The Impact of Fit Measures on the Consumer Evaluation of New Co‐Branded Products*

A popular strategy currently employed for new product introductions is co‐branding. Such a strategy allows a brand to innovate with the support of a partner brand. The present study investigates how consumers perceive a new product with two brands. Previous research focused on the logic of a brand combination by investigating the impact of the fit between both existing product categories (i.e., product‐product fit) and the fit between both brand images (i.e., brand‐brand fit) on the evaluation of a new co‐branded product. However, no study has yet focused on the relationships between both brands and their existing product categories, and the specific new product that has been developed. The present paper aims to improve the understanding of the potential benefits of co‐branding by taking the role of the new product into account. The empirical study discussed in this paper replicates and extends the model of Simonin and Ruth (1998) by adding two new measures to their model. These measures are related to the fit of both existing product categories with the new product (i.e., new‐product‐product fit) and the fit of both brand images with the new product (i.e., new‐product‐brand fit). The results from this empirical study with 210 consumers in The Netherlands show that product‐product fit, brand‐brand fit, and new‐product‐brand fit have a significant positive impact on the evaluation of a new co‐branded product. New‐product‐product fit was not significantly related to consumer evaluations. In addition, the results show that consumers prefer a new co‐branded product that can be clearly associated with one of the brands in the partnership so that it can be categorized unambiguously. This paper discusses these findings and provides implications for research and managerial practice in the important and growing field of brand‐driven innovation.     

Launch Strategy and New Product Performance: An Empirical Examination in The Netherlands

Although previous research has investigated the concept and contents of new product performance, there is still no consensus about the managerial decisions that constitute a launch strategy and how such decisions impact new product performance. The research objective for the present investigation is to assess the impact of launch strategy and market characteristics on new product performance and to test the stability of this impact across consumer and industrial products. Data were collected on 272 consumer and industrial new products in The Netherlands through a mail questionnaire approach. We based our definition of a launch strategy on an extensive literature review and interviews with managers. Our conceptualization of new product performance represented two dimensions, namely, market acceptance and product performance. The market acceptance dimension reflects the new product's market position and sales levels. The product performance dimension refers to the quality and technical performance level of the new product. This richer specification of the dependent variable provides a better view on which launch decisions impact which dimensions of new product performance. The impact of launch strategy was higher for market acceptance than for product performance, overall and for both consumer and industrial subsamples separately. In line with results from recent studies, overall, market acceptance is influenced by the product's innovativeness, timing of market entry, breadth of assortment, branding, pricing, the objective of increasing market penetration, and competitor reactions. Product performance is influenced by the product's innovativeness, breadth of assortment, and by the objective of using an existing market. Analyzing the consumer and industrial products separately showed that the general picture of launch decisions and their impact on the dependent variables was comparable across the total sample and both subsamples, indicating that heterogeneous samples in new product launch research may not cause major interpretation problems. Second, the analyses revealed that some launch decisions are more important in attaining new product success for consumer products than for industrial products, and vice versa. While these decisions do not lead to contradicting results in the samples, they show that some decisions may be especially relevant for only consumer or industrial products. We discuss research and managerial implications of the results.     

Product Hierarchy and Brand Strategy Influences on the Order of Entry Effect for Consumer Packaged Goods

Manufacturers focus on becoming more agile, software firms deploy rapid application development tools—everyone is in a hurry. Although we all understand the benefits of being first to market, we understand just as clearly that not all first-to-market products enjoy the same, sustainable benefits from being market pioneers. Why do some pioneering products experience a more significant order-of-entry effect than others? Roger A. Kerin, Gurumurthy Kalyanaram, and Daniel J. Howard examine two factors–product hierarchy and brand strategy—which may influence the magnitude of this effect for new consumer packaged goods. First, they hypothesize that pioneering a new product class offers a greater advantage than introducing a new form to an existing product class. Second, they predict that the order-of-entry effect will be greater for brand extensions than for entirely new brands. Finally, considering both product hierarchy and brand strategy, they expect that the order-of-entry advantage for brand extensions over new brands will be significantly greater within new product classes than for new forms of existing products. These hypotheses are tested using data from the Information Resources, Inc. Behaviorscan° data set. Collected from 2,500 household panel members, 75 supermarkets, and 25 drugstores, this database contains weekly measures of brand trial penetration as well as brand distribution, price, and promotion information in eight geographic markets from the period 1983–1988. The models developed in this study explore the relationships among brand trial penetration, product hierarchy, brand strategy, order of entry, lag time between successive brand entrants, and marketing mix variables (i.e., price, promotion, distribution, and advertising). The study strongly supports all three hypotheses. In particular, the analysis clearly demonstrates that the order-of-entry effect is greatest for a new product class pioneered by a brand extension. Order of entry has the least effect on a new product form pioneered by an entirely new brand. For a company seeking a competitive advantage from being first to market, innovation in product function offers greater potential benefit than innovation in product form. Such a company can also benefit from building on the name and reputation of its established brands. Although the study finds these order-of-entry effects significant, the effects of marketing mix variables such as product price and promotion are consistently stronger.     

