Lin, T. L., Chen, C. I., and Jen, L. C. 2007. Resolving the Puzzle between Branding Strategy and Its Performance: An Empirical Investigation Based on Hierarchical Bayes Regression Model. NTU Management Review, 18 (1): 117-150
Ting-Ling Lin, Associate Professor, Department of Business Administration, National Taipei University
Ching-I Chen, Assitant Professor, Department of International Business Studies, National Chi Nan University
Li-Chung Jen, Associate Professor, Department of International Business, National Taiwan University
Abstract
Developing brands has been one of the critical strategic choices for firms to enhance their profitability. Previous arguments concerning the existence of a positive profitability impact of own-brand strategy have received mixed empirical results. By taking both industry structure and resource-based perspectives, this study suggests that the presumed relationship between own-brand strategy and profitability would be moderated by the heterogeneous capabilities for implementing the branding strategy and the structural factors of the industry in which the firm is operating. The empirical results show the appropriate conditions for those firms to develop own-brand strategy include end-user consumers as the customers, slow speed of change in industrial technology, low degree of product standardization, and high degree of brand concentration. This study suggests firms should comprehend the characteristics of the industrial structure they exist in and various changes in technology before they invest in an own-brand strategy.
Keywords
Own-brand strategy Performance Hierarchical bayes regression model