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.     

Enjoyment or autonomy? The interactive effect of brand ritual and brand personality on consumer purchase

The use of brand rituals is a pervasive tactic in business, but the marketing effectiveness of this practice largely remains unknown. In the present research, we postulate the contingent nature of brand rituals on consumer purchase. Based on the two countervailing processes—the enhancement of perceived enjoyment and the reduction of perceived autonomy, we suggest that the effectiveness of brand rituals is determined by the interaction between the degree of brand ritual (simple vs. sophisticated) and the brand personality (excitement vs. sincerity). By means of field and laboratory experiments in various product categories (i.e., fruit tea, juice, stationery, and hand cream), we show that for a sincere brand, a sophisticated brand ritual elicits higher consumer purchase than a simple brand ritual only via the process of enhanced enjoyment because its sincerity personality weakens the salience of the process of reduced autonomy. In contrast, for an exciting brand, a sophisticated brand ritual elicits lower consumer purchase than a simple brand ritual via the process of enhanced enjoyment but reduced autonomy (the autonomy route dominates the enjoyment route) because its exciting personality intensifies the salience of the process of reduced autonomy. In simple words, a sophisticated brand ritual benefits a sincere brand, but a simple one benefits an exciting brand. Our findings extend the research on ritual and brand ritual and offer implications for marketing practice regarding how to design a brand ritual more effectively.     

Facebook fan page: the effect of perceived socialness in consumer–brand communication

Facebook has become an important platform for a brand–consumer relationship channel. The current study investigates the influence of perceived socialness and its effect on consumers’ attitude toward brands. Participants (N = 404) were recruited in a large southeast university. A 2 (socialness: high vs. low)?×?2 (feedback control: high vs. low)?×?2 (brand image: high vs. low) between-subject design was conducted. The results of this study identified three important findings. First, high (vs. low) socialness elicited higher perceived relationship commitment, brand trust, and more favorable brand attitude. Second, the effect of socialness on brand attitude was moderated by brand image (positive vs. negative). Third, the mediation analysis showed that the effect of socialness (high vs. low) on brand attitude was fully mediated by perceived relationship commitment and brand trust.     

Why do consumers prefer a hometown geographical indication brand? Exploring the role of consumer identification with the brand and psychological ownership

This research investigates the consumer purchase intention of products with geographic indications (GIs) based on a sample of 351 valid responses in three representative regions that are well known for their GIs of navel orange brands. Drawing on theories of consumer-brand relationship, social identity or consumer identification with the brand, and psychological ownership, our empirical results support our research hypotheses. Specifically, it is found that consumers tend to have a higher purchase intention for hometown GI brands than for non-hometown GI brands. Meanwhile, the impact of brand origin, that is, hometown versus non-hometown GI brand, on consumer purchase intention of GI products is found to be mediated by consumer identification with the GI brands. In addition, psychological ownership moderates the impact of hometown GI brands on purchase intention in that high psychological ownership enhances the impact of brand origin on purchase intention, whereas low psychological ownership negates this effect. Theoretical contributions and managerial implications are provided.     

Are the determinants of capital structure country or firm specific?

In this paper we investigate the capital structure determinants of Greek, French, Italian, and Portuguese small and medium-sized enterprises (SMEs). We compare the capital structures of SMEs across countries and differences in country characteristics, asset structure, size, profitability, risk, and growth and how these may impact capital structure choices. The results show that SMEs in these countries determine their capital structure in similar ways. We attribute these similarities to the country institutional and financial characteristics and the commonality of their civil law systems. However, structural differences arise due to firm specific effects. We find that size is positively related to leverage while the relationship between leverage and asset structure, profitability and risk is negative. Growth is not a statistically significant determinant of leverage for any of the four countries. Our main conclusion is that firm-specific rather than country facts explain differences in capital structure choices of SMEs.     

Are they playing by the same rules? A consumer gifting classification of marital dyads

This article sets out a research program that examines the dynamics of gifting behavior of long-term committed dyadic relationships—married couples. Our research considers the findings of a study in which the reported gifting behavior of couples reveals two gifting rulebooks; the first rulebook consisting of a set of symbolic communication rules, and a second rulebook consisting of economic exchange rules. Most importantly, we develop a consumer gifting classification of marital dyads. Finally suggestions are offered for future research and implications are drawn for marketing strategy.     

