A Study of The Effect of Brand Ambidexterity on Brand Performance, Brand Reputation and Brand Commitment (Case Study: Kaleh Brand in Iran)

Mohammad Taleghani,Associate Professor, Faculty Of Management And Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran

doi:10.47191/jefms/v5-i1-20

Abstract

Today, brand is a strategic requirement for organizations, which allows the creation of greater values for customers and sustainable competitive advantages of companies. Creating a strong brand in the market is the primary goal of many organizations. A strong brand can build up customer confidence for the purchase of goods and services, giving them a greater appreciation of the intangibles. Given the importance of the brand in marketing studies, this paper was conducted to investigate the effect of brand ambidexterity on brand performance and commitment. The research population consists of all customers of Kaleh brand in Rasht, Iran. Since the population size was not known, a sample size of n= 384 people was selected using the Cochran's formula for infinite population as well as Krejcie & Morgan table to ensure sampling adequacy. Structural equation modeling (SEM) using partial least squares (PLS) method were also used for data analysis. The results show that brand ambidexterity (exploitation and exploration) affects brand performance. The results also suggested that brand performance affects brand image, brand reputation and brand commitment.

Highlights

In today's complex and challenging world, individuals and business managers have an increasing number of options at their disposal, making efforts to reduce decision-making and selection time
Ambidexterity leads to the improvement of the brand image through exploration and exploitation strategies with indirect effects on commitment
Exploration and exploitation strategies have a substantial effect on brand performance

Summary

Introduction

In today's complex and challenging world, individuals and business managers have an increasing number of options at their disposal, making efforts to reduce decision-making and selection time. Brand is part of the operational and emotional characteristics attributed to a product or service by customers, serving as a tool that guides customers’ purchase decision (Chang and Ma, 2015). The price spike induced by the rising price of milk and the higher price of dairy products together with increased tariffs on exporting dairy products to Iraq are among the critical challenges facing dairy companies in Iran. The dairy industry deals with the problem of rising export tariffs to Iraq. With the spike in tariffs, exports to Iraq is no longer economically justified. Dairy exports have a low profit margin, selling a share of product to Iraqi market will generate revenues that can partially make up for company expenses in other areas. Considering the above points and the growing importance of the brand concept, this study seeks to investigate the impact of brand ambidexterity on performance, reputation and commitment to the brand of Kaleh Company

Methods

Results

Conclusion