Explicating industrial brand equity

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.