IDEAS home Printed from https://ideas.repec.org/a/eee/bushor/v52y2009i2p159-166.html
   My bibliography  Save this article

B2B branding: A financial burden for shareholders?

Author

Listed:
  • Ohnemus, Lars

Abstract

Is branding an effective tool for generating shareholder wealth for companies that are active in a business-to-business environment? Or, do other factors such as innovation and manufacturing efficiency--or the lack thereof--create or destroy shareholder wealth? Based on an examination of almost 1,700 companies listed either on the United States or European stock exchanges, this study reveals this crucial relationship could be described as a W-shaped curve with five distinctive phases, depending on the strategic branding position of the company. Used strategically, business-to-business (B2B) companies with a balanced corporate brand strategy generally yield a return to their shareholders that is 5%-7% higher. It is therefore vital that key executives, including the board of directors, systematically assess and monitor the strategic branding position of their company and how their branding investments are performing against key competitors. This study reveals that shareholders should insist on systematic performance feedback from the corporation regarding all key items in the balance sheet--including branding. As disclosed herein, very few of the companies analyzed possessed an optimal balance between branding and financial performance.

Suggested Citation

  • Ohnemus, Lars, 2009. "B2B branding: A financial burden for shareholders?," Business Horizons, Elsevier, vol. 52(2), pages 159-166.
    • Handle: RePEc:eee:bushor:v:52:y:2009:i:2:p:159-166
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0007-6813(08)00164-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 15-29, February.
    2. Lars Ohnemus & Per V. Jenster, 2007. "Corporate Brand Thrust and Financial Performance: An Examination of Strategic Brand Investments," International Studies of Management & Organization, Taylor & Francis Journals, vol. 37(4), pages 84-107, January.
    3. Carol J. Simon & Mary W. Sullivan, 1993. "The Measurement and Determinants of Brand Equity: A Financial Approach," Marketing Science, INFORMS, vol. 12(1), pages 28-52.
    4. Philip Kotler & Waldemar Pfoertsch, 2006. "B2B Brand Management," Springer Books, Springer, number 978-3-540-44729-0, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wen-Hsiang Yu & Chuang-Chun Chiou, 2022. "Effects of Sustainable Development of the Logistics Industry by Cloud Operational System," Sustainability, MDPI, vol. 14(16), pages 1-28, August.
    2. Seyedghorban, Zahra & Matanda, Margaret Jekanyika & LaPlaca, Peter, 2016. "Advancing theory and knowledge in the business-to-business branding literature," Journal of Business Research, Elsevier, vol. 69(8), pages 2664-2677.
    3. Gustafson, Brandon M. & Pomirleanu, Nadia & John Mariadoss, Babu & Johnson, Jean L., 2021. "The social buyer: A framework for the dynamic role of social media in organizational buying," Journal of Business Research, Elsevier, vol. 125(C), pages 806-814.
    4. Anne Maria Stefani, 2017. "The Brand Effect - Living the Brand in Negotiations," Journal of Emerging Trends in Marketing and Management, The Bucharest University of Economic Studies, vol. 1(1), pages 210-215, October.
    5. Fenfang Lin & Wai-Sum Siu, 2020. "Exploring brand management strategies in Chinese manufacturing industry," Journal of Brand Management, Palgrave Macmillan, vol. 27(1), pages 48-76, January.
    6. Vonny Susanti & Andreas Samudro, 2022. "Assessing the Role of Corporate Reputation on Brand Satisfaction: A Study of Chemical Industry," Corporate Reputation Review, Palgrave Macmillan, vol. 25(2), pages 122-138, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel Levy & Andrew T. Young, 2021. "Promise, trust, and betrayal: Costs of breaching an implicit contract," Southern Economic Journal, John Wiley & Sons, vol. 87(3), pages 1031-1051, January.
