Impact of Corporate Reputation on Brand Segmentation Strategy: An Empirical Study from Iranian Pharmaceutical Companies Impact of Reputation on Pharmaceutical Brand Segmentation
Iranian Journal of Pharmaceutical Sciences,
Vol. 13 No. 1 (2017),
1 January 2017
,
Page 87-104
https://doi.org/10.22037/ijps.v13.40708
Abstract
The impact of corporate reputation uses, including value creation, corporate communication, and strategic resources on branding strategies such as segmentation and producing intangible assets for different industries is investigated in western countries in the past few years, but there is a gap for the generalizability of findings to countries out of the United States and Europe. To establish the western researcher‟s external validity of theories in other countries and to obtain a better understanding of the influences of branding and corporate reputation in pharmaceutical business markets, the researchers applied this study for Iran, as a country in the Middle East. The obtained results using SEM (by P.L.S. 2.0 software) showed a weak relation between value creation and brand segmentation (β = 3.007 and t-value = 1.806) and no significant relation between corporate communication and strategic resources with brand segmentation (β = 0.199 and t-value = 1.301) and (β = 3.046 and t-value = 1.465). Based on these findings; and previous researches in this field, it seems that pharmaceutical managers and marketers need to change their thoughts and practices regarding segmentation and reputation.This study is a pioneering attempt in Iran to evaluate the impact of corporate reputation on brand segmentation strategy.
Keywords:
- Brand
- Corporate Communication
- Corporate Reputation
- Segmentation
- Strategic Resource
- Value Creation
How to Cite
Afshin Vahabzadeh, Hossein Vatanpour, Rasoul Dinarvand, Ali Rajabzadeh, Jamshid Salamzadeh, & Mehdi Mohammadzadeh. (2017). Impact of Corporate Reputation on Brand Segmentation Strategy: An Empirical Study from Iranian Pharmaceutical Companies: Impact of Reputation on Pharmaceutical Brand Segmentation. Iranian Journal of Pharmaceutical Sciences, 13(1), 87–104. https://doi.org/10.22037/ijps.v13.40708
References
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[41] Fombrun CJ. Corporate reputation as economic assets ‟ . in M.A. Hitt, R.E. Freeman and J.S. Harrison (eds.), The Blackwell Handbook of Strategic Management , Blackwell Publishers, Malden . ( 2001)
[42] Deephouse DL. Media reputation as a strategic resource: An integration of mass communication and resource-based theories. GM ( 2000 ) 26 (6): 1091 – 1112 .
[43] McMillan GS and Joshi MP. Sustainable competitive advantage and firm performance: the role of intangible resources. Crr (1997) 1: 81–85.
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[45] Grunig JE. Situational Theory of Publics. Encyclopedia of Public Relations, Thousand Oaks, CA: Sage: (2005) 778-780.
[46] Stanwick PA and Stanwick SD. The relationship between corporate social performance, and organisational size, financial performance, and environmental performance:An empirical examination. JBE (1998) 17: 195– 204.
[47] Brammer SJ and Pavelin S. Corporate reputation and social performance: the importance of fit. JMS (2006) 43(3): 435–55.
[48] Puente EQ, Fuente-Sabaté JM and Bautista DG. Corporate social performance and corporate reputation: two interwoven perspectives. Corp. Rep. Rev. (2007) 10: 60–72.
[49] Keller K, Heckler S and Houston M. The effects of brand name suggestiveness on advertising recall. JM (1998). 62 (1): 48–58.
[50] Kotler P, Adam S, Brown L and Armstrong G. Principles of Marketing, (second ed.). Prentice Hall, New Jersey. (2003).
[51] Kapferer J. The new strategic brand management, (4th edition ) . Kogan Page , London. (2008) 10-11.
[52] Schuiling I, Moss G. How different are branding strategies in the pharmaceutical industry and the fast-moving consumer goods sector? JBM (2004) 11(5): 366-80.
