I1, I2,

I3, I4, I5). While interviewee 5 mentions it has not impacted his perception in neither a positive

nor negative way.

Based on this data the trust consumers had in the company was not affected by the emissions

scandal due to the way Volkswagen handled itself. The same can be said about the consumers

loyalty towards the brand. Furthermore, Volkswagen´s future brand strategy has positively

impacted the interviewees trust and loyalty towards Volkswagen.

The following in connection to theme 2 will present what the perception of consumers towards

Volkswagen is based on its brand authenticity aspects. All the interviewees feel that

Volkswagen is an established brand, reliable and stands by its promises, has continuity and

they feel a certain symbolism by owning the brand (Interview: I1, I2, I3, I4, I5, I6). Interviewee

5 however mentions, that there are very few automotive brands that would give him a certain

proudness to own and Volkswagen doesn’t specifically do that for him. Interviewee 2 disagrees

and mentions:

Brand authenticity and Volkswagen, from a consumer perspective

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“Volkswagen is a quality car brand and that makes me proud at owning my car” (Interview:

I2).

Based on this data, all interviewees believe these aspects are connected to the Volkswagen

brand, from their perspective. All these aspects are a part of a brand’s authenticity, based on

the theory presented earlier in the thesis. Making it possible to assume that the interviewees

believe Volkswagen to be an authentic brand. Furthermore, five of the interviewees believe

that these aspects played a role in maintaining their trust towards Volkswagen following the

scandal (Interview: I1, I3, I4, I5, I6). Which is in line with the theory presented earlier in the

thesis that consumers are often more lenient towards an authentic brand, when a scandal

happens.

“Volkswagen is Volkswagen” (Interview: I3).

Interviewee 3 implies because of the aspects of Volkswagen and the trust she has for it and its

history, it was easier to believe that they would make right, following the scandal.

3rd theme – Brand Social currency

The third theme presented is brand social currency. The data presented within the theme will

be based on the participants connections with mentioned aspects and how they connect those

aspects to their relationship with Volkswagen. These aspects mentioned are based on the prior

theory presented in thesis involving a brands social currency.

The following in connection to theme 3 will present the interviewees connection with

Volkswagen based on the theory of brand social currency. All the respondents mention they

have recommended the brand to others (Interview: I1, I2, I3, I4, I5, I6).

“I do that right and left and everywhere” (Interview: I6).

Interviewee 6 is implying he recommends the Volkswagen brand regularly and in all scenarios.

Furthermore, all interviewees mention they have shared information about the brand

(Interview: I1, I2, I3, I4, I5, I6), while some mention they have done that in both online and

offline scenarios (Interview: I1, I3, I4, I6), while interviewees 2 and 5 have only done that in

offline scenarios. Furthermore, 3 of the interviewees have shared both brand related content

Brand Social Currency and Volkswagen, from a consumer perspective

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and their own content of the brand (Interview: I1, I3, I6), while interviewee 4 has only shared

her own brand related content. This means that all the interviewees are regularly engaging with

the brand and about it. The majority is also sharing information, both their own or the brands

brand related content.

The reasons the interviewees gave for doing the above were as follows: quality of the brands

products (I1 & I2), experience of the brand (I1 & I5), proud at owning the brand (I1) Satisfied

customer (3) and belief in the brand (I6). While interviewee 4 mentioned:

“I do that because of the trust and loyalty I have for the brand” (Interview: I4).

He is implying that she engages with the brand, shares brand related content and recommends

it to others, because of her trust and loyalty towards it. This is an aspect of the conceptual

framework of the thesis, that brand loyalty has an effect on brand social currency. The other

aspects mentioned can be connected to the interviewees trust towards the brand. Furthermore,

as mentioned all interviewees have a loyalty towards the brand, based on their trust in it.

Making it possible to assume that they are recommending the brand because of their loyalty

subconsciously. Meaning they do not necessarily realise they are engaging in these activities

because of their loyalty towards it, but subconsciously they are.

All interviewees agree that in owning a Volkswagen vehicle, it is not due to connecting to an

individual that owns the brand or being part of a brand community (Interview: I1, I2, I3, I4, I5,

I6). Meaning they do not see that as a socially beneficiary aspect for themselves. Interviewee

1 and 4 believe that owning a Volkswagen improves their self-esteem, while the other don’t

feel play a big role in their feelings. On the contrary, 5 of the interviewees believe that owning

an electrical or hybrid vehicle improves their self-esteem (Interview: I1, I2, I3, I4, I5).

“I would say owning a Volkswagen doesn’t specifically impact my self-esteem, but owning an

electric car does that” (Interview: I5).

This gives an indication that the view of the interviewees is that the type of car is more

important to their self-esteem rather than the brand itself. Although, many of them stated that

they were proud to own the brand. Furthermore, as they all state they feel a certain loyalty

towards the brand, are all likely to purchase a hybrid or electrical vehicle as their next car and

it improves their self-esteem owning that sort of car, bodes well for Volkswagen. Even though

the interviewees don’t feel this self-esteem from owning a Volkswagen, the future brand

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strategy of the company is likely to impact them, and Volkswagen could make more use of the

perceived self-esteem consumers have for driving a hybrid or electrical vehicle.

Half of the respondents mentioned that one of the reasons for purchasing their current vehicle,

was they received recommendations (Interview: I1, I2, I5). This argument corelates with the

conceptual framework of the thesis and its argumentation. That brand loyalty can possibly lead

to a consumer recommending the brand, which leads to more sales of the brands products.

Based on the data from the research, there are some dimensions of brand social currency that

influences the Icelandic consumer, while other do not. This will be touched upon in greater

regard in the conclusion of the thesis.

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7. - Discussion

The purpose of the analysis presented earlier was to firstly present data that supports the

conceptual framework presented in the thesis. Secondly to apply the Volkswagen case to that

framework, for this research it was current owners of Volkswagen hybrid or electrical vehicles.

Thirdly, to investigate the interviewees perceptions of the Volkswagen brand, based on the

prior presented theory. Finally, to answer the main research question “What dimensions of

Volkswagen’s brand social currency have impacted the brands recovery process following the

emissions scandal?” To answer that question, supportive questions were presented. As

mentioned, the first three supportive questions were theoretical and were answered earlier in

the thesis. The remaining four supportive questions are empirical and will be answered in this

section.

Conceptual Framework

This section will aim to answer whether the presented conceptual framework of this thesis is

supported, by previous literature and by the research conducted. The research of this thesis

confirms the conceptual framework presented.

Brand ethics Brand trust

According to Singh et al. (2012) there is a direct relation between the consumer perceived

ethicality of a brand and the perception of the brands products. Meaning the consumer’s

perceived ethicality of a brand can influence his trust. The previous literature states there is a

connection between brand ethicality and brand trust. This was also defined as being the case

following the research. As all but one of the interviewees have a believe that Volkswagen is an

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ethical and honest brand as of today. While all the respondents feel that they trust the

Volkswagen brand as of now. Indicating a connection between the two aspects. However, the

perceived unethical behaviour of the brand did not influence the interviewees as much as

expected, but that could be due to the perceived authenticity the consumers have of the brand.

For a brand to be perceived as ethical in a positive manner, the message of ethicality must be

visible at every level. Furthermore, it must be transmitted to customers and all external

stakeholders through every transaction and all the brands products (Singh et al, 2012). Based

on the research, one of the interviewees mentioned this aspect, meaning Volkswagen has

transmitted this to its customers. As he stated: “I like the fact that Volkswagen is going all the

way with this strategy, not only producing economical vehicles, but the whole process right

through the company will be ‘environmentally neutral’. They are totally changing the

company” (Interview: I1). However, he was the only interviewee that mentioned this aspect.

But all the interviewees knew about Volkswagen´s aim to be a market leader in sustainable

mobility, which indicates that message has been transmitted well and often.

Brand Authenticity Brand trust

Portal et al. (2018) believe brand authenticity often leads to brand trust as they are usually more

committed to deliver on their promises. The data from the research supports this as all the

interviewees agreed that if a brand deliver on its set promise and the product meets the

expectations they set, built on that promise, it will lead to them trusting the brand. Furthermore,

they also mentioned that if the promise is met, they are likely to purchase the brand again. This

could possibly lead them to becoming loyal to the brand, through the mediation of brand trust.

Previous literature stated that brand authenticity helps brands that are aiming to rebuild trust

and consumers tend to show more leniency towards a perceived authentic brand when a scandal

happens (Portal et al, 2018, p. 5). This aspect is supported in the research of this thesis as all

the interviewees felt that Volkswagen is an established brand, reliable and stands by its

promises, has continuity and a they feel a certain symbolism by owning the brand. These

aspects are some of the aspects Portal et al. (2018) defines as key dimensions of authentic

brands. Meaning that the consumer research indicates that Volkswagen is perceived to be an

authentic brand. One can assume, that due to this perception, the consumers showed leniency

towards the brand during the scandal. As the research indicates, five of the interviewees believe

that these aspects played a role in maintaining their trust towards Volkswagen following the

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scandal. These aspects support the prior literature and supports the framework which indicates

that brand authenticity influences brand trust.

Brand trust brand loyalty social currency brand trust

Singh et al. (2012) describe brand loyalty as the deep attitudinal bond customers have with a

certain brand. Furthermore, brand loyalty can lead to frequent repurchases of a brand. Singh et

al. (2012) mention that brand trust influences brand loyalty and it can lead to long term

relationships between a consumer and a brand. The data from the research supports this

statement that brand trust influences brand loyalty. As all interviewees believed that if a brand

delivers on its promise, it will lead them to trusting the brand. Furthermore, if the promise is

met they are likely to purchase the brand again, leading to brand loyalty. This aspect also agrees

with the prior statement of the researcher, that brand trust is a mediator for brand loyalty and a

consumer cannot be loyal to brand without trusting it.

The aspect presented that brand loyalty influences brand social currency has not been presented

in prior literature. However, the findings of the research indicate that brand loyalty does

influence brand social currency. As the research indicated that the interviewees have all talked

about or recommended a brand that they are loyal to. These are aspects connected to brand

social currency. One of the interviewees also mentioned that the reason she shared information

about Volkswagen was because of her trust and loyalty she has for the brand. Furthermore, as

prior research indicated, the research of this thesis also indicates that brand social currency

influences brand trust.

Empirical supportive questions

Next discussions will be made on the empirical supportive questions presented in this thesis.

The first empirical supportive questions: “What were the main characteristics and

developments of the Volkswagen emissions scandal?” was explained and discussed earlier in

this thesis. The final three empirical supportive questions will be discussed here below.

How are consumers perceptions of the Volkswagen brand?

Based on Volkswagen’s turbulent recent history, this is an interesting aspect to investigate. The

discussion of this section will be based on the research conducted on current Volkswagen

consumers in the Icelandic market.

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The findings suggest that the consumers perception of the brand is very positive. Consumers

seem to be happy with most aspects of the brand and highlighting the quality and knowledge

they associate with it. One of the interviewees even mentioned that it is his belief that

Volkswagen is one of the best brands in the world. This indicates that the general perception

of Icelandic consumers of Volkswagen is excellent. Which is the belief of the researcher of this

thesis to be above the expectations Volkswagen could have had at this time, due to the recent

turbulent history of the brand.

This recent turbulent history, the emissions scandal and its aftermath does not seem to have

had any notable affect on Icelandic consumers of the Volkswagen brand. Most of the

participants of the research owned Volkswagen vehicles at the time the scandal emerged, but

they all mentioned that the scandal did not affect them personally. Nor did they feel betrayed

by the brand. This indicates that the emissions scandal did not have as widespread influences

as reports had indicated. One of the interviewees mentioned that it was her belief that most

automotive companies were doing the same thing as Volkswagen, in connection to the scandal.

Possibly highlighting the affects the internet has had on the spread of information. Furthermore,

possibly indicating that interviewees loyalty to the brand, by arguing for the brand and

defending its wrongdoing. However, it is necessary to mention that none of the participants

owned a diesel Volkswagen vehicle at the time the scandal emerged. As the Volkswagen

emissions scandal and the defeat devices placed in engines were separated to only their diesel

vehicles. It is possible to argue the results would have been different if former diesel owners

of Volkswagen vehicles were interviewed. However, the research shows that the negative

effects of the emissions scandal did at least not rub over to non-diesel Volkswagen owners.

Half of the respondents claimed to have good knowledge on the aspects of the scandal, with

those respondents indicating that they were pleased with how Volkswagen handled themselves

in the aftermath of the scandal. This could also be a reason for the positive image the brand

has with Icelandic consumers. As the belief among them is that Volkswagen made a mistake

but is admitting that mistakes and taking steps to make up for those mistakes. This is also

supported by the fact that the clear majority perceive the brand to be ethical and honest at the

moment. Giving an indication how Volkswagen is perceived ethically in the Icelandic market.

The steps Volkswagen took following the crisis, by ‘starting clean’ and ridding themselves

with all people connected to the decision making in implementing the defeat device in their

vehicles seems to have been perceived as a good decision by Icelandic consumers. The

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direction towards sustainable mobility has also been popular. These two aspects are possibly

the underlying factors why Volkswagen is perceived to be ethical and honest today and the

emissions scandal not having the lasting impressions many believed it would have on

consumers around the world.

Another factor the findings of the research indicate is that the emissions scandal had no lasting

affect on the consumers perceived trust of the brand. The same can be said about their loyalty

towards the brand. As all the participants purchased their current Volkswagen vehicles in the

years following the crisis and mentioned that they are more than likely to purchase a

Volkswagen as their next vehicle. Furthermore, the findings show that there is a current

underlying trust and loyalty towards Volkswagen from Icelandic consumers, which has only

increased recently due to their new brand strategy.

As mentioned, previous literature indicates a perceived authenticity towards a brand from a

consumer’s perspective, can lead them to show leniency towards the brand if scandal happens.

The findings of the research indicate that Volkswagen is perceived to be an authentic brand by

the Icelandic consumers. As the consumers connected aspects that are within the dimensions

of brand authenticity to Volkswagen. This could be one of the reasons why the emissions

scandal did not have more notable affect on the consumer´s perception and trust in the brand.

As one of the interviewees stated: “Volkswagen is Volkswagen” indicating the trust the

interviewee had in Volkswagen´s history and the ability the have in making things right.

How has Volkswagen’s social currency impacted Icelandic consumers

relationship to the Volkswagen brand and what meaning does it have for them?

Social currency is an aspect that is becoming an important aspect in a brand´s value. Much of

its social currency in built on the interactions from consumer to consumer which brands can no

control. This is an especially important aspect when a crisis strikes a company, as the

information circulating about the company is likely to be negative. In this section, the

Volkswagen´s social currency and its impact on Icelandic consumers relationship with the

brand will be discussed, based on the consumer research conducted.

The research indicates that the Icelandic consumers relationship with Volkswagen is positive.

This is based on their perceived trust and loyalty with the brand. This loyalty which is some

cases is deemed to be subconscious, has led consumers to recommending the brand vigorously.

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All the participants mentioned that they recommend the brand repeatedly, in both online and

offline scenarios. In social currency literature, this can be described as advocacy. When the

consumer has become an endorser of the brand.

The research also indicates that most Icelandic consumers share information about

Volkswagen, some in both offline and online scenarios. Furthermore, the research indicated

that a few consumers both share brand created and user created content, regarding the brand.

In social currency literature, this can be described as information. The customer-to-customer

sharing of information.

One of the reasons the interviewees that took part in the research were selected, was due to that

they follow the Icelandic Volkswagen page on Facebook and Instagram. This means they are

regularly reminded of the brand. In social currency literature, this can be described as

conversation, the positive information the consumer receives about the brand and can lead to

it being at the top of his mind. Furthermore, many of the respondents mentioned they bought

their current vehicle due to recommendations from other Volkswagen owners. This aspect can

also be connected to conversation.

