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Purpose -- This paper aims to show how the relative global status of a country influences its internal country reputation and resulting social cognitions of citizens. Design/methodology/approach -- The theories of social identity and collective self-esteem were employed to explain how self-assessment and evaluations of a country's reputation are regulated by social concepts and vice versa. The structural equation modeling technique was employed to estimate the conjectural relations. Findings -- The groups which people belong to are their primary source of pride and self-esteem. But if a country is negatively stereotyped on the global stage, it weakens the ability of people to live their nation's brand. A formidable nation's brand can only be constructed if people are deeply involved and committed to it. Practical implications -- The results of this study have implications for policymakers, nation's branding experts and researchers to focus on internal branding of nations. The academicians and researchers should focus more on the internal audiences in their role as a "communication medium" to external audiences. A more purposeful internal branding will promote community strengthening and enable people to act as a mouth piece in communicating a desired experience to external audiences. Originality/value -- The existing nations branding literature does not show how relative global status of a country influences self-assessment and evaluations of people's associations with that country. The present study aims to fill this gap by drawing on the theories of social identity, self-categorization and collective self-esteem to show how people's self-perception in negatively perceived countries is regulated in relation to their country's relative global status and its influence on resulting social cognitions. [ABSTRACT FROM AUTHOR]