Investigating the Uses of Corporate Reputation and Its Effects on Brand Segmentation, Brand Differentiation, and Brand Positioning: Evidence from the Taiwanese Pharmaceutical Industry

This study advances current knowledge on building a brand strategy that includes corporate reputation. It employs three theories, namely, value creation, strategic resources, and corporate communication to study the uses of corporate reputation and its effect on brand segmentation, brand differentiation, and brand positioning. In the context of the Taiwanese pharmaceutical industry, a sequential mixed method approach is applied and data are analyzed using partial least squares (PLS) structural equation modeling (SEM). Findings demonstrate the relative impacts of three uses of corporate reputation (value creation, strategic resources, and corporate communication) on brand image strategy (brand segmentation, brand differentiation, and brand positioning) and the implications are evaluated. This study discovers that the inclusion of medicine prices is necessary and that it negatively moderates the impact of the overall uses of corporate reputation on overall brand image strategy. This research contributes to the literature as one of the few that tests an empirical model of reputation-and-branding-building outside the United States and Europe.