Some of the participants mentioned that their loyalty towards Volkswagen had led them to be

against other brands. A certain opposite brand loyalty. This is an aspect that is mentioned within

the identity aspect of social currency. Furthermore, identity states that it is when a consumer

wants to connect himself with the brand. This can be connected partly to the aspect that

consumers feel they are behaving ethically by owning an electric or hybrid vehicle, by doing

so they are living by the brands standards.

Some participants also indicated that their self-esteem was benefitted by owning the

Volkswagen brand. This can be connected to utility within social currency literature. Utility

describes the person’s belonging to a certain brand and his connection to it can impact his self-

esteem. While as mentioned, most of the participants indicated that their self-esteem was

benefitted due to owning an electric or hybrid vehicle.

Affiliation, the longing to have a connection with other brand users, did not impact the

Icelandic consumers. With all the participants of the research indicating it was not an important

aspect for them.

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Based on the research it seems that Volkswagen´s brand social currency has had a positive

impact on their perceived trust towards the brand. As all the participated in some dimensions

of Volkswagen´s social currency. As previous literature states, this can have a positive impact

on the consumers trust towards the brand. Which according to the conceptual framework of

this thesis leads to more brand loyalty and more participation in the dimensions of the brands

social currency. A consumer’s loyalty towards a brand makes him more likely to repurchase it

in the future. As stated above, the three most important dimensions Volkswagens social

currency for Icelandic consumers was conversation, advocacy and information. With a small

part of the consumers finding identity and utility important dimensions. While none seemed to

feel affiliation as an important dimension. This is contrary to the findings of Lobschat et al

(2013) research, where their findings stated that advocacy, conversation and identity were the

most important dimensions within the automotive industry.

Has Volkswagen´s future brand strategy had an influence on the brand recovery

process?

Based on the above-mentioned positive consumers perceptions of Volkswagen in the Icelandic

market. It is interesting to delve into what role Volkswagen’s future brand strategy has played

in that process.

The findings suggest that the majority of consumers believe this strategy to be a positive one

and the company is setting a benchmark within the automotive industry, which can lead other

companies to follow suit. This could also have a positive influence on the innovation and

development within this field, also the time proceedings of those aspects.

The strategy is in line with the what consumers in Iceland are requesting, electrical vehicles.

As most of the participants mentioned that they bought their current vehicle due to the electrical

aspects of it. Also indicating, that they will purchase a hybrid or electrical vehicle as their next

car as well. This bodes well for the future of Volkswagen considering their focus on sustainable

mobility and being a leading provider within that market.

The new brand strategy has also impacted the trust and loyalty consumers have towards

Volkswagen in a positive way. With many participants of the research, indicating that their

trust and loyalty has increased due to the refocus of the brand towards sustainable mobility. As

none of them had owned an electrical or hybrid vehicle prior to their current car and based on

the before presented sales numbers of hybrid and electrical vehicles, the market in Iceland is

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demanding more of these types of vehicles. This new strategy seems to be tailormade for the

Icelandic automotive industry and comes at exactly the right time. Volkswagen has also been

able to place itself within this segment of the market, as one of the market leaders. Combined

with the increasing demand for more hybrid and electrical vehicles in Iceland and

Volkswagen´s promise of delivering up to 40 new electrical models in the coming years,

Volkswagen can implement itself as one of the most popular car brands in Iceland.

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8. - Conclusion

The aim of this chapter is to enlighten the main findings of the thesis. The purpose of this thesis

was to investigate and understand the substance of a brand´s social currency and its role when

brand reputation is showing a negative trend. Furthermore, how does brand trust, brand social

currency and brand ethics influence the brand recovering process. Furthermore, connecting

these aspects to the Volkswagen emissions scandal. This resulted in the research question:

“What dimensions of Volkswagen’s brand social currency have impacted the brands recovery

process following the emissions scandal?

The findings suggest that the emissions scandal did not have a lasting negative influence on its

consumers. Furthermore, Volkswagen´s handling of the crises was complimented by its

consumers and seems to have led to the crisis not impacting consumers in the long term.

Volkswagen’s change of focus towards sustainable mobility following the crisis, has seemed

to have had a beneficial effect on consumers trust and loyalty to the brand. With the trust

towards the brand having a positive impact on the loyalty. As consumers seem to perceive

sustainable mobility as the future within that industry. This is verified among research within

the Icelandic automotive industry, where electrical and hybrid vehicles are the fastest growing

segment. The findings also suggest that brand loyalty has led consumers to engage more in the

dimensions of Volkswagen´s brand social currency. With findings indicating that the

dimensions of conversation, advocacy and information being the most important to the

consumers regarding Volkswagens brand social currency. Finally, the findings indicate that

Volkswagen´s decision to focus on sustainable mobility bodes well for the future, as consumers

view to the automotive industry has changed significantly in the years following the infamous

emissions scandal. By realigning the brand and setting the target of being a market leader within

this segment, Volkswagen has taken its first steps towards, not only maintaining an improving

the trust of its consumers but of the automotive industry in a whole.

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9. - Implications

Theoretical implications

This section will highlight the theoretical implications of the research. The conceptual

framework presented was based on prior research on brand ethics, brand trust and brand social

currency. The research of this thesis confirmed various aspects presented in prior literature.

Such as, brand ethics has a positive impact on brand trust, brand authenticity has a positive

impact on brand trust, brand trust has a positive impact on brand loyalty and brand social

currency has a positive impact on brand trust. The conceptual framework of this thesis had a

variation from prior literature. Indicating that as stated in prior literature that brand social

currency impacts bran loyalty, this does not happen directly, but through the mediation of brand

trust. As a consumer cannot be loyal to a brand he does not trust. Furthermore, a certain cycle

was presented, indicating that consumers loyal to a brand are likely to engage in more brand

related aspects, which are defined as social currency. Their recommendations can influence

other customers, which can lead them to trust the brand. This trust can lead to loyalty towards

the brand and they can then engage with other customers, making a certain cycle. These aspects

were confirmed in the research of this thesis.

Managerial implications – Volkswagen Iceland

This section will highlight the managerial implications this research has for Volkswagen in

Iceland. Based on the findings of the research the impacts of the emissions scandal have not

been as long lasting as many had believed. With the Icelandic consumers trust and loyalty in

the brand seemingly not affected by the scandal. As the findings suggest, the social currency

dimensions most important to their Icelandic consumers are conversation, advocacy and

information. Based on this information the Volkswagen brand should focus on these

dimensions primarily. As all these dimensions are based on the sharing of information,

Volkswagen in Iceland should focus on making more brand related content, which their loyal

consumers are able to share with other customers. They should also focus on sharing this brand

related content on Facebook and Instagram for instance, as this can keep the brand at the top

of a consumer’s mind. Making him more likely to engage with other customers about the brand.

Possibly leading that customer to becoming a consumer of the brand.

Furthermore, Volkswagen in Iceland should mainly focus on their electrical and hybrid cars.

As the research indicated that that segment of the market is the fastest growing in the

83

automotive industry in the country. Furthermore, Volkswagen´s brand strategy has impacted

the trust of the consumers in a positive way. Also leading them to feel more loyalty towards

the brand. As over the next few years Volkswagen intends to further expand their product line

up of sustainable vehicles, this is a chance for Volkswagen in Iceland to use this to their

advantage and aim to become a market leader in sustainable vehicles in Iceland. Much like the

aim of Volkswagen AG is worldwide.

10. - Limitations

In this chapter the limitations of this thesis and research will be presented. They are based on

aspects the researcher feels may have affected the results.

Qualitative researches, as was used in the research of this thesis, are often criticized for being

too subjective. As the researcher has a prior connection to the Volkswagen brand, this could

have had implications on the interviews and assessment of the data. Although, the researcher

tried to the best of his ability to remain biased. Furthermore, as the interviews were transcribed

and translated from a different language, some aspects could possibly have got lost in

translation. Similarly, the aspect of the difference between the speaking language and written

language can affect this matter.

The sample size for the interviews should preferably been larger. In order to receive more vast

opinions during the research. Even though, the findings did not indicate any difference between

the genders, it would have been appropriate to have the proportion between genders equal.

Data has shown that there is a difference in perceptions of for example hybrid and electrical

vehicles between those who liven in Greater Reykjavík and those who live in the countryside.

As sustainable vehicle plays a significant role in the research of this thesis, this is an important

aspect to recognize. This is contrary to the prior believe of the researcher.

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11. - Future research

This section aims to present possible future research based on the findings of the thesis.

As this research only focused on a small part of Volkswagen consumers, it would be interesting

to widen the dynamics of the research. By possible comparing the researched aspects between

different generations. As based on the study of purchase intentions in this thesis, the younger

generations seemed to be more open towards sustainable vehicles. It would be interesting to

see if the future brand strategy of Volkswagen had the same positive implications on older

generations.

Furthermore, it would be interesting to see the perceptions of consumers that owned

Volkswagen diesel vehicles when the scandal emerged, and how their perceptions towards the

brand compare towards the results of this research. As none of the participants of this research

owned Volkswagen diesel vehicles at the time the scandal emerged.

It would also be interesting to research further if the mentioned dimensions of social currency,

the research indicates are the most important factors to Icelandic consumers, through a larger

research. Especially as they differ from the research of Lobschat el al. (2013) on the automotive

industry.

85

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Appendices A – Emission scandal timeline

As mentioned, the Volkswagen emissions scandal emerged in 2015, but decisions on

implementing defeat devices in their diesel engines had previously been discussed. As this

thesis centres on the resurgence of the Volkswagen brand following the emissions crisis, it is

necessary to highlight the scale of the scandal.

Engineers at Volkswagen start installing defeat device software in their diesel-powered

vehicles. This is done to pass the emissions laboratory tests in the United States and bypass the

tougher rules regarding NOx emissions set by the Environmental Protection Agency (EPA) in

the United States (Howard, 2017).

Researchers from the ICCT and West Virginia University find abnormalities between the

laboratory tests and on the road tests of emission levels in Volkswagen cars (Howard, 2017).

April – May

The ICCT publicizes its findings and notifies the EPA and the California Air Resources Board

(CARB) of the irregularities. Volkswagen are notified og the results and explanations are

demanded. Volkswagen argue that the tests are flawed and that the irregularities could also be

due to a technical fault which they are in the process of fixing. Conversations between the

regulators and Volkswagen carry on for well over a year (Howard, 2017).

December

CARB and EPA officials agree to Volkswagens demands of recalling their diesel vehicles to

fix this technical fault they insisted was the culprit to the abnormalities between the two tests

(Howard, 2017).

2009

2013

2014

2015

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April

Letters are sent to owners of diesel-powered Volkswagen vehicles in California by Volkswagen

of America. The letter informed owners of an “emissions service action affecting their

vehicles” (Howard, 2017, pp. 282-283). Volkswagen offered to update the software which

would improve the vehicle’s tailpipe emissions, so they are optimized and operating efficiently

(Howard, 2017).

July 8th

CARB tests the vehicles that have been undergone this recall by Volkswagen but finds the

same irregularities. CARB and the EPA share the findings with Volkswagen and threaten to

ban future diesel cars from Volkswagen if they don’t explain these discrepancies between

laboratory and real-world emissions (Howard, 2017).

September 3rd

Facing not being able to import or sell any vehicles, Volkswagen admits to regulators in the

United States that they have placed defeat devices in some of their diesel-powered vehicles to

meet regulations (Howard, 2017).

September 9th

Volkswagen issue a press release to celebrate being chosen the world’s most sustainable car

company by RobecoSAM (Howard, 2017).

September 18th

The EPA in the United States publicly announces that Volkswagen has installed defeat devices

in more than 475.000 vehicles with their 2,0-litre engine. Furthermore, that Volkswagen are in

violation of the Clean Air Act. They publicly explain for the first time that the defeat devices

installed enabled the vehicles to pass laboratory tests for NOx emissions, but on the road, in

daily use, the emissions were well above the emissions standards in the United States. The

statement also noted that the Volkswagen owned brands, Audi and Porsche, also had defeat

devices installed in their vehicles (Howard, 2017).

September 22nd

Volkswagen publicly admits having placed defeat devices in about 11 million of their vehicles

that have been sold worldwide. The company sets aside $7.2 billion to deal with the expected

89

costs that will follow and sets forth a plan to recall vehicles to fix or replace the software

(Howard, 2017).

September 23rd

Martin Winterkorn resigns as the CEO of Volkswagen Group after taking full responsibility

for the irregularities found by regulators in the United States. He however states that personally

he did nothing wrong (Howard, 2017).

September 25th

The EPA says it will toughen tests for all car makers that sell diesel powered vehicles in the

United States (Howard, 2017).

Matthias Muller is named the new CEO of the Volkswagen Group, he had previously been the

head of Porsche (Howard, 2017).

September 27th

Business Insider reports that Volkswagen had ignored warnings from its staff and an unnamed

supplier that the defeat devices were illegal (Howard, 2017).

The German Federal Motor Transport Authority (KBA) lays out a deadline until October the

7th for Volkswagen to answer whether and when their vehicles will meet emission standards.

KBA threaten to withdraw the approval for the affected vehicles, meaning they cannot be sold

in Germany (Howard, 2017).

September 30th

State Attorney Generals form 30 different states in the United States decide to investigate

Volkswagen in a separately from the federal government investigation.

Volkswagen launches a website where consumers can see whether their vehicle has a defeat

device.

October 4th

Volkswagen buys full page advertisements in all of Germany’s Sunday newspapers, where the

slogan “We will do everything possible to win back your trust” is used (Howard, 2017, p. 287).

October 6th

Matthias Muller warns the process will not be painless and the company might face cutbacks

(Howard, 2017).

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October 8th

German prosecutors raid the Volkswagen headquarters in Wolfsburg to find any incriminating

evidence about the implementation of the defeat devices (Howard, 2017).

Michael Horn, the CEO and President of Volkswagen in America, admits having known about

the defeat devices for 18 months, since the West Virginia University test results were published

(Howard, 2017).

In a congressional hearing, Michael Horn states, that a couple of software engineers are to

blame for implementing the defeat devices. He also apologizes on behalf of Volkswagen and

says that it would take up to 1-2 years to fix the affected vehicles. “One congressman stated

during the hearing that Volkswagen is either incompetent or guilty of a massive cover-up”

(Howard, 2017, p. 288).

October 10th

A report from Car and Driver Magazine states, that the company Bosch, that supplied

Volkswagen with the engine management software claimed to have had the impression that

Volkswagen was only using it for vehicle testing. Furthermore, that they had mentioned it was

illegal to use it in publicly sold vehicles back in 2007 (Howard, 2017).

The same magazine cites the Frankfurter Allgemine Zeitung newspaper, stating that an

engineer that worked for Volkswagen tried to publicly condemn Volkswagen for using this

software in 2011 (Howard, 2017).

October 12th

S+P lowers its credit rating for the Volkswagen Group. Stating “VW´s internal controls have

been shown to be inadequate in preventing or identifying alleged illegal behaviour” and that

talk about other violations “represents a significant reputational and financial risk” (Howard,

2017, p. 289).

October 13th

Volkswagen announces its plans to focus on electric vehicles instead of diesel engines to

recover from the scandal (Howard, 2017).

October 15th

KVA orders a nationwide recall of 2.6 million Volkswagen vehicles that have defeat devices,

this recall is automatically applied across the EU (Howard, 2017).

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October 17th

Matthias Muller, states that he expects recalls to begin in January 2016 and that they will be

done by the end of 2016. Muller also says that Volkswagen will be able to recover from the

emissions scandal within the next two years. (Howard, 2017).

October 20th

Der Spiegel reports that at least 30 Volkswagen managers are to blame for the decision to

implement defeat devices in their vehicles (Howard, 2017).

