Exogenous brand crises: brand infection and contamination

Marketing Letters - Although there is an established literature regarding brand transgressions, Covid-19 has highlighted the need to better understand exogenously created brand crises. We...     

Can copycat private labels improve the consumer’s shopping experience? A fluency explanation

A top priority among retailers is enhancing the consumer’s shopping experience. With the number of private label products increasing at the same time retailers are shedding slower moving products, understanding how private labels impact the consumer’s experience at the retail shelf becomes critical. While one might think that private labels, in particular those that look similar to their national brand counterparts (i.e., copycat private labels), may hinder the shopping experience by making it more difficult for consumers to choose a product, we find the exact opposite. Adopting a fluency perspective, we show that when copycat private labels are included in a shelf set, consumers with high knowledge of the category experience greater choice ease, and as a result they subsequently evaluate their chosen product more favorably. Importantly, the choice ease and evaluations of novice consumers are found to be unaffected. Consequently, this research provides insights for retailers and manufacturers on how and why copycat private labels positively impact an important aspect of the consumer’s shopping experience (i.e., choice ease).     

Customer Relationship Stage and the Use of Picture-Dominant versus Text-Dominant Advertising: A Field Study

This research reports the results of two field experiments designed to help determine what format of email advertising is most effective with customers at different lifecycle stages. The experiments examine customer response to picture-dominant versus text-dominant advertising. Although the relative effectiveness of picture- versus text-dominant advertising has received some attention in previous research, the issue of which type would be most effective at different points in the customer's relationship with the brand and for different metrics has not been explored. The two field experiments were executed by a major fashion retailer that sells clothing and accessories for special events. The first experiment was conducted with prospective customers and focused on advertising for the retailer's primary product, which typically occurs first in the purchase cycle. The second experiment was conducted with customers who had already purchased the primary product and focused on advertising for an accessory typically purchased later in the cycle. The investigation was conducted from a customer relationship management perspective, examining the financial impact of each type of advertisement at different stages in the customer's relationship with the brand. At the aggregate level we find only minor differences in the performance of the picture-dominant versus text-dominant advertisements. However, we find that the retailer can greatly improve revenue by customizing ad format based on observed customer traits.