All brands take values from their sector and their nationality, for better or for worse. German cars, Australian wines, English suits, American music etc. The value transference is subtle and changing: think how low Japanese brands were regarded in the decades just after the war, where now, ‘Japanese’ is a signifier for quality and innovation in such areas as cameras and consumer electronics.
It is all to easy too consider this brand transference as a hierachy, as in the diagram below:
The organisation draws value from the reputation of its sector, which in turn embodies values of its nation in that sector.
I would suggest the model more complex, more like that shown below:
For example, you could say that Mercedes have a reputation for quality because they are German cars. But equally, the sector has a reputation for quality because of the values brands like Mercedes bring to it. This impacts upon the national values which in turn are transferred to brands within the sector. Unlike the previous model that is very ‘top-down’ , this model takes into account bottom-up interactions too.