How to protect your premium product from low-price competitors: Price,quality, or portfolio adjustment?

In a game-theoretic framework, I analyze how a brand manufacturer can thwart new entrants into its market. Three strategic options are considered, a price adjustment of the premium product, a quality adjustment of the premium product and a portfolio adjustment of adding a fighter brand. In a basic setup, I show that the incumbent's best response to entry is to choose a portfolio adjustment. If, however, the incumbent is uncertain about whether the rival firm will enter the market, a price adjustment of the premium product might be the better alternative if launching the fighter brand is associated with costs. Moreover, if technological progress improves the efficiency of product development, a combined quality and portfolio adjustment might be the best alternative for the incumbent.     

Country-of-Origin Premiums for Retailers in International Trades: Evidence from eBay's International Markets

Using real-world transaction prices in the Internet auction Web site eBay's U.S., U.K., and global markets, the authors study the price dispersion of homogeneous products related to the sellers’ country-of-origin. For both tangible and intangible products and services, sellers from the United States enjoy a price premium. This premium appears to stem from country-of-origin equity instead of trading risk or product quality. The findings of this research suggest potential profitable opportunities in international trade by employing the retailer's country-of-origin as an arbitrage tool.     

Advertising non-premium products as if they were premium: The impact of advertising up on advertising elasticity and brand equity

Non-premium brands occasionally emulate their premium counterparts by using ads that emphasize premium characteristics such as superior performance and exclusivity. We define this practice as “advertising up” and develop hypotheses about its short- and long-term impact on advertising elasticity and brand equity respectively. We test the hypotheses in two large-scale empirical studies using a comprehensive dataset from the automotive industry that includes, among others, the content of 2317 television ads broadcast over a period of 45?months. The results indicate that advertising up increases (decreases) short-term advertising elasticity for non-premium products with a low (high) market share. The results also show that an intensive use of advertising up over time leads to long-term improvements (reductions) in brand equity for expensive (cheap) non-premium products. Furthermore, an inconsistent use of advertising up leads to reductions in brand equity. The results imply that managers of non-premium products with a low market share can use advertising up to increase advertising effectiveness in the short run. However, advertising up will only generate long-term improvements in brand equity for expensive non-premium products. Finally, to avoid long-term reductions in brand equity, advertising up should be consistently used over time.     

Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects

An organic label offers a market signal for producers of organic food products. In Western economies, the label has gained high recognition, but organic food still represents a small part of total food consumption, which raises questions about the label's efficacy. By considering organic labels as a signal of quality for consumers, this article studies how this signal interacts with brand signals when both are visible to consumers, applying a cobranding framework. This research examines the moderating effect of the brand on organic label effects. In a 2 × 2 experimental design using real consumers (N = 122) in a shopping context, it found that, depending on brand equity, the marginal effect of organic labelling information in terms of perceived product quality varies. In particular, when brand equity is high (low), the organic label appears less (more) effective. However, regardless of the brand equity level, an organic label makes the environmentally friendly attribute salient, which has a positive impact on perceived quality. Pertinent implications for marketing and public policy are discussed.     

Constructing an index for brand equity: a hospital example

If two hospitals are providing identical services in all respects, except for the brand name, why are customers willing to pay more for one hospital than the other? That is, the brand name is not just a name, but a name that contains value (brand equity). Brand equity is the value that the brand name endows to the product, such that consumers are willing to pay a premium price for products with the particular brand name. Accordingly, a company needs to manage its brand carefully so that its brand equity does not depreciate. Although measuring brand equity is important, managers have no brand equity index that is psychometrically robust and parsimonious enough for practice. Indeed, index construction is quite different from conventional scale development. Moreover, researchers might still be unaware of the potential appropriateness of formative indicators for operationalizing particular constructs. Towards this end, drawing on the brand equity literature and following the index construction procedure, this study creates a brand equity index for a hospital. The results reveal a parsimonious five-indicator brand equity index that can adequately capture the full domain of brand equity. This study also illustrates the differences between index construction and scale development.     

