Service inside: The impact of ingredient service branding on quality perceptions and behavioral intentions |
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| Institution: | 1. The University of Arizona, Retailing & Consumer Sciences, P.O. Box 210078, Tucson, AZ 85721-0078, USA;2. SRH Riedlingen University of Applied Sciences, Lange Straße 19, 88499 Riedlingen, Germany;1. Newcastle University Business School, Newcastle University, 5 Barrack Road, Newcastle upon Tyne, UK;2. Cardiff Business School, Aberconway Building, Colum Drive, Cardiff CF10 3EU, UK;3. Wageningen University, Hollandseweg 1, 6706KN Wageningen, The Netherlands;4. ICARE, 74 Teryan Street, 0009 Yerevan, Armenia;5. Royal Veterinary College, Hawkshead Lane, North Mymms, Hatfield Hertfordshire AL9 7TA, UK;6. Plymouth Business School, Drake Circus, Plymouth, Devon PL4 8AA, UK;1. Aalto University School of Science, Department of Industrial Engineering and Management, P.O. Box 15500, FI-00076 Aalto, Finland;2. VTT Technical Research Centre of Finland, P.O. Box 1000, FI-02044 VTT, Finland;1. Open University Business School, Open University, Milton Keynes MK7 6AA, UK;2. University of Minho, School of Economics and Management, 4710–057 Braga, Portugal;3. Kingston Business School, Kingston University, Surrey KT2 7LB, UK;4. Faculdade de Administração, Contabilidade e Economia, Pontifícia Universidade Católica do Rio Grande do Sul, Av. Ipiranga, 6681-90619-900 Porto Alegre, RS, Brazil;1. Centro Universitário da FEI, Management Department, Rua Tamandaré, 688 — Liberdade, São Paulo 01525-000, Brazil;2. Lancaster University, Lancaster University Management School, Management Science Department, Bailrigg, Lancaster, Lancashire LA1 4YX, United Kingdom;1. Department of Marketing, College of Business and Behavioral Science, Clemson University, 273 Sirrine Hall, Box 341325, Clemson, SC 29634-1325, USA;2. Department of Marketing, The University of Alabama, 126 Alston Hall, Tuscaloosa, AL 35487, USA |
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| Abstract: | Extant literature on ingredient branding is directed at tangible products but does not account for the role of services as ingredients. For B2B suppliers, however, service is emerging as the dominant route to achieving competitive advantage. The purpose of this research is to investigate how ingredient service brands impact customer preferences on B2B markets. We specifically assess how ingredients might impact industrial buyers' quality perceptions of the end product. By conducting a within-subjects scenario-based experiment among industrial buyers, we find a positive effect of the presence of an ingredient service brand on buyers' perception of the end product's service quality, whether the host brand is of higher or lower quality. The effect is stronger when the quality of the host brand is lower. Furthermore, results indicate that the host brand generally has a stronger impact on the quality evaluation of the end product meaning that an ingredient service brand cannot fully compensate for a lower-quality host brand. For managers, our findings indicate that ingredient service brands provide a cue to product quality of the end product, indirectly improving purchase intentions. As a result, branded service ingredients offer host service brands as well as ingredient service brands a potentially powerful strategy for improving competitive position in B2B markets. |
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