The effect of corporate branding dimensions on consumers' product evaluation

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.