    2. Glynn, Mark S., 2012. "Primer in B2B brand-building strategies with a reader practicum," Journal of Business Research, Elsevier, vol. 65(5), pages 666-675.
    3. Rasoul Azadi & BAHRAM YOUSEFI & HOSSEIN EYDI, 2016. "The Impact of the sponsorship in the Sport in promoting brand equity of sportswear industry," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 4(2), pages 19-32, May.
    4. Zsófia KENESEI & Tamás GYULAVÁRI & László SEER, 2013. "The Role Of Marketing In Corporate Competitiveness: Marketing Practice Analysis Of Hungarian Companies," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 7-28, May.
    5. Anandhi S. Bharadwaj & Sundar G. Bharadwaj & Benn R. Konsynski, 1999. "Information Technology Effects on Firm Performance as Measured by Tobin's q," Management Science, INFORMS, vol. 45(7), pages 1008-1024, July.
    6. Neil Thomas Bendle & Moeen Naseer Butt, 2018. "The Misuse of Accounting-Based Approximations of Tobin’s q in a World of Market-Based Assets," Marketing Science, INFORMS, vol. 37(3), pages 484-504, May.
    7. Atakan Yalcin & Lerzan Aksoy & Timothy L. Keiningham & Bart Larivière & Sunil Mithas & Forrest V. Morgeson III, 2012. "The Satisfaction, Repurchase Intention and Shareholder Value Linkage: A Longitudinal Examination of Fixed and Firm Specific Effects," EcoMod2012 4543, EcoMod.
    8. Salas-Fumás, Vicente & Rosell-Martínez, Jorge & Delgado-Gómez, José Manuel, 2016. "Capacity, investment and market power in the economic value of energy firms," Energy Economics, Elsevier, vol. 53(C), pages 28-39.
    9. Humayun Zafar & Myung S. Ko & Kweku-Muata Osei-Bryson, 2016. "The value of the CIO in the top management team on performance in the case of information security breaches," Information Systems Frontiers, Springer, vol. 18(6), pages 1205-1215, December.
    10. Vikas Mittal & Eugene W. Anderson & Akin Sayrak & Pandu Tadikamalla, 2005. "Dual Emphasis and the Long-Term Financial Impact of Customer Satisfaction," Marketing Science, INFORMS, vol. 24(4), pages 544-555, August.
    11. Herwartz, Helmut & Reimers, Hans-Eggert, 2006. "Modelling the Fisher hypothesis: World wide evidence," Economics Working Papers 2006-04, Christian-Albrechts-University of Kiel, Department of Economics.
    12. Kristinn Hermannsson & Patrizio Lecca, 2016. "Human Capital in Economic Development: From Labour Productivity to Macroeconomic Impact," Economic Papers, The Economic Society of Australia, vol. 35(1), pages 24-36, March.
    13. Frederico Belo & Chen Xue & Lu Zhang, 2010. "Cross-sectional Tobin's Q," NBER Working Papers 16336, National Bureau of Economic Research, Inc.
    14. Timothy Erickson & Toni M. Whited, 2000. "Measurement Error and the Relationship between Investment and q," Journal of Political Economy, University of Chicago Press, vol. 108(5), pages 1027-1057, October.
    15. Athanasios Geromichalos & Lucas Herrenbrueck, 2022. "The Liquidity-Augmented Model of Macroeconomic Aggregates: A New Monetarist DSGE Approach," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 45, pages 134-167, July.
    16. Venkatesh Shankar & Pablo Azar & Matthew Fuller, 2008. "—: A Multicategory Brand Equity Model and Its Application at Allstate," Marketing Science, INFORMS, vol. 27(4), pages 567-584, 07-08.
    17. Rodrigo Cerda & Felipe Larraín, 2005. "Inversión Privada e Impuestos Corporativos: Evidencia para Chile," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 42(126), pages 257-281.
    18. Toshio Watanabe, 2020. "Financial Instability and Effects of Monetary Policy," Bulletin of Political Economy, Bulletin of Political Economy, vol. 14(1), pages 117-145, June.
    19. Athanasios Orphanides, 2021. "The Power of Central Bank Balance Sheets," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 39, pages 35-54, November.
    20. Perego, Erica, 2020. "Sovereign risk and asset market dynamics in the euro area," Journal of International Money and Finance, Elsevier, vol. 109(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:bushor:v:52:y:2009:i:2:p:159-166. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/bushor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.