Love is in the air. Consumers' perception of products from firms signaling their family nature

Signaling consumers that the company behind a brand is run by a family is increasingly observable in the marketing realm. One possible reason could be the emotional value signaled by the family nature of the firm. Brand signals carrying emotional value might contribute to a competitive advantage. Since we do not fully understand the effect of signaling the family nature of a firm yet and as family represents an emotional context, we examine this effect on consumer perceptions of the products being made with more love by conducting two experimental studies. In Study 1 (N = 371) we find that the firm's family nature triggers a strong perception of love being part of the production process of the brand, which leads to a higher willingness to pay. Specifically, in Study 2 (N = 280) we designed a process manipulation study to provide causative experimental explanation of the process of Study I. Thereby, we contribute to psychology and marketing research by showing that consumers consider a product signaling the family nature of a firm more strongly to be made with love and are willing to pay a price premium. This effect is driven by positive feelings related to one's own family.     

The value of private label brands to U.S. consumers: An objective and subjective assessment

This study investigates the value of private label brands to consumers using two approaches: First, subjective evaluations of the perceived relationships between price and quality for private label (PL) brand and national brand (NB) products based on survey responses; and second, objective measures of price and quality for PLs and NBs widely available in the U.S. Price was generally perceived to be a signal of quality for NBs, but not for PLs, an indication that consumers' knowledge may not have kept pace with quality improvement in PLs. Objective estimation of the quality gap potentially existing between PLs and NBs determined that the “quality premium” of NBs observed in the past has largely disappeared. Consumers, notwithstanding, sought a lower purchase price for PLs. In turn, the higher price they were willing to pay for NBs accorded with estimates of the actual “price premium” associated with NBs.     

Brand Authenticity: Testing the Antecedents and Outcomes of Brand Management's Passion for its Products

While customer orientation is accepted as a core marketing principle, this research suggests that an opposing orientation—product orientation—may offer an advantage. Managers who follow a product orientation focus on products that interest and inspire them rather than on products that fulfill consumers’ desires. This research suggests that a consumer's perception that managers follow a product orientation is consistent with prior conceptualizations of brand authenticity. That research suggests that brands perceived as authentic are evaluated more positively, yet that research does not empirically assess brand authenticity's effects nor suggest its antecedents. To fill this gap, the authors develop a conceptualization and model of brand authenticity grounded in self‐determination theory, attribution theory, and extant authentic human brand research. Brand authenticity is defined as the extent to which consumers perceive that a brand's managers are intrinsically motivated in that they are passionate about and devoted to providing their products. The model proposes four antecedents of brand authenticity—two related to rare brand behaviors (uniqueness and scarcity), and two related to stable brand behaviors (longevity and longitudinal consistency). It also proposes two perceptual outcomes of brand authenticity—expected quality and trust. Two 2 × 2 experiments (n = 136 for Study 1; n = 155 for Study 2) demonstrate a positive impact of the antecedents on brand authenticity and of brand authenticity on the outcomes. Brand authenticity mediates these effects.     

Examining the gamified effect of the blindbox design: The moderating role of price

A blindbox is a product design that incorporates uncertainty; a customer who purchases a blindbox receives a random product from a product series. The recent popularity of blindbox products calls for a rigorous examination of this product design. This study proposes a research model to examine the blindbox effects in an online retailing context. Following the uncertainty principle of gamification marketing, we hypothesize that the blindbox design can induce gameful experiences, thereby increasing customers’ brand engagement and purchase intention. We also investigate the moderation effect of an important design factor: the product price. Data from two experiments support the blindbox effects: this design leads to higher gameful experiences and marketing outcomes than a certain product. Moreover, the blindbox effects largely depend on the price: the effects are more salient at a premium price level and diminish below the average market price. Furthermore, we rule out two rival explanations, novelty and presentation richness, through supplementary tests. The findings, design issues, contributions, and directions for future research are discussed.     

