New Brands Versus Brand Extensions, Attitudes Versus Choice: Experimental Evidence for Theory and Practice

The current study compares better-fitting and worse-fitting new brand names and brand extensions on brand attitudes and choice shares across situations that differ in terms of the amount of product information available and consumer knowledge of the target product category (which had limited effects), 35[emsp4 ]mm cameras (choice-set competitors Nikon and Minolta). While brand extensions and better-fitting brands generally enjoyed more positive brand attitudes and larger choice shares, effects were moderated by product information. When information was limited to brand name and price, the better-fitting brand extension (Sony) commanded more share than did the better-fitting new brand (Optix) which in turn commanded more share than did either the worse-fitting extension (Nike) or the worse-fitting new brand (Topix). But when information on product features was added, target brands were chosen similarly across brand names where the better-fitting new brand Optix garnered slightly (non-significantly; 5%) more share than the better-fitting extension Sony. This weak preference was reversed, however, in the attitude data where Sony was rated significantly higher in liking than Optix. Two focal conclusions emerge. First, new brands can perform as well as or better than brand extensions when consumers process product information. In this study, brand-extension advantages were confined to situations of limited information processing and better fit. Second, since branding effects differed across attitudes and choice, researchers hoping to duplicate in the laboratory the types of branding effects likely to occur in the marketplace may want to expand their traditional focus on attitudes to include choice.     

Can good news be bad? The role of brand communication strategy and brand commitment in the announcement of product improvements

Although product improvements are usually good news, this research reveals that brands can be affected negatively depending on the level of brand commitment and on the type of communication strategy chosen by the brand. More specifically, this research examines how high-commitment consumers react to product improvements, and how these consumers respond to a communication strategy in which a brand admits that the new product version improves upon a previous inferior product (herein referred to as ‘honesty strategy’). Results of an online study reveal that product improvement is perceived more negatively by high- (compared to low-) commitment consumers, and that these consumers react more negatively and attribute manipulative intent when the brand uses an honesty strategy. This research shows that brands need to be cautious in communicating product improvements to consumers, particularly to its most committed ones. An admission that a product improvement significantly enhances the quality of a previous (inferior) product may backfire with committed consumers.     

By-Brand or By-Category? The Effect of Display Format on Brand Extension Evaluation

Although consumers often encounter brand extensions for the first time during a store visit, most research on brand extensions does not take into consideration how product display in retail environments might affect evaluation of a brand extension. We explore the effect of two distinct display formats on brand extension evaluations: by-brand display, where a brand extension is presented in the context of other products made by the same parent brand (e.g., Nike razors displayed with Nike sneakers, Nike sportswear, etc.), and by-category display, where a brand extension is presented in the context of competing brands within the extension category (e.g., Nike razors displayed with Philips razors, Gillette razors, etc.). Three studies demonstrate that low fit extensions of high quality brands are evaluated more favorably when displayed by-category than by-brand, whereas high fit extensions of low quality brands are evaluated more favorably when displayed by-brand than by-category. In support of the proposed underlying mechanism, we show that display format influences consumers’ evaluations of brand extensions by changing the weight of importance given to parent brand quality and brand-extension fit information. Finally, we demonstrate that display format not only influences evaluation of the extension, but also has downstream consequences for the consumption experience with the extension.     

The short- and long-term impact of brand placement in an advertiser-funded TV program on viewers' attitudes toward the sponsor brand and its main competitor

The present research investigates how viewers' liking of an advertiser-funded television program (AFP) influences viewers' attitude toward the brand that sponsors the program and its main competitor through a field study at two points in time (N_wave1 = 529 and N_wave2 = 256). An AFP is a television program which is fully sponsored by and built around a sponsoring brand. We test how the perceived program-sponsor brand fit moderates the effect of program liking one week and one month after the program finale. Program liking positively impacts brand attitude for the sponsor, and this effect becomes weaker over time. Program-sponsor brand fit reinforces the positive effect of program liking on brand attitude, especially in the longer term. In the longer term, program liking of an AFP also positively impacts viewers' attitude toward the main competitor of the sponsor.     

