D1) Designing a Model for Empowering Iranian Brands with an Emphasis on the Open Innovation Approach in the Home Appliances Industry

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Article Type:
Research/Original Article (دارای رتبه معتبر)
Abstract:

Designing a new brand alone is not enough and what measures can be taken to strengthen it is also of great importance. Therefore, the purpose of the present study is to design a model for empowering Iranian brands with an emphasis on open innovation approach in the home appliances industry. The present study can be objectively categorized as an applied one and is conducted through a mixed methodology (qualitative-quantitative). Interviews and questionnaires were used as data collection tools in qualitative and quantitative sections, respectively, and their validity and reliability were evaluated as desirable. Having reviewed the related literature and research background, semi-structured interview protocols were prepared to gather data. The participants were selected among scientific and executive professionals involved in the home appliances industry using the snowball sampling method. Also, the statistical sample of the research in the quantitative part consisted of 386 customers of home appliances in Tehran. To analyze the data in the qualitative section, grounded theory was applied benefitting from MAXQDA software, while in the quantitative part, factor analysis (FA) was used. The findings of the research revealed that the factors focusing on the supply and demand chain strengthen the brand of Iranian home appliances. This study also introduces mental, communicative, and adaptive strategies which, themselves, are affected by intervening (human and organizational factors) and contextual (macro and micro factors) conditions. Moreover, implementing these strategies may have some consequences related to customers, societies, and organizations. Data analysis of quantitative section findings after applying grounded theory led to making a final model based on the factor analysis methodology.

Introduction

One of the benefits of a strong brand is its impact on reducing marketing costs (Agmeka et al., 2019). Experience has indicated that even during recession periods, strong brands face fewer problems in the field of sales reduction than similar products which are not considered famous brands (Azham & Ahmad, 2020). Academic and management schools of thought jointly agree that the power of a brand leads to profitability and acts as a competitive advantage in the industry (Bianchi, 2014). Although a powerful brand can have a relatively long life in normal conditions, due to the changes and developments in the environment, of which technology is perhaps one of the most important factors, it gradually enters the decline stage. Therefore, the managers and owners of economic organizations and businesses that operate in an increasingly competitive environment face a constant challenge that is maintaining well-known brands and preventing their lifespan from shortening. The issue of maintaining the brand, strengthening it and continuing its life has been raised because building a new brand alone is not enough, and how it should be maintained and what measures can be taken to strengthen it, have also particular importance. Although brand strengthening is important for all goods and services and improves their value (Kleih et al., 2023), the need to strengthen the brand in order to achieve marketing goals for some industries and businesses, including home appliance industries, is more than non-durable consumer goods and some products which are simple and ordinary. This requires providing a model as a guide for managers and researchers so that this vital industry of the country can be pushed towards brand strengthening in the national and international arena, and a wide effort can be made in line with the growth of this industry. Therefore, the answer to this question is vital: what is the appropriate model for strengthening the Iranian home appliance brands with an emphasis on open innovation?

Methodology

The current research is applied in terms of purpose. In terms of research method and type of data, it is a mixed (qualitative-quantitative) design. Due to the impossibility of coordination with a number of experts to attend the joint meeting at the same time and the lack of knowledge of the researcher about the level of knowledge and mentality of domestic experts regarding new issues in strengthening the brand of home appliances with an open innovation approach, the interview method was chosen. Because a semi-structured interview was used instead of a structured interview in this research, the interview protocol includes predetermined open questions that allowed the interviewer to assess and clarify the topics during the interview. The sampling method in the qualitative part is purposeful snowball sampling and the statistical population of this research in the qualitative part is made up of experts in marketing and senior managers of home appliance manufacturing companies, sellers, and managers of the home appliance association in Tehran. The number of selected participants to conduct in-depth interviews is 6 scientific experts and 9 practical experts. The statistical population of this research in the quantitative part also consists of all the buyers of Iranian household appliances in the city of Tehran. Considering that the statistical population of the research in this section is unlimited, the size of the research sample in the quantitative section was considered to be 386 people based on the Cochrane relationship. In order to select the research sample for answering, the available sampling method was used. The process of information analysis in the grounded theory approach is based on three stages of open coding, axial coding, and selective coding. The results of confirmatory factor analysis and average variance extracted have been used to analyze the internal structure of the questionnaire and determine its validity.

Findings

According to the results of the qualitative part, the factors affecting the supply side include paying attention to price quality, foundation based on knowledge and technology, and organizational agility. And focusing on the demand side, including after-sales services, encouraging dealers and sales centers, and the use of effective marketing practices and social responsibility creates a phenomenon such as strengthening the home appliance brand with an innovative approach. According to the model, in order to strengthen the brand of home appliances, mental strategies (brand redefinition and storytelling), communication strategies (emotional brand and brand development) and adaptation strategies (brand heritage strengthening and brand audit) should be used. Also, in order to strengthen the brand of household appliances with an open innovation approach, attention should be paid to the context factors. Macro factors (economic, cultural, social, political and legal factors, industry characteristics, and competition) and micro factors (costs related to strengthening the brand and product line compatibility) are among the effective context factors.
Also, some factors and variables interfere with strengthening the home appliance brand with an open innovation approach. In other words, they facilitate or hinder the strengthening of the brand of these products. Some factors were among the obstacles and facilitators of brand strengthening including human factors (expert and knowledgeable stakeholders, expert employees, and top management attitude) and organizational factors (organizational culture, organizational learning, age, and size of the organization).

Conclusion

Considering the results of the study, strengthening the brand of home appliances will also have consequences related to customers and the society (creating purchase intention in customers, brand preference, improving customers' perceptions and attitudes, positive word of mouth advertising, increasing customer satisfaction, and loyalty and prevention of goods smuggling) and the consequences related to the organization (increasing profitability and organizational stability, creating a good reputation and image, improving brand value, increasing employee motivation, and reducing the market share temporarily). Data analysis of quantitative section findings after applying grounded theory led to making a final model based on factor analysis.

Language:
Persian
Published:
New Marketing Research Journal, Volume:12 Issue: 4, 2023
Pages:
91 to 112
https://magiran.com/p2555415  
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