The impact of brand personality and sales promotions on brand equity

This research assesses the relative impact of a long-term brand management instrument (brand personality) and a short-term marketing mix instrument (sales promotions) on brand equity formation. The authors measure consumer perceptions of promotional intensity and brand personality and model their impact on brand equity. They find a positive impact of brand personality and a negative impact of sales promotion intensity on brand equity at the aggregate level. In line with research that identifies varying consumer responses to promotional deals, this study posits that the relative impact of the two elements varies across consumer groups. Three homogeneous consumer groups differ according to the relative impact of brand personality and consumer promotions on brand equity, following an application of a finite mixture partial least squares procedure.     

The effect of perceived advertising effort on brand perception: implication for retailers in Hong Kong

This paper examines how advertising effort, specifically advertising creativity and advertising believability, may influence consumers’ perceptions of a retailer’s business philosophy, and in turn consumers’ behavior toward retailers in Hong Kong. Altogether five hundred and eighty-three respondents (i.e. 320 college students and 263 shoppers) were surveyed. The results suggested that retailers that are regarded as having more creative advertising are perceived as being more learning-oriented, which leads to higher brand recognition. Meanwhile, retailers that are regarded as having more believable advertisements are perceived as having higher levels of integrity, and as a result are better recognized and more likely to be patronized. This research contributes to literature in retailing and marketing communication by establishing the antecedents and consequences of building a learning-oriented and trustworthy business philosophy in a cultural specific context. It also provides practical guidance for retailers who aim to increase brand recognition and purchase intentions through promotional effort.     

How well do ‘off-price’ retailers satisfy consumers?

Off-price retailing is a new form of discount or low-price retailing that has become prominent in the U. S. during the past decade. In an attempt to satisfy today's quality-and price-conscious consumers, off-price retailers have utilized a marketing strategy of ‘brand and designer names for less’. Based on research assessing consumers' attitudes towards apparel offerings of off-price versus conventional retailers, we suggest that off-price retailers are not yet successful at satisfying consumers' needs and wants in their special niche of the market. We recommend several revised marketing strategies to enable off-price retailers to satisfy consumers better, and thereby maintain their niche in the ever competitive consumer market. We conclude by observing that it is important that consumer-orientated professionals take an advocacy role in encouraging retail institutions such as off-price stores to revise their marketing strategies to serve consumer interests better.     

Marketing Mechanisms Used for Summer Food Service Programs

ABSTRACT

The aim of this research was to determine the mechanisms/channels used for marketing the Summer Food Service Program (SFSP), a federal program that provides free, nutritious meals to children during the summer months. This study utilized a multiple-site, exploratory case study design of 16 sites from seven states and Washington, DC. Data were gathered using various methods: conducting structured interviews with SFSP administrators, administering a short survey about the SFSP, and researchers’ observations of mealtime and marketing displays. Utilizing the Process Model for Customer Journey and Experience coding framework, we examined 107 marketing elements of SFSP on the basis of type of promotional mix, purchase phases, and interaction of consumer experience touch point types. Findings suggest SFSPs primarily use paid advertising and public relations as preferred marketing mix channels of SFSPs. Furthermore, findings suggest that SFSPs utilize a variety of promotional mix elements in the preconsumption and consumption phases of the customer journey but not in the postconsumption phase. Findings also revealed SFSP operators favor brand-owned and partner-owned customer touch points in the customer journey.     

‘Thinking and feeling’ products and ‘utilitarian and value-expressive’ appeals in contemporary TV advertising: A content analytic test of functional matching and the FCB model

Brand equity is now receiving significant attention, both as a result of changes to international accounting standards relating to intangible assets and as a result of the renewed focus on the impact of marketing communications on brand performance. This paper reports on an investigation of the perceptions of senior marketing and advertising agency personnel regarding (1) the importance of brand equity as a valuation and performance measurement tool and (2) whether financially based brand equity measures and marketing-oriented measures can be translated into a single composite measure of brand equity/value. The findings reported herein indicate that, although financially based brand equity valuations have been a low priority in the past, there is increasing interest in this area and in the evaluation of the long-term impact of promotional activity as part of a wider drive for marketing accountability.     

Investigating the Advertising Antecedents to and Consequences of Brand Experience

Brand experience may contribute more to promotional efficacy than concepts such as brand personality/associations/equity/value/attitudes. Yet, little is known about whether managed advertising efforts might evoke more desirable brand experiences and promotional outcomes as a consequence of consumers’ brand experiences. This study examines antecedents and consequences that may be associated with brand experiences. Attitude toward brand name, connectedness to celebrity endorser, message fit, and visual imaging were investigated as antecedents. Brand attitude and brand distinctiveness were examined as consequences. The resulting insights add managerial rigor to advertising processes that currently are often managed more by gut than by reason.     

