The impact of service failure on brand credibility

Recent studies have examined the consequences of brand credibility, with the majority of works embedded in physical goods. Despite the growing attention service branding receives, little is known about how service failure and recovery efforts impact on brand credibility in service organisations. The purpose of this study is to examine how brand credibility is affected by service failure and an organisations recovery efforts. An online self-completion survey of airline consumers (n=875) was employed to test the relationships between the focal constructs. The results show that a service firm’s effective complaint handling positively impacts satisfaction with complaining, overall satisfaction and service brand credibility. The study also finds that the higher the perceived magnitude of failure, the more difficult it is to satisfy a customer. These results demonstrate that it is possible to maintain service brand credibility during a service failure, provided brand managers develop and implement effective complain handling procedures.     

Impact of component supplier branding on profitability

In recent years, many business-to-business (B2B) component supplier (CS) firms have added branding to their marketing toolbox. By extending the logic of ingredient branding to B2B components, they aim to create “pull” from B2B end customers by building a strong CS brand image among their customers' customers. In contrast with the established “push” approach of building strong relationships with original equipment manufacturers (OEMs), it is unclear whether and under which conditions CS branding is a worthy strategy. On the one hand, anecdotal evidence suggests that suppliers can leverage strong CS brand image in negotiations with increasingly powerful OEMs to enhance their financial performance. On the other hand, many B2B managers believe that branding does not work in their industry context and erodes profitability. We build a data set consisting of survey measures and archival data across a broad set of industries. Our results indicate that the financial outcomes of CS branding largely depend on the characteristics of the CS and OEM industries. Unlike dyadic OEM–CS relationships, which enhance profitability invariably across industry contexts, CS branding is effective only in well-defined situations. CS branding initiatives can enhance return in CS industries with substantial levels of product differentiation and technology intensity. However, unfavorable results may arise in industry contexts in which OEM–end customer relationships or OEM brands are important.     

Public sector corporate branding and customer orientation

The objectives of branding and marketing in the public sector can differ in nature from those in the private sector, to include an improved responsiveness to public needs, rather than an increase in customer numbers. In addition, the customer orientation (a disposition that will influence brand perception) of public services is often questioned. Drawing from prior work in the private sector on the relationships expected between employee and organization customer orientation (hereafter referred to as CO), corporate brand personality, and both employee and customer satisfaction, the authors propose a number of models. These models are tested using structural equation modeling on data from a study of the employees (n = 302) and customers (n = 200) of a public hospital. Corporate brand personality mediates the positive links between employee customer orientation (hereafter referred to as ECO) and satisfaction; ECO influences brand personality, which in turn influences satisfaction. However, while both the needs and enjoyment dimensions of ECO improve customer satisfaction, the former has an unexpected, negative effect on employees. Organization customer orientation (hereafter referred to as OCO) influences customer, but not employee, satisfaction. The paper discusses the implications for managing and researching corporate branding in the public sector.     

Antecedents of residents' city brand attitudes

City branding is a relatively new area of academic research in marketing. Earlier research focuses on city brand images and particularly the contrast in brand image between cities. Essentially that attention reflects the interest of policy makers in developing sound competitive brand positions, with the aim of achieving a competitive advantage. The current paper shifts the focus to explaining the brand attitudes that residents have of a particular city. What are the key antecedents (city attributes) influencing city brand attitudes? The paper reports on a quantitative survey of a sample of 878 residents of the Gold Coast City. The findings show that the major antecedents are social bonds, a sun and surf brand personality, and creative business. Safety, nature and cultural activities are also influential attributes. Apart from insight into how city brand attitudes are shaped, the paper provides a framework for public policy intervention to improve the urban environment.     

Brand Management as an Internationalization Strategy for SME: A Multiple Case Study

ABSTRACT

This research examines the role of branding in the Portuguese SME internationalization process and how the internationalization and brand strategies are articulated in the search for a better business performance within a competitive framework and increasing competitiveness environment. The article aims specifically at: (a) the strategy of creation and brand management; (b) the relevance given to the brand; (c) the importance of brand creation and management in the internationalization strategy. We chose a qualitative methodology, based on four cases studies. Our results suggest that branding strategies of SME cannot be compared with the strategies of multinationals. Budgetary constraints and human resources lead companies to invest in low-cost strategies. The importance of the brand lies in the distinction that allows competition with similar products within the sectors. Management of the brand does not come up as an essential strategy for the internationalization of a Portuguese SME.     