A brand preference and repurchase intention model: the role of consumer experience

Consumer brand preference is an essential step towards understanding consumer choice behaviour, and has therefore always received great attention from marketers. However, the study of brand preference has been limited to traditional marketing focusing on functional attributes to maximise utility. But now the shift to experiential marketing broadens the role of the brand from a bundle of attributes to experiences. Technological advancements have helped to increase the similarities between brand attributes and product commoditisation. Consequently, consumers cannot shape their preferences among brands using rational attributes only. They seek out brands that create experiences; that intrigue them in a sensorial, emotional and creative way. This study seeks to develop a model that provides an understanding of how brand knowledge and brand experience determine brand preference and to investigate its impact on brand repurchase intention. Accordingly, exploratory focus group discussions are employed followed by a survey of mobile phone users in Egypt. The findings provide insights into the relative importance of consumer perceptions on different brand knowledge factors in shaping brand preferences. It also demonstrates the significance of consumers’ experiential responses towards brands in developing their brand preferences that in turn influence brand repurchase intention. The model therefore offers managers a new perspective for building strong brands able to gain consumer preferences.     

Modeling the Effects of Green Advertising on Brand Image: Investigating the Moderating Effects of Product Involvement Using Structural Equation

ABSTRACT

?This experimental study examined consumers’ response to green advertising for high- and low-involvement products by measuring its effect on consumers’ intention to purchase such brands. The present study enhances our understanding of the moderating role of product involvement and extends the structural equation tests of the four causal models. A dataset of 169 respondents is used to examine the role of brand image and brand attitude in the context of green advertisements. Consistent with earlier findings, the suggested model provides a good fit of the data and results indicate that positive attitude toward green advertisements, brand image, and attitude toward the brand enhances the chances of consumers’ purchase intention of such brands. The study also verifies that product involvement moderates the positive relationship between attitude toward green advertisements and brand image such that at higher levels of product involvement, attitude toward green advertisements has a stronger effect on brand image.     

Effects of co‐creation claim on consumer brand perceptions and behavioural intentions

Increasingly often, companies ‘co‐create’ with consumers in open innovation practices to develop new products more effectively. Little is known about how co‐creation affects consumer brand perceptions in the mass market. We hypothesize that co‐creative brands – as opposed to non–co‐creative brands – are perceived as more authentic and sincere, and are associated with relatively positive behavioural intentions. A between‐subjects experiment was conducted to test these hypotheses in an online panel of consumers who did not take part in co‐creation. The experiment had a 3 (control vs. co‐creation vs. co‐creation supported with some visual proof) × 2 (well‐known existing brand vs. fictitious brand) design. Quantitative data analyses (n = 530) confirmed that for both brands, co‐creation affects brand personality perceptions directly and behavioural intentions indirectly. This study shows that co‐creating with consumers can be a strategic method to positively influence product perceptions and behavioural intentions.     

Brand personality inference: The moderating role of product meaning

Abstract

This study draws on categorisation theory to investigate how consumers make brand personality inferences. Its purpose is to determine the basic category at which consumers make brand personality inferences and whether this level varies for functional and symbolic products. Experimental results show that the basic level of categorisation for brand personality inferences is the brand level for symbolic products and the product type level for functional products. These findings suggest that managers may have less latitude to adopt diverse personalities for functional than symbolic products. The study also demonstrates that, in contrast to prior work, future research on brand personality should consider a wider range of sources of personality.     

Evaluating brand extensions,fit perceptions and post-extension brand image: does size matter?

Abstract

This study contributes to the scant literature considering brand extensions in a competitive context and investigates whether the correlation between consumers’ beliefs about a brand’s attributes and the number of its buyers described in previous research occurs with regard to fit perceptions of brand extensions, extension evaluation and post-extension brand image. In a scenario experiment with real brands and fictitious extensions, members of a commercial UK panel evaluated high and low-fit extensions and post-extension brand images of competing brands of pet food. The relative size of each brand in terms of the number of its buyers was used as a benchmark in the analysis. For all extensions, results reveal a positive correlation between post-extension brand images, extension evaluations, fit perceptions and the number of brand buyers. Results have implications for interpreting consumers’ perceptions of fit, evaluation of extensions and post-extension brand images of competing brands.     

