The importance of client relationships and service ...

The importance of client relationships and service brand personification dimensions in a short-term business insurance market

Pieter Steenkamp, Ph.D., MBA Frikkie Herbst, Ph.D., MBA Kosie de Villiers, Ph.D., MBA Marlize Terblanche-Smit, Ph.D.

IMP Asia in Africa, 4 - 7 December 2016, Cape Town, South Africa

Introduction • Some of most valuable brands are businessto-business service brands – IBM, Cisco and SAP

• Brand Resonance model – developed to guide brand building within consumer product context – a can of Coke – model proposed to be applicable to any context, including business-to-business and service contexts – But doubt regarding (unadapted ) validity of this claim IMP Asia in Africa, 4 - 7 December 2016, Cape Town, South Africa

Research Objective • Applied the brand resonance model to B2B services (short-term business/ hotel insurance) • To identify brand-building blocks and subdimensions of the Brand Resonance model that are: 1. confirmed; 2. those that are not confirmed; and 3. to establish what other brand-building blocks and sub-dimensions may be relevant to the selected B2B services IMP Asia in Africa, 4 - 7 December 2016, Cape Town, South Africa

ServBrand framework • Results prompted inclusion of people dimension and elevated the importance of relationships: – people are at the centre of B2B service brand building – relationships is the ultimate aim of B2B service brand building


The Interaction Approach • Findings support core principals of interaction approach, which is a major school of thought within B2B marketing research • The interaction approach focuses on: – long-term relationships between B2B partners rather than individual transaction: “relationships” – the importance of inter-organisational person contact and the resulting relationships: “people” IMP Asia in Africa, 4 - 7 December 2016, Cape Town, South Africa

Rest of Presentation 1. Brand resonance model 2. Methodology 3. ServBrand framework – the interaction approach - Service Brand Personification brand-building block - Client Relationships brand-building block



Research Design/ Strategy 1. Research philosophy [paradigm/ epistemological position/ approach]: 2. Research discourse [Type of reasoning]: 3. Research strategy[design]: 4. Time horizon:

Researcher’s sociological departure point and life orientation. (a) [non-empirical] Theoretical / historical / philosophical - basic research (b) Empirical (applied) research: (i) interpretivist (qualitative)-, (ii) positivistic (quantitative), (iii) realistic and (iv) the critical approach.

(a)

Exposition; (b) Argument/reasoning: (i) inductive (theory building), (ii) deductive (theory testing/testing causal relationships) (iii) abductive reasoning (symptomatic hypothesis formulation).

EXPLORATORY RESEARCH DESIGN Longitudinal

Cross-sectional

Longitud inal

DESCRIPTIVE RESEARCH DESIGN (sample or census surveys) Cross-sectional

CAUSAL RESEARCH DESIGN Longitudinal

Cross-sectional

6.1a Sample design

1. Fact-finding 2. Grounded theory 3. Basic qualitative research 4. Phenomenology 5. Case analysis 6. Pilot study 7. Observation 8. Action research 9. Game/role playing. 1. Secondary data review, model building, literature review, reporting 2. (Grounded theory) 3. Group discussions, Delphi technique, individual interviews 4. Hermeneutics, narrative analysis 5. Ethnography, case study method 6. (Pilot study) 7. Human and mechanical observation 8. (Action research) 9. Scenario research. Non-probability sampling

6.1b Sample techniques:

Convenience, quota, experience, judgmental and snowball sampling [selection].

Simple random, systematic (object and time based), stratified (proportionate and optimal), cluster (one and two stage, area) and multi-stage sampling.

RR (random respondents), RM (respondents matched) and RRM (respondents randomly matched).

6.2 Measurement:

Open-ended and conversational questions.

[Closed-ended questions] Structured; scaling techniques and attitude measurements.

Observations and controlled structured interviews.

6.3 Data manipulation [data analysis method]:

Category construction; deductively based (pattern matching, explanation building) and inductively based (content analysis, analytical induction).

Statistical analysis (descriptive and inferential) and hypothesis testing.

Measuring cause and effect relationships.

5. Research tactics: (approaches)

6. Interviewing techniques and methods:

1. 2. 3.

Person-administrated Telephone-administrated Self-administrated.

Experimental designs and market testing.

1.

Electronic, fixed premises and consumer face-to-face intercept interviews 2. Traditional, CATI, text based- and completely automated telephone interviews (CATS) 3.1Mail-administrated: Freepost, f fax, postal and electronic mail surveys 3.2Self-completion: paper and electronic (self-administrated) interviews.

1. 2. 3. 4.

Probability sampling

Controlled probability sampling designs

Pre-experimental designs True experimental designs Quasi-experimental designs Statistical-experimental designs.

Source: Adapted from Haydam, Slabbert & Uken, 2011: 231. Based on: Lacobucci and Churchill (2010: 58-107), Cooper and Emory (1995: 112-127), Madden and Firtle (1994: 115-164, 174-207), Merriam (2009: 21-76), Mouton (2006), Remenyi and Money (2004:57-65,69-79), Salkin (199: 10-15), Saunders, Lewis and Thornhill (2003: 82-100), and Zikmund and Babin (2010: 131-163, 189-279).