Matthias Muller says in a press release, that Volkswagen will focus less on return of sales but

rather focus on qualitative growth (Howard, 2017).

October 28th

Volkswagen has its first quarterly loss for over 15 years, for the third quarter of 2015.

November 2nd

Angela Merkel urges Volkswagen to deal with the emissions scandal in a transparent way

(Howard, 2017).

November 4th

Volkswagen announces that an internal investigation has shown that there are unexplained

irregularities in CO2 emissions in 800.000 of its vehicles, which could cost the company

another $2.2 billion (Howard, 2017).

Volkswagen shares fall to their lowest level for 5 years, depreciating by over one-third over

the prior 6 weeks (Howard, 2017).

November 5th

The New York times reveals that Martin Winterkorn, former CEO of Volkswagen, knew of the

emissions problems in 2014 (Howard, 2017).

November 6th

The head of the CARB board says: “Volkswagen is so far not handling the scandal correctly”.

Every additional gram of nitrogen oxide increases the health risks for our citizens. Volkswagen

has not acknowledged that in any way or made any effort to really solve the problem” (Howard,

2017, p. 300).

November 15th

92

Volkswagen runs ads in over 30 newspapers in the United States, asking consumers for

“continued patience” and announcing their goodwill package for affected vehicles. “We

sincerely hope you see this as a first step to restore your invaluable trust” (Howard, 2017, p.

302).

November 29th

Reuters reports that Volkswagen knew that CO2 emissions and fuel usage is some vehicles

were not as stated, for a year (Howard, 2017).

December 4th

Sales in the United Kingdom, Volkswagens 4th largest market, drop by 20% in November

compared to November in the prior year (Howard, 2017).

December 7th

Volkswagen explains that the CO2 emissions understatement on vehicles, affected 36.000 but

not 800.000 vehicles as first feared (Howard, 2017).

December 10th

Matthias Muller indicates that the scandal was not a one of error but a segment of mistakes. He

also asks for patience regarding the company’s pursuit of those responsible (Howard, 2017).

December 11th

Volkswagen states that a small group of individuals are to blame for the scandal (Howard,

2017).

December 23th

Volkswagen announces it is dropping its famous advertising slogan of ‘Das Auto’ and changing

it to ‘Volkswagen’ (Howard, 2017).

January 6th

Herbert Diess, Volkswagen brand head, says “We disappointed our customers and the

American people, for which I am truly sorry and for which I apologize” at a conference in Las

Vegas (Howard, 2017, pp. 307-308).

2016

93

January 12th

CARB release a statement rejecting Volkswagen plan to fix the affected vehicles, claiming

there was a lack of information on how they intended to fix the problem. “Volkswagen made a

decision to cheat on emissions tests and the tried to cover it up”, stated CARB Chair Mary D.

Nicholas. “They continued and compounded the lie and when they were caught they tried to

deny it. The result is thousands of tons of nitrogen oxides that has harmed the health of

Californians. They need to make it right” (Howard, 2017, p. 309).

January 28th

Volkswagen starts recalling affected vehicles in Europe (Howard, 2017).

January 30th

Volkswagen state that the software used to cheat emission standards in the United States is not

forbidden under European rules (Howard, 2017).

February 16th

An article in the New York times states that the company seems unable “to understand that,

from the public´s point of view, the scandal is not so much about cheating on tests as it is about

concealing the threat its cars pose to the health of the public” (Howard, 2017, p. 313).

February 22nd

Reuters publish an article quoting the German newspaper Süddentsche Zeitung saying:

“development of software to cheat diesel emissions tests was an open secret in Volkswagen’s

engine development department” (Howard, 2017, p. 315).

March 8th

Matthias Muller tells Volkswagen employees that the company will take years to get over the

financial implications of the scandal (Howard, 2017).

March 10th

Michael Horn, CEO of Volkswagen in the United States, steps down as CEO after 25 years

working for Volkswagen (Howard, 2017).

March 11th

An article in Fortune magazine suggests that Volkswagen had improved their defeat device, to

more efficiently cheat on the emissions test in the end of 2014 or beginning of 2015 (Howard,

2017).

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April 5th

Herbert Diess promises to “redefine the company´s tarnished image and relaunch the VW

brand”. “He also said Volkswagen would fast track much-needed products, so dealers would

have more non-diesel cars available to sell” (Howard, 2017, p. 323).

April 22nd

Volkswagen AG reports a loss of $1,53 billion in 2015 (Howard, 2017).

April 26th

In Volkswagen’s annual report for stakeholders, they admit they could face “further significant

financial liabilities” beyond the $18.4 billion it has set aside for the scandal (Howard, 2017, p.

326).

April 27th

Germany’s Economy Minister announces a $1.13 billion plan to subsidize electric vehicles,

which includes customer rebates for buying these vehicles and investing in charging stations

(Howard, 2017).

May 1st

Herbert Diess tells reporters that “We believe that the USA has in fact the greatest potential

for Volkswagen worldwide in the next decade”. Before adding “naturally not in the near future,

since we are starting from zero in the U.S.” (Howard, 2017, p. 327).

May 26th

Volkswagen AG European market share for the first months of 2016 is 23.9%, their lowest

since 2011 (Howard, 2017).

June 17th

Volkswagen announces its shift to electric vehicles, self-driving vehicles in their new 2025

strategy (Howard, 2017).

June 20th

During the annual stockholders meeting at Volkswagen AG, Matthias Muller said: “On behalf

of the Volkswagen Group and everyone who works here, I apologize to you shareholders for

your trust in Volkswagen being betrayed. This misconduct goes against everything Volkswagen

stands for” (Howard, 2017, p. 334).

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July 7th

The German Ministry of Transport announces that Volkswagen will not receive any fines for

the emissions scandal in the country but will have to “return the cars to a legally compliant

condition” (Howard, 2017, p. 340).

July 27th

Preliminary approval for Volkswagen’s settlement plan with the United States and regulators

is approved by a Federal District Court Judge. The settlement states that Volkswagen must buy

back or modify 85% of the cars sold with defeat devices between 2009 and 2015. Volkswagen

must also pay owners who agree not to sue the company up to $10.000 each (Howard, 2017).

Furthermore, Volkswagen must pay a total of $4.7 billion into two funds, one to take older

diesel vehicles of the road and another to pay for infrastructure that encourages zero-emission

vehicles (electric cars) (Howard, 2017).

September 9th

James Liang, a Volkswagen engineer, is the first individual charged by U.S. authorities relating

to the emissions scandal (Howard, 2017).

September 18th

A year on from the EPA public announcement regarding Volkswagens wrongdoing, the

company has fixed less than 10% of affected diesel vehicles in Europe and none in the United

States (Howard, 2017).

September 19th

The Guardian reports that all major diesel car brands are selling vehicles that emit higher

pollution limits than regulations allow.

September 25th

Documents that the German newspaper Bild has, indicate that former Volkswagen CEO Martin

Winterkorn was “well aware of the Dieselgate scandal long before it was made public.”

Furthermore, they “appear to prove that Winterkorn initiated or attempted to cover-up”

(Howard, 2017, p. 358).

September 30th

Herbert Diess, the Volkswagen brand chief, tells Bloomberg TV that: “three to four rough

years ahead of us to really restructure the company and getting more profitable and more

96

competitive”. He added by 2020 “we will have finished are hard work” (Howard, 2017, p.

359).

October 8th

The German legislature votes to ban new gasoline and diesel-powered vehicles from 2030 in

the EU. Only zero emission vehicles will be allowed to be sold after that time. “This resolution,

however, has no binding authority over the EU or its member states” (Howard, 2017, p. 360).

November 4th

Volkswagen issue a statement indicating that the software allowing its diesel engines to evade

emission regulation does not violate European law. “The software contained in vehicles with

an EA-189 engine in the view of Volkswagen represents no unlawful defeat device under

European law. The efficiency of the emissions clean-up system will not be reduced in those

vehicles which however would be a prerequisite for the existence of an unlawful defeat device

in the legal sense” (Howard, 2017, p. 368).

November 29th

Volkswagen, BMW, Daimler and Ford announce a joint venture to fund the establishment of

fast charging stations for electric vehicles across Europe (Howard, 2017).

December 2nd

Athens, Paris, Madrid and Mexico City are the latest cities to reportedly discuss banning diesel

vehicles by 2025 (Howard, 2017).

January 11th

Six Volkswagen executives and employees are indicted in the United States (Howard, 2017).

July

Reports suggest Daimler has implemented defeat devices in more than one million of their cars

in Europe and the US (Clean Energy Wire, 2019).

2017

97

Der Spiegel reports that Germany’s largest carmakers have held secret meetings since the

1990s discussing prices and technological standards, they also indicate that defeat devices were

discussed. This violates anti-trust laws (Clean Energy Wire, 2019).

August

Andrea Merkel, the German Chancellor, hints that Germany will follow France and the UK in

banning vehicles with petrol or diesel engines in the near future. “I cannot name a specific date

now, but the approach is right, because if we invest more in charging infrastructure and

technology for e-cars fast, a general transition will structurally be possible” (Clean Energy

Wire, 2019).

September

Angela Merkel states that carmakers have “excessively exploited loopholes” in regulations.

They need to rebuild trust, not only for their benefit but for Germany as a whole (Clean Energy

Wire, 2019).

Matthias Müller, the CEO of VW, says: “We have got the message and we will deliver” when

speaking about the acceleration of the company towards e-mobility (Clean Energy Wire, 2019).

October

Matthias Müller states that electric mobility “will see a global tipping point around 2030”,

indicating that VW will play a leading role in this transition. “Anyone who believes the glory

days of the German car industry are over is wrong” (Clean Energy Wire, 2019).

November

The government´s and carmakers handling of the emissions scandal is given a bad grade by the

German public (Clean Energy Wire, 2019).

December

BMW is the latest car manufacturer to be accused of using defeat devices (Clean Energy Wire,

2019).

The share of new diesel car registrations in Germany are 34% of the total market, continuing

to decrease month by month (Clean Energy Wire, 2019).

https://www.cleanenergywire.org/news/tipping-point-e-mobility-expensive-power-majority-coal-exit/global-tipping-point-e-mobility-around-2030-vw-ceo-muller

98

January

Thomas Steg, Volkswagen´s chief lobbyist, is suspended following allegations that the

Volkswagen funded tests in which researchers studied the effects of substances contained in

diesel emissions on monkeys and humans (Clean Energy Wire, 2019).

February

A German court ruling gives a big boost for individuals in favour of banning diesel cars in

German cities. This is considered a major blow for German carmakers, as they still rely on

diesel sales (Clean Energy Wire, 2019).

March

A study publishing the harmful affects of NOx emissions is published. NOx was at the centre

of the emissions scandal. The study indicates NOx causes thousands of premature deaths in

Germany each year. Also stating “Diesel cars are clearly a significant reason for the harmful

nitrogen oxides in the air” (Clean Energy Wire, 2019).

April

Herbert Diess is appointed as the CEO of Volkswagen, following the board of directors ousting

previous CEO Matthias Müller (Clean Energy Wire, 2019).

Angela Merkel says that German carmakers made serious mistakes in their handling of the

emissions scandal. Adding “The customer or taxpayer cannot be made accountable for that”

(Clean Energy Wire, 2019).

May

Hamburg is the first German City to impose driving bans on diesel vehicles, implementing it

on two roads in the city centre (Clean Energy Wire, 2019).

June

Volkswagen is fined one billion euros by German prosecutors due to the emissions scandal

(Clean Energy Wire, 2019).

2018

99

Daimler are requested to recall 775.000 diesel vehicles due to suspicion of the vehicles having

defeat devices (Clean Energy Wire, 2019).

November

Volkswagen announces investments of approximately 44 billion euros in sustainable mobility

and autonomous driving. Releasing a statement saying it wants to “speed up the pace of

innovation” and “make the electric car an affordable option for millions of people” (Clean

Energy Wire, 2019).

“Volkswagen will remember this day as the moment the kid gloves of the politicians were

replaced by the boxing gloves of consumer advocates” states Klaus Mueller, following a

German consumer group filing a class action lawsuit against Volkswagen over the emissions

scandal (Clean Energy Wire, 2019).

December

Micheal Jost, Volkswagen´s chief strategist, states: “We’re gradually fading out combustion

engines to the absolute minimum.” Although indicating Volkswagen will continue to sell petrol

and diesel vehicles until 2040 (Clean Energy Wire, 2019).

April

German prosecutors formally press charges against Martin Winterkorn, former CEO of

Volkswagen, due to his connections with the emissions scandal (Clean Energy Wire, 2019).

2019

https://www.cleanenergywire.org/news/vw-unveils-plan-europes-biggest-e-car-plant-autobahn-diesel-ban/vw-announces-europes-biggest-e-car-factory-zwickau-plans-conversion-other-plants

https://www.cleanenergywire.org/news/vw-unveils-plan-europes-biggest-e-car-plant-autobahn-diesel-ban/vw-announces-europes-biggest-e-car-factory-zwickau-plans-conversion-other-plants

https://www.cleanenergywire.org/news/one-billion-euros-european-battery-cells-50-million-electric-vw/vw-ceo-diess-says-company-ready-build-50-million-e-cars

100

Appendices B – Interview structure

Almenn kynning

• Hver er ég

o Ég stunda mastersnám við CBS í Kaupmanahöfn og er að læra vörumerkja- og

samskiptastjórnun (Brand and Communications Management). Lokaritgerðin mín

fjallar um Volkswagen og hvernig fyrirtækið hefur náð sér eftir dísel hneykslið, meðal

annars gagnvart tryggð viðskiptavina sinna við vörumerkið og breyttri

framtíðarstefnu í átt að rafmagns og tengiltvinn bílum.

• Hver er tilgangur viðtalsins?

o Tilgangur rannsóknar er að fá betri skilning hvort ákveðið „Brand social currency“

(samskipti milli viðskiptavinar og vörumerkis) hafa leitt til fljótari bata hjá

vörumerkinu eftir dísel hneykslið. Einnig hvort að tryggð viðskiptavina og íhlutir sem

tengjast tryggð tengjast þessu að einhverju leyti. Þátttakendur rannsóknarinnar hafa

það allir sameiginlegt að eiga VW rafmagns eða tengiltvinn bíl, þar sem rannsóknin

tekur þessa breytingu á framtíðarstefnu fyrirtækisins sem fylgifisk af hneykslinu og

hvort það hefur haft einhver áhrif á eftirmála þess.

o Fyrri hluti viðtalsins verður almennt um siðfræði, tryggð, hollustu á vörumerkjum.

Seinni hlutinn verður um þína tengingu við Volkswagen og áður nefnd tengsl við það

vörumerki.

• Tímarammi

o Viðtalið mun taka u.m.þ.b. 30mín

• Upptaka

o Viðtalið verður hljóðritað en eini tilgangur þess er að aðstoða mig við að vinna úr

upplýsingunum seinna meir? Þeim göngum verður síðan eytt.

• Annað

o Ef þú vilt frekari útskýringar, auka tíma til að svara eða sleppa alfarið spurningu í

viðtalinu, ekki hika við að láta mig vita. Af því sögðu er þátttaka í viðtalinu valfrjáls og

þú mátt draga þig úr því hvenær sem er.

o Efni viðtalsins verður notað í lokaverkefni mitt um Volkswagen hneykslið, þar er

fyllsta trúnaði gætt og verður ritgerðinni lokað eftir að prófdómarar eru búnir að

fara yfir hana.

101

• Segðu mér stuttlega frá þér

o Nafn

o Aldur

o Menntun

Ég ætla að fá að byrja að ræða aðeins, almennt um vörumerki (drykkjarvörur, klæðnaður og húsgögn

svo dæmi sé tekið).

