Brand equity in the business-to-business market

Abstract

Brands have been developed by consumer companies but have been slow to develop in business-to-business marketing. This article explains the concept of brand equity in a specific industrial marketing setting. In addition, the sources of brand equity are investigated as well as the appropriate communications strategy and the relative importance of brand relative to other purchase criteria. The research method used was a conjoint analysis experiment. The subjects were decision-making unit (DMU) members of industrial companies in South Africa that purchase medium-voltage electrical equipment. Research results suggest that while brand equity has a role to play, price and delivery were more important. However, a price premium can be obtained when a company has high brand equity. Implications for managers are discussed.