Understanding brand and dealer retention in the new car market: The moderating role of brand tier

Dealers may contribute to brand retention through their sales and service efforts. In this study we investigate the degree to which dealers contribute to brand retention and how this contribution is moderated by brand tier. To this end we distinguish between economy, volume and prestige brands. We also investigate how the effectiveness of dealer instruments to increase dealer retention differs across these brand tiers. We collected data on brand retention and dealer retention among consumers who recently purchased a new car. Our findings show that dealers selling volume brands are able to improve brand retention rates. In contrast, dealers of prestige and economy brands are unable to affect brand retention. In line with the notion of brand-dealer fit we also find that the effects of dealer extrinsic service quality and dealer payment equity on dealer retention differ between prestige, volume, and economy brands. Extrinsic dealer service quality has the smallest effect for dealers selling economy brands, while dealer payment equity is the most important determinant of dealer retention for these dealers.     

The importance of customer satisfaction in explaining brand and dealer loyalty

The positive influence of customer satisfaction on brand and dealer loyalty is often taken for granted. In this study we attempted to prove whether this relationship really exists. In order to do so we examined the case of an automobile‐dealer network. Three different types of customer satisfaction were distinguished: (a) satisfaction with the car; (b) satisfaction with the sales service and (c) satisfaction with the after‐sales service. It was expected that all three types of satisfaction would have an influence on brand loyalty as well as on dealer loyalty. More specifically, it was expected that satisfaction with the car would be the major determinant of brand loyalty and that satisfaction with the service (both sales‐ and after‐sales service) would be the major determinant of dealer loyalty. Furthermore, a study of the literature revealed that dealer loyalty might also significantly affect brand loyalty.

In the empirical part of the study, customers (n = 416) of different automobile‐dealers of the same brand were asked to fill in a mailed questionnaire. The three different types of customer satisfaction and the intention to buy the same brand of car again, as well as the intention to buy from the same dealer again were measured. The customers were also asked why they would buy the same brand (again) or from the same dealer. In general, the analyses of the results revealed that: customer satisfaction with the car, as well as dealer loyalty are major determinants of brand loyalty; customer satisfaction with the sales service as well as with the after‐sales service are major determinants of dealer loyalty and dealer loyalty is an intervening variable in the relation between satisfaction and brand loyalty. Furthermore, it was found that the strength of the relationship between different types of satisfaction and loyalty indicators differs markedly between various market segments (private/business use of car and new/used car buyers). Several marketing implications are presented. A distinction may be made between the implications for the manufacturer of the physical product and the automobile dealer rendering the service.     

Consumer reaction to product recalls: factors influencing product judgement and behavioural intentions

In order to evaluate the factors influencing consumers’ responses to product recalls, two surveys were conducted among Brazilian automobile owners and two regression models tested. Results indicated that (i) product judgement was significantly affected by corporate social responsibility (CSR), blame attributed to the company and whether or not consumers had a car made by the brand considered; and (ii) behavioural intentions were significantly affected by CSR, consumers’ involvement with the message, perceived danger, product judgement and whether or not consumers had a car made by the brand considered. Findings revealed, however, that CSR is a better predictor of the product judgement than of the behavioural intentions, in accordance with recent studies indicating that CSR affects consumer judgements and behaviour differently. Finally, these two models are discussed and compared with previous research.     

When goliaths win and davids lose: The moderating role of perceived risk in brand biography effects

Brand biographies trace a brand's evolution to position it as an underdog (i.e., passion and determination that lead to success despite limited resources) or a topdog (i.e., success based on abundance of resources) brand. This study examines how consumers’ risk perceptions associated with brand choice influence brand biography effects. It demonstrates that when perceived risk associated with brand choice is low, consumers process brand biographies narratively, experience greater narrative transportation into underdog (vs. topdog) brand biographies, and evaluate the underdog brand more favorably. When perceived risk associated with brand choice is high, consumers respond more positively to topdog (vs. underdog) brand biographies, due to topdog brands’ greater perceived ability to reduce risk. The topdog effect observed at higher levels of perceived risk reverses, however, when consumers have the opportunity to process the brand biography before receiving high risk information, as this allows for narrative transportation into the brand biography. This study contributes to research on moderators of brand biography effects and suggests that perceived risk should play a role in marketers’ decision to emphasize underdog or topdog characteristics in brand biographies.     