Brand ethics

• Hvað er mikilvægasta atriðið fyrir þig, þegar þú kaupir ákveðna vöru hjá vörumerki?

o T.d. Reynsla, gæði, verð, siðferði vörumerkisins

• Skiptir það þig máli þegar þú ert í kauphugleiðingum, hvort vörumerkið sé siðferðislegt?

o Af hverju?

o Ef það kemst síðan upp að það sé að gera eitthvað siðferðislega rangt, hefur það

áhrif á álit þitt á fyrirtækinu?

• Ert þú líklegri til þess að kaupa vöru hjá vörumerki sem auglýsir sig sem siðferðislegt?

• Skiptir það þig máli þegar þú ert í kauphugleiðingum, hvort vörumerkið sem þú kaupir sé

heiðarlegt?

o Af hverju?

Brand trust

• Hvað skilgreinir þú sem traust á vörumerki?

• Finnst þér mikilvægt þegar þú kaupir ákveðið vörumerki, að þú berir traust til þess?

• Þegar kaup standast væntingar, finnst þér þú líklegri til að bera traust til þess vörumerkis?

o Ef svo er ertu líklegri til að kaupa vörumerkið aftur?

• Finnst þér líklegt að ef vörumerki gerir eitthvað siðferðislega rangt að það hafi áhrif á traust

þitt gagnvart því?

Brand Loyalty

• Hefur þú ákveðna hollustu/tryggð til ákveðinna vörumerkja?

o Þ.e.a.s. eru einhver vörumerki sem þú kaupir alltaf?

• Ef já: Er líklegt að þú talir um það vörumerki til vina og ættingja af fyrra bragði?

102

o Hvetur þú einstaklingana til þess að kaupa vörumerkið?

• Ef traust þitt á vörumerki bregst, finnst þér líklegt að hollusta/tryggð þín gagnvart því

breytist einnig?

Brand authenticity

• Þegar þú kaupir þér ákveðið vörumerki, skiptir það máli fyrir þig hversu rótgróið það er?

o En áreiðanleiki þess?

o Samfelldni, færð alltaf sömu gæði t.d.?

o En symbolism, ákveðið stolt sem það veitir þér?

• Berð þú frekar traust til vörumerkis sem er rótgróið, frekar en nýtt vörumerki?

• Ert þú líklegri til þess að horfa framhjá hneyksli hjá vörumerki sem er rótgróið, fremur en

nýju vörumerki?

Brand Social Currency

• Átt þú það til að:

o Mæla með ákveðnum vörumerkjum, annaðhvort til vina og ættingja eða á netinu

t.d.?

o Gagnrýna vörumerki, annaðhvort til vina og ættingja eða á netinu t.d.?

o Deila upplýsingum á netinu um vörumerki?

▪ Efni sem er framsett af vörumerkinu?

▪ Þitt eigið efni?

• Finnst þér líklegra að þú gerir eitthvað af ofantöldu ef berð hollustu/tryggð til

vörumerkisins?

o En traust?

• Hefur þér langað að kaupa vöru eða keypt vöru frá ákveðnu fyrirtæki, útaf því að þér langar

að hafa einhver tengsl við manneskju sem á vöru frá því vörumerki?

o En til þess að gerast meðlimur í ákveðnum hóp, sem á vöru frá því vörumerki?

o Ef já: Hefur það leitt til þess að þú ert andstæðingur vörumerkis sem er í beinni

samkeppni?

• Hefur þú keypt þér eða langað að kaupa þér vöru frá ákveðnu vörumerki, til þess bæta þitt

sjálfsálit eða sjálfslíðan?

• Er líklegra að þú kaupir vöru frá ákveðnu vörumerki, ef þú sérð einstaklinga mæla með þeim

vörum?

Volkswagen almennt

• Hvernig bíl áttu?

103

• Hver er ástæða þess að þú keyptir viðkomandi bíl?

o Volkswagen vörumerkið, Rafmagnselementeð, Mældi einhver með bílnum eða

vörumerkinu?

• Hvað finnst þér um Volkswagen vörumerkið?

o Hvað dettur þér fyrst í hug?

• Ertu ánægður/ánægð með þinn núverandi bíl?

o Hefur hann staðist væntingar?

• Hefur þú átt aðra VW bíla í gegnum tíðina?

o Ef svo er: Hvernig hefur reynslan á þeim verið?

o Stóðst sá bíll/bílar væntingar þínar?

• Eftir að hafa átt VW bíl, finnst þér líklegt að þú munir kaupa þér VW aftur?

• Hvað finnst þér um rafmagnsbíla – jákvæð eða neikvæð þróun?

• Finnst þér líklegt að þú kaupir þér rafmagns/hybrid bíl sem næstu bifreið?

o Ef ekki, hví ekki?

Volkswagen perspective – Brand ethics

• Veistu í hverju Volkswagen hneykslið fólst?

• Hafði það einhver áhrif á þig persónulega?

o Áttir þú t.d Volkswagen bifreið á þeim tíma?

▪ Ef svo er fannst þér Volkswagen svíkja þig?

o Hafði hneykslið einhver áhrif þegar þú varst í kauphugleiðingum á núverandi bíl?

• Hefur sú skoðun breyst síðan Volkswagen hneykslið kom í ljós?

• Hvernig fannst þér Volkswagen höndla þetta hneyksli?

• Hefur þú heyrt um nýju framtíðarstefnu Volkswagen samsteypunnar, titluð 2025?

o Hvað finnst þér um hana?

• Finnst þér Volkswagen vörumerkið vera siðferðislegt í dag?

o En heiðarlegt?

• Er hluti af því að þú keyrir um á rafmagns/hybrid bíl að þér finnst þú vera að gera

siðferðislega réttan hlut?

Volkswagen perspective – brand trust & brand loyalty

104

• Hefur hneykslið haft áhrif á traustið sem þú berð til Volkswagen?

o En Hollustu/tryggð?

• Berð þú traust til Volkswagen núna?

o En Hollustu/tryggð?

- Bara ef svarað var játandi við 2025 strategy

• Hefur traustið þitt til fyrirtækisins breyst, með tilkomu nýju rafmagnsbíla stefnu þeirra?

o Ef svo er, hefur hollustan/tryggð þín gagnvart vörumerkinu breyst líka?

Volkswagen perspective – Brand authenticity

• Finnst þér Volkswagen vera rótgróið vörumerki?

o En áreiðanlegt?

o Bjóða uppá vörur með samfelld gæði?

o Symbolism, gefur það þér stolt að eiga vörumerkið?

• Fannst þér auðveldara að horfa framhjá hneykslinu hjá Volkswagen, því það er rótgróið

fyrirtæki?

Volkswagen perspective – Brand Social Currency

• Hefur þú:

o Mælt með Volkswagen, annaðhvort til vina og ættingja eða á netinu t.d.??

o Deilt upplýsingum á netinu um Volkswagen?

▪ Efni sem er framsett af Volkswagen?

▪ Þitt eigið efni?

• Ef þú hefur gert eitthvað af því sem var nefnt, hver er ástæðan fyrir því?

o Gæti það verið tryggð/hollusta eða traust?

• Keyptir þú þér Volkswagen, þar sem þér langaði að hafa einhver tengsl við manneskju sem á

vöru frá því vörumerki?

o En til gerast meðlimur í ákveðnum hóp, sem á vöru frá því vörumerki?

o Ef já: Hefur það leitt til þess að þú ert andstæðingur vörumerkis sem er í beinni

samkeppni?

• Keyptir þú þér Volkswagen til þess bæta þitt sjálfsálit eða sjálfslíðan?

• Keyptir þú þér Volkswagen, vegna meðmæla frá einhverjum?

• Finnst þér það láta þér líða betur með þig sjálfan að keyra um á vistvænum bíl?

105

Appendices C – interviewee 1

The Interviewer will be marked as (I)

Hallgrímur Andri, the interviewee will be marked as (HA)

Hallgrímur Andri

25 years old

Garðabær (Greater Reykjavík)

In his last year of Business Administartion at Reykjavík University

I: Hvað er mikilvægasta atriðið fyrir þig, þegar þú kaupir ákveðna vöru hjá vörumerki?

HA: Það fer voðalega mikið eftir því hvað varan kostar. Ef hún kostar mikið þá er það gæði og

áreiðanleiki, þjónusta. En minna máli ef það er hefðbundin vara sem maður kaupir á hverjum

degi, þá breytir það litlu máli hvaða vörumerki það er. Maður grípur þá frekar það sem er

næst hendinni og er ódýrast.

I: Skiptir það þig máli þegar þú ert í kauphugleiðingum, hvort vörumerkið sé siðferðislegt?

HA: Já, það mundi alveg gera það. Ef það væri tvö svipuð vörumerki sem maður væri að bera

saman. Ef annað vörumerkið er siðferðislegt, en ekki hitt, myndi það hafa vinninginn. EN í

fljótu bragði er þetta ekki eitthvað sem ég pæli mikið í.

I: Ef það kemst síðan upp að það sé að gera eitthvað siðferðislega rangt, hefur það áhrif á álit

þitt á fyrirtækinu?

HA: Já, það myndi gera það. Ef það kæmi eitthvað fram sem var gert vitlaust, þá myndi það hafa

áhrif. Kannski frekar að það væri svoleiðis, heldur spurningin á undan. Ef það er að gera

eitthvað siðferðislega rétt, maður gengur svolítið að því að vísu. En ef það er eitthvað gert

vitlaust þá hefur það frekar áhrif, heldur en að það sé að gera eitthvað rétt.

I: Ert þú líklegri til þess að kaupa vöru hjá vörumerki sem auglýsir sig sem siðferðislegt?

HA: Nei ekkert endilega sko, eins og ég sagði áðan ef vörumerkið gerir eitthvað vitlaust, kaupi ég

það síður. Mér finnst eins og það er orðið í dag, að maður eigi bara að ganga að því að vísu

að vörumerki séu þannig. Finnst það vera svolítið normið.

I: Skiptir það þig máli þegar þú ert í kauphugleiðingum, hvort vörumerkið sem þú kaupir sé

heiðarlegt?

HA: Já, það gerir það.

I: Einhver sérstök ástæða fyrir því?

HA: Ef maður hefur tilfinningu fyrir því að vörumerkið sé heiðarlegt, þá treystir maður því frekar

heldur en þegar maður hefur einhverja slæma tilfinningu fyrir einhverju. Þá líka bara með

framtíðarkaup, ef maður er að kaupa sér vöru eins og bíl og vörumerkið er ekki heiðarlegt þá

getur maður ekki gengið að því vísu að þjónustan sé góð eða heiðarleg og maður vilji eiga

framtíðarviðskipti við það.

I: Hvað skilgreinir þú sem traust á vörumerki?

HA: Heiðarleiki, „consistency“, persónuleg þjónustu jafnvel líka

I: Finnst þér mikilvægt þegar þú kaupir ákveðið vörumerki, að þú berir traust til þess?

HA: já, sérstaklega ef það er dýrari vara. En ef það er ódýrari, hversdagsvara, þá pæli ég ekki jafn

mikið í því.

I: Þegar kaup standast væntingar, finnst þér þú líklegri til að bera traust til þess vörumerkis?

HA: Já, alveg 100% prósent.

106

I: ertu þá líklegri til að kaupa vörumerkið aftur?

HA: Já, ég er það.

I: Finnst þér líklegt að ef vörumerki gerir eitthvað siðferðislega rangt að það hafi áhrif á traust


HA: Já, að einhverju leyti. Það fer svolítið eftir viðbrögðunum hjá vörumerkinu og fyrirtækinu. Ef

það er eitthvað sem þeir gerðu siðferðislega rangt, hvernig viðbrögðin hjá þeim eru í

kjölfarið. Þannig ef þeir ætla að bæta upp fyrir það, halda áfram á sömu braut eða að leyfa

því að fjara út þá myndi traust mitt til þess skaðast. En það getur unnið sig til baka með því

að bregðast rétt við.

I: Hefur þú ákveðna hollustu/tryggð til ákveðinna vörumerkja?

HA: Já, ég hef það. Það eru t.d. einhver vörumerki sem ég kaupi reglulega.

I: Er líklegt að þú talir um það vörumerki til vina og ættingja af fyrra bragði?

HA: Já, miklu frekar en vörumerki sem ég beri ekki tryggð til.

I: Hvetur þú einstaklingana til þess að kaupa vörumerkið?

HA: Já, ég geri það líka.

I: Ef traust þitt á vörumerki bregst, finnst þér líklegt að hollusta/tryggð þín gagnvart því breytist

einnig?

HA: mögulega, það skiptir öllu máli hver viðbrögðin eru, líkt og ég nefndi áðan.

I: Þegar þú kaupir þér ákveðið vörumerki, skiptir það máli fyrir þig hversu rótgróið það er?

HA: Nei, mér finnst það ekki.

I: En áreiðanleiki þess?

HA: já, ég myndi segja að það skipti mig miklu máli.

I: En samfelldni þess?

HA: Já

I: En stolt?

HA: Já, það skiptir máli.

I: Berð þú frekar traust til vörumerkis sem er rótgróið, frekar en nýtt vörumerki?

HA: Já, að einhverju leyti. Ef það er eitthvað nýtt, þá þarf það virkilega að sýna fram á að það geti

staðið undir væntingum.

I: Ert þú líklegri til þess að horfa framhjá hneyksli hjá vörumerki sem er rótgróið, fremur en

nýju vörumerki?

HA: Já, það er af því að það er að öllum líkindum betur í stakk búið að bregðast við heldur en t.d.

nýtt vörumerki.

I: Átt þú það til að: Mæla með ákveðnum vörumerkjum, annaðhvort til vina og ættingja eða á

netinu t.d.?

HA: Já, ég á það til.

I: En að gagnrýna vörumerki?

HA: Já á það einnig til.

I: En að deila upplýsingum á netinu um vörumerki? Annaðhvort efni sem er framsett af

vörumerkinu eða þitt eigið efni?

HA: Nei, ekkert opinberlega.

I: Finnst þér líklegra að þú gerir eitthvað af ofantöldu ef berð hollustu/tryggð til vörumerkisins?

HA: Já, ég myndi segja það.

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I: Af hverju er það?

HA: Ég myndi segja að það sé vegna þess að ég sé sáttur með vörurnar sem ég á frá því og treysti

því og því langar mér að deila því með öðrum aðilum sem ég þekki.

I: Hefur þér langað að kaupa vöru eða keypt vöru frá ákveðnu fyrirtæki, útaf því að þér langar


HA: Já, kannski að einhverju leyti. T.d. keypti ég mér takkaskó eins og David Beckham átti þegar

ég var yngri. Það var eitthvað sem tengdi mann við hann. En ég geri þetta ekki til þess að

tengjast einhverjum gæja út í bæ, sem maður vill tengja sjálfan sig við.

I: Hefur þér langað að kaupa vöru eða keypt þér vöru frá ákveðnu fyrirtæki, til þess að gerast

meðlimur í ákveðnum hóp, sem á vöru frá því vörumerki?

HA: Myndi bara segja að það sé svipað og með það sem ég sagði í síðustu spurningu.

I: Hefur það leitt til þess að þú ert andstæðingur vörumerkis sem er í beinni samkeppni?

HA: Já og nei. Persónulega þá er ég miklu frekar með vörunni sem ég kaupi, er ekki endilega að

tala samkeppnisvöru niður.

I: En eins og þú nefndir áðan með David Beckham og þá Adidas, varstu þá andstæðingur Nike?

HA: Ég kaupi þá Adidas miklu frekar útaf David Beckham, miklu meira heldur en útaf að þetta er

Adidas. Ég geri mér alveg grein fyrir að takkaskórnir eru ekki síðri hjá Nike, en stimpillinn sem

Beckham hefur sem persóna og hafa náð langt var frekar af hverju ég keypti Adidas.

