Branding as a Bridge for Commodities Towards a Liberalized Market: a Study in the Electricity Sector

IntroductionLimited research exists on branding of electricity and the research that can be found is mostly on the promotional impacts of green energy (Bird et al., 2002; Holt & Holt, 2004; Markard & Truffer, 2006; Roe, 2001). Only a handful of papers can be found where researchers use the theoretical base of the general branding literature to build conceptual models for branding in the electricity industry (Hartmann et al., 2005; Wiedmann, 2004). Even though Europes energy markets are still heavily regulated, liberation of the energy markets in the last years and decades has brought about a new frame of reference for the companies operating with industry. The industry has switched from a distribution environment to a competitive environment as both private households and businesses are now able to choose among the various companies supplying energy. This fact has given the consumer added influence (Novak & Lyman, 1998; Pesce, 2002; Senia, 2002). However, the pace at which the liberation is taking place is different between countries and it remains to be discovered which long-term effects liberation will have. The challenge remains for the managers in the energy companies to operate them in the most efficient way in a new and demanding environment. In the new environment, they must adopt the principles of marketing. Scholars can assist by providing a theoretical foundation for the general practice to build on.This paper builds a theoretical foundation and adds to it empirical data from two different energy markets; the Icelandic and the Polish markets. The data merges insights from an interdisciplinary literature review, with empirical verification generated from two complimentary, qualitative studies. The specific objectives are to research similarities and differences between the two above mentioned markets. Furthermore to assist in the above mentioned managerial challenge by means of theoretical sound measures of marketing behavior. In particular branding and it's sub dimension, differentiation by making propositions on theory development for differentiation of brands within the electricity sector.The article is divided into three main parts. The first part provides a theoretical entry point by framing branding in the broad terms as well as surveying the role of commodities as a unit analysis in the marketing literature and defines the conceptual bases for understanding branding of commodities. Furthermore, the first part describes the special circumstances of the commodity in question, electricity. The second section describes the research method and data collection. The third sections present findings as well as discussion of findings and propositions. The article begins by providing a theoretical basis upon which the research is developed.1. Branding DefinedWhen operating within a competitive market, a valid question is why a buyer decides on a particular offer in a situation where there are similar or even identical choices. Companies can affect the choices by employing the various marketing tools they have at their disposal. One of those tools is branding (Kotler & Keller, 2005). Branding has long been recognized as an integral part of contemporary business environment (Aaker & Shansby, 1982; Ambler et ak, 2002; Doyle, 1990; Gardner & Levy, 1955; Homer, 2008; Keller, 1993). Few issues in marketing therefore now generate as much discussion amongst academics as branding.Branding, in its simplest sense, is an identification denoting ownership of a particular company (Barwise et ak, 2000) and a brand name identifies the products and services of a seller and differentiates them from those of their competitors (Evans & Berman, 1994). The American Marketing Association defines a brand as "a name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. [. ] A brand may identify one item, a family of items, or all items of that seller. …