[53] Lynn, Michael (2007), Brand Segmentation in the Hotel and Cruise Industries: Fact or Fiction? CHR Reports. www.chr.cornell.edu
[54] Lynn M. Segmenting and Targeting Your Market: Strategies and Limitations. www.chr.cornell.edu. (2011)
[55] Laforet S. Brand names on packaging and their impact on purchase preference. JCB (2011) 10 (1): 18-30.
[56] L‟Etang J. Public relations and sport in promotional culture.PRR (2006) 32: 386–394.
[57] Sabaté JMF, Puente EQ. Empirical analysis of the relationship between corporate reputation and financial performance: a survey of the literature. CRR (2003) 6: 161–77.
[58] Tashakkori A, Teddlie C. Handbook of Mixed Methods in Social and Behavioural Research. Thousand Oaks,California: Sage. (2003).
[59] Creswell JW. Research design: Qualitative, Quantitative, and Mixed Methods Approaches. (3rd ed.). Thousand Oaks, Calif: Sage Publications. (2009).
[60] Bickerton D. Corporate reputation versus corporate branding: the realist debate.CCIJ (2000) 5: 42–48.
[61] Bromley DB. Psychological aspects of corporate identity, image and reputation.CRR (2000) 3: 240–52
[62] Carson D, Gilmore A, Perry C and Gronhaug K. Qualitative Marketing Research. London: Sage (2001). Publications.
[63] Peng T, Peterson M and Shyi Y. Quantitative methods in cross national management research: trends and equivalence issues. JOB (1991) 12: 87–107.
[64] Trompenaars F, Hampden-Turner C. Riding the Waves of Culture: Understanding Diversity in Global Business. New York: McGraw Hill. (1998).
[65] Kohli AK, Jaworski BJ and Kumar A. MARKOR: a measure of market orientation. JMR (1993). 30: 467–77.
[66] Churchill JGA. A paradigm for developing better measures of marketing constructs. JMR (1979) 16: 64–73.
[67] De Vellis RF. Scale development. Newbury Park, California: Sage. (2003).
[68] Algesheimer R, Dholakia UM and Hermann A. The social influence of brand community: evidence from European car clubs. JM (2005) 69: 19–34.
[69] Long-Tolbert S. A Conceptual Framework and Empirical Tests of the Antecedents and Consequences of Corporate Reputation: a Study of Consumer Markets. unpublished PhD thesis, Ohio State University. (2000).
[70] Hair JF, Black WC, Babin BJ, Anderson RE and Tatham RL. Multivariate Data Analysis. (6th ed.). Upper Saddle River, New Jersey: Prentice Hall. (2006).
[71] Netemeyer RG, Bearden WO and Sharma S. Scaling Procedures: Issues and Applications. Thousand Oaks, California: Sage Publications. (2003).
[72] Bollen KA. Structural Equations with Latent Variables. New York: Wiley. (1989).
[73] Dannenberg J and Kleinhans C. The coming age of collaboration in the automotive industry. MMJ (2004) 17: 87–94.
[74] Lynch J and de Chernatony L. The power of emotion: Brand communication in business-to-business markets. JBM (2004) 11: 403–19.
[75] Mehralian G, Rasekh HR, Akhavan P and Sadeh MR. The Impact of Intellectual Capital Efficiency on Market Value: An Empirical Study from Iranian Pharmaceutical Companies. IJPR (2012) 11: 195-207
[76] Gardberg NA and Fombrun C J. The global reputation quotient project: First steps towards a cross-nationally valid measure of corporate reputation. CRR (2002) 4(4): 303–7.
[77] Nguyen N and Leblanc G. Corporate image and corporate reputation in customers‟ retention decisions in services. JRCS (2001) 8: 227–36.
[78] Boyacigiller NA and Adler NJ. The parochial dinosaur: organizational science global context.AMR (1991) 16: 262–90.
