Brand relationships and brand equity in franchising

Previous research suggests that building brand equity enhances the competitive advantage of retailers in B2B markets. However, limited attention has been paid to the concept of brand equity in B2B retailing contexts, particularly in franchise channels. This study seeks to understand how brand relationships can be leveraged to enhance brand citizenship behavior and ultimately brand equity in franchise channels. Accordingly, this study explores franchisees’ perceptions of their franchise brands, leading to a new conceptualisation of ‘franchisee-based brand equity’. An interpretive research design is employed, comprising of semi-structured interviews with key informants. Findings suggest that franchisors play an important role in promoting brand citizenship behaviour of franchisees, which in turn enhances brand equity. The study provides insight on how to effectively manage brand relationships to enhance franchisees’ brand citizenship behaviour and brand equity. The concept of brand relationships has been discussed widely in consumer markets, but has received limited attention in B2B contexts. In response, this study provides new insight in B2B branding and specifically, in how brand relationships may enhance brand citizenship behaviour and brand equity in B2B markets.

► Develops framework of how brand relationship management enhances brand citizenship behaviour and franchise-based brand equity.
► Proposes 6 dimensions of BRM: information sharing, brand architecture, franchisor support, channel power, conflict resolution, bonding.
► Explores how franchisors can enhance their franchisees’ BCB which can lead to higher brand equity.
► Find that franchisors can promote franchisees’ voluntary action and cooperative behaviour thereby enhancing brand equity.
► Findings help explain the behavioural concerns of relational exchanges within B2B markets such as franchise channels.