Consumers’ brand heritage experience: between acceptance and resistance

ABSTRACT

The literature dedicated to heritage experience and brand heritage defends the idea that it is a source of significant value creation for consumers and brands. By contrast, the aim of this article is to propose a more complete view of the consequences of the heritage strategy for brands and consumers by exploring how consumers perceive a brand heritage experience and by identifying potential resistances that may emerge during their visits. In consequence, this research examines the features of a brand heritage experience through extended case studies in two brand museums with narratives of 47 visitors. By unpacking a brand heritage experience, the study highlights its acceptance by a majority of visitors as a real heritage experience since they give scientific, authentic and aesthetic values to the industrial and commercial features of the brand. However, some visitors do not accept – partially or totally – the brand as part of the heritage corpus insofar as they exhibit scepticism or even reject the experience.     

An Empirical Investigation of Composite Product Choice

Prior ingredient branding research has examined the influence of “stated” factors such as fit between partner brands on composite product (e.g., Tide with Downy fabric softener) attitudes. This research focuses on choice of composite products, and addresses three managerially relevant questions: Which consumer segments are more likely to adopt the composite product? Will the choice of the composite product have positive or negative reciprocal effects on partner brands? Will the introduction of the composite product benefit the primary or the secondary brand more? The authors use a brand choice model to investigate the “revealed” choice of complements-based composite products. Study results indicate that (i) despite high fit between the composite product and the primary brand, consumer segments may have different choice likelihoods for these products, whereas prior research suggests equal likelihood; (ii) the choice of a composite product may not provide a positive reciprocal effect to the secondary brand; and (iii) the introduction of a composite product may benefit the primary brand more than the secondary brand, whereas prior research suggests a symmetrical benefit for the partner brands. Finally, the finding that introducing a composite product may not cannibalize the sale of the primary brand extends the ingredient branding literature, which has been silent on this issue.     

Shaping Retail Brand Personality Perceptions by Bodily Experiences

Customer experiences play an important role in retail brand management. This research investigates how bodily experiences in retail environments influence customers’ perceptions of retail brand personalities. Based on research on human personality perception, we propose that bodily experiences transfer metaphoric meaning to customers’ brand perceptions. In a field experiment and a lab experiment we manipulated participants’ bodily experiences (feeling of hardness and temperature) and consistently found a metaphor-specific transfer of experiences to retail brand personality perceptions (on the dimensions “ruggedness” and “warmth”). A third study reveals the mechanism behind the effect and demonstrates concept activation elicited by bodily experiences in customers’ minds.     

The effect of a limited-edition offer following brand dilution on consumer attitudes toward a luxury brand

This research examines the impact of a luxury limited-edition offer in the face of core brand image dilution of a luxury brand. Through utilizing two millennial subgroups (college- vs. post-college age) as research participants in two studies, the findings suggest that in a brand dilution condition, the limited-edition product enhances consumers’ attitudes toward the luxury brand and that these effects are more pronounced for consumers with a higher self-presentation motive. We also find that college-age millennials are more strongly influenced by social influences than post-college age millennials. The implications for academic researchers and luxury brand retail managers are discussed.     

Constructing a relationship-based brand equity model

The purpose of this study is to develop and test a model in which several aspects of the service encounter including service staff, servicescape, customer similarity, and customer interaction are taken into account simultaneously as antecedents of relationship quality and generation of brand equity. Testing the hypotheses involved two service settings, banks and department stores. The findings demonstrate that serviced staff and customer interaction have significant direct effects on brand equity. Surprisingly, four variables of service encounter have significant indirect effects through relationship quality on brand equity. Based on these findings, the implications for managers and future research are identified.     

The employee brand: Is yours an all-star?

In this article, a typology is presented which will help organizations better reflect the brand image they desire. The assisting typology is based on the extent to which employees know and understand the organization's mission, values, and desired brand image, and the degree to which they perceive their psychological contracts with the organization as being honored. Organizations can be classified as all-stars, rookies, injured reserves, or strike-out kings, based on the characteristics of a preponderance of their employees. As categorized, rookie organizations cannot deliver the desired brand image because most of their employees lack the knowledge and understanding to do so. Injured reserve organizations, on the other hand, cannot achieve the same because firm employees perceive their psychological contracts with the organization as having been violated, which renders the individuals unwilling and unmotivated. For their part, strike-out king organizations share rookie and injured reserve organizations' worst characteristics. Finally, and conversely, all-star organizations consistently deliver the desired brand image to others because their employees are both able and motivated to do so. To help firms attain this highly desired status, specific guidelines are presented herein which may help organizations become “all-stars” in their own right.