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Book part
Publication date: 17 June 2020

Nuria Rodríguez-Priego and Maria Palazzo

This chapter describes the main issues in scientific literature related to industrial branding. First, we set the background focusing on industrial branding, followed by brand

Abstract

This chapter describes the main issues in scientific literature related to industrial branding. First, we set the background focusing on industrial branding, followed by brand equity and measurement, and brand orientation in business markets. The second section relies on controversies and problems inherent in the gaps in theory and implementation of branding. The third section proposes several solutions and recommendations for academics and practitioners, followed by proposals for future research directions and conclusions. We also present a case study and several case questions arising.

Article
Publication date: 25 February 2014

Jing Zhang and Yong He

This paper aims to identify key dimensions of brand value co-creation activities and empirically examine the impacts of different dimensions of brand value co-creation upon brand

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Abstract

Purpose

This paper aims to identify key dimensions of brand value co-creation activities and empirically examine the impacts of different dimensions of brand value co-creation upon brand performance among Chinese industrial services firms.

Design/methodology/approach

Key dimensions of brand value co-creation activities are identified and a research framework is presented based on qualitative interviews with three industrial services firms. Then, the conceptual model and 14 research hypotheses addressing the impacts of different dimensions of brand value co-creation activities upon brand performance are tested by conducting a questionnaire survey among 258 pairs of Chinese B2B services providers and their client companies.

Findings

The research results show that: on the whole, integration of brand value chain and service-dominant logic (SDL) can lead to stronger theoretical explanation about the industrial services brand value and brand performance. In other words, value co-creation activities among multiple stakeholders can help customers perceive brand value in a favorable way and finally improve brand performance; branding process involves eight kinds of value co-creation activities on four interfaces between firm-employees, firm-customers, employees-customers, and firm-other stakeholders, indicating that the cultivation of industrial services brand needs a broader stakeholder perspective; value co-creation activities on the firm-employees interface is original driver of brand development by impacting brand value and brand performance via value co-creation on other interfaces.

Originality/value

This paper is the first kind of research that empirically explores the formation mechanism of industrial brand value from the perspective of SDL and also provides insightful implications for managers by pointing out that B2B service providers need to consider the interactive value co-creation behaviors in the social network constructed by different stakeholders in order to improve brand management performance.

Details

Nankai Business Review International, vol. 5 no. 1
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 3 August 2012

Andreas Hinterhuber and Giulia Hinterhuber

Current research on industrial management strategy is mostly directed at industrial end customers. In doing so, current research overlooks one critical constituency – industrial

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Abstract

Purpose

Current research on industrial management strategy is mostly directed at industrial end customers. In doing so, current research overlooks one critical constituency – industrial retailers, i.e. companies selling products manufactured by industrial manufacturers to other companies using these products to create a finished product or service. Since the current literature states that retailers are mostly interested in category profit margins and profitability (regardless of specific brands), it is not clear whether industrial retailers value brands at all. The purpose of this paper is to determine the importance of industrial brands versus other purchase criteria for industrial distributors.

Design/methodology/approach

Three studies are conducted to examine the importance of brands vis‐à‐vis other purchase criteria for industrial retailers and end users. In a longitudinal study employing conjoint analysis the authors find that industrial brands have a larger impact on industrial retailer choice than product price or margin.

Findings

First, these results suggest that industrial brands are a strong purchase driver also for industrial retailers (and not just industrial end users). Second, industrial marketing managers are thus well advised to invest in brand building to positively impact industrial retailer choice, rather than reducing prices or increasing product margins as the prevailing literature suggests. In conclusion, these studies seem to suggest that retailers use brands not only as associative or predictive cues of product performance, but also as predictive indicator of a product's expected future profitability.

Research limitations/implications

From a theoretical point of view, the authors’ studies suggest that industrial brands not only transmit cues to prospective end‐customers, but also send cues to intermediaries – such as industrial retailers – which influences their decision‐making processes. The strong importance B2B retailers place on brands as key purchase factor is an indicator that retailers use brands not only as associative or predictive cues of product performance, but also as predictive indicator of a product's expected future profitability (i.e. profit margins and asset turnover), which positively affects retailers’ own profitability. The results of this study are also an indication that the relationship between industrial manufacturers and industrial retailers are probably driven more by considerations of cooperation than by considerations of conflict.

Practical implications

As a managerial implication, it is suggested that industrial marketing executives should invest in brand building to positively impact industrial retailer choice, rather than reducing prices or increasing product margins, as the prevailing literature suggests.