Delineation • Towards a client-based brand equity model for selected business-to-business services – Short-term business insurance services offerings; – Hotels - B2B service demand-side client organisations of short-term insurance service providers, which were – Located in Cape Town, South Africa

Research objective 1: To identify the brand-building blocks and sub-dimensions of the brand resonance model that are confirmed for short-term business insurance


Research objective 1: To identify the brand-building blocks and sub-dimensions of the brand resonance model that are confirmed for short-term business insurance


Research objective 2: To identify the brand-building blocks and sub-dimensions of the brand resonance model that are not confirmed for short-term business insurance


Research objective 2: To identify the brand-building blocks and sub-dimensions of the brand resonance model that are not confirmed for short-term business insurance


Research objective 3: To establish what other brand-building blocks and sub-dimensions may be relevant to short-term business insurance


Research objective 3: To establish what other brand-building blocks and sub-dimensions may be relevant to short-term business insurance


Research objective 3: To establish what other brand-building blocks and sub-dimensions may be relevant to short-term business insurance Interaction Approach Natti and Palo (2012: 1837); Glynn (2012: 666)

S: Theron et al. (2013: 41)

B2B: Ryan and Silvanto (2013: 48, 49)

S: Sarin’s (2014)

S: Sichtmann et al. (2011: 16); s: Geigenmuller and Bettis-Outland’s (2012: 432); B2B: Lakshmi and Santhi’s (2015: 79)

B2B: Biong and Sikoset (2014: 171); Kim and Hyun (2011: 435)

ServBrand framework - Service Brand Personification - Client-brand Relationships


ServBrand framework - Service Brand Personification - Client-brand Relationships


Conclusion • The study also found that relationships are important in a B2B context, but the nature of relationship more important (Turnbull, Ford & Cunningham, 1996: 44-46) • ServBRAND framework: – found that relationships are important and are based on interpersonal interaction between representatives of the organisation and the client – These relationships turn into partnerships if both parties share a common goal – In addition, the type of interaction desired is stipulated in terms of attitude, personality, demeanor, values and so on of people involved – The client trusts their broker to such an extent that they accept the brand that the broker suggests – But relationship not based on feelings of closeness

• Relationships vs. feelings IMP Asia in Africa, 4 - 7 December 2016, Cape Town, South Africa

Conclusion • Loyalty: – Study indeed supports the view that customers are “often reluctant to change their sources of supply and that there was a surprising degree of stability and durability in their dealings with many of their suppliers” (Turnbull, Ford & Cunningham, 1996: 44) – The relationships seemed to be brittle and did not evolve over time IMP Asia in Africa, 4 - 7 December 2016, Cape Town, South Africa


References • • • • • • • • • • • • • • • • • • • •

Aaker, D.A. 1991. Managing brand equity: Capitalizing on the value of a brand name. New York: Free Press. Aaker, J. 1997. Dimensions of brand personality. Journal of marketing research, XXXIV(August), 347-356. Axelsson B., and Easton G. (1992), Industrial Networks – A New View of Reality, London: Routledge. Bailey, C.A. 2007. A Guide to Qualitative Field Research London: Pine Forge. Baumgarth, C. & Binckebanck, L. 2011. Sales force impact on B-to-B brand equity: conceptual framework and empirical test. Journal of product and brand management, 20(6), 487-498. Baumgarth, C. 2010. Living the brand: brand orientation in the business-to-business sector. European Journal of Marketing, 44(5), 653-671. Glynn, M.S. 2012. Primer in B2B brand-building strategies with a reader practicum. Journal of Business Research, 65, 666–675. Hakansson H., and Snehota I. (1995), Developing Relationships in Business Networks, London: Routledge. Kalafatis, S.P., Remizova, N., Riley, D. & Singh, F. 2012. The differential impact of brand equity on B2B co-branding. Journal of Business & Industrial Marketing, 27(8), 623-634. [Online] Available: DOI 10.1108/08858621211273574 Accessed: 15 September 2015. Keller, K.L. 2013. Strategic brand management: Building, measuring, and managing brand equity. 4 th edition. New Jersey: Pearson Education. Kuhn, K.L., Alpert, F. & Pope, N.K.L. 2008. An application of Keller's brand equity model in a B2B context. Qualitative Market Research: An International Journal 11(1), 40–58. Kuhn, K.L., and Alpert, F. (2004). Applying Keller's Brand Equity Model in a B2B Context: Limitations and an Empirical Test. In Jim Wiley and Peter Thirkell (eds). Proceedings of the 2004 Australian and New Zealand Marketing Academy Conference. Wellington, New Zealand: Victoria University. Leedy, P.D. & Ormrod, J.E., 2010. Practical research: Planning and design. 9th edition. New Jersey: Pearson Education. Mason, Mark (2010). Sample Size and Saturation in PhD Studies Using Qualitative Interviews. Forum Qualitative Sozialforschung / Forum: Qualitative Social Research, 11(3), Art. 8, http://nbn-resolving.de/urn:nbn:de:0114-fqs100387. [Accessed: 14 September 2015]. Ryan, J. & Silvanta, S. 2013. The critical role of corporate brand equity in B2B marketing: An example and analysis. The Marketing Review, 13(1), 3950. [Online] Available: http://dx.doi.org/10.1362/146934713X13590250137745 Accessed: 10 September 2015. Seidman, I. 2006. Interviewing as qualitative research: a guide for researchers in education and social sciences. 3 rd edition. New York: Teachers College Press. Taylor, S.A., Celuch, K. & Goodwin, S. 2004. The importance of brand equity to customer loyalty. Journal of product & brand management 13(4), 217227. Turnbull, P., Ford, D. & Cunningham, M. 1996. Interaction, relationships and networks in business markets: an evolving perspective. Journal of Business & Industrial Marketing, 11(3/4), 44 – 62. http://dx.doi.org/10.1108/08858629610125469 Webster, F.W. & Keller, K.L. 2004. A roadmap for branding in industrial markets. Journal of Brand Management, 11(5), 388-402. Zikmund, W.G & Babin, B.J. 2010. Exploring marketing research. 10th edition. n.p.: South-Western, Cengage Learning.


discussion