I: Hefur þú keypt þér eða langað að kaupa þér vöru frá ákveðnu vörumerki, til þess bæta þitt


HA: Já, örugglega. Alveg pottþétt svona í undirmeðvitundinni sem maður áttir sig ekki alveg á. Til

að kannski reyna að gangast í augun á einhverjum. Ekki samt eitthvað sem ég get sagt að ég

muni eftir.

I: Er líklegra að þú kaupir vöru frá ákveðnu vörumerki, ef þú sérð einstaklinga mæla með þeim

vörum?

HA: Já, en ekki hver sem er, alls ekki. Ef það er einhver áhrifavaldur, sem getur verið hver sem er

ef hann er með nógu marga ‚followers‘ á samfélagsmiðlum, fyrir mitt persónulega leyti þá vil

ég síður kaupa vöruna. En ef það er einhver sem virkilega hefur náð langt og sýnir fram á

einhver gæði þá tekur maður frekar mark á því.

I: Hvernig bíl áttu?

HA: Volkswagen Golf GTE (PHEV)

I: Hver er ástæða þess að þú keyptir viðkomandi bíl?

HA: Gæði, vörumerkið, ímyndin svona uppá sjálfsálit myndi ég segja, sparnaður.

I: Hvað finnst þér um Volkswagen vörumerkið?

HA: Frábært merki. Svona að mínu mati eitt flottasta vörumerkið sem til er í dag. Allaveganna

fyrir mitt leyti. Fáir sem standast þeim snúning.

I: Ertu ánægður með þinn núverandi bíl?

HA: Já, mjög ánægður.

I: Hefur hann staðist væntingar?

HA: Já að öllu leyti.

I: Hefur þú átt aðra VW bíla í gegnum tíðina?

HA: Já, hef átt einn VW Golf áður.

I: Hvernig var reynslan á þeim?

HA: Mjög góð

I: Stóðst sá bíll væntingar?

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HA: Já hann gerði það

I: Eftir að hafa átt VW bíl, finnst þér líklegt að þú munir kaupa þér VW aftur?

HA: Já mér finnst það nokkuð víst

I: Finnst þér rafmagnsbílar vera jákvæð eða neikvæð þróun?

HA: Mjög jákvæð þróun, eins og er og inni nánustu framtíð. En spurning eftir það. En ég meina ég

er alltaf fyrir rafmagn frekar en bensín eða dísel. En bílar „per say“ ég veit ekki hvort það

komi eitthvað annað sem er betra og er ég ekki viss hvort rafmagnið sé svarið fyrir áratugum

fram í tímann. En eins og er finnst mér rafmagnsbílar vera mjög jákvæð þróun.

I: Finnst þér líklegt að þú kaupir þér rafmagns/hybrid bíl sem næstu bifreið?

HA: Já, 100%.

I: Veistu í hverju Volkswagen hneykslið fólst?

HA: Já svona í stórum dráttum

I: Hafði það einhver áhrif á þig persónulega?

HA: Nei ég myndi ekki segja það.

I: Áttir þú Volkswagen bifreið á þeim tíma, semsagt 2015?

HA: Já

I: Fannst þér VW svíkja þig?

HA: Nei, ekki persónulega

I: Þegar þú keyptir núverandi bíl, hafði VW hneykslið einhver áhrif þegar þú varst í

kauphugleiðingum?

HA: Nei, ég get ekki sagt að ég hugsaði einu sinni um það

I: Hvernig fannst þér Volkswagen höndla þetta hneyksli?

HA: Mjög vel, alveg frá því að það kom fyrst upp. Þeir gerðu vel, settu einhverja áætlun í gang að

leiðrétta mistökin, sem auðvitað tók sinn tíma. Þeir sem spiluðu stærstan hluta í hneykslinu

voru gerðir ábyrgir og það var sýnilegt, og það var sennilega ástæða fyrir því. Allt í kjölfarið,

dælt peningum í markaðsetningu og svoleiðis til þess að leiðrétta orðsporið. En svo líka bara

núna, það sem kom í staðinn, sem þeir eru búnir að segja sé bein afleiðing af hneykslinu að

þeir séu að færa sig yfir í endurnýjanlega orkugjafa. Þannig mér finnst þeir hafa gert mjög vel

að öllu leyti.

I: Þú nefndir einmitt þessa stefnu VW að fara yfir í endurnýjanlega orkugjafa, hvað finnst þér

um hana?

HA: Frábært. Mér finnst þetta vera 100% rétta leiðin. Vonandi að það gangi upp, að rafmagnbílar

geti haldið sama ‚leveli‘ og hinir bílarnir gerðu. Mér finnst þeir vera að setja fordæmi fyrir alla

aðra bílaframleiðendur. Ég er sjálfur búinn að fylgjast aðeins með þessu og finnst flott að þeir

eru að taka þetta alla leið, eru ekki bara að framleiða umhverfisvæna bíla til þess að

framleiða umhverfisvæna bíla, framleiðslan á bílunum á að vera ‚environmentally neutral‘.

Þeir eru virkilega að breyta fyrirtækinu, þeir eru að fara alla leið sýnist mér og gera þetta á

öllum sviðum fyrirtækisins, semsagt að vera umhverfisvænir, allaveganna eftir því sem ég hef

séð, sem mér finnst mjög jákvætt.

I: Finnst þér Volkswagen vörumerkið vera siðferðislegt í dag?


I: En heiðarlegt?

HA: já, eða af minni bestu vitund.

I: Er hluti af því að þú keyrir um á rafmagns/hybrid bíl að þér finnst þú vera að gera


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HA: Já, ég myndi segja að það hafi áhrif.

I: Hefur hneykslið haft áhrif á traustið sem þú berð til Volkswagen?

HA: Nei, í raunu og veru ekki, af því að þeir brugðust við með þeim hætti sem þeir gerðu. Þess

vegna finnst mér það ekki hafa haft áhrif.

I: En hollustu eða tryggð?

HA: Nei, get ekki sagt það

I: Berð þú traust til Volkswagen núna?

HA: Já


HA: Já, ég geri það líka.

I: Hefur traustið þitt til fyrirtækisins breyst, með tilkomu nýju rafmagnsbíla stefnu þeirra?

HA: Já, í raunu og veru. Ég myndi segja að það hefur aukist alveg 100%. Af því að eins og við

töluðum um áðan að stefnan sé í gegnum allt fyrirtækið.

I: hefur hollustan eða tryggð þín gagnvart vörumerkinu breyst líka?

HA: Já, hún hefur gert það.

I: Finnst þér Volkswagen vera rótgróið vörumerki?

HA: Já

I: En áreiðanlegt?

HA: Já, alveg 100%

I: Vera með Samfelldið?

HA: Já, líka.

I: Gefur það þér stolt að eiga VW?


I: Fannst þér auðveldara að horfa framhjá hneykslinu hjá Volkswagen, því það er rótgróið

fyrirtæki?

HA: Já alveg pottþétt. Þeir gátu brugðist við á réttan hátt af því að þeir eru rótgróið fyrirtæki.

I: Hefur þú: Mælt með Volkswagen, annaðhvort til vina og ættingja eða á netinu t.d.?

HA: Já, það hef ég gert.

I: Hefur þú deilt upplýsingum á netinu um VW?

HA: Já, ég hef einhverntímann gert það

I: Var það þá frá vörumerkinu sjálfu eða þitt eigið efni?

HA: Bæði

I: hver er ástæðan fyrir því að þú gerðir eitthvað af ofantöldu?

HA: Því ég veit hver gæði vörunnar eru, reynslan er góð og stoltur af því að eiga vöru frá þeim.

I: Keyptir þú þér Volkswagen, þar sem þér langaði að hafa einhver tengsl við manneskju sem á


HA: Nei, get ekki sagt það

I: Keyptir þú þér Volkswagen til þess að gerast meðlimur í ákveðnum hóp, sem á vöru frá því

vörumerki?

HA: Nei get ekki sagt það heldur

I: Með því að eiga VW, hefur það leitt til þess að þú ert andstæðingur vörumerkis sem er í

beinni samkeppni?

HA: Já, alveg pottþétt.

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I: Er eitthvað ákveðið sem þér dettur í hug?

HA: Nei ekkert ákveðið. Ég myndi frekar segja að af því að ég þekki gæðin hjá VW mjög vel, þá

finnst mér hin vörumerkin sem eru í boði t.d. á Íslandi ekki vera sambærileg. Þannig má segja

kannski flest önnur vörumerki sem eru í boði á Íslandi þegar ég hugsa útí það.

I: Keyptir þú þér Volkswagen til þess bæta þitt sjálfsálit eða sjálfslíðan?

HA: Sjálfslíðan, já mögulega. Gæðin eru bara þannig, að manni líður bara betur þegar maður er á

betri bíl.

I: Keyptir þú þér Volkswagen, vegna meðmæla frá einhverjum?

HA: Já að hluta til. Myndi ekki segja að það hafi verið aðalatriðið, en það hjálpaði vissulega til.

Fannst reynslan mín vera aðalatriðið.

I: Finnst þér það láta þér líða betur með þig sjálfan að keyra um á vistvænum bíl?

HA: Já ég myndi segja það.

111

Appendices D – interviewee 2 The Interviewer will be marked as (I)

Magnús Ingvi, the interviewee will be marked as (MI)

Magnús Ingvi

27 years old

Kópavogur (Greater Reykjavík)

Bachelor’s degree in business administration


MI: Ímynd vörumerkisins.


MI: Ég vil að það sé þannig, en það er það ekki. T.d. ef ég hugsa um vörumerki sem hefur gert

eitthvað siðferðislega rangt, þá hugsa ég neikvætt um hana. En svo sér maður vöruna og ef

hún er góð þá mögulega kaupir maður hana.



MI: Já myndi hafa áhrif á álitið mitt á vörumerkinu. En ég held samt sem áður að ég myndi

líklesgast kaupa vöruna eða halda áfram að eiga hana.


MI: En og aftur þá vil ég það. Ég líklega myndi gera það ef það væri auglýst og þeir myndu ná að

sanna það fyrir mér að þeir væru það og væru að gera mjög góða hluti, þá myndi ég líklega

hugsa um þá fyrst heldur en einhverja aðra. En ég verð að segja mér finnst ekki þannig séð

mikið um það.


heiðarlegt?

MI: Já, það skiptir mig miklu máli. Þar sem mér finnst persónulega rosalega vont þegar það er

logið að mér. Mér finnst þá eins og það sé verið að gera lítið úr mér, þess vegna vil ég að

vörumerkið eða fyrirtækið sé nokkuð heiðarlegt við mig.


MI: Það sem kemur fram við sölu og það sem er auglýst er rétt. Þetta snýst aðallega um að varan

sem maður kaupir standist væntingar útfrá því sem vörumerkið hefur tekið fram.


MI: Ef það er dýr vara þá tel ég það. En ef það er einhver ódýrari vara sem er töluvert ódýrari en

sambærilegar vörur t.d. þá finnst mér í lagi að prufa hana. En það er alltaf betra að bera

traust til þess.


MI: Alveg 100% já.


MI: Alveg 100% líka já.



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MI: Já það hefur náttúrulega áhrif en ekki nægilega mikil að mínu mati. Svo ég taki dæmi eins og

með Apple og líftíma batteríanna, ég var mjög reiður en hélt samt áfram að kaupa mér vörur

frá þeim. Fyrir mér þá skiptir meira máli ef ég er sjálfur ánægður með vöruna.


MI: Já ég hef það. Aðallega af því að mér finnst þau vera betri. Ekki af því að ég vilji endilega

halda hollustu við þau. Fer meira eftir gæðunum.


MI: Já, alveg hiklaust.


MI: Já það er alveg 100%


einnig?

MI: Já alveg definately. Það lætur mig líka endurhugsa hvað ég mun gera í framtíðinni og mun að

öllum líkindum skoða eitthvað annað vörumerki. Það myndi ýta mér svolítið útí að skoða

betur í kringum mig og hvað annað væri í boði, áður en ég ákveð mig.


MI: Nei ég myndi ekki segja það.


MI: Já, en þá kemur aftur hversu dýr varan er. Ef þetta er ódýr vara þá er mér líklegast þokkalega

sama en ef þetta er mjög dýr vara þá skoða ég hvernig sagan hefur verið hjá þessu tiltekna

vörumerki.


MI: Já

I: En stolt?

MI: Já ég myndi segja það. Eins og til dæmis líður mér betur að keyra núverandi bíl en gamla

bílinn minn. Ég er stoltari að keyra um á nýja bílnum.


MI: Nei myndi ekki segja það


nýju vörumerki?

MI: Nei ekki heldur.


netinu t.d.?

MI: já, ef ég er ánægður með annaðhvort þjónustu eða vöruna sjálfa þá alveg hiklaust mæli ég

með.


MI: Já 100%

I: Hvort er líklegra að þú gagnrýnir eða hrósir vörumerki?

MI: Ég tel mig líklegri að mæla með en að gagnrýna, en maður er samt duglegur að gagnrýna líka.

Þetta snýst aðallega um fyrir mig persónulega, ef ég fæ eitthvað sem er umfram væntingar

þá er ég mjög duglegur að láta alla vita af því. En það þarf að vera heldur slæmt svo það fari

að pirra mig.

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MI: Nei ég geri það bara ekki neitt.


MI: Ég held ég myndi frekar gagnrýna heldur en að hrósa einhverju sem ég hef hollustu til. Og að

sama skapi frekar hrósa einhverju sem ég hef ekki hollustu til. Finnst þetta svona tengjast

væntingunum mínum, þar sem væntingar mínar til þess vörumerkis sem ég hef hollustu til

eru það háar.

I: En traust?

MI: Bara svipað og með hollustu.



MI: Nei



MI: Nei, ég get ekki sagt það.



MI: Já þá myndi ég segja tískufatnað.


vörum?

MI: Já ég held það


MI: Volkswagen Golf GTE


MI: Þær eru nokkrar. Plug-in hybrid kerfið höfðaði til mín. Ég prufaði svo bílinn og var hann vel

yfir væntingum.


MI: Þýskt gæðastál, þekking, góð smíði og gæði er svona fyrsta sem mér dettur í hug.


MI: Rosalega ánægður


MI: Já og meira en það


MI: Já átti 2000 árgerð af VW Golf

I: Hvernig var reynslan á hinum VW bílnum þínum?

MI: Aksturlega séð var hún mjög góð. Endingarlega séð mjög slæm

I: Stóðst hann væntingar?

MI: Aksturlega séð þá já, það var mjög gott að keyra hann og vildi ég aldrei losa mig við hann

vegna þess. En hann var ansi dýr í rekstri þar sem hann var alltaf að bila.


MI: Já algjörlega


MI: Mér finnst hún mjög jákvæð og ég er mjög ánægður með þessa þróun.


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MI: Já, ég tel allar líkur á því. Mér finnst þetta vera jákvætt þar sem bíllinn er umhverfisvænn og

minnkar bensínneyslu. Einnig finnst m´æer hann skemmtilegur og finnst krafturinn koma

skemmtilega út í þessum PHEV bílum og einnig í rafmagnsbílum (EV) eftir því sem ég hef

prófað.


MI: Ekki almennilega, ég eiginlega ignoraði það og langaði ekki að vita það.


MI: Nei


MI: Nei


MI: Nei í rauninni ekki


kauphugleiðingum?

MI: Nei engin og hugsaði ekki einu sinni um það


MI: Eins og ég segi, þá blokkaði ég bara soldið þetta hneyksli og pældi ekki í því. ÉG veit ekki einu

sinni hvernig þetta endaði, eina sem ég veit er að þeir fengu stóra sekt.

I: Hefur þú heyrt um nýju framtíðarstefnu Volkswagen samsteypunnar, titluð 2025?