Originality/value

In this paper, three separate empirical studies are conducted to examine the role of brands in industrial management practice.

Article
Publication date: 13 June 2016

Sharifah Faridah Syed Alwi, Bang Nguyen, TC Melewar, Yeat Hui Loh and Martin Liu

The purpose of this paper is to explore brand equity from multiple perspectives (tangible and intangible) and their joint consequences, namely, on industrial buyers’ brand loyalty…

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Abstract

Purpose

The purpose of this paper is to explore brand equity from multiple perspectives (tangible and intangible) and their joint consequences, namely, on industrial buyers’ brand loyalty and their long-term commitment. The aim is to provide a more comprehensive framework of the buyer’s behavioral response in the business-to-business context by integrating both trust elements and industrial brand attributes (brand performance and industrial brand image). In addition, the study explores the mediation effects of trust and brand attributes on industrial buyers’ responses such as loyalty and long-term commitment.

Design/methodology/approach

Using a survey approach, the study includes respondents working in the heating, ventilating and air-conditioning (HVAC) industry in Malaysia, and data are collected in the industrial air-conditioning segment. The research model was tested with SEM.

Findings

Findings show that brand performance and industrial brand image directly affect brand trust but with different effects on buyers’ commitment and loyalty. Interestingly, industrial brand image only mediates the responses via brand trust, while brand performance has a direct effect. Thus, both brand performance and industrial brand image build buyer trust. But in this context, it is brand performance rather than industrial brand image that influences long-term commitment and loyalty. The study concludes that in the HVAC industry, brand performance, industrial brand image, buyer trust, industrial loyalty and commitment build brand equity.

Originality/value

Significant research reveals that, in business-to-business contexts, brand equity depends on the supplier’s brand trust and attributes of the brand such as brand image and brand performance. While useful in guiding a supplier’s or industry’s brand strategy, the study of both brand trust and brand attributes has led to only a partial explanation of the supplier’s or industry’s brand equity. The present research explores industrial brand equity, focussing on tangible assets (performance) and intangible assets (brand image), and their joint consequences.

Details

Industrial Management & Data Systems, vol. 116 no. 5
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 9 October 2019

Yi Xie and Xiaoying Zheng

This paper aims to examine the role of learning orientation in building brand equity for B2B firms. The present research proposes that learning orientation contributes to the…

Abstract

Purpose

This paper aims to examine the role of learning orientation in building brand equity for B2B firms. The present research proposes that learning orientation contributes to the development of innovation and marketing capabilities and, in turn, leads to enhanced industrial brand equity. Furthermore, the moderating effect of firm size in these processes is investigated.

Design/methodology/approach

The hypotheses are tested by administering a survey with a set of managers of manufacturing firms in China.

Findings

Innovation capability and marketing capability serve as the mediators between learning orientation and industrial brand equity. The mediating path through innovation capability is stronger for small firms than for large firms.

Research limitations/implications

Learning orientation provides a cultural base for B2B firms to cultivate brand equity. Measurement of industrial brand equity and contingency of its effect requires further investigation.

Practical implications

To transform learning-oriented culture into brand equity, firms need to develop and manage innovation and marketing capabilities. The learning orientation–innovation capability route is more beneficial for small firms.

Originality/value

While a majority of prior literature ignores the impact of organizational culture in driving industrial brand equity, the present research explores learning orientation as a key cultural antecedent of industrial brand equity. A more refined industrial-brand-equity-building mechanism from learning orientation to corporate capabilities and then to brand equity is proposed and tested. The mechanism varies with firm size.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 January 2012

Yi‐Min Chen and Yi‐Fan Su

This paper aims to investigate the effects of country‐of‐manufacture (COM) and country‐of‐design (COD) on industrial brand equity.

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Abstract

Purpose

This paper aims to investigate the effects of country‐of‐manufacture (COM) and country‐of‐design (COD) on industrial brand equity.

Design/methodology/approach

A conceptual framework to assess how international buyers evaluate industrial brand equity when confronted with a single cue and multiple cues is proposed. Data for testing the hypotheses are collected through fax, e‐mail, and online surveys of managers from 102 industrial buyers of Taiwanese fasteners. A quantitative study is undertaken of 64 respondents using PLS analysis.

