Proceedings of World Business, Finance and Management Conference
8 - 9 December 2014, Rendezvous Hotel, Auckland, New Zealand, ISBN: 978-1-922069-66-5
The Role of Individual, Product and Company Characteristics for
Creating Brand Perceptions
Zoran Krupka*, Goran Vlasic** and Jurica Pavicic***
Brand is an important intangible company resource (e.g. Aaker and Biel, 1992; Raggio, Leone & Black,
2014; Xie, 2012) which ensures firm’s resilience to market uncertainties and firm’s long run stability
(Francis, Lam & Walls, 2002). Brands have a positive impact both consumer side, leading consumers to
be willing to pay more (Rao, Agarwal and Dahlhoff, 2004; Keller, 2002), and shareholder side, as brand
value transfers into value for shareholders (Barth et al. 1998; Simon i Sullivan, 1993).
This research considers the role of three levels in driving brand perceptions: (1) individual level (sales
personnel), (2) product level (perceptions of products that are sold), and (3) firm level (perceptions of the
retail firm). Research context is automotive industry characterized with high value products, strong
product brands, and generally lower importance of retailer brand. As such context is typical of diverse
high-end industries with strong product brands (e.g. fashion, design, jewelry, etc), results implications
can be generalized to these industries. Interestingly, the question arises if retail business should be
under product producers’ control (e.g. franchise) or it should be left to local competition.
Our research indicates that consumers have hard time distinguishing retailer brand from the product. As
the product is of high-value, they trust the product brand and not the retailer brand. Moreover, as product
is a durable product, product guarantee (in the eyes of consumer) lies with the producer. Therefore, they
perceive low value of a retailer brand and look for best deals for their desired product. Interestingly,
consumers are influenced by the individuals in the retailer business (sales personnel). Therefore, the key
for the retailer is branding a process that will ensure great experience, rather than branding the retail
location.
Track: Marketing
* Zoran Krupka, PhD, Assistant Professor, Faculty of Economics and Business, University of Zagreb, J.F. Kennedy
Squere 6, 10000 Zagreb, Croatia, e-mail: zkrupka@efzg.hr
** Goran Vlasic, PhD, Assistant Professor, Faculty of Economics and Business, University of Zagreb, J.F. Kennedy
Squere 6, 10000 Zagreb, Croatia, e-mail: gvlasic@efzg.hr
*** Jurica Pavicic, PhD, Full Professor, Faculty of Economics and Business, University of Zagreb, J.F. Kennedy Squere
6, 10000 Zagreb, Croatia, e-mail: jpavicic@efzg.hr