Service inside: The impact of ingredient service branding on quality perceptions and behavioral intentions

Extant literature on ingredient branding is directed at tangible products but does not account for the role of services as ingredients. For B2B suppliers, however, service is emerging as the dominant route to achieving competitive advantage. The purpose of this research is to investigate how ingredient service brands impact customer preferences on B2B markets. We specifically assess how ingredients might impact industrial buyers' quality perceptions of the end product. By conducting a within-subjects scenario-based experiment among industrial buyers, we find a positive effect of the presence of an ingredient service brand on buyers' perception of the end product's service quality, whether the host brand is of higher or lower quality. The effect is stronger when the quality of the host brand is lower. Furthermore, results indicate that the host brand generally has a stronger impact on the quality evaluation of the end product meaning that an ingredient service brand cannot fully compensate for a lower-quality host brand. For managers, our findings indicate that ingredient service brands provide a cue to product quality of the end product, indirectly improving purchase intentions. As a result, branded service ingredients offer host service brands as well as ingredient service brands a potentially powerful strategy for improving competitive position in B2B markets.     

Successful branding of a commodity product: The case of RAEX LASER steel

In today's competitive business environment, industrial marketers must work harder than ever before to achieve some degree of differentiation for their products to avoid being viewed as a commodity. Many firms have sought to achieve this differentiation by branding their products. Branding, however, is more than simply putting the company's name on a product and broadcasting that name to its target audiences. For industrial products, branding is a multidimensional construct that includes not only how the customers view the physical product, but also the logistics, customer support, and corporate image and policy that accompany this product. This paper discusses how the Finnish steel company Rautaruukki was able to successfully incorporate these four components into their RAEX LASER steel, a brand specifically targeted for job shops who do laser cutting. The paper concludes with managerial implications and suggestions for how industrial marketers might implement their own branding strategy.     

Can All Brands Innovate in the Same Way? A Typology of Brand Position and Innovation Effort*

Product innovation is vital to ongoing brand equity and has been responsible for revitalizing many brands, including Apple, Dunlop Volley, Mini, and Gucci. While several scholars have noted the relationship between a brand's position and the form of innovation available to a firm, surprisingly no study has sought to bridge this gap. This study aims to address this issue by, first, building a typology of the innovation practices underpinning differently positioned brands and, second, exploring the strategic and tactical implications of different brand‐related innovation efforts. In so doing, this study addresses a critical question: How do differently positioned brands organize their innovation efforts? A multiple case‐study approach was used in this paper. Cases were sampled from a number of industries and across a range of different countries with a focus on business‐to‐consumer brands. Thirty‐five interviews were conducted across 12 cases. The brands studied differed in their approach to innovation (incremental vs. radical) and in their relationship to the marketplace (market‐driven and driving markets). These two dimensions result in four alternative ways of organizing the innovation effort to effectively reinforce the brand: (1) incremental and market driven (follower brands); (2) radical and market driven (category leader brands); (3) incremental and driving market (craft‐design‐driven brands); and (4) radical and driving markets (product leader brands). For follower brands, new product success is contingent upon the quality of the firm's marketing information systems and speed to market. Category leaders seek to dominate and appeal to the mass market with bold product initiatives. Craft‐designer‐driven brands aim to maintain an aura of authenticity, downplaying the commercial realities of their innovation efforts, while product leader brands seek to reaffirm their status as industry pioneers. This research contributes to the branding and new product development literature in several ways. It illustrates that differently positioned brands require the deployment of different firm capabilities and resources and a unique organizational philosophy to achieve new product success. The findings also enrich the brand extension literature through an examination of alternate bases, beyond that of product category, by which brand fit can be established. Finally, this research demonstrates how brand positioning can pose limitations on an industry leader's ability to respond to disruptive technologies. This study identifies that failed new products or brand extensions are driven by a mismatch between desired strategy and the capabilities necessary for achieving success (suggesting brand extensions are not as low risk as previously thought). As such, managers should carefully attend to brand perceptions when developing innovation strategies, particularly in relation to brand extensions.     