Political branding: sense of identity or identity crisis? An investigation of the transfer potential of the brand identity prism to the UK Conservative Party

Abstract

Brands are strategic assets and key to achieving a competitive advantage. Brands can be seen as a heuristic device, encapsulating a series of values that enable the consumer to make quick and efficient choices. More recently, the notion of a political brand and the rhetoric of branding have been widely adopted by many political parties as they seek to differentiate themselves, and this has led to an emerging interest in the idea of the political brand. Therefore, this paper examines the UK Conservative Party brand under David Cameron’s leadership and examines the applicability of Kapferer’s brand identity prism to political branding. This paper extends and operationalises the brand identity prism into a ‘political brand identity network’ which identifies the inter-relatedness of the components of the corporate political brand and the candidate political brand. Crucial for practitioners, this model can demonstrate how the brand is presented and communicated to the electorate and serves as a useful mechanism to identify consistency within the corporate and candidate political brands.     

Understanding the formation of psychic distance perceptions: Are country-level or individual-level factors more important?

This study investigates individual managers’ formation of psychic distance perceptions to foreign countries. Adopting a social psychological perspective, we propose that three social-cognitive mechanisms—social comparison, mere exposure, and social learning—help explain why and how country- and individual-level characteristics affect the formation of these perceptions. Based on an international survey of 1591 managers located in 25 countries undertaken between 2003 and 2008, we find that country-specific international experience, formal education, and the use of common language reduce psychic distance perceptions. Surprisingly, and in contrast to conventional wisdom, managers’ international experience and overall work experience do not seem to affect their distance perceptions. Moreover, individual-level antecedents seem to have limited explanatory power relative to country-level factors as predictors of overall psychic distance perceptions, which lends support to the widely-employed practice of operationalizing psychic distances through country-level indicators. In addition to these empirical findings, the study provides a theoretical social psychological framework useful for understanding how psychic distance perceptions are formed.     

Less speed more haste: The effect of crisis response speed and information strategy on the consumer−brand relationship

This paper investigates the relationship between firm crisis behavior and the resulting consumer–brand relationship (CBR) response. Drawing from theoretical traditions in brand transgressions, service failure, and crisis communications, we use longitudinal survey data combined with archival social media data to empirically test the effect of crisis response speed and crisis information strategy on the short-term consumer crisis response evaluations (1 month after crisis response), and the long-term CBR (1 year after crisis response). Results show that, contrary to intuitive expectations, a faster firm response is not always better, as a slower response was found to result in higher crisis response evaluations. We also show that this effect depends on the consistency of the communication strategy with the first active response. Specifically, when a firm prioritizes safety information (instructing strategy), a faster response is better. Whereas, when the firm prioritizes well-being information (adjusting strategy), a slower response is better. We argue the counterintuitive finding that a slower response is better implies that reacting too quickly may signal rashness and unpreparedness to the customer, leading to more negative evaluations. We term this distinction the difference between being responsive (fast but considered) and reactive (faster but rash).     

Social commitment or self-interest? Effect of responsible practices performance motivations of firms on the consumer decision-making process

Due to the increasing dynamism of global economic activity, all kind of organizations are nowadays concerned for maintaining their involvement with demands and changes of society. Particularly, Corporate Social Responsibility (CSR) has gained increasing importance within both public and private organizations, it being the subject of much investigation and debate among both researchers and practitioners. In this sense, discussion of CSR implications for consumer behavior has been a common topic in recent marketing literature, demonstrating in some cases, a link between CSR and positive responses by consumers and inconclusive effects in others. In the context of such controversy, experts call for further investigation about the consequences of CSR on consumer behavior. Within this line of research, the present paper analyzes the influence of motivations attributed to CSR practices in business settings on four stages of consumer decision-making process. For that purpose, it was conducted a survey study which reached a final sample of 400 Spanish consumers. Regression analysis revealed that, while expectations of social-oriented goals in responsible firms is positively related to consumers’ goodwill over the various stages of their purchase decisions and actions, the potential effects of profit-based considerations are more complex.     

Increasing a brand’s competitive clout: the role of market share,consumer preference,and price sensitivity

The market power (or ‘competitive clout’) of a brand is an increasingly important component of modern marketing strategies. However, the factors that enhance a brand’s competitive clout (BCC) are poorly understood. This study therefore suggests an integrated model of BCC and three factors that are proposed to play a role in its formation: (i) consumer price sensitivity; (ii) brand market share; and (iii) consumer brand preferences. These variables are examined both individually and simultaneously to demonstrate the direct effect of each on BCC and how their inter-relationships contribute to BCC. In doing so, a two-step empirical analysis is conducted. First, two multinomial logit models provide an own- and a cross-price response matrix for a chosen set of competitive brands. Secondly, BCC is regressed against the variables of market share, intrinsic preferences, and price sensitivity using an interaction effects regression model. The results of the analysis show that market share is not the only way to increase BCC; in particular, consumer preferences, and especially pricing decisions, are shown to play a key role in developing a strong brand.     