MI: Já hef heyrt um hana

I: Hvað finnst þér um þessa framtíðarsetfenu Volkswagen, að vera leiðandi í framleiðslu á

bílum með endurnýjanlegan orkugjafa?

MI: Mér finnst þetta frábært, að svona stórt fyrirtæki eins og VOlkswagen ætlar að taka

rafmagnsvæðinguna svona alvarlega og vonandi hefur það áhrif á nýsköpun innan þessa

sviðs og ýtir undir aðra bílaframleiðendur að gera hið sama.


MI: Nei, ekki beint, ekki eftir þetta hneyksli. En ég myndi ekki segja að þeir væru ósiðferðislegir.

Ég svona hef þetta ennþá í huga um Volkswagen og mun örugglega gera það í nokkur ár í

viðbót en mun sennilega gleyma því síðan.

I: En heiðarlegt?

MI: Bara sama og ég sagði í síðustu spurningu.



MI: Það hjálpar alveg eitthvað. En það var ekki aðalástæðan þegar ég keypti hann. En ég er samt

sáttari á þessum bíl en ef ég væri á eyðslufrekum bensín bíl t.d.


MI: Nei ég ber alveg sama traust þar sem gæðin hafa ekki dalað. Bíllinn sem ég er á núna hefur

þessi gæði sem ég bjóst við.


MI: Nei, þar sem ég keypti bílinn eftir hneykslið get ég ekki sagt það. Þeir þyrftu að gera eitthvað

ansi stórt til þess að ég seldi bílinn eða myndi ekki kaupa mér Volkswagen aftur.


MI: Já nokkuð mikið, en ekki alveg 100%


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MI: Já ég myndi segja það. En umboðið á íslandi hefur náttúrulega áhrif á það líka, og get ég bara

sagt góða hluti um það. En ég hef náttúrulega ekki lent í neinu veseni með bílinn en sem

komið er. En ég myndi segja að ég beri tryggð til þetta brand.

I: Umboðið skiptir þér semsagt máli.

MI: Já ég myndi segja það. Útaf ef eitthvað kemur uppá þá þurfa þeir að díla við það og það er

ekkert sem VW úti getur þannig séð gert í því. Þannig ég vil meina að þeir eru soldið andlit

vörumerkisins hér á Íslandi.


MI: já eg myndi segja að það hefur aukist og að þeir séu að gera góða hluti.


MI: Já finnst hún að hafa bæst einnig.


MI: Já algjörlega, rótgróið þýskt.


MI: Já með gæðin, mér finnst þetta alltaf vera góðir bílar. Ef maður sleppir þetta hneyksli, þá

finnst mér það vera mjög áreiðanlegt.


MI: Já ég til VW vera svona gæðabíl. Þannig það gefur mér alveg stolt. Ég þurfti að keyra Toyota

Yaris í mánuð og það gaf mér til að mynda ekki stolt. Strax þegar ég fór í bílinn minn aftur, þá

var ég svona aðeins meiri með mig.


fyrirtæki?

MI: Nei, eins og ég sagði áðan, þá skipta rótgróin fyrirtæki ekki miklu máli fyrir mig.


MI: Já ég hef mælt með þeim og líka ekki mælt með þeim. Það bilaði mótor í gamla bílnum

mínum og þá var ég mjög pirraður í svona hálft ár og þá mældi ég ekki með VW. En eftir að

ég fékk nýja bílinn hef ég ekki gert neitt annað en að mæla með þeim.


MI: Nei ekki á netinu.


MI: Gæðin, þar sem mér finnst þetta svona rosalega góður bíll. Þéttur og svona. Ég hafði keyrt

marga bíla og mér fannst enginn hafa verið svona góður eins og þessi VW Gte sem ég á.



MI: Nei.


vörumerki?

MI: Nei ekki heldur


MI: Nei, ég gerði það ekki. En mér finnst að bíllinn hafi alveg hjálpað til með það svona eftir

kaupin. Þannig þetta var ekki svona aðalatriðið en það hefur gert það að vissu leyti.


MI: Ekki vegna meðmæla, en meðmæli hjálpuðu til.


MI: Já það myndi ég segja

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Appendices E – interviewee 3 The Interviewer will be marked as (I)

Heiðrún Kara, the interviewee will be marked as (HK)

Heiðrún Kara

24 years old


Educated as a hairdresser


HK: Að hún standi fyrir sínu. Að þú veist þegar þú kaupir eitthvað að þú getur stólað á gæðin.


HK: Jú alveg klárlega. Finnst mikilvægt að fyrirtækið sýni að það sé ábyrgt.



HK: Já, það myndi gera það, alveg klárlega. Ef það myndi koma upp eitthvað sem þeir gerðu, þá

myndi maður alveg hugsa sig tvisvar um að kaupa það aftur.


HK: Já, mér finnst það. Kannski ekki svona aðalatriðið þegar ég kauði vöru, en mér finnst það

ekkert verra. Fer svolítið eftir því hvað ég er að kaupa, hvort það sé dýr eða ódýr vara.


heiðarlegt?

HK: Já ég myndi segja það. Finnst mikilvægt til dæmis að ég finni fyrir heiðarleika frá fólkinu sem

er að selja mér vöruna.


HK: Að þér er sagt rétt af starfsfólki þegar þú kaupir vöruna, að það komi ekki í bakið á þér eftir

kaup. Ef þú ert t.d. að kaupa eitthvað rándýrt og það kemur síðan upp að þú sért ekki að

kaupa gæðin sem þú áttir von á. Aðalpunkturinn finnst mér að varan sem ég kaupi af

vörumerkinu standist þau gæði sem ég átti von á.


HK: já, mér finnst það.


HK: Já, mér finnst það líka.


HK: Já, alveg 100%.



HK: já, ég myndi segja að það gerir það hiklaust.


HK: Já


HK: Já, ég myndi segja það.


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HK: Já, alveg hiklaust.


einnig?

HK: Já, alveg að einhverju leyti. Fer eftir því hversu mikið þeir bregðast trausti mínu.


HK: Já og nei. Fer eftir því hvernig vöru ég er að kaupa.


HK: já og nei líka. Bara svipað að ég sagði síðast. Fer eftir því hvort þetta eru t.d. matvörur eða

eitthvað dýrara. Ég gef yfirleitt öllu séns.


HK: Já, það myndi ég segja.

I: En stolt?

HK: Auðvitað kaupir maður sé eitthvað sem manni finnst flott og er vinsælt. Þannig að einhverju

leyti myndi ég segja það. Ef þér er búið að langa í eitthvað lengi og kaupir þér það, þá ert

mögulega ánægður með að kaupa þér það, þar sem það er t.d. í hærra gæðaflokki.


HK: Já, ég held það. En samt einmitt. Ég samt á það til að prófa eitthvað vörumerki sem er t.d. að

vaxa og maður metur hvort maður fílar það eða ekki. En það er svona í minni kaupum, ekki í

stærri hugleiðingum, þá myndi ég ekki kaupa eitthvað sem þú veist ekki jafn mikið um. Það

fer eiginlega eftir því hvað þú ert að kaupa.


nýju vörumerki?

HK: Já, ég myndi segja það. Þar sem það er komin meiri reynsla. Ef það kemur eitthvað hneyksli

upp hjá vörumerki sem er nýtt t.d. þá horfir maður frekar á það hjá því, heldur en hjá

einhverju rótgrónu fyrirtæki sem vinnur úr því og hefur mögulega reynslu á að vinna úr

hneyksli. Ég hef meiri trú að rótgróið fyrirtæki hafi það sem þarf til þess að vinna úr því.


netinu t.d.?

HK: Já, ég á það til.


HK: Já algjörlega.

I: Gagnrýnir eða mælir þú með vörumerkjum frekar?

HK: Ég myndi segja að ef ég gagnrýni eitthvað, myndi ég mæla með einhverju öðru í staðinn.



HK: Nei, ég er ekkert að deila einhverjum upplýsingum um það. Ekki nema að það sé einhver

leikur og þú getur unnið eitthvað, tek einstöku sinnum þátt í þannig. En ekki þannig að ég er

að deila þessu því mér finnst það sniðugt.


HK: Já, ég myndi klárlega deila upplýsingum ef ég finn fyrir tryggð og mér líkar við það.



HK: Nei get ekki sagt það.

118



HK: Nei get ekki sagt það heldur.



HK: Já. Eða maður kaupir sér oft eitthvað sem manni langar í til þess að líða vel. T.d. ef maður er

búinn í prófum til þess að verðlauna sér.


vörum?

HK: Já alveg 100%.

I: Treystir þú því betur en t.d. að sjá auglýsingu frá einhverju vörumerki?

HK: Já og nei. Fer eftir því hvaða manneskja þetta er. Myndi ekki treysta því ef þetta er einhver

áhrifavaldur sem maður veit er að fá borgað fyrir þetta. En ef ég veit að manneskjan er

‚acutally‘ að segja það sem henni finnst og myndi að sama skapi segja líka ef henni myndi

ekki líka við það, þá myndi það gera meira fyrir mig en auglýsingin.


HK: Volkswagen Golf GTE (PHEV)


HK: Útaf því að hann er plug-in hybrid


HK: Mjög fínt.


HK: Já, mjög ánægð.


HK: Já ég get sagt það.


HK: Já, hef átt tvo Volkswagen Golf bíla áður.

I: Hvernig var reynslan á þeim?

HK: Var mjög ánægð með þá, hef ekkert slæmt að segja gagnvart minni reynslu.

I: Stóðust þeir bílar væntingar?

HK: já þeir gerðu það. Var svo ánægð með minn fyrsta golf að ég fór og keypti alveg eins bíl á

sínum tíma.


HK: Já ég myndi gera það


HK: Mjög jákvæð þróun, finnst það mjög sniðugt. Svona umhverfisins vegna t.d.


HK: Já, finnst það mjög líklegt.


HK: Nei ekki beint.


HK: Nei get ekki sagt það


HK: Já og var búinn að eiga einn áður á þeim tíma.

119


HK: Nei, ekki persónulega


kauphugleiðingum?

HK: Nei, alls ekki.


HK: Ég er ekki viss. Eftir því sem ég best veit þá bara vel. Var ekki mikið að pæla í því þar sem

þetta hafði ekki áhrif á mig persónulega.


HK: Jú hef heyrt um það að vissu leyti.



HK: Mjög jákvæð. Finnst fínt að þeir séu að stefna að því að færa sig frá bensín og dísel og held

ég að fólk sé almennt opið fyrir því, allaveganna hér á Íslandi.


HK: Já já

I: En heiðarlegt?

HK: já, eftir því sem ég þekki til þess.



HK: Já, og fríðindin við það. Eins og mér finnst þetta miklu skemmtilegri bíll, við það að vera

hybrid.


HK: Nei, get ekki sagt það


HK: Nei, ekki heldur


HK: Já


HK: Já, ég geri það líka.


HK: Já ég myndi segja það. Þar sem ég held að þeir séu að gera góða hluti og það hefur áhrif. Þeir

eru að fókusa á framtíðina, og mér finnst það jákvætt.


HK: Já, bara svipað eins og ég sagði í síðustu spurningu.


HK: Já


HK: Já líka.


HK: Já myndi segja það


HK: Já alveg 100%

120


fyrirtæki?

HK: Já get sagt það. Þar sem ‚ Volkswagen er náttúrulega bara Volkswagen‘ og hefur verið síðan

ég veit ekki hvenær þá hafði ég trú um að það myndi rætast úr þessu.


HK: Já, ég hef oft gert það. Einnig mælt með rafmagns eða hybrid bíl frá þeim.


HK: Alveg pottþétt. Ekki eitthvað sem ég man eftir, en sennilega einhverjum viðburði á vegum

Volkswagen eða einhverju tengt því.

I: En þitt eigið efni?

HK: Já hef sett myndir af bílnum mínum t.d. á Facebook og líka á Instagram.


HK: Þar sem ég er ánægður viðskiptavinur. Sátt með kaup á vörunni.



HK: Nei


vörumerki?

HK: Nei ekki heldur. Það var eiginlega bara af því að Volkswagen er rótgróið fyrirtæki sem ég bara

eitthvað traust til.


beinni samkeppni?

HK: Já, hiklaust

I: Er eitthvað ákveðið sem þér dettur í hug?

HK: Já, Toyota t.d.


HK: Nei myndi ekki segja það.


HK: Nei.


HK: Já myndi segja það, algjörlega.

121

Appendices F – interviewee 4 The Interviewer will be marked as (I)

Andrea, the interviewee will be marked as (A)

Andrea

24 years old


Bachelor’s degree in business administration


A: Gæði. Þau verða að uppfylla væntingar mínar til gæðanna, og það myndi sennilega leiða til

þess að ég treysti því vörumerki betur.


A: Já mér finnst það skipta máli.



A: Já það gerir það vissulega, en fer líka eftir því hversu rangt það er. Það er ekki hægt að taka

sem dæmi ef allir eru að gera nákvæmlega það sama og svo kemst það bara upp hjá

einhverju vörumerki. Þá myndi ég ekki segja að það hafi áhrif.


A: Nei ég get ekki sagt það


heiðarlegt?

A: Já, auðvitað. Ef vörumerkið er ekki heiðarlegt þá er yfirleitt þjónustan og þess háttar ekki

gott og leiðir til þess að ég sé ekki ánægð með vöruna.


A: Uppfylla þessi gæða sem þau tala um. Einnig ef það kemur upp einhver galli á ákveðinni vöru

og fyrirtækið horfi á þig sem mikilvæga persónu og bætir það upp.


A: Já ég myndi segja það, því þá er ég nokkuð viss um að gæðin muni vera til staðar og að vara

muni uppfylla væntingar mínar.


A: Já, klárlega


A: Já það myndi mér finnast líklegt



A: Já en það fer bara eftir því hversu siðferðislega rangt það sé.


A: Já, ég kaupi alltaf sama gosdrykkinn og sömu fatamerki svo ég nefni dæmi.


A: Já, ég geri það. Ef maður er ánægður með eitthvað þá ræðir maður það.


122

A: Já ég geri það mjög oft. En eins og ég segi ef maður er sáttur með eitthvað þá viltu koma því

áleiðis svo að það viðhaldist í samfélaginu.


einnig?

A: Já en fer samt eftir því hvernig vörumerkið bregst við. Hvort að ég haldi áfram að kaupa það

vörumerki. Ef þeir koma ekki til móts við mig þá mun ég líklegast ekki eiga viðskipti við þau

aftur.


A: Nei ekki þess vegna. Auðvitað skiptar það kannski meira máli þegar það kemur að bílum og

einhverju svoleiðis stórum fjárfestingum að það sé einhver reynsla á bakvið vörumerkið. En

almennt skiptir það mér ekki máli.


A: Já það skiptir mig mjög miklu máli. Að það uppfylli væntingar mínar.


A: Já það gerir það. Ef að gæðin fara minnkandi þá finnst mér líklegt að ég hætti að kaupa

vöruna á endanum.

I: En stolt?

A: Já eins og með Volkswagen, það er flott vörumerki og það er smá stolt sem maður fær frá því

útaf ákveðnum gæðastaðli. Þannig já mér finnst það skipta máli.


A: Já traustið náttúrulega kemur bara með reynslu. Ég meina ég byrja aldrei á þeim punkti að

treysta fyrirtæki, þar sem þú ert ekki alveg viss hvað þú ert að koma þér útí í byrjun.


nýju vörumerki?

A: Já, ef það er búið að uppfylla ákveðið hjá mér. Þá finnst mér eitt hneyksli ekki endilega hafa

það stór áhrif.


netinu t.d.?