The Effects of Brand Strategy and Technological Uncertainty on Pioneering Advantage in the Multigenerational Product Market

This research investigates how brand strategy and technological uncertainty influence the order‐of‐entry effects for a previous generation pioneer in the successive generation. The findings of our longitudinal experiment reemphasize the importance of continuous pioneering, demonstrating that consumers exhibit a strong preference for a previous generation pioneer's product when it continues to pioneer the successive generation. More importantly, the findings indicate that continuous pioneering with a new brand leads to greater brand preferences when technological uncertainty is high. This is because in that condition, consumers perceive greater innovativeness with a new brand than with the extant one. On the other hand, an extant brand increases consumer brand preferences for a previous generation pioneer's product in the successive generation when technological uncertainty is low. The theoretical and practical implications of the results for understanding and managing pioneering advantage and brand strategy in the multigenerational product markets are discussed.     

Transaction cost implication of private branding and empirical evidence

Branding and transaction cost economics represent two research streams that rarely cross paths in the literature. In this study, I explore the transaction cost implication of private branding, a practice whereby products supplied by unaffiliated manufacturers are sold under private brands owned by retailers. The main thesis is that private branding can preempt a special case of asset specificity called brand specificity, where retailers also invest in the marketing of an outsourced product, but subsequent reputation effects (positive or negative) are specific to the manufacturer who brands the product. Retailers, thus, will not be fully motivated to optimize their investment in product marketing unless they take over the branding right. With potential barriers to private branding being controlled, data obtained from a national chain reveal that the retailer deploys its marketing resources according to the branding status of a product, implying that private branding can deflect the transaction cost of solving the brand specificity problem. The results offer new theoretical insights into branding and transaction cost analysis. This efficiency‐based approach to private branding also provides practitioners with useful guidelines for crafting a branding strategy that will facilitate cooperation between manufacturers and retailers. Copyright © 2009 John Wiley & Sons, Ltd.     

Branding a B2B service: Does a brand differentiate a logistics service provider?

Existing research has shown that strong brands serve as an important point of differentiation for firms, assisting customers in their evaluation and choice processes. Although there is considerable research on the branding of consumer goods and an increasing literature on industrial and service brands, little is known about branding in the context of business-to-business services. This research extends existing brand theory to a new setting, namely B2B services. Drawing on the results of two mail surveys, we examine B2B services branding in the context of logistics services. Findings suggest that brands do differentiate the offerings of logistics service providers and that brand equity exists for this commodity-like B2B service. Findings also support the extendibility of Keller's [Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1-22] brand equity framework into the logistics services context. However, results of this study show that; logistics service providers and their customers have different perspectives on the relative influence of brand image and brand awareness on brand equity. Implications of these findings for managers and directions for future research are offered.     

The Impact of Seasonality on the Launch of Infrequently Purchased Products

Few published articles have dealt with the unique problems associated with the management of new, infrequently purchased products that exhibit seasonal patterns of demand. Marvin Berkowitz demonstrates how seasonality influences the performance of a new consumer durable good, a new brand of battery-operated lights, during a 2-year period following its launch. The data presented support four hypotheses: (I) the newest brands in a product category, when compared to dominant brands, will be subject to higher seasonal variation in consumer awareness, advertising recall, product attribute positioning, and purchase intent; (2) the relationship between seasonal effects and brand share within a product category will not be linear; (3) differences between product attributes for competing brands will be most apparent to consumers during periods of peak seasonal activity; and (4) perceptions of product attributes that are most important in the buying decision are subject to the least seasonal variation. The article also demonstrates how seasonal variations may be charted and discusses how this analysis contributes to the overall management of the new product.     

The effects of fishery harbor-based brands on the brand equity of shore fish: An empirical study of branded mackerel in Japan

In Japan, some fishery cooperative associations use their fishery harbor names as a brand to differentiate their own shore fish. Most notable is the branding of mackerel. In this paper, we analyze the effects of branding using a discrete/continuous model. The results are as follows. First, there is first-mover advantage in the branding of mackerel. For instance, unlike other brands of mackerel, Seki-saba as the pioneering brand can increase its brand equity. Second, other brands have opposing effects that increase and decrease the brand equity of the pioneering brand. We find the former is strongest in the early stages of fishery branding when there are few competing brands of mackerel, while the latter becomes stronger in later stages when many other brands emerge.     

Creating Brand Names That Work

When it comes to brands, what's in a name is everything—a product is not a brand until you name it. What you call your product makes a difference. In addition to making the product yours and no one else's, a good brand name can create a competitive edge by being memorable, by communicating the special qualities of the product, and by setting the stage for a line of future products. Lorna Opatow brings practical experience to this article in which she identifies the problems and the promises in choosing brand names, and then provides guidelines for creating, developing, and evaluating them prior to testing for market acceptance.     