When do unethical brand perceptions spill over to competitors?

We examine whether the unethical actions of marketplace brands (e.g., the Volkswagen emissions scandal) hurt the ethical perceptions of competing brands (e.g., Ford, BMW). Across two studies, we find evidence for this unethical spillover effect and show that it can negatively affect consumers’ liking and purchase intentions for a competing brand. The results show that the spillover effect (1) only occurs for similar competitors and (2) is moderated by construal level (CL). Specifically, the spillover effect is more likely to occur when consumers focus on the finer details of the unethical brand’s transgression (i.e., low CL) but not when they focus on the bigger picture of the transgression (i.e., high CL). Thus, while it is intuitively appealing to assume that brands may benefit from a competitor’s foible, this research indicates that competitors may be hurt by a similar brand’s wrongdoing.     

On consumer choice patterns and the net impact of feature promotions

Even in the digital age, feature promotions continue to receive significant investments from CPG manufacturers and retailers. Whether this is money well spent depends on consumers' (heterogeneous) tendency to switch brands or stores in response to features. This study proposes a ‘Mixed-pattern Random-effects Nested Logit’ (MRNL) model to analyse the effect of feature promotions in a multi-retailer multi-brand setting. Across 16 different CPG categories, our results reveal that in all cases a mixture of choice patterns prevails: about half of households exhibit a brand focus (i.e. rather substitute between stores offering that brand), the remaining half show evidence of a store focus (i.e. rather substitute brand offers within a visited store). We find that the size of the promotion lift and its underlying sources differ substantially between patterns. Brand-focused consumers are generally more responsive to feature ads than store-focused consumers – especially in low-concentration categories; while they imply much stronger cannibalization for the manufacturer, and much weaker cannibalization for the retailer. It follows that retailers reap much higher benefits in the brand-focused segment, while manufacturers may not prefer that segment in terms of net gains and must be wary of subsidizing those consumers. We identify household and category characteristics that underlie the choice patterns and offer opportunities for targeting.     

Perceived ‘Hispanicness’versus ‘Americanness’

This article discusses how consumers differentiate competing brands of similar utilitarian values on the basis of a brand’s cultural association, namely brand ethnicity, and examines how the perceived brand ethnicity influences consumers’ brand preference and choice. Study findings, based on both qualitative and quantitative research with self-identified His panic consumers, indicate that Hispanic consumers associate certain brands with Hispanic culture and other brands with American culture. In a hypothetical purchasing scenario, the perceived brand ethnicity affects consumers’ brand preference significantly in accordance with their cultural orientation. However, in a real consumer behaviour setting, external factors such as brand accessibility attenuate the effects of brand ethnicity.     

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.     

How competitor brand names affect within-brand choices

This research shows that consumers’ intra-brand choices (e.g., Mercedes C330 vs. C340) can be affected by exposure to a competitor alphanumeric brand name that forms an incidental trend with the numbers in the focal brand names (e.g., BMW320i or BMW350i). We propose and test two mechanisms. First, when no attribute information is available, the competitor brand can make the numerical trends formed by brand names salient and meaningful, and increase the preference for higher brands (e.g., Mercedes C340). Second, when attribute values are negatively correlated with brands, exposure to the competitor brand name can trigger brand-attribute magnitude tradeoffs. In five experiments, we demonstrate that our predictions hold when there are no intrinsic brand-attribute associations, and even when the competitor brand is not available for choice. We identify competitive categorization as a boundary condition and demonstrate that the effect diminishes when consumers do not categorize the nonfocal option as a competitor.     

