Branded Component Strategies Ingredient Branding in B2B Markets

In the quest for better differentiation of their products, many firms in B2B markets have started to systematically invest in brand building. Stefan Worm analyzes how component supplier brand strength among original equipment manufacturers’ (OEMs’) custom

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GABLER RESEARCH

Stefan Worm

Branded Component Strategies Ingredient Branding in B2B Markets With a Foreword by Prof. Dr. Friedhelm W. Bliemel

RESEARCH

Bibliographic information published by the Deutsche Nationalbibliothek The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available in the Internet at http://dnb.d-nb.de.

Dissertation University of Kaiserslautern, 2009 D 386

1st Edition 2012 All rights reserved © Gabler Verlag | Springer Fachmedien Wiesbaden GmbH 2012 Editorial Office: Marta Grabowski | Anita Wilke Gabler is a brand of Springer Fachmedien. Springer Fachmedien is part of Springer Science+Business Media. www.gabler.de No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright holder. Registered and/or industrial names, trade names, trade descriptions etc. cited in this publication are part of the law for trade-mark protection and may not be used free in any form or by any means even if this is not specifically marked. Coverdesign: KünkelLopka Medienentwicklung, Heidelberg Printed on acid-free paper Printed in Germany ISBN 978-3-8349-1919-9

Foreword B2B marketers are today required to master a much more comprehensive set of marketing instruments than ever before. Brand management, traditionally a domain of consumer marketing, has recently been added to the agenda of marketing managers in many B2B firms. With their imagination captured by anecdotes of successful B2B brands, B2B marketers are eager to put branding strategies in place. Yet, secured knowledge to guide marketers in the development, selection, and implementation of such strategies is scarce. In addition, brand-savvy B2B marketers are facing hard times when they try to obtain the budgets needed. The branding of components represents a domain of particular interest to many B2B suppliers. A stream of research on ingredient branding of consumer products suggests that product perceptions of end-users could be enhanced through the presence of strong component supplier brands. The shortfall of that literature is however that it stops short of looking at the impact of brand strength of suppliers for components/ingredients at the level of B2B relationships between suppliers and OEMs. In the present study, Stefan Worm develops a theoretical framework to foster a better understanding of how branding can create competitive advantage for B2B component supplier firms. The theoretical propositions are tested using unique data from a multiindustry sample. Stefan Worm first examines to what extent strong component supplier brands affect market performance outcomes of component suppliers and which variables mediate this effect. Then he establishes a set of contingency preconditions under which strong component supplier brands generate positive market performance outcomes. Ultimately, the dissertation