Generic drugs in times of economic crisis: Are there changes in consumer purchase intention?

This research aims to investigate the moderating role of an economic crisis in the consumer purchase intention toward generic drugs (GDs), and it uses a quantitative questionnaire survey to collect data through face-to-face interviews and robust statistical analyses. The results reinforce the idea that price is a fundamental element in building pharmaceutical product value. In situations of limited resources, the cost savings from generic drugs represent a strong appeal to consumers' experience of GDs and closes the perceived quality gap between the brand name and the generic products. This research highlights two main contributions, and its findings provides managerial and political implications.     

Credit rating agencies: Part of the solution or part of the problem?

Forum

Credit rating agencies: Part of the solution or part of the problem?     

A Circle of Influence: Are All the Stakeholders Included?

Traditionally, certified public accountants (CPAs) have served a unique role in the world of commerce and the profession of accounting. They perform an attest function and thereby serve as the chief providers of relevant, high quality accounting information to the decision making public. CPAs are licensed practitioners, who as expert independent accountants express opinions about an entity'sfinancial statements. Their license provides them with the exclusive right to perform this attest function. This monoploy relies on the concept of independence that is the normative standard of accountancy. It is this perceived independence of auditors which provides credibility, reliability and trust in the financial accounting information upon which stakeholders depend to make informed decisions. Now, however, we see the environment in which CPAs operate undergoing rapid change. Both the globalization of business operations and technological advances have radically changed how and where accountants work and the speed at which things happen. The very nature of accounting information services is evolving; moving from a concentration on audits to an increasing reliance on consulting and assurance services. New ethical issues have been raised by this confluence of changes in the accounting environment. Noteworthy is that the application of the principle of independence by CPAs has been called into question by no other than the SEC. Are those stakeholders who depend upon the independence of CPAs at risk? The influence of insiders has significantly increased as accounting firms perform multiple tasks for the same clients. This paper discusses the different groups who can potentially impair the independence of auditors and the steps that are being taken to enhance the "independence" of the auditors.     

Blending package shape with the gender dimension of brand image: How and why?

We investigate the congruence of brand image and package shape on product preferences, the moderating role of a creative mindset, and the underlying processes. Across four studies, we show that consumers generally prefer products with curved-shaped (versus angular-shaped) packaging for a “feminine” brand and prefer products with angular-shaped (versus curved-shaped) packaging for a “masculine” brand (Study 1a). This effect is mediated by the perceived congruence between brand image and package shape (Study 1b). We further demonstrate that the congruence effect is reversed when consumers adopt a creative (versus less creative) mindset (Study 2), since a creative mindset leads consumers to perceive curved-shaped packaging as more congruent with a masculine (versus feminine) brand and angular-shaped packaging as more congruent with a feminine (versus masculine) brand (Study 3).     

The role of the human resources manager: strategist or conscience of the organisation?

The human resource manager treads a fine line in seeking to reconcile the values of the organisation with professional values about the ethical management of people. This paper seeks to explore this ambiguity. The research findings suggest that the extent to which HR professionals can influence organisational ethics is dependent on the culture and structure of the organisation, as well as on the status and credibility of the HR specialists themselves. In the main there is little evidence that their influence is significant.     

Psychological pricing: Myth or reality? The impact of nine-ending prices on purchasing attitudes and brand revenue

Price is the variable through which the value proposition of brands is monetize, therefore, it is the driver that guarantees the sustainability and profitability of companies. Among different psychological pricing tactics that exist, prices ending in nine are the most accepted and used by practitioners as a strategy to penetrate markets; but this strategy should be carefully revised and applied as it is context dependent and has differential effects among categories and types of brands. Drawing on the importance of psychological pricing, the extended use of nine-ending prices and the identified need of a better understanding, this study validates the impact of such prices on the purchasing attitudes of consumers and the differentiated effect on revenue, among various brands and product categories, finding that this tactic significantly affects consumers' purchasing attitudes and brands’ revenue levels, but to a different extent, depending on the product category, the brand positioning and preference.     

Rethinking the boundaries of social marketing: Activism or advertising?

In some areas of public health concern, corporate marketing activities may negate social marketing messages targeting individuals. Traditional social marketing campaigns may be ineffective when commercial marketing activities create an environment that encourages and maintains unhealthy behaviors. This article explores the role of social marketing in these instances.