The competing roles of variety seeking in new brand adoption

We examine how consumers' attribute-level variety-seeking behaviors can explain their propensity to adopt a new brand in the consumer packaged goods (CPG) market. We leverage consumers' purchase history among extant brands prior to a new brand introduction as an indicator of the new brand adoption upon its launch. We incorporate variety seeking at two product attribute levels – brand and flavor – and find that variety seeking along these two dimensions predicts different outcomes for new brand adoptions. The estimation results of our discrete-time hazard model show that consumers' brand-level and flavor-level variety-seeking behaviors affect their likelihood to adopt a new brand in different manners: consumers who purchase various brands are more likely to adopt a new brand, whereas those who choose various flavors are less likely to adopt a new brand. The results also show that the new brand's price promotions and in-store displays can affect the role of variety seeking in consumers' new brand adoption. We assess the robustness of our findings by replicating our empirical model with an additional measure of variety seeking as well as a variety-seeking measure in another product category.     

The fight between store brands and national brands—What's the score?

In the Western world market shares for store brands have increased across all product categories. The competitive position of store brands compared to national brands may depend on the product category and a retail chain's overall brand assortment strategy. In order to investigate these possible chain and category effects we have selected five chains with different store brand strategies and three product categories that differ with respect to the number of strong national brands in a category. The results we report focus on the competitive position of store brands compared to national brands from a consumer point of view. We find that store brands are in a weak competitive position compared to national brands independent of category and retail chain brand assortment strategy.     

Enduring Attitudes and Contextual Interest: When and Why Attitude Surveys Still Matter in the Online Consumer Decision Journey

Consumers leave traces of key interest to managers on their journey to purchase. Next to traditional survey-based attitudes, readily available online metrics now show aggregate consumer actions. But how do survey response metrics and online action metrics relate to each other? To what extent do they explain and predict brand sales across consumer categories? This article shows that surveys and online behavior provide complementary information for brand managers. Times series data for 32 brands in 14 categories reveal low correlations but substantial dual causality between survey metrics and online actions. Combining both types of metrics greatly increases the model's power to explain and predict brand sales in low-involvement categories. By contrast, high-involvement categories do not gain much from adding survey-based attitudes to a model including online behavior metrics. The authors synthesize these generalizations in a new framework relating enduring attitudes to the contextual interest expressed by online actions. This new framework helps managers assess both types of metrics to drive brand performance depending on whether their goal is short-term sales or long-term brand health.     

The influence of price and brand loyalty on store brands versus national brands

Abstract

This article investigates how price and brand loyalty of three frequently purchased product categories can influence the purchase decision process of store brands versus national brands. A multinomial logit model was constructed to analyse the data obtained from a consumer panel. The results confirmed that brand loyalty is the main variable which influences the purchase decision process of both national and store brands. The influence of price on the purchase decision process is product specific. There is a clear distinction between the buyer's profile of store brands and national brands. But there is no evidence of any correlation between demographic variables and national brands or store brands.     

The fallacy of the heavy buyer: Exploring purchasing frequencies of fresh fruit and vegetable categories

‘Avocado lover,’ ‘banana lover,’ or ‘berry lover’ – these words are starting to dominate the contemporary marketing campaigns for fresh fruit and vegetable categories. Such campaigns assume that there are sizable buyer segments who purchase a particular fresh category more frequently, who are contributing a larger portion of sales, and who will continue to do so into the future. Yet, an established body of empirical evidence from consumer packaged goods (CPG) categories suggests that these assumptions could be false. The current study empirically examines fresh category purchasing behavior (through a large Nielsen US panel data) by applying three known models: the Negative Binomial Distribution, the Pareto share, and the stability over time analysis (buyers and sales contribution). This study compares the results and finds that despite many differences between fresh and CPG categories, buyers' purchasing behavior follows the same established benchmarks patterns as those observed in CPG contexts. There are many more infrequent or light buyers than heavy ‘lovers’; the heavy buyers contribute roughly 60% of sales; they are purchasing less frequently, and contributing fewer sales as time goes by. These findings carry important implications for marketers, retailers, and farmers of fresh categories. Specifically, the results show which marketing campaigns (i.e., those highly targeted at ‘lovers’ or those with a mass marketing appeal) are better grounded in the empirical evidence about buyer behavior which has the highest probability of increasing consumption.     

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.     

