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Brand stability as a signaling phenomenon — An empirical investigation in industrial markets

Authors :
Alexander Leischnig
Margit Enke
Source :
Industrial Marketing Management.
Publication Year :
2011
Publisher :
Elsevier BV, 2011.

Abstract

The present study investigates the interplay between brand stability and customers' response toward the brand in an industrial buying context. Based on an information economic perspective, the authors develop a conceptual framework that incorporates perceived brand stability, risk reduction, brand loyalty, and customers' willingness to pay a price premium. This framework is empirically tested based on a survey with one hundred and forty nine key informants from business units within the food industry. In order to analyze the proposed relationships, the authors employ structural equation modeling. The present research contributes to a deeper understanding of the role of brands in business-to-business contexts by highlighting the signaling effects of brands in an industrial buying context. Second, the present research empirically demonstrates that brand stability is a key factor to (1) reduce perceived risk, (2) build brand loyalty, and in turn (3) achieve a price premium.

Details

ISSN :
00198501
Database :
OpenAIRE
Journal :
Industrial Marketing Management
Accession number :
edsair.doi...........3fd96b027ab49da5d056ea374cd444b7
Full Text :
https://doi.org/10.1016/j.indmarman.2011.09.001