Corporate Strategy

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The current issue and full text archive of this journal is available at www.emeraldinsight.com/0309-0566.htm

The effect of corporate branding dimensions on consumers’ product evaluation A cross-cultural analysis
Nizar Souiden
´ Faculty of Business Administration, Laval University, Quebec, Canada

Corporate branding dimensions 825
Received October 2004 Revised September 2005 Accepted January 2006

Norizan M. Kassim
Department of Management and Marketing, College of Business and Economics, University of Qatar, Doha, Qatar, and

Heung-Ja Hong
Faculty of Sociology, Kansai University, Osaka, Japan
Abstract
Purpose – The paper aims to investigate both Western and Eastern corporate branding thoughts and examine the interrelation among four corporate branding dimensions (i.e. corporate name, image, reputation and loyalty) and their joint impact on consumers’ product evaluation. Design/methodology/approach – Building on extensive literature, a model of consumers’ product evaluation that includes the major determinants of corporate branding is proposed. Based on a sample of 218 Japanese and American consumers, structural equation modeling and general linear model analyses are used to test hypotheses. Findings – The research reveals that Japanese and American consumers have different perceptions with respect to the effect of corporate image and corporate loyalty. The corporate name was found to have a significant impact on corporate image and corporate reputation was found to have a significant affect on corporate loyalty. The corporate reputation is also found to be a mediator of the corporate image’s effect on consumers’ product evaluation. Practical implications – The paper suggests that marketers should carefully consider the corporate name when designing their branding strategies. Marketers are also called on to adapt their corporate branding approaches to fit each marketing environment and enhance corporate loyalty to reduce the switching behavior of consumers. Originality/value – The paper clarifies the interrelation among the four corporate branding dimensions and shows that consumers of different cultures do not perceive in the same way the impact of corporate branding determinants. Keywords Corporate branding, Brand names, Brand image, Customer loyalty Paper type Research paper

Introduction It is reported that a corporate brand can add value to the company’s product policy and linking corporate and product brands will be beneficial to both the corporate and its The authors are indebted to two anonymous EJM reviewers and the Guest Editors for their valuable suggestions and helpful comments.

European Journal of Marketing Vol. 40 No. 7/8, 2006 pp. 825-845 q Emerald Group Publishing Limited 0309-0566 DOI 10.1108/03090560610670016

EJM 40,7/8

826

individual products. Several multinationals have become aware of the importance of their names and are trying to establish and create a strong link between their corporate brand and product brand (Uehling, 2000). However, although there are many theories that have been advanced explaining how customers evaluate and select a particular product (Bettman, 1970; de Chernatony and Dall’Olmo Riley, 1998; Jamal and Goode, 2001; Kim and Chung, 1997; Lee and Ganesh, 1999; Low and Lamb, 2000; Mitchell and Olson, 1981; Muthukrishnan and Kardes, 2001; Woodside and Clokey, 1974), most of these attempts have only partially examined the impact of corporate branding on consumers’ product evaluation. Additionally, no known research has combined the relevant corporate branding dimensions in the same study or measured the interrelations among these dimensions or identified the extent of their impact on consumers’ perception and evaluation. Furthermore, most of previous research have been confined to the Western’s corporate branding theories and Western consumers’ perception of the corporate brand effect. No attempts were made to explore the view of the Eastern scholars and consumers...
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