Bridging the online offline gap: Assessing the impact of brands’ social network content quality on brand awareness and purchase intention

Social media is shaping the way companies and brands engage and interact with consumers, particularly Millennials. In light of this growing trend, this study aims to understand the influence of content quality and brand interactivity within social media on consumers' brand awareness and purchase intentions by proposing an empirical model which is tested using structural equation modeling. The study also explores whether the relation between social media stimuli and offline purchase intention is mediated by hedonic motivation, consumer engagement and brand awareness. Results reveal that the quality of content provided by brands on social media and company-users' interactivity are of major importance to Millennials. They increase the hedonic motive derived by these users from social media, strengthen their online engagement and intensify their brand awareness. This heightened online consumer engagement coupled with an increased online consumer brand awareness leads to an increase in the purchase intention of these brands offline. Consequently, companies are encouraged to invest in producing high-quality content on their social media pages, deploy all possible strategies to enhance brand users’ interactivity given the important role these variables play in entertaining, engaging users online, building brand awareness and influencing their offline purchase intentions.     

Brand user profiles seldom change and seldom differ

This study tests and extends the discovery that competing brand user profiles are broadly similar, specifically investigating the consistency of this pattern over time. Examining 700 brands in more than 60 consumer packaged goods categories, for more than 160 variables, the authors document not only that brand user profiles seldom differ but also that they seldom change much over 3 to 6 years. These findings have important implications for marketing theory and practice. For example, marketers need to focus mostly on who buys the category and what features they demand as opposed to thinking their brand buyers are very different to those of competitive brands. This paper extends the empirical results of prior brand profile findings, demonstrating their robustness and durability.     

A comparison of brand loyalty between on the go and take-home consumption purchases

This paper compares consumer brand purchase loyalty for food products bought either ‘on the go’ (OTG), or for take-home consumption. The study uses two UK consumer packaged goods datasets. The first dataset comprises consumers' purchasing of brands in three product categories: soft drinks, crisps, and savory snacks for on the go consumption. The second contains consumers' purchasing of the same brands for take-home consumption. Analysis uses the polarization index as a behavioral loyalty measure, estimated from the Beta Binomial – Negative Binomial Distribution. This measure controls for the difference in purchase rate and brand market share across on the go and take-home. The study finds that consumer loyalty to brands is markedly higher in purchasing for on the go consumption than for take-home consumption; and that the effect is even stronger for larger brands in on the go.     

Brands as substitutes for the need for touch in online shopping

This article addresses the potential of reputable brands to overcome the lack of tangibility that characterizes the process of e-commerce through an experiment-based analysis. In a sequential argument, the authors propose that (1) the brand becomes more important in online than in offline channels, as a consequence of the intangibility or lack of physical contact in online purchasing processes; (2) the limitations associated with the need for touch and the lack of access to the physical product during the buying process does not have equal importance across all product categories and (3) the role of the brand in online channels thus is more relevant if the product category is associated with a higher need for touch. The study based on the experimental design reveals that leading brands enjoy an advanta in consumers' quality assessments, regardless of the objective attributes that characterize the products. This advantage may be greater in online channels, though only for product categories for which the lack of physical contact with the product during the purchase process is an important limitation. In such cases, brand associations can compensate for intangibility during purchase.     

Factors influencing generation Y’s purchase intentions of prototypical versus me-too brands

The current study examines self-confidence, perceived quality, extrinsic attributes and perceived risk as drivers and inhibitors of Generation Y’s purchase intentions of prototypical and me-too brands. A survey of 348 respondents demonstrated that self-confidence and perceived quality produced significant positive effects on purchase intentions for the me-too brands. Extrinsic attributes produced a significant positive effect on purchase intentions for the prototypical brand. Perceived financial/performance risk produced a significant negative effect on purchase intentions for both the prototypical and me-too brands, while perceived psychological risk produced a significant negative effect on purchase intentions for the prototypical brand. Understanding the factors underlying Gen Y’s consumer behaviour is crucial, particularly due to their considerable consumption potential and the increasing sophistication of brand marketing in the marketplace.     

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.     

Condoms and bananas: Shock advertising explained through congruence theory

This research examines the impact of shock advertising on consumer brand evaluations, for both socially acceptable and controversial product categories. The intervening roles of brand familiarity, perceived incongruity and disgust are also investigated. Utilizing two experiments and drawing upon congruence theory, this research offers empirical evidence to demonstrate that: (1) when familiar brands are advertised using a shock advertisement, consumers will show less favorable evaluations towards brands in a socially acceptable product category as compared to controversial products, and (2) for familiar brands, the differences in consumer evaluations between a socially accepted versus controversial product categories is mediated by perceived incongruity and disgust (a serial mediation). Theoretical and practical implications are discussed.     