Drivers of autonomous vehicles—analyzing consumer preferences for self-driving car brand extensions

Autonomous cars are considered to be the next disruptive innovation that will affect consumers. It can be expected that not only traditional automakers will enter this market (e.g., Ford) but also technology companies (e.g., Google) and newer companies dedicated to self-driving cars (e.g., Tesla). We take a brand extension perspective and analyze to what extent consumers prefer autonomous cars from these brand categories. Our empirical study is based on discrete choice experiments about adopting autonomous vehicles in a purchase scenario and in a renting context. Our findings show that brands play a central role when making autonomous driving decisions. Brand preferences differ systematically when buying versus renting a self-driving car. While technology brands are most preferred overall, consumers favor automaker brands over new brands only when purchasing, not when renting. We further disentangle the brand strength into the marginal effects of image associations. For example, Google’s strong brand positioning can be explained by experiences with the parent brand, but it could still improve brand strength by highlighting the relevance of the associated brand portfolio for self-driving cars. The effect of these brand extension success factors differs between parent-brand categories and also between the renting and purchasing scenarios, which requires a dedicated brand management.

     

Importance of offline service quality in building loyalty of OC service brand

Customer management becomes increasingly important as consumers have more flexible shopping process and options and competition become intensified in omni-channel (OC) retail environment. OC retailer can facilitate customer communication of OC service with OC service brand. This study evaluates an OC service brand (i.e. SSG OC service brand) to explore the effectiveness of integrated OC service platform which has a standing brand identity, and to determine the importance of selected offline characteristics of OC service on loyalty of OC service brand. Survey of 127 respondents was collected to test Partial Least Squares-Structural Equation Modeling (PLS-SEM). Findings show that tangibility and empathy of offline OC service directly affect customer satisfaction and attitude toward overall OC service brand, confirming the importance of offline service quality of OC in the OC service brand management.     

The dark side of innovation: How new SKUs affect brand choice in the presence of consumer uncertainty and learning

New product activity is critical for sustained success of consumer packaged goods (CPG) brands. However, the impact of new SKUs on the perceived quality, quality uncertainty and subsequent choice of the brand as a whole is, as of yet, not well understood. The authors study how new additions to the brand line shape consumers’ quality perceptions, and how this – next to the mere line length effect – influences their choice of brands over time. They do so in the setting of an emerging market (China), where new product activity is particularly pervasive. Using a unique scanner panel dataset of Chinese households over the period 2011–2014, they estimate a Bayesian learning model that accommodates varying quality, on two CPG categories, and for two types of new-product additions (new sensory SKUs vs. new non-sensory SKUs). They show that while adding new SKUs may lift the brand’s perceived quality level, it also makes consumers more uncertain about the quality of the brand – dampening their brand choice. This holds especially for light customers – an important part of the brand clientele. Managerial implications are discussed.     

Product difficulty incongruity and consumer evaluations of brand extensions

Ever since the appearance of Aaker and Keller's (1990) seminal article, the brand extension research stream has intensively investigated factors that impact consumer evaluations of brand extensions. However, the main effect of product difficulty and the interactions between the parent brand quality and fit variables have not been consistent across studies. We conjecture that this inconclusiveness of findings is due to an equivocal conceptualization and operationalization of the key concepts – product difficulty and product difficulty incongruity. The existing studies mainly focus on product difficulty, i.e., the perceived difficulty level of designing and making the extension, whereas the latter refers to the difference between consumers’ perceptions of the difficulty of designing and making the parent product and the difficulty in designing and making the extension product. We specifically propose that product difficulty incongruity will negatively impact consumer evaluation of brand extensions, and this negative effect is stronger for high parent brand quality and consumers with high levels of need for cognition. The findings from two empirical studies well support our predictions.     

基于品质与品牌关系的中国企业品牌建设理性思考

在经济全球化背景下，我国企业的发展，经济总量及质量的大幅度提升，必须以品牌建设为前提。品质是品牌建设的基础，是企业参与市场竞争的基本筹码；品牌能为顾客传递品质价值，是企业获利的重要源泉。要搞好品牌建设。必须做好两方面工作。唱响品质标准的三步曲，即制定并完善标准、优化提升标准、走进国际化行列，最终赢得国际化标准制定的话语权、决定权；确立品牌经营新理念，精心培育品牌，精准市场定位。     