Findings

The main finding is that the single‐cue framework produces more statistically significant COM and COD effects on industrial brand equity than does the multiple‐cue framework. The current results confirm previous findings that the country‐of‐origin effects based on single‐cue and multiple‐cue studies produce conflicting and inconclusive results.

Research limitations/implications

These findings underscore the findings that the impacts of COM and COD on industrial brand equity are jointly determined by study characteristics, research designs, and the nature of the dependent variable being investigated.

Practical implications

A clear implication for managers responsible for branding and communicating B2B products in international markets is to continue to create clear awareness of the offering and to provide appropriate imagery for consolidating the reputation of firms in both their internal (product) and external (country‐of‐origin) dimensions.

Originality/value

While country‐of‐origin and consumer products have been widely studied in the literature, the paper examines the effects of COM and COD on industrial brand equity in analyzing the process by which international buyers evaluate brand equity when confronted with a single cue and multiple cues.

Details

Journal of Business & Industrial Marketing, vol. 27 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 28 August 2007

Keith Walley, Paul Custance, Sam Taylor, Adam Lindgreen and Martin Hingley

With brands being an important source of competitive advantage, knowledge of branding is needed to inform their management. After reviewing the literature, the article aims to…

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Abstract

Purpose

With brands being an important source of competitive advantage, knowledge of branding is needed to inform their management. After reviewing the literature, the article aims to report the findings of a case study that investigated the role of branding in the industrial purchase of agricultural tractors in the UK. The study's overall conclusion is that branding can play an important role in industrial purchase decisions.

Design/methodology/approach

Various attributes, together with levels of these attributes, were identified from the literature and a series of semi‐structured interviews with three farmers and farm contractors. Subsequently, conjoint analysis was employed to reveal how purchasers made their purchase decision. A total of 428 farmers and farm contractors (a 28.7 per cent response rate) ranked 25 cards that had been constructed to profile various hypothetical tractor designs.

Findings

Five attributes appeared from the literature review and interviews – brand name, price, dealer proximity, quality of dealer's service, and buyer's experience of the dealer. The conjoint analysis revealed that brand accounts for 38.95 per cent of the purchase decision, ahead of price (25.98 per cent) and service (14.90 per cent). The importance of brand varies according to the tractor brand. Also, the overall utility varies, with John Deere and New Holland brand names appearing as marketing assets and Valtra, Massey Ferguson, and Case IH as marketing liabilities. Among the study's other findings are that UK tractor buyers are brand loyal.

Research limitations/implications

The study focuses on tractors in the UK, so while it provides an insight into the role of branding in an industrial purchase situation, further research is required in other product categories before the findings can be generalised.

Practical implications

Manufacturers and distributors need to maintain a strong image. Also, they may charge higher prices for tractors, using the extra revenue to reinforce their brand image. On‐farm demonstration of new tractors is suggested as an experiential marketing strategy. Special attention should be given to the location of dealers and the service they provide.

Originality/value

Research concerning branding in an industrial purchase context is limited, dated, or contradictory. This article contributes with empirical findings on industrial brand management in an important and relevant context.

Details

Journal of Business & Industrial Marketing, vol. 22 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 4 June 2019

Priyanka Sharma, Raghu Nandan Sengupta and J. David Lichtenthal

The purpose of this paper is to highlight various aspects of business-to-business brand equity (B2BBE) and explain relative impact of marketing/advertising, research and…

Abstract

Purpose

The purpose of this paper is to highlight various aspects of business-to-business brand equity (B2BBE) and explain relative impact of marketing/advertising, research and development (R&D), human resource and distribution network to build compelling business brands that display better firm performance.

Design/methodology/approach

A total of 51 in-depth semi-structured interviews with distributors and industrial buyers revealed different facets of B2BBE. Generalized method of moments (GMM) was applied on a large-scale panel data set of industrial firms to estimate the effects of firms’ R&D, advertising/marketing, distribution and staff training (proxy to sources of B2BBE) on sales.

Findings

First, varying levels of product application criticality and end-customer brand stature reflect four distinct organizational purchase requirements, namely, assured performance, prestige, brand leaders and commodity. Second, a taxonomy of five sources of B2BBE (prominence, solutions, accessibility, relationships and network strength) manifests buyers’ interactive experience during the purchase cycle. Third, it illustrates the positive short-term effect of all explanatory variables coupled with the positive long-term impact of R&D on sales.

Practical implications

Features like B2C brand image, clear and precise product information, credit/flexible payment terms, distributor image, add-on services to the core product and upstream–downstream referrals characterize strong brands. GMM model results help managers, in budget allocation.

