Branding in an Online Selling Era: The Interaction and Performance Enhancement Effects of E‐Marketing and Branding for Commercial Farmers in China

ABSTRACT

As internet and communication technologies reshape global business, a critical question arises: to what extent do traditional marketing strategies contribute to success in the online selling era? Examining the challenges posed by e‐commerce to conventional branding, the study employs a simultaneous equation model based on the control function to explore how the interaction between branding and e‐marketing influences business performance in the agricultural sector, using a large sample of 3291 commercial farmers in China. Our results show a positive effect of e‐marketing on business performance whilst the branding effect is found to be not significant. The analysis also uncovers a significantly positive interactive relationship between branding and e‐marketing. These findings challenge previous studies that reported positive effects of branding on business performance but did not account for confounding factors, such as e‐marketing strategies. Our findings highlight the interconnectedness of branding and e‐marketing, reflecting the real‐world case that most commercial farmers in China are keen on e‐marketing while the attractiveness of branding is flatting out.