[2] Chen-Chu C. The use of corporate reputation in the development of brand image strategy in the Taiwanese pharmaceutical industry. (2011).
[3] Schultz M, Hatch MJ and Larsen MH. The Expressive Organisation : Linking Identity, Reputation, and the Corporate Brand. Oxford: Oxford University Press. (2000).
[4] Bickerton D. Corporate reputation versus corporate branding: the realist debate. Corporate Communications: IJ (2000) 5(1), 42–8.
[5] Ghose, Anindya, Panagiotis G, Ipeirotis and Sundararajan A. The dimensions of reputation in electronic markets. Working Paper, CeDER-06-02, New York University. (2006).
[6] Kumar L, Panigrahi A. Communication with doctors: empowering Pharma field force with modern marketing techniques. AJMR (2014)5 (2): 191-201.
[7] Greengrove K. Needs-based segmentation: principles and practice. IJMR (2002)44 (4): 405-21.
[8] MacLennan J, Mackenzie D. An opportunity to integrate medical and marketing activities. IJMM (2000) 1(1): 40–52
[9] Fombrun C, Shanley M. What‟s in a name? Reputation building and corporate strategy. AMJ (1990) 33: 233–58.
[10] Berndt ER, Cockburn IM, Griliches Z, Keeler TE and Baily MN. Pharmaceutical innovations and market dynamics: tracking effects on price indexes for antidepressant drugs. Brookings Papers on Economic Activity. Microeconomics (1996): 133–99.
[11] Prentis RA, Lis Y and Walker SR. Pharmaceutical innovation by the seven UK-owned pharmaceutical companies (1964-1985). BJCP (1988) 25: 387–96.
[12] Achilladelis B and Antonakis N. The dynamics of technological innovation: the case of the pharmaceutical industry. RP (2001) 30: 535–88.
[13] Kim Y, Kim L and Lee J. Innovation strategy of local pharmaceutical firms in Korea: a multivariate analysis. TASM (1989) 1: 29–44.
[14] Panigyrakis GG, Veloutsou C. Brand managers in the pharmaceutical industry: are they any different? JPBM (1999) 8: 497–512.
[15] Nakra P. Corporate reputation management: “CRM” with a strategic twist? PRQ (2000) 45: 35–43.
[16] Ronald JB, Graeme M and Cary LC. Corporate Reputation Managing Opportunities and Threats. www.gowerpublishing.com. (2009) 2-43.
[17] Michael L, Barnett JM, Jermier BA and Lafferty. Corporate Reputation (2008).
[18] Bennett R, Kottasz R. Practitioner perceptions of corporate reputation: An empirical investigation. Ccij ( 2000 ) 5 (4): 224.
[19] Fombrun CJ, Van Riel C. The reputational landscape. Corporate Reputation Review (2003)1(1&2): 5-12.
[20] Weigelt K, Camerer C. Reputation and corporate strategy: a review of recent theory and applications. SMJ (1988) 9: 443–54.
[21] Roberts PW, Dowling GR. Corporate reputation and sustained superior financial performance. SMJ (2002) 23: 1077–93.
[22] Rao H. The social construction of reputation: certification contests, legitimation, and the survival of organisations in the American automobile industry: 1895-1912. SMJ (1994) 15: 29–44.
[23] Rindova VP, Kotha S. Continuous “morphing”: competing through dynamic capabilities, form, and function. AMJ (2001) 44: 1263–80.
[24] Davies G, Chun R, Da Silva RV and Roper S. Corporate Reputation and Competitiveness. UK: Routledge. (2003).
[25] Ferris GR, Blass R, Douglas C, Kolodinsky RW and Treadway DC. Personal Reputation in Organizations. In J. Greenberg (Ed.), Organizational Behaviour: The State of the Science. (2003) 211-46.
[26] Doorley J, Garcia HF. Reputation Management: The Key to Successful Public Relations and Corporate Communications. New York: Routledge. (2006).
