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The Impact of the Brand Management System on Performance across Service and Product-Oriented Activities

Author

Listed:
  • Mathieu Dunes

    (CRIISEA - Centre de Recherche sur les Institutions, l'Industrie et les Systèmes Économiques d'Amiens - UR UPJV 3908 - UPJV - Université de Picardie Jules Verne)

  • B. Pras

Abstract

Purpose: This paper aims to analyze the impact of brand management system (BMS) practices on subjective and objective performance in both service- and product-oriented sectors. Design/methodology/approach: Based on a ``grounded-in-practice'' approach to BMS, a comprehensive formative BMS scale is developed and its validity is assessed. The impact of BMS on subjective brand performance (i.e. predictive validity) and on objective financial performance is assessed. Data are collected from a sample of 298 brand managers and marketing directors in five business sectors (cosmetics, convenience goods, industry, bank/insurance and media) and from a financial database. Path analysis and multigroup analysis are performed to test mediating and moderating effects. Findings: The results reveal that subjective brand performance (perceived brand performance) mediates the relationship between the BMS and objective financial performance of the firm and on each of the three BMS dimensions; and product-oriented (vs service-oriented) sector positively moderates the relationship between the BMS and subjective brand performance. Research limitations/implications: The paper offers insights into adapting brand management practices along all BMS dimensions to achieve better business performance and improve objective financial performance in product-oriented activities. It highlights the role of brand management implementation, as well as the role of brand management in hierarchical relationships, in improving performance in service activities. Practical implications: The formative BMS scale offers a tool which can be used to improve strategic decisions and give practical guidance on product vs service sector specificities. The indirect impact of a BMS on financial objective performance reinforces the legitimacy of brand managers and marketing managers. Originality/value: This paper shows the impact of the BMS on objective financial performance by using a ``grounded-in-practice'' BMS scale. It also affords explanation on sectoral effects of brand management practices and their consequences on subjective and objective performance. \textcopyright 2017, \textcopyright Emerald Publishing Limited.

Suggested Citation

  • Mathieu Dunes & B. Pras, 2017. "The Impact of the Brand Management System on Performance across Service and Product-Oriented Activities," Post-Print hal-03680590, HAL.
    • Handle: RePEc:hal:journl:hal-03680590
    DOI: 10.1108/JPBM-09-2015-0995
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    Cited by:

    1. Hazem Ahmed Khairy & Mohamed Fathy Agina & Nadir Aliane & Mohammed Ezzat Hashad, 2023. "Internal Branding in Hotels: Interaction Effects of Employee Engagement, Workplace Friendship, and Organizational Citizenship Behavior," Sustainability, MDPI, vol. 15(5), pages 1-16, March.
    2. Parves Sultan & Ho Yin Wong, 2019. "How service quality affects university brand performance, university brand image and behavioural intention: the mediating effects of satisfaction and trust and moderating roles of gender and study mod," Journal of Brand Management, Palgrave Macmillan, vol. 26(3), pages 332-347, May.
    3. Gonzalo Maldonado-Guzman & Jesus Francisco Mellado-Siller & Edith Reyes-Ruiz, 2018. "Brand Management and Business Performance in Mexican Small Business," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 8(3), pages 1-16, August.
    4. Gonzalo Maldonado-Guzmán & Víctor Manuel Molina-Morejón & Raymundo Juárez-del Toro, 2023. "Brand Management Measurement in Mexican Small Firms: Empirical Evidence," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(5), pages 1-7.

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