The Role of Product Originality,Usefulness and Motivated Consumer Innovativeness in New Product Adoption Intentions

Prior research has posited that product attributes are primary drivers of success that a firm must consider to develop a competitive advantage. Two product attributes, originality and usefulness, have been identified in the literature as significant dimensions of new product success. Customer demands differ, and more purchase intentions toward a new product depend on how consumers connect the product attributes to their own individual characteristics. Studying motivated consumer innovativeness as a personality trait may improve our understanding of the motivations for adopting innovations; however, questions remain regarding whether the effects of originality and usefulness on consumers' intentions to adopt are different when levels of these attributes are matching or dissimilar and what the relationship is between these effects and motivated consumer innovativeness. This study seeks to empirically investigate these effects and their relations by collecting data from 560 potential consumers in China. This paper uses hierarchical regression analysis to test hypotheses in four product domains as representative of higher or lower levels of usefulness and originality. The research shows that new product originality affects consumers' intentions to adopt new products only if it matches the level of new product usefulness. The results also reveal that motivated consumer innovativeness has a positive moderating role on the relationship between new product originality and consumers' new product adoption intentions when both attributes are at a lower level. The theoretical and practical implications for new product development and marketing communications are discussed.     

The evolution of generic brands in industrial markets: the challenges to owners of brand equity

The paper suggests that generic brands can develop in industrial markets as easily as they can in consumer goods markets. It briefly examines the issue of branding in industrial markets and then describes the problems that firms can face if their brand name becomes used in a generic manner. It suggests actions that such firms can take as responses to this situation.     

A literature review and future agenda for B2B branding: Challenges of branding in a B2B context

The existing body of research knowledge on brand management has been predominantly derived from business-to-consumer markets, particularly fast moving consumer goods and has only recently started to expand in other contexts. Branding in business-to-business markets has received comparatively little attention in the academic literature due to a belief that industrial buyers are unaffected by the emotional values corresponding to brands. This paper provides a critical discussion of the fragmented literature on business-to-business branding which is organized in five themes: B2B branding benefits; the role of B2B brands in the decision making process; B2B brand architecture; B2B brands as communication enablers and relationship builders; and industrial brand equity. Drawing on the gaps and contradictions in the literature the paper concludes by proposing an agenda for future research.     

The Effect of New Product Preannouncements on the Evaluation of Other Brand Products

Some firms preannounce new products long before they are actually available on the market. Previous research has investigated the effects of such new product preannouncements (NPPs) on consumer and competitor responses. This paper examines how NPPs affect consumers' construal of and preferences for the new product and, in turn, how these evaluations influence their preferences for the brands' other products. Specifically, the paper demonstrates that consumers' construal level of NPPs spills over to their construal of other products in the brand family, causing a positive, biased evaluation of these products. Three experimental studies reveal that the mere information about an NPP can shift evaluation of currently available brand products in a positive direction through construal‐level spillover and increased perceptions of similarity. The studies contrast NPPs to new product announcements (NPAs) and consistently find more positive results for the former. Moreover, the studies find that product newness has a moderating effect on the results, such that the positive spillover effects are more pronounced for really new products than for incrementally new products. The results also show that the effects are contingent on the credibility of the NPP: If consumers do not consider the NPPs credible, no positive spillover effects will materialize. Finally, the studies demonstrate that the positive evaluative spillover is specific to the products in the brand family and does not affect consumers' perceptions or choice of competitor products. Consumers actually rate the competing brand's remaining products lower when the focal brand engages in NPPs. The study has important implications for managers regarding how to use NPPs to influence consumers' construal and evaluations of brand products.     

Decomposing Product Innovativeness and Its Effects on New Product Success

Does product innovativeness affect new product success? The current research proposes that the ambiguity in findings may be due to an overly holistic conceptualization of product innovativeness that has erroneously included the concepts of product advantage and customer familiarity. This article illustrates how the same measures have often been used to assess product advantage with product innovativeness and product innovativeness with customer familiarity. These paired overlaps in measurement use are clarified in this research, which decomposes dimensions of product innovativeness along conceptual lines into distinct product innovativeness, product advantage, and customer familiarity constructs. To further support this decomposition, structural equation modeling is used to empirically test the distinctions. The measurement model supports the conceptual separation, and the path model reveals contingent effects of product innovativeness. Although product innovativeness enhances product advantage, a high level of innovativeness reduces customer familiarity, indicating that product innovativeness can be detrimental to new product success if customers are not sufficiently familiar with the nature of the new product and if innovativeness fails to improve product advantage. This exercise in metric development also reveals that after controlling for product advantage and customer familiarity, product innovativeness has no direct effect on new product profitability. This finding has strong implications for firms that mistakenly pursue innovation for its own sake. Consideration of both distribution and technical synergy as driving antecedents demonstrates how firms can still enhance new product success even if an inappropriate level of innovativeness is present. This leads to a simple but powerful two‐step approach to bringing highly innovative products to market. First, firms should only emphasize product innovativeness when it relates to the market relevant concepts of product advantage and customer familiarity. Second, existing technical and distribution abilities can be used to enhance product quality and customer understanding. Distribution channels in particular should be exploited to counter customer uncertainty toward newly introduced products.     

