The performance benefits of being brand‐orientated

Abstract

Purpose: This paper aims to undertake an empirical study to investigate the nature and magnitude of potential benefits that accrue to firms that have a high level of brand orientation. Design/methodology/approach: A quantitative study is undertaken. The sample of firms surveyed included more than 400. The scope of the study included measuring the level of brand orientation among other variables. A conceptual model linking brand orientation and performance is developed and tested. Findings: The overall structural model fits the data well, giving confidence to interpreting the individual paths within the model. The main result is a very strong positive relationship between brand orientation and brand performance. Brand orientation also exerts another, less direct influence on performance, via brand distinctiveness. Innovation mediates the influence of brand distinctiveness. Research limitations/implications: The most obvious limitation is that the study pertains to one country only at this stage, pending more applications. The implication for firms is a very strong endorsement of the importance of using branding as a central driver of the entire marketing strategy process. The study identifies a number of brand barriers that stand in the way of becoming brand‐oriented. Recognising these brand barriers may assist firms to make progress towards becoming more brand‐oriented. Originality/value: This is one of the first studies to quantify the performance benefits of being brand‐oriented. The study is also among the first to include the role of brand distinctiveness as a potential influence on brand performance.