The role of brand equity in B2B : A comparative cross industrial analysis

Abstract: Many companies have exploited the power of brand equity in B2C markets as a source of competitive advantage. The trend in B2B, however, seems to be slightly different where many decision makers still believe that branding is not relevant to their business as it is to B2C. This paper investigates the role of brand equity in B2B businesses and shows how long-term investment in brand equity can change the rules of the game radically in favor of those B2B companies who have invested in their brand with a "holistic" approach which conform the overall strategy of the company. Caterpillar Inc. has been chosen as the case study and the role of its brand equity in its superior performance over its competitor, Komatsu Ltd, is investigated. The qualitative part of the research analyses the brand associations and the roles that these associations together with other brand elements play for Caterpillar and its customers. The quantitative part investigates two particular areas of recovery from market difficulties and efficiency in market communications and proves the role of higher brand equity in superior performance in recovery from market difficulties and marketing communications efficiency. The results are then tested further on the second case study which compares Intel to AMD. The results also open up new lines for further research on the subject both in depth and breadth where suggestions are made for generalizability of the research as well as determining the role of brand equity in companies' performances more precisely.