Brand Analyses of U.S. Global and Local Brands in India: The Case of Levi's

ABSTRACT

This study investigates differences between U.S. global and local brands in the Indian market. Attitudes toward American products and the brand equity of U.S. global and local casual apparel brand in the Indian market are examined. It is postulated that global and local brand influence brand equity, which is composed of brand image, brand awareness, emotional value, perceived quality, brand loyalty, and purchase intention. A total of 411 college students in India participated in the survey. Using repeated measures ANOVA, this study finds that Indian consumers perceive global and local brands differently based on brand equity.     

Consumer-based brand equity and brand performance

The relation between consumer-based brand equity and brand performance was investigated across 15 product categories in Brazil and the UK. Brand equity was conceptualized as related to the level of social benefit offered by each brand and was measured with a simple questionnaire that asked consumers to rate brands with respect to their familiarity and quality levels. These measures were then related to brand market share and revenue. Results showed that the relation between consumer-based brand equity and brand performance varies across product categories, indicating that products differ with respect to their level of brandability and suggesting ways to measure it.     

Masstige consumption values and its effect on consumer behavior

This study provides a basis for market research for a deeper understanding of the masstige by segmenting the market according to the multi-dimensional consumption value and by explaining how masstige consumption value affects masstige brand equity and consumer's purchase intention. This research explores the relationship between the two types of brand extensions and consumer behavior because most brands penetrate the masstige market via brand extensions. Study 1 validates the dimensionality of the masstige consumption value and performs value-based market segmentation. From the results obtained in Study 1, Study 2 identifies the linear relationships between the dimensions of the masstige consumption value, masstige brand equity, and purchase intention. The results contribute to the existing literature by comprehensively investigating the consumption value and its effect on consumer behavior in the emerging masstige market.     

Examining the Role of Brand Equity in Business Markets: A Model,Research Propositions,and Managerial Implications

ABSTRACT

This paper presents a model of brand equity for business markets. It is argued that the potential benefits of branding and brand equity development have been neglected in business markets and that a general model and stream of relevant empirical research could be useful to managers in business markets depending on the situational nature of their market and competitive structure. The model adapts and extends existing brand equity literature to reflect the unique aspects involved in a business-to-business marketing context. The model developed considers marketing strategies as antecedents, two different classes of moderator variables, brand equity as a perception by the buyer or the market, a series of consequences of brand equity perceptions, and perceived risk as a moderator of the brand equity-consequences relationship. Propositions have been defined and discussed to help facilitate research and provide guidelines for industrial marketing managers.     

ADVERTISING,PERCEIVED QUALITY AND STRATEGIC ENTRY DETERRENCE AND ACCOMODATION(*)

Abstract. When faced with the choice between two brands of a homogeneous good, consumers—cetevis paribus—have been observed to prefer the brand with which they have become familiar through advertising to the unadvertised brand. Some consumers are even prepared to pay a price premium for the advertised brand. Taking this behaviour as a datum, we show that an incumbent monopolist can use advertising to erect a barrier to entry or to influence the nature of entry (strategic entry accomodation).     

Adolescent Evaluations of Brand Extensions: The Influence of Reference Group

This study examines the reference group effect on adolescent evaluations of brand extension. Three factors are important to this process: the product fit between parent and extension category (similar vs. dissimilar), the consumption type of the extension product (public vs. private), and the parent brand image (prestige‐oriented vs. functional‐oriented). An experiment with 217 teenagers generally supports the hypotheses. Results suggest that adolescents are willing to pay a higher price premium to publicly consumed brand extension product than a privately consumed. In addition, the level of category similarity enhances the consumption type effect. Managerial implications on brand extension strategy in adolescent's market are discussed.     

Managing the consumer-based brand equity process: A cross-cultural perspective

Most consumer-based brand equity (CBBE) models are linear and fail to capture the complexity of the brand equity construct and its benefits in terms of key consumer behavioral outcomes. More complex and dynamic models focusing on CBBE as a process often lack empirical support particularly from more than one country. This study builds on and extends previous research by empirically examining the configural nature of the CBBE building process cross-nationally, and by investigating differences vis-a-vis key consumer behavioral outcomes (namely, willingness to pay a price premium, brand recommendation and repurchase intention). These differences are postulated and explained through culture theory particularly the cultural dimension of individualism/collectivism. Using fuzzy-set/Qualitative Comparative Analysis (fs/QCA), survey data from Greece and Germany support the robustness of the extended CBBE model. The model shows that overall brand equity and consumer behavioral outcomes are created through the brand building, brand understanding, and brand relationship blocks, and identifies core causes and common patterns across countries providing a useful diagnostic tool for international brand management.     