Originality/value

The originality of this paper lies in proposing a comprehensive B2BBE framework based on triangulation; deployment of a common structure to simultaneously investigate distributors and industrial buyers, to discover whether their philosophies reinforce/undermine industrial branding strategies; and suggesting the use of GMM model to arrive at actionable insights.

Details

Marketing Intelligence & Planning, vol. 37 no. 7
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 1 February 2016

Jing Zhang, Yanxin Jiang, Rizwan Shabbir and Miao Zhu

The paper aims to explore how brand orientation impacts brand equity via internal branding, presented brand, word-of-mouth and customer experience from stakeholder interaction…

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Abstract

Purpose

The paper aims to explore how brand orientation impacts brand equity via internal branding, presented brand, word-of-mouth and customer experience from stakeholder interaction perspective in industrial services context. Brand orientation has emerged as an attractive business philosophy for industrial service companies who believe that brand plays an influential role in delivering customer value and improving firm’s performance. However, the impact of brand orientation upon brand equity is not clear yet, and the active roles of multiple stakeholders in co-creating brand equity are largely neglected in business-to-business (B2B) branding literature.

Design/methodology/approach

A questionnaire survey was conducted among 258 pairs of firms located in mainland China. A total of nine research hypotheses related to how brand orientation impacts B2B service brand equity were examined by structural equation modeling technique.

Findings

The research findings indicate: a company with high level of brand orientation will both actively communicate its brand to customers and implement internal branding among employees; internal branding enhances willingness and skills of service employees so that they can provide customers with excellent service experience, which will lead to positive word-of-mouth; effective brand communication, pleasant customer experience and favorable word-of-mouth can result in positive brand association in the mind of customers and finally build up corporate brand equity.

Research limitations/implications

The major limitation of this paper is that some other potential stakeholders and additional interactive processes among organization, employees and customers, which have potential to impact brand equity, are not included in the model.

Originality/value

This study makes theoretical contribution by addressing the gaps in the branding literature with respect to industrial services context and stakeholder interaction perspective. It also provides practical implications for B2B service firms as to how to develop a strong brand by implementing brand orientation within the network of core stakeholders.

Details

Journal of Business & Industrial Marketing, vol. 31 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 3 May 2016

Saku Hirvonen, Tommi Laukkanen and Jari Salo

The purpose of this study is to examine the relationship between brand orientation and business growth in business-to-business (B2B) small- and medium-sized enterprises (SMEs)…

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Abstract

Purpose

The purpose of this study is to examine the relationship between brand orientation and business growth in business-to-business (B2B) small- and medium-sized enterprises (SMEs). The authors also explore whether this relationship is moderated by internal firm-related factors (firm age, firm size) and/or external market-related factors (market life cycle, industry type).

Design/methodology/approach

The authors develop and empirically test a conceptual model using data from 396 B2B SMEs operating in Finland. Structural equation modeling is used for testing the research hypotheses.

Findings

Brand orientation contributes to business growth via two indirect paths, the first one going through brand performance and the second one going through brand performance and customer relationship performance. However, although the effects are positive, the results reveal that the regression coefficients are relatively small, implying only a limited impact of brand orientation on growth among B2B SMEs. The results further suggest that firm age, firm size and industry type moderate the brand performance–business growth relationship, whereas market life cycle moderates the effect of brand orientation on brand performance.

Research limitations/implications

Future research could extend this study by examining brand orientation in industrial markets simultaneously with alternative strategic orientations, such as market, technology and innovation orientation. New moderator variables should also be considered, such as market or technological turbulence. Furthermore, given that this study uses a cross-sectional data set, it is recommended that future research should attempt to test the model using longitudinal data sets.

Practical implications

B2B SMEs are able to gain business growth through developing a strong brand. However, brand orientation per se appears to be of limited relevance for such an endeavor. Consequently, managers of small industrial firms should consider brand orientation only with, and in comparison to, alternative strategic orientations.

Originality/value

Brand orientation has been very rarely examined from the perspective of B2B firms or that of SMEs. Interestingly, the findings indicate that the performance benefits of brand orientation seem to be smaller among B2B SMEs than what earlier research would imply. The analysis of moderation effects offers additional insights into whether there are differences between industrial SMEs as to the relevance of brand orientation.

Details

Journal of Business & Industrial Marketing, vol. 31 no. 4
Type: Research Article
ISSN: 0885-8624

Keywords

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