The Case for Compatibility: Product Attitudes and Purchase Intentions for Upper versus Lowercase Brand Names

Although retailers know that brand names are important conveyors of product benefits, little is known about how subtle characteristics of brand names affect consumer attitudes and purchase intentions. This research proposes and shows that the letter case of brand names affects product attitudes and purchase intentions but that these effects depend on congruity between brand case and the gender of consumption benefits. Studies 1 and 2 show that lowercase brand names are associated with feminine characteristics while uppercase brand names are associated with masculine characteristics, as measured through judgments of name gender, gendered brand personality traits, and overall brand gender perceptions. Three additional studies demonstrate that greater congruity between brand case and the gender of consumption benefits increases product evaluations and purchase intentions. Study 3 demonstrates that greater congruity between brand case and the gender of a female consumer’s consumption goal leads her to have more favorable product attitudes. Study 4 replicates these effects by manipulating the gender of product benefits, shows that effects on purchase intentions are moderated by the consumer’s biological sex, and identifies processing fluency as the underlying mechanism. Study 5 demonstrates that brand case, rather than letter shape, drives these results. This work advances understanding of how seemingly subtle brand name characteristics affect gender perceptions and consumer behavior, with implications for brand design and positioning in the retailing industry.     

Leveraging social media-based determinants to build customer-based brand equity of a retailer

ABSTRACT

Social media is all about consumer networks and consumer relations that challenge marketers to leverage social media as a means to develop and improve their connections with consumers. Though tremendous opportunities via social media are alluring, businesses are still finding it hard to penetrate the clique of consumer interactions that are largely personal in nature. Despite the opportunities available through social media marketing activities, understanding customers and their behavior, and incorporating that information in marketing strategy formulation is critical to successful strategy implementation. This study takes a significant leap forward in this direction. Theoretically grounded in diverse fields, this study demonstrates how retailers can build customer-based brand equity using social media-based brand determinants. Using seemingly unrelated regression technique, this study examines how retailer brands can leverage consumer characteristics on social media to successfully integrate and capitalize on social media marketing activities. This research study has important implications for both marketing theory and practice.     

零售商品牌资产管理策略体系构建——基于多维理论视角的探讨

零售商品牌资产的管理和创建是零售企业获取持续竞争优势的关键,但关于零售商品牌资产管理策略的理论指导并不系统和丰富。因此,本文从零售商品牌营销管理、顾客情绪管理、顾客体验管理、顾客关系管理、顾客忠诚管理5个多维理论视角,对零售商品牌资产管理的策略体系进行了构建,以期为零售商品牌资产的创建过程和途径提供丰富的管理视野与思路。     

产品伤害危机市场恢复策略研究

在产品伤害危机事件后,企业从危机应对状态转入市场恢复状态。面对品牌资产的减少和消费者购买意愿的迅速下降,企业应采用恰当市场策略进行有效的顾客赢回和市场恢复。研究产品伤害危机后的市场恢复策略,根据国内外产品伤害危机相关理论,建立危机后市场恢复策略研究框架,规避危机后产品策略、销售促进策略、广告策略对顾客购买意愿的影响。     

Brand equity: extending brand awareness and liking with Signal Detection Theory

Brand equity, which is a central topic in modern marketing, may be assessed from three perspectives: customer mind set, product market outcomes and financial market outcomes. Brand awareness (memory) and brand liking are elements of customer mind set brand equity. The factors determining brand awareness and likeability are also determinants of the change in financial brand equity. In order to understand these factors, Signal Detection Theory is employed for finding the components of brand awareness and likeability. Signal Detection Theory has a strong tradition in psychology, but is under‐represented in marketing and consumer behaviour. This study extended the concept of brand awareness to ‘awareness sensitivity and bias’ and the concept of ‘brand likeability’ to ‘liking sensitivity and bias’ using Signal Detection Theory. The effect of divided attention on the extended components was investigated in three laboratory experiments. It was found that, in the attended mode compared with the unattended mode, consumers perform better in preserving a favourable brand awareness and have a conservative reaction tendency. This effect of attention occurs in building brand awareness for short presentations, but not for long presentations. These findings may serve as guidelines for a strategy formulation for enhancing customer mind set brand equity.     