Enhancing Consumers' Affection for a Brand Using Product Design

Product design is an integral component of a brand and an important driver of brand equity. For the brand, product design is an important tool for driving differentiation, creating value for both the consumer and the firm, driving consumer preferences, and creating a sustainable competitive advantage. At the firm level, the importance of investing in design has been substantiated by studies that suggest firms capable of creating innovative design and providing superior consumer value perform better in the marketplace. Thus, product design clearly presents an important area of research for those studying and managing brands. In this context, the goal of this research is to explain the brand‐level affective outcomes that product‐level design features can create. This paper develops a conceptual framework and hypotheses that theoretically connect design‐based values, at the product level, to affective brand‐level relational outcomes with the brand. The drivers of product affection include social value, altruistic value, functional value, emotional value, and economic value. Analogous to “firm affection,” the paper postulates a brand affection construct that is defined as the passion and pride that a consumer feels about owning a brand. Using syndicated product‐level data from the automotive industry collected from a national sample of consumers, 712 useable consumer/product observations of 30 small vehicles are employed in the analysis. A confirmatory factor analysis and structural equation model are developed to test the conceptual model. This research finds that the social value and emotional value that a design provides to consumers have a greater effect on brand affection than purely transactional values, such as functional value or economic value. This research contributes to the literature by providing evidence that product design‐related values are multifaceted and can contribute to relational outcomes, such as brand affection. It contributes to practice by highlighting the means by which design can be used as a strategic tool to create a sustainable long‐lasting relationship with the consumer, and provides managers with a framework to assess the impact of design‐based values on long‐term relationship‐based outcomes. The results provide new insights about how consumers' perceptions of the value of product design at the product level can help create enduring relationships with brands.     

Brand relationships and brand equity in franchising

Previous research suggests that building brand equity enhances the competitive advantage of retailers in B2B markets. However, limited attention has been paid to the concept of brand equity in B2B retailing contexts, particularly in franchise channels. This study seeks to understand how brand relationships can be leveraged to enhance brand citizenship behavior and ultimately brand equity in franchise channels. Accordingly, this study explores franchisees’ perceptions of their franchise brands, leading to a new conceptualisation of ‘franchisee-based brand equity’. An interpretive research design is employed, comprising of semi-structured interviews with key informants. Findings suggest that franchisors play an important role in promoting brand citizenship behaviour of franchisees, which in turn enhances brand equity. The study provides insight on how to effectively manage brand relationships to enhance franchisees’ brand citizenship behaviour and brand equity. The concept of brand relationships has been discussed widely in consumer markets, but has received limited attention in B2B contexts. In response, this study provides new insight in B2B branding and specifically, in how brand relationships may enhance brand citizenship behaviour and brand equity in B2B markets.     

The Impact of Product Innovativeness on the Link between Development Speed and New Product Profitability*

A review of the literature reveals that the relationship between development speed and new product profitability is not as strong and straightforward as conventional wisdom suggests. A number of studies show positive results, others show mixed results, and some present no evidence of a relationship. In other words, the valence of the link between development speed and new product profitability is unclear at this time. Therefore, this study investigates whether or not speeding new products to market has positive or negative effects on new product profitability. Prior research shows that product innovativeness influences both development speed and new product profitability. This raises the question of whether increasing speed is equally successful in improving profitability across new products that differ in their degree of innovativeness. Therefore, this study also investigates the moderating effect of product innovativeness on the relationship between development speed and new product profitability. The results from a survey‐based study of 233 manufacturers of industrial products in the Netherlands reveal an inverted U‐shaped relationship between development speed and new product profitability. The findings also show that the optimal point is different for two new product types—product improvements and line additions—that vary in their innovativeness. These results provide an onset for the development of a decision tool that helps managers to determine how much to spend on accelerating the development of individual new products and how they should allocate that spending across products in their new product portfolio.