Brand switching of high-technology capital products: how product features dictate the switching decision
| Pages | 322-332 |
| Published date | 18 August 2014 |
| DOI | https://doi.org/10.1108/JPBM-12-2013-0473 |
| Date | 18 August 2014 |
| Author | Sam Al-Kwifi,Zafar U. Ahmed,Dina Yammout |
| Subject Matter | Marketing,Product management,Brand management/equity |
Brand switching of high-technology capital
products: how product features dictate the
switching decision
Sam Al-Kwifi
College of Business and Economics, Qatar University, Doha, Qatar and Richard Ivey Business School, Western University,
London, Canada, and
Zafar U. Ahmed and Dina Yammout
Department of Marketing, Lebanese American University, Beirut, Lebanon
Abstract
Purpose – The purpose of this paper is to investigate the factors that underpin brand switching of medical imaging products by mass-market users.
Most of the literature on brand switching is focused on competitive market products, for which switching costs are manageable. However, little
consideration is given to brand switching of high-technology capital products.
Design/methodology/approach – The conceptual model is developed based on the existing literature on B2B brand switching. An online survey
was developed and distributed to decision makers involved in purchasing medical imaging technology.
Findings – The results confirm the expectation that product features is the most influential factor underpinning brand switching. Product features
are critical for medical organizations who want to maintain their competitive advantage. The findings suggest that the set of factors that influence
the decision to switch is unique for users of different market segments in the same industry (e.g. lead users and mass-market users). This difference
stems from technology utilization of each market segment.
Research limitations/implications – In high-technology markets, managers should develop a reliable strategy to evaluate the antecedents behind
brand switching that are specific to their industry. Knowledge of the major factors that cause users to switch is essential to allow firms to determine
the strategy needed to prevent the erosion of their market share.
Originality/value – Although the literature reports considerable research on brand switching, this study is a first-of-its-kind in that it demonstrates
that the factors underpinning brand switching vary within the same industry, based on the characteristics of each market segment. This paper
develops new knowledge on the factors that influence the decision of users of high-technology capital products to switch between brands to renew
or improve their internal capabilities.
Keywords Switching costs, Business-to-business marketing, Brand switching, Internal capabilities, Medical imaging industry, Product features
Paper type Research paper
An executive summary for managers and executive
readers can be found at the end of this issue.
In high-technology markets, firms set strategies to provide the
most advanced features of the products they offer (Tholke
et al., 2001;Bhattacharya et al., 1998). Doing this is critical for
users who may favor product features that create distinctive
capabilities that help to distinguish users from their market
competitors (Henard and Szymanski, 2001). The literature
demonstrates that achieving such strategies requires
continuous improvement of product features and identifying
the right set of features to keep the product attractive (Su et al.,
2006;Krieg, 2004). Failure to meet the demands of users
results in a slow rate of technological change in product
features that are vital to users, leading to user dissatisfaction
and switching to a more capable technology (Heide and
Weiss, 1995), as well as to a decrease in market share and
diminished profits for the supplier (Banbury and Mitchell,
1996). This scenario becomes serious in markets that are
nearing maturity, where the only tactic to grow market share is
through inspiring product users to switch from a competitor
(Al-kwifi and McNaughton, 2013). Thus, understanding the
factors that influence brand switching is crucial for
strategy-making by suppliers of high-technology products.
The literature contains considerable business-to-business
research that investigates brand switching, but most of it is
concentrated on competitive products in B2B markets
(Money, 2004;Wathne et al., 2001;Low and Johnston, 2006;
Heide and Weiss, 1995). In competitive B2B markets,
organizations focus on frequently purchased consumer
products, such as insurance, advertisement and
telecommunication services. In such markets, it is believed
that the organizations spend significant time sorting out
different products based on quality, performance and price
because this market contains a wide variety of alternative
options, whereas less time is spent on the final decision. On
the other hand, in B2B markets of high-technology products,
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1061-0421.htm
Journal of Product & Brand Management
23/4/5 (2014) 322–332
© Emerald Group Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/JPBM-12-2013-0473]
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