Do stock prices undervalue investments in advertising?

Under the efficient market hypothesis, the stock price incorporates the full value of a firm’s advertising. If so, advertising spending should not be associated with future abnormal stock returns. Nevertheless, from 1995 to 2015, advertising spending often leads to abnormal stock returns the following year. The strongest results surface for consumer goods and services where advertising used to build brand equity can carryover from one year to the next. No significant differences arise for healthcare, industrial goods, or retailer advertising. Healthcare and industrial goods advertising is often modest. Retailer advertising that builds traffic should have little if any carryover into the following year. These results may help marketing managers defend an advertising budget whose benefits carryover into the following year, but hurt current profits. Having more investment analysts on Wall Street with a marketing background should help reduce this overly conservative “wait and see” discount for carryover advertising.     

Can advertising elements improve consumer evaluations of brand extensions with a moderate or low fit?

The focus of this paper is on analyzing how consumer evaluations of brand extensions with a moderate or poor fit to the core brand can be enhanced using advertising cues such as a fit prime and advertisement elements that are typically associated with the core brand. The results of the empirical study show that using a fit prime in advertisements is beneficial for moderately fitting brand extensions, but disadvantageous for poorly fitting extensions. Moreover, the results show that advertisement elements that are typically associated with the core brand can build links between the extension and the core brand and thus enhance the perceived fit. These findings imply that the options for extending a brand should not be considered as limited to product categories similar to the category of the core product because perceived fit can be influenced by communication. © 2011 Wiley Periodicals, Inc.     

The Media and Their Advertisers: Exploring Ethical Dilemmas in Product Coverage Decisions

Marketers are increasingly relying on promotional practices (variously labeled as stealth marketing, hybrid messages, covert advertising) based on the diffusion of product information by third parties that appear to be independent of advertisers. In this paper, we examine to what extent the media treat their advertisers favorably, providing these advertisers’ products extra visibility in supposedly neutral editorial content. Empirically, we model the determinant of media coverage of Italian fashion products in an extended dataset of consumer magazines in Italy, France, Germany, UK, and the USA. Research findings show that advertising is an important determinant of product placements in editorial content, and this result is consistent across countries and publishers. Our results imply that resource-rich advertisers engaging in compensatory advertising (that is, advertising investments that compensate poor product quality) might bias media coverage in their favor. Consumers will consequently be exposed twice to favorable messages about those products, in both advertisements and media content, resulting in higher purchases and reduced consumer welfare.     

Effects of prior brand usage and promotion on consumer promotional response

We examine how prior purchases influence consumer response to promotional activity in brand choice decisions. To improve understanding of the nature of this influence, we separate previous purchases into those on promotion and those not on promotion, and consider their differential impact on subsequent brand choices. Impact may be observed at the brand level, category level, or both and we suggest circumstances in which each might occur. Across four product categories, consumer sensitivity to price, price promotions, and feature advertisements increases for all brands in the product category following a promotional purchase but also decreases for the most recently purchased brand. The magnitudes of the results indicate that prior promotional purchases influence choice more than prior brand usage does. We offer managerial recommendations regarding promotional activities, for both retailers and manufacturers.     

Make product placement work for you: Get less exposure

Expenditure on product placement has grown faster (170%) than on advertising (15%) over the past 10 years, but some evidence suggests that the return on investment has been declining. For the well-known, fast-moving consumer goods/consumer-packaged goods (FMCG/CPG) food brands typically placed in local TV programming—the context of this article—the management problem of overfocusing on brand exposure hinders gaining brand choice, the ultimate strategic goal of marketing. Managers’ preconditioning, ease of measuring, and assumptions about the value of exposure contribute to their subtle placements becoming blatant or in other problems, as when other promotional devices, like a television commercial or program sponsorships billboard, get bundled into the same TV episode as the company’s own product placement. The higher brand exposure gained can evoke negative mental outcomes in consumers, weakening influences on brand choice. An experiment with a large sample of grocery shoppers supports such an outcome. More strategic value can also be gained from product placements in general by their use longitudinally, in-between campaigns of TV commercials, as an instructive tool and through normalizing a brand’s role in a consumer’s life. We provide eight checkpoints for marketers to consider when planning to use product placement to gain value for their brands.     

The Power of Innovativeness in Manufacturer–Retailer Relationships

ABSTRACT

Purpose: Retailers often challenge manufacturers through aggressive store brand policies and severe listing constraints. This study investigates manufacturer innovativeness as a managerial lever to shift the power balance between manufacturers and retailers.