A global perspective on combating Shanzhai products: Cross-cultural solutions

To compete on the world market, companies from emerging economies often adapt their innovations to satisfy unique cultural needs. They do so, in part, by copying the products of their western counterparts with a degree of modification. This approach is referred to as Shanzhai, which is a Chinese neologism meaning “copycat.” In this article, we discuss the Shanzhai phenomenon and explain Shanzhai's development stages and threats to original brands across the globe. Then, we examine how cultural factors (i.e., power distance belief, face consciousness, and analytic vs. holistic-thinking style) influence consumers’ perception towards Shanzhai products. We further suggest that original manufacturers should adopt selected strategies to combat Shanzhai threats vis-à-vis three cultural drivers. One driver entails launching full product lines and developing new distribution channels in high power distance belief cultures but promoting brand originality in low power distance belief cultures. A second alternative involves embracing a sustainable and green brand image in low face-sensitive cultures but strengthening brand logo impacts and enhancing intangible brand benefits—such as social value (e.g., brand user profile, prestige)—in high face-sensitive cultures. The third entails communicating integrated product values in holistic-thinking cultures but highlighting an offering's most competitive and unique features in analytic-thinking cultures.     

Celebrity endorsement in the world of luxury fashion – when controversy can be beneficial

ABSTRACT

Can a negatively publicised celebrity endorser ever lead to favourable brand attitudes toward a luxury fashion product (i.e. a perfume)? An online experiment was conducted with a sample of 260 target-relevant female consumers where two factors were manipulated: the brand’s positioning objective (image reinforcement versus revitalisation) and the type of celebrity endorser (naturally versus incidentally controversial). Consumer attitudes towards the luxury fashion brand were generally more positive when the type of celebrity endorser was consistent with the brand’s positioning strategy, that is, when a naturally controversial celebrity endorses a brand with a reinforcement strategy and when an incidentally controversial celebrity endorses a brand with a revitalisation strategy. Furthermore, this effect was mediated by consumers’ appreciation of the celebrity-positioning match-up (i.e. the consistency between the celebrity’s persona and the brand’s strategy) but not by their perceptions of appropriateness (i.e. the traditional match-up hypothesis). Several implications suggested by these findings are developed.     

Consumer Perception of Country-of-Origin Effect and Brand Effect

Abstract

Both brand information and country-of-origin information are often used by consumers to reduce the complexity of task involved in information processing. This paper investigates both effects on hi-tech products. I find that, overall, both country-of-origin effect and brand effect are statistically significant. However, the brand name product with an unfavorable country-of-origin image does not lose its advantage compared to the brand name product with a favorable country-of-origin image. The no-name product with a favorable country-of-origin image can offset the disadvantage of not being the brand name product.     

跨境电商消费者参与价值共创对品牌偏好的影响

跨境电商是全新的贸易和销售方式，直接面对世界各地不同背景和多元化的的消费者。这些消费者具有个性化的消费需求与独特的创造愿望，能够为企业提供丰富的创意资源。通过价值共创提升消费者的品牌偏好成为了跨境电商领域的热点问题。文章从产品设计与产品营销两个阶段、创意共创与创意选择两大体系，建立了跨境电商消费者参与价值共创的四种类型对品牌偏好的影响模型，并展开实证研究。研究结果表明，创意选择体系主要影响品牌识别，创意共创体系主要影响品牌形象，品牌认知和品牌形象都有助于提升消费者对品牌的偏好。     

Communicating brand gender through type fonts

The marketing literature suggests that positioning a brand in terms of brand gender (i.e., brand masculinity and brand femininity) generates favorable consumer responses, yet there is little research on how brand gender perceptions arise. This research examines whether type font can be employed to create brand gender perceptions in the context of unfamiliar brands. Building on the theoretical framework of personality inferences based on static cues, three studies involving a range of type fonts, brand names, and product categories demonstrate that type font influences consumers’ perceptions of brand gender. Type font effects emerged for brand names presented in isolation (Study 1), brand names presented on signage (Study 2a), and brand names on product labels (Studies 2b and 3). Importantly, type font effects on brand gender persisted in the presence of a competing brand gender cue (i.e., brand name with gender associations), and type font and brand name influenced brand gender perceptions independently. A fourth study demonstrates that type fonts representing the brands influence consumers’ likelihood to recommend the brand. The article concludes with a discussion of theoretical and brand management implications.     

