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Brand Image Antecedents of Loyalty and Price Premium in Business Markets

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  • Niklas Bondesson

Abstract

The purpose of the present paper is to examine how brand image builds brand loyalty and price premium in business markets, focusing on the question whether the same brand image elements make customers become loyal as well as pay more. Statistical analysis, based on a survey of professional packaging buyers in eight countries, reveals that brand loyalty and price premium are two distinct customer responses, determined by different brand image elements. Associations to a brand¡¯s company reputation, service relationship ability and product solution are what mainly build brand loyalty, whereas price premium is built solely by associations to the brand¡¯s community. The findings add to existing B2B brand equity work by contributing a more nuanced understanding of the brand image-brand strength relationship. And, establish price premium as a distinct and important brand strength indicator in business markets. It also provides a refined and highly detailed brand image model.

Suggested Citation

  • Niklas Bondesson, 2012. "Brand Image Antecedents of Loyalty and Price Premium in Business Markets," Business and Management Research, Business and Management Research, Sciedu Press, vol. 1(1), pages 32-47, March.
    • Handle: RePEc:jfr:bmr111:v:1:y:2012:i:1:p:32-47
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    References listed on IDEAS

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    1. Dowling, Grahame R & Staelin, Richard, 1994. "A Model of Perceived Risk and Intended Risk-Handling Activity," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(1), pages 119-134, June.
    2. McQuiston, Daniel H. & Dickson, Peter R., 1991. "The effect of perceived personal consequences on participation and influence in organizational buying," Journal of Business Research, Elsevier, vol. 23(2), pages 159-177, September.
    3. Philip Kotler & Waldemar Pfoertsch, 2006. "B2B Brand Management," Springer Books, Springer, number 978-3-540-44729-0, June.
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    Cited by:

    1. Evgeny KRYUKOV & Vladislav MALGIN & Irina MALGINA, 2014. "The Influence Of Hysteresis In Consumer’S Behaviour For Premium Price Evaluation," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(2), pages 205-218, November.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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