Methodology/approach: Using data from 277 senior managers of Swiss and German consumer goods manufacturers and analyzing these data with structural equation modelling, the authors test hypotheses about the impact of manufacturer innovativeness on manufacturer–retailer relationship characteristics (i.e., retailer dependency, store brand aggressiveness, and listing constraints).

Findings: The study demonstrates that manufacturer innovativeness enhances retailer dependency, which in turn positively affects overall manufacturer performance. This relationship can be explained further: By increasing retailer dependency, manufacturers suppress retailers’ store brand aggressiveness and attenuate retailers’ listing constraints. Store brand aggressiveness affects overall manufacturer performance through listing constraints.

Research implications: Identifying levers such as innovativeness that assist manufacturers in fostering their power over retailers provides a new mode for understanding how manufacturers can influence the balance of power between manufacturers and retailers. The study provides support for the approach/inhibition theory of power on the inter-organizational level. Organizations with increased power are assumed to have approach-related tendencies and act in goal-consistent manner, whereas organizations with reduced power are assumed to develop the tendency to pursue inhibition-related actions, e.g., attending to threats. Furthermore, this study identifies channel relationship characteristics such as retailer dependency as a mediating path between manufacturer innovativeness and performance.

Practical implications: Managers need to strengthen the firm’s innovative capacity to enhance the performance of their companies. By developing the capability to provide radical innovations, manufacturers are able to enhance their performance not only directly but also indirectly by strengthening the manufacturer’s position with regard to retailers. This study underscores the relevance of innovativeness for strengthening the manufacturer’s position in its relationship with retailers that avoids problems with aggressive store brands and constrained listing conditions.

Originality/value/contribution: This study proposes manufacturer innovativeness as a managerial lever to shift the power balance between manufacturers and retailers.     

The impact of functional integration on perceived risk and consumer-based brand equity

Consumers today have access to a wide span of corporate information and are increasingly aware of the degree to which the functional areas of marketing and supply chain activities are becoming more integrated. Functional integration involves coordinating supply- and demand-focused activities and is theorized to create two interrelated benefits for consumers: lower perceived purchase risk and, ultimately, higher consumer-based brand equity. Despite an emphasis on the important role of consumers in the functional integration literature, the consumers’ viewpoint is missing. This research addresses this gap using a survey and an experiment to investigate the impact of functional integration on consumers’ perceptions of risk and consumer-based brand equity. Findings suggest that when functional integration acts as a component of brand association, purchase risk decreases and consumer-based brand equity increases. The results can help scholars and practitioners better understand the role of functional integration by advancing the nomological net of brand associations as part of the standard marketing mix.     

Contextual advertising in games: Impacts of game context on a player’s memory and evaluation of brands in video games

Contextual advertising is growing in digital marketing communication. Previous research on traditional media has shown that the surrounding context affects advertising effectiveness. Similarly, the context in a game may influence a player’s processing of brands advertised in that game. To examine the effects of contextual advertising in games, the present article affords two independent experiments investigating how positive and negative game contexts influence players’ memories and attitudes with respect to brands advertised via billboards in games. Drawing from literature on the limited capacity model, the authors demonstrate that positive and negative game contexts decrease brand memory since they require a high level of cognitive effort. The authors also find that varying a game context influence the perception of brands advertised in the game via the contextual priming mechanism and that positive contexts generate more positive brand attitudes than negative or neutral contexts. The findings have important implications for consumer researchers and marketers, as they indicate how contexts in games can be utilized to establish brand awareness and increase positive brand perceptions in contextual advertising using games.     

Using evaluative conditioning to explain corporate co-branding in the context of sport sponsorship

This paper investigates the mechanism under which attitude formation takes place in corporate co-branding in the context of sport sponsorship. We developed a conceptual model that synthesises three theoretical frameworks (evaluative conditioning, relationship marketing and brand equity), aiming to explain corporate co-branding in the context of sport sponsorship. Specifically, the proposed model posits that, in sport sponsorship, close consumer relationships with a sport brand leverage sponsor brand equity elements (brand familiarity, brand personality and brand image) and can lead to positive outcomes (wordof-mouth communications). We tested the proposed model using data collected from fans of two professional soccer teams (N = 280). The results of the study confirmed the proposed relationships and further provided new insights regarding the role of brand equity elements in creating ‘backward’ effects to the sport brand (team). Moreover, the findings suggest that sport sponsorship might be the ideal context for co-branding partnerships between mature/high-equity brands.