Extending B2B brands into the B2C market: Whether, when, and how brands should emphasize B2B industry background

Abstract

When business-to-business (B2B) brands extend into the consumer market, considering that end consumers are generally unfamiliar with B2B brands, managers often tend to expend extensive efforts in advertising the brand extension. However, insights into how B2B brands can leverage their industry background when extending into the B2C market are still lacking. In this study, we investigated whether, when, and how highlighting the industry background of a B2B brand in the advertisements of its B2C products influence brand extension evaluation. Our results indicate that presenting information on the B2B brand’s industry background may facilitate consumers’ evaluation of its extended B2C product. This positive impact is enhanced when the advertisement has competence appeal and alleviated when it has warmth appeal. The interaction between industry background and advertising appeal is mediated by consumers’ perceptions of brand personality appeal clarity. Our study provides insights into how B2B brand managers can leverage brands to drive an effective brand extension into B2C market.