What is the added value of an organic label? Proposition of a model of transfer from the perspective of ingredient branding

ABSTRACT

This paper investigates the added value of an organic ingredient strategy and the transfer mechanisms at work when placing an organic label on product brands. We proposed and empirically tested an integrated model that included three stages: brand and label equity; transfer mechanisms; and product evaluation. We first selected an organic label and product brands and then tested our hypotheses with a sample of French consumers. The results confirm the positive influence of brand and label equity on transfer mechanisms (brand/label perceived fit and ease of transfer) and, in turn, illustrate how ease of transfer influences the overall product evaluation. A surprising result is that brand/label perceived fit does not directly affect the overall product evaluation; rather, it only influences brand/label ease of transfer.     

Cultural Differences in Consumer Engagement in Brand-Related SNS Groups: A Cross-Cultural Study of China and the United States

To gain a better understanding of consumer engagement in brand-related social network site (SNS) groups, this study examines how consumers engage with the brand and other members of the groups among different national cultures through the lens of brand community characteristics and collective value creation practices within brand communities. Through conducting a directed qualitative content analysis of two cases—consumer wall posts in a Facebook group and a Renren group—this study finds supporting evidence that although consumers in both groups actively shared their product use experiences, consumers in the Renren group tended to explicitly express their shared consciousness with other group members, share their product use experiences in a modest and respectful way, and actively engage in social networking, while consumers in the Facebook group tended to focus on product use sharing. Theoretical and managerial implications are discussed.     

It's no longer mine: the role of brand ownership and advertising in cross-border brand acquisitions

Although cross-border brand acquisitions are increasingly common in the global marketplace, research on how consumers respond to them is limited. Building on social identity and psychological ownership theories, we introduce the concept of brand ownership to the advertising literature, and show its negative effects on consumer reactions to a brand acquisition. Furthermore, we demonstrate that consumers’ disidentification (i.e., an oppositional motivation) with an acquiring country moderates the negative effect of consumers’ brand ownership on consumer attitudes after a brand acquisition. The results reveal that consumers with high levels of brand ownership develop more negative post-acquisition brand attitudes when a brand is acquired by a country with which consumers strongly disidentify (i.e. dissociative vs. out-group). Furthermore, our research introduces the concept of a brand ownership appeal in advertising, and demonstrates that it is an effective advertising strategy in enhancing post-acquisition brand attitudes for consumers with high levels of brand ownership. Important theoretical and managerial advertising implications conclude this research.     

Enhancing digital entertainment through personalization: The evolving role of product placements

This research tests a model of the effects of personalized product placements on consumer preference, both for the embedded brand and the digital entertainment product in which that brand is embedded. The latter has yet to be examined in the traditional product placements literature. The results of two studies conducted in the domain of eBooks are presented. Evidence suggests that when pre-existing rankings of brands were systematically collected and used to design personalized product embeds, participants were willing to pay more for the eBook when it contained a favourably (vs. unfavourably) ranked brand, but only when the brand embed was subtle (as opposed to obvious). Study 2 also finds that personalized product placements enhanced consumers’ recall of, and probability of choosing the embedded brand. Results suggest that both the digital entertainment product and the embedded brand can benefit from the strategic use of personalized product placements.     

The competing roles of variety seeking in new brand adoption

We examine how consumers' attribute-level variety-seeking behaviors can explain their propensity to adopt a new brand in the consumer packaged goods (CPG) market. We leverage consumers' purchase history among extant brands prior to a new brand introduction as an indicator of the new brand adoption upon its launch. We incorporate variety seeking at two product attribute levels – brand and flavor – and find that variety seeking along these two dimensions predicts different outcomes for new brand adoptions. The estimation results of our discrete-time hazard model show that consumers' brand-level and flavor-level variety-seeking behaviors affect their likelihood to adopt a new brand in different manners: consumers who purchase various brands are more likely to adopt a new brand, whereas those who choose various flavors are less likely to adopt a new brand. The results also show that the new brand's price promotions and in-store displays can affect the role of variety seeking in consumers' new brand adoption. We assess the robustness of our findings by replicating our empirical model with an additional measure of variety seeking as well as a variety-seeking measure in another product category.