[27] Goldstein K. Corporate Reputation Management in the Pharmaceutical Industry. (2010).
[28] Fombrun C and Shanley M. What‟s in a name? Reputation building and corporate strategy. AMJ (1990) 33: 233–58.
[29] Yoon E, Guffey H and Kijewski V. The effects of information and company reputation on intentions to buy a business service. JBR (1993) 27: 215–28.
[30] Dutton JE, Dukerich JM and Harquail CV. Organisational images and member identification. ASQ (1994) 39: 239–63.
[31] Brown MA. Energy-efficient buildings: does the marketplace work? In: Proceedings of the 24th Annual Illinois Energy Conference, Chicago, Illinois: University of Illinois Press. (1997) 233–55.
[32] Saxton K. Where do reputations come from? Corp. Rep.Rev. (1998) 1: 393–99.
[33] Dolphin RR. Corporate reputation – a value creating strategy. Corp. Gov. (2004) 4:77–92.
[34] Gregory JR. Marketing Corporate Image. Lincolnwood, Illinois: NTC Business Books. (1991).
[35] Fortune (1995) 6: 24–29.
[36] Moerman LC, Van Der Laan SL. Accounting for intellectual property: inconsistencies and challenges. (2006) 11(4): 239–308.
[37] DTI. Creating Value From Your Intangible Assets. London: Department for Trade and Industry. (2001).
[38] Shkolnikov VM, Andreev EM, Leon DA, McKee M, Mesle F and Vallin J. Mortality reversal in Russia: the story so far. Hygiea Internationalis (2004) 4: 30–80.
[39] Fombrun CJ and van Riel CB M. Fame and Fortune: How Successful Companies Build Winning Reputation. Pearson Education, New Jersey. ( 2004 ).
[40] Maathuis OJM. Corporate Image, Performance and Communication. Delft: Eburon. (1993).
[41] Fombrun CJ. Corporate reputation as economic assets ‟ . in M.A. Hitt, R.E. Freeman and J.S. Harrison (eds.), The Blackwell Handbook of Strategic Management , Blackwell Publishers, Malden . ( 2001)
[42] Deephouse DL. Media reputation as a strategic resource: An integration of mass communication and resource-based theories. GM ( 2000 ) 26 (6): 1091 – 1112 .
[43] McMillan GS and Joshi MP. Sustainable competitive advantage and firm performance: the role of intangible resources. Crr (1997) 1: 81–85.
[44] Lerbinger O. The Social functions of public relations. In: O. Lerberger and J. A. Sullivan (eds), Inf. Influ.and Com., New York: Basic Books. (1965).
[45] Grunig JE. Situational Theory of Publics. Encyclopedia of Public Relations, Thousand Oaks, CA: Sage: (2005) 778-780.
[46] Stanwick PA and Stanwick SD. The relationship between corporate social performance, and organisational size, financial performance, and environmental performance:An empirical examination. JBE (1998) 17: 195– 204.
[47] Brammer SJ and Pavelin S. Corporate reputation and social performance: the importance of fit. JMS (2006) 43(3): 435–55.
[48] Puente EQ, Fuente-Sabaté JM and Bautista DG. Corporate social performance and corporate reputation: two interwoven perspectives. Corp. Rep. Rev. (2007) 10: 60–72.
[49] Keller K, Heckler S and Houston M. The effects of brand name suggestiveness on advertising recall. JM (1998). 62 (1): 48–58.
[50] Kotler P, Adam S, Brown L and Armstrong G. Principles of Marketing, (second ed.). Prentice Hall, New Jersey. (2003).
[51] Kapferer J. The new strategic brand management, (4th edition ) . Kogan Page , London. (2008) 10-11.
[52] Schuiling I, Moss G. How different are branding strategies in the pharmaceutical industry and the fast-moving consumer goods sector? JBM (2004) 11(5): 366-80.