品牌资产视角下的银行创新型服务产品策略研究

面对复杂多变的市场竞争环境,银行业需要持续创新服务产品来满足消费需求。然而,品牌资产管理瓶颈会极大地削弱银行创新型产品的市场竞争力。本文基于品牌资产理论,对银行创新型服务产品的市场竞争优势进行分析,归纳银行创新型服务产品在品牌资产管理中存在的问题,并提出品牌资产视角下的提升银行创新型服务产品竞争力的对策,旨在为银行业推进金融产品创新和品牌资产管理以提升品牌竞争优势提供研究借鉴。     

An investigation into the perceptions of Chinese consumers towards the country‐of‐origin of dairy products

The dairy incident in 2008 influenced Chinese residents’ attitudes towards domestic and foreign brands in the market. This paper highlights the strong consumer perceptions existing in the Chinese dairy market towards the country of origin of dairy products. Chinese residents generally believe dairy products from foreign countries are superior than those from China. A new theoretical framework is developed to explore the driving factors of country‐of‐effects and its corresponding impacts. Consumers’ image of different countries and national stereotypes, consumer ethnocentrism and animosity, product familiarity and experience, product involvement and some cultural value differences were found to drive country‐of‐origin effects. These effects directly impact on consumer's perceived quality, brand awareness, brand association and loyalty towards the related goods in the market, then influence the brand equity of products from different countries. This study provides a better understanding of country‐of‐origin effects on consumer behaviour, and will help relevant domestic and foreign firms improve their business strategies in China.     

Regulatory procedures,investment opportunities and stock valuation

Electric utilities differ in their accounting procedures. By regulatory commission directive some use normalization and some use flow through to arrive at their earnings figures. Because regulation is on an allowed return on investment standard these reported earnings are relevant for stock valuation. Any variation in price/earnings ratios between flow through and normalizing companies therefore must be explained by differences in risk to equity investors, differences in investment opportunities, or market inefficiency involving erroneous restatement of earnings. Empirical work demonstrates that there is a difference in price/earnings ratios. Firms that normalize enjoy a premium. The evidence also indicates that the premium is not explained by risk difference. Because the perverse form of market inefficiency required as an explanation seems unlikely, the most reasonable conclusion is that the premium relates to investment opportunities associated with regulatory climate. If so it promises no excess return to stock buyers because it is already impounded in stock price.     

An integrated retailer image and brand equity framework: Re-examining,extending, and restructuring retailer brand equity

Retailers are amongst the world's strongest brands, but little is known about retailer brand equity. In spite of their extensive use, we argue that current operational models are too abstract for understanding the uniqueness of the retail industry and too simplistic to understand the interrelationships among the dimensions in the retailer brand equity building process. This study contributes to the existing and largely generic retailer equity frameworks in three ways: first, by incorporating retail specific dimensions from the retailer image literature; second, by re-examining and developing the structures and relationships between the dimensions of retailer equity by testing alternative structures commonly used in the more general brand equity literature; and finally by creating a short and parsimonious scale for assessing retailer brandequity in different contexts. Three alternative models are compared and tested on six brands in both convenience and shopping goods categories, ranging from discount to middle range price levels. The outcome is an operational framework supporting the main building blocks of the conceptual brand resonance model presented in Keller (2001) with seven dimensions structured in a four-step sequence as awareness → pricing policy, customer service, product quality, physical store → retailer trust → retailer loyalty, thereby describing retailer brand equity as a four-step process. The extended, although parsimonious, 17-item retailer equity scale can be used by academics as well as practitioners to examine the underlying values of retailer brands and has the potential to incorporate additional dimensions and attributes to investigate specific retail contexts without creating lengthy questionnaires.