A: Já það á ég til


A: Já ég á það einnig til



A: Nei ég get ekki sagt það


A: Já ég klárlega. Ég myndi t.d. vera líklegri til þess að skrifa það á netið ef ég er trygg einhverju

vörumerki, þar sem ég veit að gæðin eru til staðar og að vörumerkið standi undir sér. En ég

myndi aldrei gera það ef það væri ekki svoleiðis, þar sem ég vil ekki deila einhverju sem ég er

ekki viss með.



A: Já það hefur alltaf áhrif ef einhver sem ég þekki t.d. á eitthvað, þá er líklegra að mér langi í

það vörumerki.

123



A: Nei, ekki hópum beint.



A: Nei get ekki sagt það með sjálfsálit. En mögulega með sjálfslíðan, auðvitað langar manni að

kaupa sér fína hluti til þess að láta þér líða vel.


vörum?

A: Já alveg 100%


A: Volkswagen Golf GTE


A: Góðir bílar. Átti VW Polo áður sem ég var sátt með. Finnst rafmagnsbílar vera framtíðin og

hybrid bíllinn leyfði mér að kynnast því án þess að binda mig við að komast ekki hvert sem er

hvenær sem er.


A: Ég myndi segja að ég treysti því. Einnig svona tryggð sem ég finn, mér finnst að ef þau kaupir

þér einhverntímann Volkswagen þá heldur þú þér alltaf við Volkswagen. Gæði til staðar og

þeir uppfylla allt sem þarf að uppfylla.

I: Ertu ánægð með þinn núverandi bíl?

A: Mjög ánægð


A: Já og meira en það

I: Þú nefndir að þú átti VW Polo, hvernig var reynslan á honum?

A: Mjög góð

I: Stóðst hann væntingar?

A: Já ég myndi segja það


A: Já 100%


A: Já mér finnst það gera gott fyrir umhverfið. Þess vegna finnst mér svona hybrid bílar vera

sniðugir af því að þeir eru tvinnbílar, þá ertu bæði að nýta rafmagnið sem er góður kostur,

umhverfisins vegna. Samt ertu líka með bensínið ef þú ert að fara í lengri ferðir. Síðan veit

maður náttúrlega ekkert með rafmagnið er í framleiðslu, eða ég er allaveganna ekkert búin

að kynna mér það sérstaklega.


A: Já ég er nokkuð viss um að ég muni kaupa mér hybrid bíl næst. En í nánustu framtíð þegar

rafmagnsbílar eru byrjaðir að komast lengra á hleðslunni þá myndi ég klárlega kíkja á það.


A: Nei ekki nógu vel, en veit svona hvað gerðist í stórum dráttum en ekki ítarlega.


A: Nei hafði ekki þannig beint áhrif á mig persónulega þar sem ég veit að það eru aðrir

bílaframleiðendur að gera það sama. En það komst bara upp um Volkswagen fyrst.

124


A: Já átti Volkswagen á þessum tíma


A: Nei ég tók þessu ekki svona inná mig, jú þetta var rangt hjá þeim en eins og ég sagði voru

aðrir bílaframleiðendur líka að gera þetta.


kauphugleiðingum?

A: Nei ekki hneykslið, ekki þannig


A: Mjög vel. Eins og ég sem traustur viðskiptavinur, ég hélt því bara áfram.


A: Já hef heyrt um hana og veit að hún snýst um rafmagnsbíla



A: Mér finnst hún flott, sérstaklega í ljósi hneykslisins.


A: Já ég myndi segja það

I: En heiðarlegt?

A: Já af sama skapi



A: Já það er hluti af því


A: Nei, það gera allir mistök


A: Nei, get ekki sagt það. Þar sem ég var ekki að fylgja þessari stefnu, þ.e.a.s. ég var ekki á

díselbíl. Eins og ég segi það gera allir eitthvað sem maður veit ekki af, þannig ég hef gefið

Volkswagen smá benefit of the doubt útaf því, og finnst þeir hafa staðið sig vel eftir

hneykslið.


A: Já ég geri það


A: Já ég geri það einnig.

I: Umboðið skiptir þér semsagt máli.


A: Já mér finnst það


A: Já líka

I: En samfelldni?

A: Já 100%


A: Já það er eins og ég sagði áðan. Það svona veitir mér ánægju og stolt að eiga Volkswagen

myndi ég segja.


fyrirtæki?

125

A: Já ég myndi segja það, þar sem maður þekkir fyrirtækið betur. En það hafði voðalega lítil

áhrif á mig þannig.


A: Já ég hef gert það


A: Já ég hef deilt mynd af bílnum mínum t.d.


A: Ég myndi segja að það sé traustið of hollusta mín til VW, það hefur svona mest áhrif.



A: Nei.


vörumerki?

A: Nei get ekki sagt það


A: það náttúrulega bætti mína sjálfslíðan en get ekki sagt að það var ástæðan fyrir því að ég

keypti bílinn.


A: Nei


A: Já það gerir það.

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Appendices H – interviewee 5 The Interviewer will be marked as (I)

Emil Örn, the interviewee will be marked as (EÖ)

Emil Örn

29 years old

Hafnarfjörður (Greater Reykjavík)

Pilot


EÖ: Notagildi og verð myndi ég segja


EÖ: Það gerði það ekki. En það er farið að gera það miklu meira núna, en samt ekki 100% . Ég

beila t.d. ekki á vöru sem mér langar mjög mikið í þótt það hafi komið fréttir um að

vörumerkið gerði eitthvað siðferðislega rangt.



EÖ: Já, það myndi gera það


EÖ: Nei, sennilega ekki. Ef það myndi ekki henta mér þá sé ég ekki ástæðu til þess að kaupa það

bara af því að það er siðferðislegt.


heiðarlegt?

EÖ: Já, það gerir það. Ef fyrirtækið er heiðarlegt, þá veit ég að ég get treyst þeim. T.d. ef það er

heiðarlegt þá geri ég ráð fyrir að ég sé að kaupa vöru sem ég héldi að ég væri að kaupa, það

er að segja eins og þetta sé auglýst. Eins og til dæmis 66° norður, þeir auglýsa sig með verðbil

sem er mjög hátt og vörurnar eru flottar, ef þeir eru heiðarlegir með það, þá fá þeir velvild

hjá mér.


EÖ: Kannski soldið svipað eins og ég sagði í síðustu spurningu. En líka ef fyrirtæki játar bara

mistökin strax, ekki vera að fela eitthvað eða kenna öðrum um, það er nú oftast þannig.

Innkalla ef það er einhver galli, hefur bara verri áhrif ef það sé eitthvað stríð í fjölmiðlum eða

svoleiðis. Aðallega að þeir taki ábyrgð á sínum mistökum.


EÖ: já, en aftur á móti þá kaupi ég alveg vörumerki sem ég er ekkert að pæla í hvort ég hafi

traust til þeirra eða ekki. En ef ég sé vörumerki sem ég veit að ég hef traust til, þá myndi ég

kaupa það frekar. Fer eftir því hvernig vara þetta er og verðbilinu.


EÖ: Já, 100%


EÖ: Já, hiklaust. Það er líka bara þægindi fyrir mig líka. T.d. þá fór ég í gær að skoða alveg eins

gallabuxur og ég á, þar sem ég skemmdi hinar og ég er ánægður með þær. Maður fer

‚automatiskt‘ beint þangað fyrst áður en maður fer að leita sér að einhverju öðru.

127



EÖ: já, ég myndi segja að það, en maður fer allaveganna að hugsa um það, en ég gef alltaf

fyrirtækjum svona ‚benefit of the doubt‘ og gef því tækifæri til þess að leiðrétta sig og bæta

sig, t.d eins og Volkswagen. Ég er ekki hættur að kaupa VW því þeir voru að ljúga til um

einhverjar útblásturmælingar, sem er náttúrulega stórt mál, en þeir fóru bara réttu leiðina til

að bakka útúr því. Ég gef þeim alltaf tækifæri til þess að axla ábyrgð og gera réttan hlut, set

aldrei blátt bann á það. T.d. er ég í 66°norður peysu og það myndi koma í dagblaðinu að það

sé myndir af 5 ára krökkum í Bangladesh að búa til þessar peysur, þá myndi ég alveg hugsa

málið þangað til að svarið kæmi. Ég myndi alltaf gefa fyrirtækinu tækifæri til þess að svara

fyrir sig.


EÖ: Já að öllum líkindum þá geri ég það, en það er kannski meira svo ómeðvitað.


EÖ: Já, ég myndi gera það.


EÖ: Nei, ekkert sérstaklega. Ég hef ekki lagt vana minn í það allaveganna.


einnig?

EÖ: Já, sennilega sko. Bara svipað og ég var að tala um. Það fer eftir því hvernig er brugðist við.

En maður hugsar alltaf fyrst um það og setur allt á hold. Leyfir maður þeim að bregðast við

og metur það svo útfrá því hvernig það er gert.


EÖ: Nei, ég myndi ekki segja það.


EÖ: já, kannski svipað og með traustið. Áreiðnaleikinn byggist soldið upp með árunum en þá

kemur það soldið líka að það sé kannski rótgróið. En það geta líka fyrir rótgróin fyrirtæki sem

eru léleg og ekki áreiðanleg.


EÖ: Já, t.d. ef ég væri að fara til fyrirtækis og kaupa vöru sem ég hef átt áður, þá myndi ég alltaf

búast við því að fá sömu gæði eða meiri. Þannig já myndi segja að það sé mikilvægt.

I: En stolt?

EÖ: Nei, hef sem dæmi aldrei verið svona mikið merkjafrík. Það skiptir mig ekki máli hvort ég sé í

fötum frá h&m eða 66° norður eða Luis Vitton, ég sækist ekkert sérstaklega eftir það. Meira

bara það sem mér finnst flott.


EÖ: Já, ég held að maður hugsi það alltaf af fyrrabragði, svona áður en maður hefur prófað það.

Ef það kemur t.d. einhver ný fatalína frá nýju vörumerki, myndi ég alltaf frekar treysta

einhverju sem var áður sem er orðið „established“. Ég er alltaf smá tortrygginn á eitthvað

nýtt og er ekki sá gæji sem er fyrstur til þess að hoppa á vagninn, leyfi öðrum að prófa fyrst.


nýju vörumerki?

EÖ: Já, ég myndi segja það, alveg 100%.

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netinu t.d.?

EÖ: Já.


EÖ: Já til vina, en ekki svona opinberlega.



EÖ: Nei, ég legg ekkert vinnu í það svona sérstaklega.


EÖ: Já, en það þyrfti samt að vera alveg rosalega sem varan var framar björtustu vonum til þess

að ég fari útúr veginum mínum til þess að hrósa vörumerki af fyrra bragði. En ef ég er

spurður þá myndi ég alltaf segja frá reynslu minni. Ef ég er bara ánægður með eitthvað þá er

ég ekki að flagga því, þarf að vera að það sé fram úr öllum væntingum til þess að ég geri það.



EÖ: Nei, ég held ég hafi aldrei gert það, allaveganna ekki meðvitað.



EÖ: Nei, ég hef ekki gert það.



EÖ: Já, það hef ég gert. Kannski nýjasta er það bara rafbíllinn. Það er umhverfisvænt og þægilegt

fyrir mig líka.


vörum?

EÖ: Já, ég mundi segja það. Samt svona áhrifavalda auglýsingar finnst mér frekar fráhrindandi

frekar en hitt. Þar sem ég neita að trúa því að allar þessar vörur séu svona frábærar og veit

að þau eru að fá pening fyrir þetta eða vörurnar gefins. Þau eru ekki að gera þetta þar sem

þau sáu vörurnar á fyrra bragði og fannst þær frábærar. Þau fengu þetta sent.


EÖ: Volkswagen e-Golf GTE (EV) og Volkswagen Bora


EÖ: Mér langaði í rafbíl og Volkswagen Golf var ódýrasti bíllinn sem gat fengið svona lítið

notaðan og fremur nýlegan en samt á þeim staðli sem ég vildi. Mig langaði t.d. alls ekki í

Nissan Leaf, mér finnst það drasl. Ég vissi að VW e-golf væri góður eftir að hafa prófað þannig

bíl, þannig fannst hann henta mér best.


EÖ: Ég myndi segja, heimilislegt. Ég hef átt 4 Volkswagen bíla núna í gegnum ævina. Ég alltaf átt

VW og er ég mjög vanur þeim og er þetta bara svona þægilegt og viðkunnulegt. Ég veit hvað

ég fæ.


EÖ: Með nýja bílinn vissi ég hvað ég væri að fá, þannig ég er mjög ánægður með hann.


EÖ: Já hann hefur gert það mjög vel.

I: Hvernig var reynslan á hinum VW bílunum þínum?

129

EÖ: Vætingarnar mínar voru ekki miklar þar sem þetta voru ódýrir og gamlir bílar

I: Stóðust þeir bílar væntingar?

EÖ: já að vissu leyti þar sem ég var ekki að búast við miklu. Þeir vissulega biluðu mikið, en ég vissi

að ég væri að kaupa mér gamla og mikið notaða bíla sem myndu líklegast bila.


EÖ: Já eftir að hafa eignast bíl sem virkaði almennilega, eins og ég sagði hef ég alltaf verið að

kaupa mér notaða bíla þar sem ég hef ekki haft efni á dýrari bílum. Bílar sem voru byrjaðir að

bila mikið og hafði ég ekki tök á að viðhalda þeim rétt sem endaði bara í veseni. En um leið

og ég keypti mér bíl sem virkaði og var yngri en 5 ára, hann var ekki nema 3 ára þegar ég

keypti hann þá var þetta miklu betra. En áður en ég keypti hann þá var ég alveg vel pæla að

kaupa mér annað vörumerki og hélt ég myndi ekki kaupa mér VW aftur. En það var

nátttúrulega aðallega útaf ‚impression‘ á einhverjum gömlum drasl bílum. En ég myndi gera

það núna.


EÖ: mér finnst hún vera jákvæð, hún er hröð. Mér finnst samt vera smá flöskuháls á þessu, þar

sem að mínu mati finnst mér margir bílasalar hafa engan áhuga á rafbílum og hafa enga trú á

þessu og vilja helst selja bara dísel og bensín. Mér finnst það hægja soldið á þessu, ekki

þrónuinni en ‚implementeringunni‘ hérna á Íslandi. En þróun bílanna finnst mér mjög

jákvæð.


EÖ: Já, ég held að það verði 100%.


EÖ: Já, í svona stórum dráttum


EÖ: Nei, engin.


EÖ: Já það átti ég.


EÖ: Nei, ekki persónulega. Ég keypti notaðan bíl og það hafði ekki áhrif á mig þannig.


kauphugleiðingum?

EÖ: Ekki vörumerkjalega séð, en það hafði vissulega áhrif á hvernig bíl ég keypti mér. Þetta vakti

mann til umhugsunar.

I: Hefur skoðun þín breyst síðan Volkswagen hneykslið kom í ljós?

EÖ: Hún hrundi þarna 2015 fannst mér, en ég hef alltaf verið á VW og það hefur ekki haft nein

áhrif á hvaða bíl ég keyri. En eftir að forstjórinn var látinn fara og þeir eru komnir á annan

veg, þannig allt sem að hrundi í mínu áliti er komið upp aftur og jafnvel hærra en það var

fyrir hneykslið.


EÖ: Mjög vel, koma vel útúr þessu sýnist mér.


EÖ: Já ég þekki hana



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EÖ: Mér finnst þetta metnaðarfullt og sniðugt hjá þeim. Þeir eru að sýna gott fordæmi að þora

þessu. Kannski var ekkert annað í stöðunni fyrir þá, útaf þessu hneyksli. En mér finnst þetta

bara geggjað af þeim að þora þessu og mér sýnist að þetta muni heppnast hjá þeim. Miðað

við það sem ég hef heyrt og ég vona það.


EÖ: Já ég hef enga ástæðu til þess að halda annað.