[53] Lynn, Michael (2007), Brand Segmentation in the Hotel and Cruise Industries: Fact or Fiction? CHR Reports. www.chr.cornell.edu
[54] Lynn M. Segmenting and Targeting Your Market: Strategies and Limitations. www.chr.cornell.edu. (2011)
[55] Laforet S. Brand names on packaging and their impact on purchase preference. JCB (2011) 10 (1): 18-30.
[56] L‟Etang J. Public relations and sport in promotional culture.PRR (2006) 32: 386–394.
[57] Sabaté JMF, Puente EQ. Empirical analysis of the relationship between corporate reputation and financial performance: a survey of the literature. CRR (2003) 6: 161–77.
[58] Tashakkori A, Teddlie C. Handbook of Mixed Methods in Social and Behavioural Research. Thousand Oaks,California: Sage. (2003).
[59] Creswell JW. Research design: Qualitative, Quantitative, and Mixed Methods Approaches. (3rd ed.). Thousand Oaks, Calif: Sage Publications. (2009).
[60] Bickerton D. Corporate reputation versus corporate branding: the realist debate.CCIJ (2000) 5: 42–48.
[61] Bromley DB. Psychological aspects of corporate identity, image and reputation.CRR (2000) 3: 240–52
[62] Carson D, Gilmore A, Perry C and Gronhaug K. Qualitative Marketing Research. London: Sage (2001). Publications.
[63] Peng T, Peterson M and Shyi Y. Quantitative methods in cross national management research: trends and equivalence issues. JOB (1991) 12: 87–107.
[64] Trompenaars F, Hampden-Turner C. Riding the Waves of Culture: Understanding Diversity in Global Business. New York: McGraw Hill. (1998).
[65] Kohli AK, Jaworski BJ and Kumar A. MARKOR: a measure of market orientation. JMR (1993). 30: 467–77.
[66] Churchill JGA. A paradigm for developing better measures of marketing constructs. JMR (1979) 16: 64–73.
[67] De Vellis RF. Scale development. Newbury Park, California: Sage. (2003).
[68] Algesheimer R, Dholakia UM and Hermann A. The social influence of brand community: evidence from European car clubs. JM (2005) 69: 19–34.
[69] Long-Tolbert S. A Conceptual Framework and Empirical Tests of the Antecedents and Consequences of Corporate Reputation: a Study of Consumer Markets. unpublished PhD thesis, Ohio State University. (2000).
[70] Hair JF, Black WC, Babin BJ, Anderson RE and Tatham RL. Multivariate Data Analysis. (6th ed.). Upper Saddle River, New Jersey: Prentice Hall. (2006).
[71] Netemeyer RG, Bearden WO and Sharma S. Scaling Procedures: Issues and Applications. Thousand Oaks, California: Sage Publications. (2003).
[72] Bollen KA. Structural Equations with Latent Variables. New York: Wiley. (1989).
[73] Dannenberg J and Kleinhans C. The coming age of collaboration in the automotive industry. MMJ (2004) 17: 87–94.
[74] Lynch J and de Chernatony L. The power of emotion: Brand communication in business-to-business markets. JBM (2004) 11: 403–19.
[75] Mehralian G, Rasekh HR, Akhavan P and Sadeh MR. The Impact of Intellectual Capital Efficiency on Market Value: An Empirical Study from Iranian Pharmaceutical Companies. IJPR (2012) 11: 195-207
[76] Gardberg NA and Fombrun C J. The global reputation quotient project: First steps towards a cross-nationally valid measure of corporate reputation. CRR (2002) 4(4): 303–7.
[77] Nguyen N and Leblanc G. Corporate image and corporate reputation in customers‟ retention decisions in services. JRCS (2001) 8: 227–36.
[78] Boyacigiller NA and Adler NJ. The parochial dinosaur: organizational science global context.AMR (1991) 16: 262–90.
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