Strategic product showcasing mode of E-commerce live streaming

E-commerce live streaming can considerably help brands improve sales dynamics, but it is multiple dilemmas in choosing suitable e-commerce live streaming product showcasing modes. To address the multiple dilemmas, we first employ the Stackelberg game to depict three e-commerce live streaming product showcasing modes: brand self-live streaming, influencer-led live streaming mixture, and influencer-led special live streaming. Second, we analyze the relationship between choices and game parameters, including live streaming stimulus sensitivity, unit service quality improvement cost, and service sensitivity. Meanwhile, through the comparative analysis of the three modes, we get the optimal threshold of each mode. Last, we conduct a case study comparing Chinese apparel and accessories brands Hodo and RUANS to verify the above relations. The results suggest that: (i) the more sensitive consumers are to live streaming stimulus, the more beneficial it is for the brand manufacturer to employ special live streaming, while the increase in unit service quality improvement cost will harm the brand manufacturer; (ii) the fixed participation fee determines the choice of e-commerce live streaming product showcasing modes; (iii) e-commerce live streaming product showcasing modes can help brands to optimize their decision-making.     

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.     

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.     

How digital platforms influence luxury purchase behavior in India?

In an emerging country such as India, consumers are tech savvy and connect easily with digital media platforms. They use these platforms even for luxury purchases. However, there have been only a few conceptual papers on this process. Therefore, this study aims to explain how digital platforms influence consumers’ decision for luxury brands in India. Two qualitative studies were conducted with young Indian consumers as they are the heaviest users of digital platforms and the most frequent purchasers of luxury brands. The first study consisted of 156 respondents in 15 focus groups in four major Indian cities. The second was made up of 95 on-site customer observations in 18 retail luxury stores and 45 consumers’ interviews. These data were further validated by 32 interviews with luxury brand managers and retail managers We found and developed a cyclical framework that projects digital media influences on Indian consumers at all the phases of purchase, i.e., pre-purchase is digital and hedonic, purchase is experiential and enjoyable while digital media is used and post-purchase is based on aspirations, lifestyles and virtual networks. More importantly, these consumers are always connected to reference groups digitally who significantly affect their purchase behavior and subsequent brand choices.     

Aggregate consumer ratings and booking intention: the role of brand image

The very nature of tourist services implies that consumers consider all available cues when making hotel bookings. Information obtained via the Internet is an especially important cue, and the findings of numerous studies highlight the importance of peer-generated information—electronic word-of-mouth (eWOM)—in consumers’ decision-making processes. Along with eWOM, however, traditional marketing signals such as brand image and price still affect consumer behaviour. Thus, this study analyses the effect of eWOM (i.e. global hotel ratings) on purchase intention, considering the role of brand image. Two online scenario-based experiments designed using real information from TripAdvisor were conducted. The final sample comprised 260 participants. Variation in hotel ratings modified consumers’ purchase intentions, with brand image playing a significant role in this relationship. The effect of eWOM on consumer purchase intentions was higher (lower) for hotels with a poorer (better) brand image. The results of the analysis imply that price can potentially help to prevent the negative effect of poor ratings.     

Effectiveness of Marketing Cues on Consumer Perceptions of Quality: The Moderating Roles of Brand Reputation and Third‐Party Information

Consumers usually infer unobservable product quality by processing multiple‐quality cues in the environment. Prior research considering the simultaneous effects of marketing cues on consumer quality perceptions is sparse. Despite the growing importance of third‐party information, research examining its simultaneous effects with marketing cues on consumers’ decision making is especially absent. This research, drawing on cue‐diagnosticity, cue‐consistency, and negativity bias theories, proposes and tests a conceptual framework to reveal interplays among various marketing‐ and nonmarketing‐controlled product cues. The first study examines how two‐ and three‐way interactions of high‐scope (i.e., brand reputation) and low‐scope marketing cues (i.e., price and warranty) affect consumer perceptions. The second study examines a set of interaction effects between third‐party quality ratings and marketing cues (i.e., price and warranty) on consumers’ perceptions. Overall, the results reveal theoretical and managerial implications for processing multiple‐quality cues in consumers’ inference‐making behaviors and suggest that consumers generally aggregate perceptions in more complex ways than suggested in the prior literature when making global product quality evaluations.