Brand equity in the business-to-business market

Cruise ship suppliers: A field study of the supplier relationship characteristics in a service supply chain

“…It's been my experience with our cruise company." It is widely understood that brand equity exists in business-to-customer transactions (Aaker, 1991) and that brand equity also influences decisions to buy in a business-to-business context (Bendixen, Bukasa, & Abratt, 2004). The logistics supervisor's remark, however, suggests a reverse-brand equity phenomenon, in which the supplier wants to sell to the company because of its strong brand reputation.…”

The Ineffectiveness of Corporate Brand Investments in Creating Price Premiums

“…Drivers of B2B brand equity are perceived quality, name awareness, brand associations, and brand loyalty (Kotler and Pfoertsch 2006). Brand equity and a favorable brand image may positively affect products' and services' perceived quality and enable a firm to charge price premiums; the higher the perceived quality, the higher the potential for price premiums (e.g., Bendixen, Abratt, and Bukasa 2004;Persson 2010). However, Ailawadi, Lehman, and Neslin (2003) modify the emphasize on price premiums and brand equity by noting that in the market place there are many strong, value-priced corporate brands (e.g., WalMart, Ryanair).…”

“…A growing body of B2B branding research indicates that brand equity investments will pay off by price premiums and increased supplier preference (e.g., Bendixen, Bukasa, and Abratt 2004;Hutton 1997;Persson 2010). In contrast, economics of information studies indicate that brand investments are positive for supplier selection, but reduce suppliers' ability to charge price premiums (e.g., Andrews and Benzing 2007;Biong 2013;Rao 1993;Rao and Monroe 1996).…”

“…A strong corporate brand equity, supported by corporate brand investments is generally positive for buyer preference, assures product and service quality and makes competitive prices trustworthy. If sellers should be able to charge price premiums they should provide higher quality products and services relative to their competitors, and the higher the perceived quality, the higher the potential for price premiums (e.g, Bendixen, Bukasa, andAbratt 2004: Rao andMonroe 1996).…”

“…B2B brand management studies suggest corporate brand investments to increase suppliers' ability to charge price premiums (e.g., Bendixen, Bukasa, and Abratt 2004;Persson 2010). In contrast, empirical information economics studies in B2B and B2C contexts show that buyers would pay lower or none price premiums to suppliers with a credible corporate quality reputation (Andrews and Benzing 2007;Biong 2013;Png and Reitman 1995;Rao and Bergen 1992).…”