I: En heiðarlegt?

EÖ: já, bara sama og ég sagði í síðustu spurningu.



EÖ: Já það er stór hluti af því.


EÖ: Bara eins og ég sagði áðan, það hrundi eftir hneykslið en hefur unnið sér til baka og er bara

áfram að vaxa. Miðað við nýja bílinn sem ég keypti mér og það sem ég hef séð frá þeim, hef

ég enga trú um að traustið mitt til þess sé að fara hrynja eitthvað í bráð.


EÖ: Það er bara eins og ég sagði í síðustu spurningu, hefur soldið fylgt traustinu mínu.


EÖ: Já eins og ég sagði


EÖ: Já að sama skapi eins og ég sagði


EÖ: Já það hefur aukist vegna þess.


EÖ: Já 100% hefur það gert það.


EÖ: Já, það finnst mér


EÖ: Já mér finnst það núna


EÖ: Já, þrátt fyrir að hafa átt þessa gömlu bíla, þá vissi ég hvað ég var að koma mér útí þar. En

eftir að hafa keypt mér nýlegan bíl þá get ég sagt það. Ég fór líka núna í gegnum umboðið

beint og fannst mér það vera betra og að fá ákveðin tengsl við það.


EÖ: Já og nei, ekki eitthvað sérstaklega. Það eru mjög fá vörumerki í bílum sem myndu gefa mér

eitthvað ákveðið stolt. Það þyrfti að vera einhver lúxusbíll, en að sama skapi sé ég þannig fólk

og útfrá því þá finnst mér það ekki passa við mig. Þetta skiptir mér ekki höfuð máli.


fyrirtæki?

EÖ: Já sennilega gerði það það, líka af því að það er Evrópskt sem hjálpaði alveg. Líka af því að

VW er þýskt, maður ber alveg traust til Þjóðverja í framleiðslu og öðru, þeir eru alveg með

þetta þannig. Sem dæmi ef þetta er ameríkanar þá myndi ég sennilega aldrei kaupa það

vörumerki aftur, þar sem ég treysti því ekki.


EÖ: Já, ég hef gert það. Bara núna síðast til móður minnar, hún er að spá í að kaupa sér e-golf.


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EÖ: Nei sennilega ekki, man ekki eftir því allaveganna.


EÖ: Þar sem ég hef jákvæða reynslu af bílnum. Með mömmu, þá vissi ég að þau voru að skoða

sér rafbíl og markaðurinn fyrir þannig bílum er ekki risa stór. Mín reynsla og það sem ég hef

heyrt er að e-golfinn sé með þeim betri af því sem er í boði. Þannig ég mældi 100% með

honum.



EÖ: Nei, það hafði ekki áhrif


vörumerki?

EÖ: Það væri þá bara rafbílahópurinn. Meira týpan af bílnum fremur en vörumerkið sjálft.


beinni samkeppni?

EÖ: Nei, get ekki sagt það.


EÖ: Nei ekki VW merkið sjálft, en týpan á bílnum gerði það.


EÖ: Já, tengdafjölskyldan átti svona bíl og mældi með honum.


EÖ: Já mun betur, bæði bara þægilegt og maður verður rólegri yfir því hvað maður keyrir mikið.

Þá er fínt að vera á rafmagni, ódýrara og fer betur með umhverfið.

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Appendices G – interviewee 6

The Interviewer will be marked as (I)

Svavar, the interviewee will be marked as (SV)

Svavar

34 years old


Master’s degree in Law


SV: Upplifunin, þegar þú ert sem dæmi að kaupa þér eitthvað lúxusbrand, að upplifunin sé

þannig að þú sért að kaupa þér, dýra og flotta vöru. Mér finnst umgengnin og viðmót

starfsfólksins vera hluti af þessu og hluti af vörumerkinu. Lúxusmerki þá býst þú við

ákveðinni þjónustu, en lakari merki, þá býst þú ekki endilega við að fá fulla þjónustu.


SV: Nei, ég er svo siðblindur. Það skiptir mig engu máli.



SV: Nei, það skiptir mig ekki máli.


SV: Nei, í sjálfu sér ekki.


heiðarlegt?

SV: Já, heiðarleikinn finnst mér skína í gegnum þann hluta sem ímyndin er. En eins og VW

dæmið, með rör inní einhver apa búr og svona. Ok það er alveg slæmt, en ég myndi ekki

hætta við að kaupa bíl af þeim, því þetta er góð vara.


SV: Löng viðskiptasaga, áreiðanleiki, löng saga um gæði, þjónustan af því hún getur aldrei verið

keypt, hún þarf að ávinnast og er mjög dýrt að ná því til baka ef það glatast.


SV: já. Ég er merkjakall. EF ég kaupi mér eitthvað, þá ætlast ég til þess að þeir endist. Ef varan er

þannig, þá alla jafna treysti ég því. Það er bara þannig, ég er búinn að kynna mér verkin og

eitthvað merki er sett á, þá treysti ég því. Annars væri það ekki á vörunni.


SV: Já


SV: Já, alveg 100%



SV: Nei, ég myndi ekki segja það. Sko málið er það, svo framarlega sem það hefur ekki áhrif á

vöruna mína, sem ég er með í höndunum og ég varð ekki fyrir því, skiptir það mér engu máli.

En auðvitað ef varan myndi falla í verði útaf því, þá er það kannski allt annað mál. En hvernig

Bose hátalari er framleiddur og hvernig það kemur hljóð útúr þessu, þá er mér alveg sama.

133


SV: Já það hef ég. Það er þau vörumerki sem ég finn fyrir gæðum og góða þjónustu. T.d.

Lindbergh gleraugun sem ég er með á mér, þetta er fimmtu þannig gleraugu sem ég á í röð.

Þau eru dýr og get ég fengið gleraugu sem gera það sama eflaust helmingi ódýrari. En gæðin

og þjónustan sem ég fæ lætur mig kaupa þau aftur og aftur.


SV: Já, alveg 100%


SV: Já það geri ég.


einnig?

SV: Alveg um leið, það er ekki spurning. En ég gef alla jafna þeim aðilum kost á að bæta það, ef

það gengur ekki, þá er það búið. Þá færi ég viðskiptin mín annað.


SV: Já það skipti mér miklu máli. Ég er ekki mikið fyrir nýjungar og er íhaldsamur. t.d. ef vara

hættir í framleiðslu eins og hjá Miele sem er með heimilistæki, þeir framleiða varahluti í

vöruna í 25 ár eftir að hún hættir í framleiðslu. Að sama skapi ef það er eitthvað nýtt

vörumerki, veit maður ekki hvort þeir verða á lífi eftir 5 ár.


SV: Já, nefndi það áðan, en það skiptir mér miklu máli.


SV: Já allt þetta þrennt skiptir mig máli,

I: En stolt?

SV: Já, það gerir það. Þetta er svona hluti af ímyndinni.


SV: Já 100%


nýju vörumerki?

SV: Já, alveg hiklaust. Mér finnst þetta soldið snúa að því að ég get alltaf leitað mér að þjónustu,

og það er líklegra að rótgróið fyrirtæki komist í gegnum krísu en eitthvað nýtt. Þótt þetta

nýja sé mjög flott og allt mjög umhverfisvænt, þá þarf það ekki að vera á lífi eftir 5 ár.


netinu t.d.?

SV: Já.


SV: Já það geri ég reglulega.

I: Hvort er líklegra að þú gagnrýnir eða hrósir vörumerki?

SV: Ef fólk er að spurja mig um vörumerki sem ég hef átt. Þá segi ég þeim frá minni upplifun,

yfirleitt þegar ég er með góða upplifun. En er meira í að gagnrýna vörumerki að fyrr bragði,

þótt ég hrósi alveg af fyrrabragði einnig.



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SV: Já einstaka sinnum, er frekar íhaldssamur og er ekki mikið á samfélagsmiðlum, en ég hef

alveg gert það.


SV: Já alveg hiklaust. Ef ég er tryggur einhverju vörumerki, er ég duglegur að mæla með því.

I: En traust?

SV: Já, svipað og með hitt. Ef ég treysti vörumerki, þá er ég samt líklegast með hollustu gagnvart

því.



SV: Nei, get ekki sagt það.



SV: Nei, ekki heldur.



SV: Nei, þegar ég kaupi eitthvað er útaf því að mér finnst það vandað, nenni ekki í að standa í að

þetta bili. Auðvitað samt bílar og þess háttar, ég meina þú kemst frá A til B á Skoda en mér

myndi líða betur í Volkswagen bílnum.


vörum?

SV: Nei, sko svokallaðir áhrifavaldar á twitter eða á netinu, ég síst tek mark á þeim, það er bara

algjörlega 0. Einhver sem ég þekki, sem er svona svipaður karakter og ég, svona íhaldssamur

og mælir með einhverju, þá ekki spurning. En ekki eitthvað fólk útí bæ, sem segir mér að

eitthvað sé æðislegt. Mér finnst það algjört waste af ‚resources‘


SV: Volkswagen e-Golf


SV: Mér finnst þjónustan og upplifunin sem ég hef fengið afbragðs. Mér er svona nokkuð sama

hvernig bíllinn er ef það er til staðar.


SV: Ég hef mikla trú á því. Finnst bílarnir virka mjög vel. Gæðavara og ber þetta ekki saman við

margt annað á markaðnum.


SV: Gífurlega ánægður.


SV: Já ég get sagt það, alveg umfram væntingar.


SV: Já átti annan VW Golf fyrir.

I: Hvernig var reynslan á hinum VW bílnum þínum?

SV: Alveg rosalega góð.

I: Stóðust hann væntingar?

SV: Já gerði það, en eins og ég nefndi þá sérstaklega e-golfinn, hann var alveg umfram

væntingar.


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SV: Ég gæti alveg hugsað mér að kaupa annan e-golf þegar það er kominn tími á að skipta. Hann

hefur reynst mér það vel.


SV: Ég held þetta sé bóla persónulega. Þetta eru einhverjar evrópu reglugerðir sem segja það að

það þarf að minnka Co2 gildi niður í eitthvað ákveðið á markaðnum varðandi framleiðslu og

þetta er eins leiðin til þess að gera það. En að öðru leyti, eins og í evrópu, sumir keyra mörg

hundruð kílómetra í vinnunna og úr vinnu og í frítíma, það hentar þeim ekki. Í þýskalandi

brenna þeir kol og gasefnum til þess að búa til rafmagn, hvað er þá umhverfisvænt við þetta?

Bandaríkjamenn munu aldrei nota þetta, það eru of langar vegalengdir.

I: Hvernig finnst þér samt þetta, miðað við Ísland?

SV: Mér finnst þetta henta vel á Íslandi, stuttar vegalengdir, rafmagnið er framleitt á

umhverfisvænan máta. Mjög hentugt á Íslandi og sérstaklega í Noregi líka.

I: Hver er þá ástæðan fyrir því að þú keyptir þér VW e-golf?

SV: Ég var með bensín bíl sem ég ætlaði að skipta uppí annan alveg eins. Sölumaðurinn benti

mér á að prófa samt e-golf áður en ég ákvað mig, ég vildi helst ekki sjá rafmagnsbíl en ég fór

svo hring., þá var ekki aftur snúið. Upplifunin á bílnum var frábær. Fann að þetta var þýskur

gæðabíll og fannst rafmagnselementið vera frábært og gera bílinn skemmtilegri.


SV: Já, ég get alveg séð það fyrir mér. Þrátt fyrir að ég haldi að þetta sé bóla, þá finnst mér þetta

henta fyrir Ísland. Einnig útaf kraftinum í bílnum og endursöluverði.


SV: Já, ég þekki það nokkuð vel


SV: Nei gerði það ekki


SV: Já


SV: Nei, ekki persónulega.


kauphugleiðingum?

SV: Nei það hafði alls ekki áhrif.

I: Hefur skoðun þín breyst síðan Volkswagen hneykslið kom í ljós?

SV: Nei hún hefur ekki gert það þar sem hneykslið hafði ekki áhrif á mig. Að mínu skapi var þetta

þannig að bílarnir eyða litlu og þó svo að þeir blási aðeins meiru Co2 gildi skiptir það engu

máli, fólkið fékk bílana á betra verði þar sem tölurnar voru lægri.


SV: Þeir hefðu kannski mátt koma meira straight forward. Í staðinn fyrir að láta nappa sér, frekar

að viðurkenna mistök og taka því, heldur en að leyfa fjölmiðlum að tilkynna þetta. Taka

sektina og afgreiða þetta, þá er hægt að vinna útfrá því í staðinn fyrir að draga þetta á

langinn.


SV: Já ég þekki hana frekar vel.



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SV: Mér finnst þetta vera fín stefna í sjálfu sér. Umhverfisvænt og allt það. En eins og ég sagði

finnst mér þetta ekki henta öllum mörkuðum. Tökum bara dæmi eins og Toyota og hybrid

bílana þeirra, þeir bluffa fólk með þessu gervirafmagni og því bulli, þeir eru ekki stórir á

evróumarkaðnum í sjálfu sér, þeir ætla ekki að leggja milljarða ofaná miljjarða evra í þróun á

einhverju rafmagnsbúnaði sem lítill hluti af þeirra viðskiptavinum ætlar að kaupa. Suður

Ameríka, Norður Ameríka og Asía, er ekki með neinar áherslur á þetta, það er bara Evrópa.

Þannig að Volkswagen með því að leggja svona gígantíska fjármuni á þessa þróun, þá er

spurning hvort þetta sé rétta leiðin. Þetta er spurning sem mér finnst að hluthafar ættu að

velta sér rlkilega uppúr, hvort þetta sé vel farið með fé.


SV: Já finnst það.

I: En heiðarlegt?

SV: já, finnst það líka.



SV: Nei, það var ekki hluti af því. Ég fékk bara bíl á góðu verði og miklum krafti.


SV: Nei get ekki sagt það.


SV: Nei, þetta var of lítill hluti af heildarsögu vörumerkisins til þess að gera það.


SV: Já, hiklaust


SV: Já líka


SV: Nei, get ekki sagt það. En þetta er fín viðbót svosem, við að mínu mati þessa tímabundnu

eftirspurn eftir þessu í Evrópu.


SV: Nei bara sama.


SV: Já hiklaust.


SV: Já finnst það, sérstaklega síðustu árin.


SV: Já, mér finnst bílarnir hafa reynst vel. Þeir einstaklingar sem ég þekki og eiga VW eru á sama

máli. Eru ekki mikið að bila, þannig verkferlarnir eru í lagi. Þetta er allt staðlað, það er ekki að

bila, þetta er allt vel testað


SV: Já mér finnst það. Það er svona hipp og kúl að vera á Golf að mínu mati.


fyrirtæki?

SV: Já alveg 100%. Þetta er svo löng saga hjá þeim.


SV: Hægri og vinstri og útum allt.

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SV: Já það hef ég gert.


SV: Ég hef trú á vörunni og vörumerkinu. Ég er þannig gerður ef mér finnst eitthvað vera drasl þá

segi ég það og að sama skapi ef mér finnst eitthvað vera með gæði. Geri það ef ég get sagt

það með góðri samvisku.



SV: Nei.


vörumerki?

SV: Nei get ekki sagt það


beinni samkeppni?

SV: Já, Toyota. Finnst bara gæðin sem ég er búinn að venjast hjá VW hafa leitt til þess að ég skilji

ekki af hverju fólk kaupir toyota bíla til dæmis.


SV: Nei, finnst að það hafði ekki áhrif.


SV: Nei.


SV: Það lookar rosalega vel. En ég var ekkert að pæla í því og það skipti mér ekki öllu máli.

VOLKSWAGEN: AN ELECTRIC PAST AND FUTURE

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Transcript of VOLKSWAGEN: AN ELECTRIC PAST AND FUTURE