AN EXPLORATION OF BRANDING IN INDUSTRIAL-MARKETS

Is branding important in industrial markets? To answer this question, the authors synthesize previous research in branding and related areas to develop a new conceptual model of industrial brand value to the cu stomer. Expected brand value consists of four components: product perf ormance, distribution (ordering and delivery) performance, support ser vices performance, and company performance, with each component integr ating both tangible and intangible elements. This model is then compar ed to the views elicited from in-depth interviews with manufacturers, distributors, and purchasers of precision bearings. This exploratory s tudy of the decision-making process and the sources of industrial bran d value highlights the importance of relatively intangible product and company attributes. The findings indicate that branding may play a po werful role, especially in industrial markets where it is increasingly difficult to maintain meaningful differentiation on the basis of prod uct quality or price. (C) 1997 Elsevier Science Inc.