Effects of prior brand usage and promotion on consumer promotional response

We examine how prior purchases influence consumer response to promotional activity in brand choice decisions. To improve understanding of the nature of this influence, we separate previous purchases into those on promotion and those not on promotion, and consider their differential impact on subsequent brand choices. Impact may be observed at the brand level, category level, or both and we suggest circumstances in which each might occur. Across four product categories, consumer sensitivity to price, price promotions, and feature advertisements increases for all brands in the product category following a promotional purchase but also decreases for the most recently purchased brand. The magnitudes of the results indicate that prior promotional purchases influence choice more than prior brand usage does. We offer managerial recommendations regarding promotional activities, for both retailers and manufacturers.     

How Attitudes Toward Product Categories Drive Individual Brand Attitudes and Choice

Three experiments examine the role of attitudes toward the category to which a brand belongs in consumers’ attitudes toward individual brands. The core findings indicate that what consumers think generally about a category affects their evaluations of singular brands belonging to the category. Study 1 demonstrates that both consumers’ attitudes toward a category as well as their relative attitudes toward a brand versus intracategory competitors drive overall attitudes toward individual brands. Study 2 shows that manipulating attitudes toward a product category affects attitudes toward, and purchase intention of, individual brands belonging to that category. Study 3 demonstrates that more versus less favorably evaluated categories are more likely to exhibit brand positivity effects in judgments of singular brands. The results suggest the practical importance of measuring attitudes toward product categories, as well as the utility of marketing interventions aimed at the category level.     

A new C-OAR-SE-based content-valid and predictively valid measure that distinguishes brand love from brand liking

This article provides a new, C-OAR-SE-based, contrastive measure that distinguishes “brand love” from “brand liking.” The new measure is tested in an empirical study conducted among German university students about brands of products that they buy in four diverse product categories. From a consumer perspective, the incidence of consumers who have a loved brand in the category was found to be only 17 % for laundry detergent, 18 % for coffee, and 26 % for computers, peaking at 45 % in the fashion clothing category — findings that suggest that over half of young consumers do not acquire the state of brand love. Turning alternatively to a brand perspective, the findings indicate that, in general, about one in four of the brand’s customers will come to love the brand. Loving the brand, versus merely liking it, clearly pays off behaviorally — thereby demonstrating very good predictive validity for the new contrastive measure. Brand purchase or usage rate and brand recommendations were found to be approximately doubled for those who love the brand in comparison with those who merely like it.     

Understanding consumer's brand categorization across three countries: Application of fuzzy rule-based classification

In multi-brand situations, people categorize all known brands into subsets called consideration, hold, foggy and reject sets. This is the Brisoux–Laroche model. Traditional brand categorization models including this, assume that consumers can properly categorize each brand into these subsets. However, a brand with both perceived positive and negative attributes increases the difficulty for a consumer to decide about the placement into subsets. This study investigates consumers' brand categorization when a brand has both perceived positive and negative attributes. We propose that a brand may belong to more than one subset (decision fuzziness). Using fuzzy-rule-based classification, this is investigated across three cultures (Chinese, Japanese and Kazakhstan) and two product categories: Quick Service Restaurants (QSR) and beer. The findings confirm that decision fuzziness varies across cultures. Chinese consumers have less decision fuzziness for foreign brands than for local brands in the QSR market. In general, the opposite is found to be true for Japanese and Kazakh consumers.     

Validating the Effects of Brand Quality on Attitude and Purchase Intention in Service–Product Alliances

The purpose of this article is to replicate the findings of previous research studying the effects of brand quality on consumer attitude and purchase intentions in service–product encounters. The main contribution of the current research is to improve the generalizability of the previous findings by basing the experimental inquiry on real-world brands. Drawing on information integration and categorization theories, a set of hypotheses are presented that predict both mediating and moderating relationships between the independent and dependent variables. Results from an experimental study confirm previous findings, demonstrating that the quality of a product brand in a service–product alliance has significant effects on the attitude toward the service brand. Such effects are moderated by the quality of the service brand. Alternatively, service brand attributes do not have the same effect on component product brands included in the performance of that service. Service and product quality exhibit the same effects on purchase intentions as mediated by attitude.