Assistant Professor, Department of Business Management, Faculty of Management, Economics, and Accounting, University of Hormozgan, Bandar Abbas, Iran

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Business Management, Faculty of Management, Economics, and Accounting, University of Hormozgan, Bandar Abbas, Iran

2 Associate Professor, Department of Industrial Management, Faculty of Management, Economics, and Accounting, University of Hormozgan, Bandar Abbas, Iran

3 Master of Business Management, Faculty of Management, Economics, and Accounting, University of Hormozgan, Bandar Abbas, Iran

Abstract

Extended Abstract
 
Introduction: Although branding was initially introduced in the sector of consumer goods, today the necessity of branding in service and industrial markets has also been accepted. Research and experience have shown that branding is also applicable to commodity products (goods and services that are considered the same by the vast majority of buyers, despite having more or less objective distinguishing features) and when executed strategically, the brand can act as a sustainable competitive advantage for companies producing commodity products and be one of the most important purchasing criteria for buyers of these types of products. The cement industry, as a producer of a commodity product, with a history of about 80 years in Iran, plays a fundamental role in the shaping development of the country's economic infrastructure as one of the core industries. Today, several factors such as excess supply over demand, cement supply through the commodity exchange, payment of transportation subsidies by some major competitors, compliance with mandatory production standards by all producers, and the existence of several cement producers in a limited geographical area in some provinces such as Fars, Bushehr, Isfahan, have intensified the competition between cement producers to take over market share and especially sales to high-consumption cement industries such as ready-mix concrete production centers, precast concrete parts, beams and blocks, etc. In the meantime, producers can outperform their competitors who know the preferences of customers in purchasing decisions and are better able to respond to them. Studies related to branding and factors affecting brand choice in the cement industry in the Iranian market are very limited. The present study aims to fill this research gap by seeking to answer these questions: What criteria are influential in choosing a cement brand by major buyers of this product in the Iranian market? What is the order of importance of these criteria? And does the importance of these criteria differ across different buyer groups?
Methodology: The present study is an applied, descriptive, cross-sectional investigation conducted to identify the criteria influencing cement brand selection across various sectors of the cement-based industries in Fars Province. The statistical population of the study is the bulk customers of cement-producing companies in Fars Province, which were categorized into five main groups (Mass Housing Developers, Infrastructure and Civil Engineering Contractors, Cement Distributors, Ready-Mix Concrete and Precast Concrete Manufacturers, and Municipal Civil Works Departments). Sampling was conducted using a quota-based and convenience approach, resulting in a sample of 142 companies and organizations. The data collection tool is a questionnaire, the reliability of which was confirmed using Cronbach's alpha, and was completed by decision-makers in the companies and organizations under study. Given the non-normality of the data, nonparametric binomial, Friedman, and Kruskal-Wallis tests were used for analysis.
Discussion and Results: Based on the analysis of 16 criteria extracted from the research literature, the influence of three brand-related factors—namely advertising, information provision, and social responsibility—on the purchase decisions of the studied sample was not confirmed. Among the remaining 13 criteria that did show a significant impact, the findings revealed that reasonable pricing, discount offerings, and product quality are the three most influential factors, respectively, with a notable margin compared to other criteria. In contrast, customer service and the diversity of cement product types were identified as the least influential factors in bulk cement purchasing decisions. However, when examining different market segments, the relative importance of these criteria varies. For instance, while price ranks as the most critical factor in four of the five market segments, it is considered secondary to product quality in the Municipal Civil Works Departments. Similarly, in the Ready-Mix Concrete Plants and Precast Concrete Manufacturers segments, price, discounts, product quality, and the setting and durability of cement are equally prioritized, all occupying the top position. Notably, in other market segments, the setting and durability of cement rank between fifth and eighth in importance.
Conclusion: The variation in brand selection criteria across different market segments underscores the necessity for cement manufacturers to adopt a segment-specific approach to branding. Even within a single market segment, buyers may exhibit diverse expectations depending on the intended use of the product. The findings of this study reveal a distinct divergence in brand selection priorities between the Cement Distributors segment and other market segments. While distributors and wholesalers tend to prioritize more superficial attributes—such as price, discounts, packaging, and product color—cement quality ranks only sixth in importance. In contrast, in segments where buyers are direct users of cement and its quality directly affects the performance of their final product or service, quality consistently ranks among the top three selection criteria. Understanding the factors that shape consumer preferences is essential for marketers aiming to formulate effective strategies and gain a competitive edge. Although bulk cement buyers may appear to share a common need—namely, the purchase of cement—the study demonstrates that these buyers are not homogeneous. The benefits sought by customers in each segment differ significantly from those in other segments. In reality, very few products or services can meet the needs of all customers within a market. Therefore, successful branding in such a diverse landscape requires a nuanced understanding of segment-specific preferences and a tailored response to these differences.

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