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.     

Partitioned pricing,price fairness perceptions,and the moderating effects of brand relationships in SME business markets

Partitioned pricing effects on price perceptions have been studied in the consumer (B2C) market context, but not in the business (B2B) market, and particularly not in the small- and medium-sized enterprise (SME), context. The current research investigates SME managers' affective and cognitive (e.g., price fairness perceptions) responses to partitioned pricing and extent of relationship with the selling brand. The first of three experimental studies finds that a partitioned price generates greater price fairness perceptions than an all-inclusive price. Study 2 finds that SME buyers elicit the greatest positive affect and the lowest negative affect when the buyer's firm has an established relationship with the brand and the seller partitions the price. The third study further examines the effects of relationship with the brand by separating brand mandate (i.e., when the buying firm requires employees to purchase from a specific brand) and relationship longevity.     

Should businesses use religious cues in advertising? A comparison of consumer perceptions across Christianity and Islam

While religious cues are used in advertising efforts, research has yet to adequately understand perceived motives behind such religious cue use and how this influences consumers’ evaluations of a brand. Thus, this research addresses this gap through two studies examining cue measures, businesses’ motives for using cues, consumer affect, and brand evaluations. Specifically, Study 1 (an exploratory study) explores evaluations and associations evoked by religious cues representative of Christianity, Islam, Buddhism, and Hinduism. Study 2 narrows down the focus to Christianity and Islam to probe the outcome of religious cue use on businesses employing them in their advertisements. Specifically, Study 2 finds that consumers perceive businesses’ motives behind religious cue use as primarily trying to reach a specific target market but also as trying to witness and communicating reverence to God. Surprisingly, religious cue condition (Christian, Muslim, or none) did not directly influence business evaluations. Further analysis revealed that when affect toward the ad with religious cue was included in the model, that Muslim cue condition had a significant influence on affect, and such affect significantly influenced business evaluations. Interestingly, no similar effect could be established for the Christian condition. Discussion builds on the theory of visual rhetoric. Implications for marketing practice are also provided. The studies are limited by data collection only in the United States.     

Should firms display the sale price using larger font?

Prior work has shown that evaluations may be lower when retail price discounts are either small or large (vs. moderate), due to concerns about discount depth perceptions and/or product quality. Building from work on perceptual salience, we show that displaying the sale price in larger (vs. similar) font vis-à-vis the regular price makes the sale price more “salient”. In turn, when retail price discounts are either small or large (but, not moderate), such salience impacts how consumers process price discount information, mitigating concerns relating to discount depth perceptions and/or product quality, and so increasing evaluations. In effect, displaying the sale price using a relatively larger font increases consumers’ evaluations, somewhat mitigating the negative aspects of using small or large price discounts. We propose theory contributions towards research on display effects and pricing. Further, the proposed mechanism in this research note is easy-to-implement, and is expected to increase sales.     

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.     

The reverse Napoleon effect: The brand appreciation of looking up by tall people

Integrating the embodied cognition framework with research on the self, this study shows that head canting (the vertical tilt of the head to look up vs. down) interacts with a viewer's physical height to influence perceived brand power and behavioral intentions. Three studies use a variety of brand cues in both laboratory and field contexts to test the effect of head canting on brand power evaluations, the role of a person's physical height as a moderator and boundary condition, and the mediating role of consumer–brand identification. Study 1, an experiment, showed that tall, but not short individuals, evaluate a brand as more powerful when looking up (rather than down) at a brand story from a standing position, with differences in brand power impacting brand attitudes and choice. Study 2 replicates these findings with 30 brands, consumers positioned in a seated position, and brand logos. Both studies rule out the construal level as a process mediator. Study 3 further examines the process and demonstrates that the interaction of head canting with a person's height impacts consumer–brand identification, which mediates brand evaluations. These findings add a brand management and physical-self perspective to previous embodiment research by specifically examining the effects of sensorimotor experiences.     

Consumers' response to other consumers' participation in new product development

In this paper, we investigate how consumers react to information that the brand has involved other consumers in the development of its new product. More specifically, we investigate how the participation of other consumers in either the ideation, where consumers come up with product ideas, or selection, where consumers select which out of many products the brand should produce and market, impacts on consumers' evaluations of the product and perceptions of the brand. Drawing from the literatures on brand schema and congruity, we hypothesize that by way of its effects on perceived brand uniqueness and brand attribution, consumer participation in new product ideation (selection) impacts more favorably on product and brand ratings when the product is incongruent (congruent) with the brand. An experimental study with 386 consumers supports the hypotheses.     

To Do Well by Doing Good: Improving Corporate Image Through Cause-Related Marketing

As part of their corporate social responsibility, many organizations practice cause-related marketing, in which organizations donate to a chosen cause with every consumer purchase. The extant literature has identified the importance of the fit between the organization and the nature of the cause in influencing corporate image, as well as the influence of a connection between the cause and consumer preferences on brand attitudes and brand choice. However, prior research has not addressed which cause composition most appeals to consumers or the impact of cause choice on corporate image. A between-subjects field experiment in the Netherlands examines the influence of three core cause attributes??cause type, cause scope, and cause acuteness??on consumers?? perceptions of corporate image. Furthermore, this experiment examines the extent to which consumer identification with the cause mediates the influence of the cause attributes on corporate image. The findings indicate that identification with the cause leads to more positive evaluations of marketing campaigns for cause type and cause scope. Also, however, our results uncover a negative direct relationship between cause scope and corporate image. Cause acuteness is only marginally influential in corporate image perceptions. By proposing and testing a comprehensive model of the influence of cause attributes on corporate image in cause-related marketing, this article provides important implications and suggests avenues for further research.     

Who will embrace upward line extension? The role of power distance belief

Upward line extension is a significant strategy for enterprise brand management and market expansion. However, a new status product launched by a non-status brand through upward line extension inevitably forms a competitive relationship with the status product launched by a status brand. Based on the categorization theory, this study explores the influence of status product type (non-extended status product, upward-extended status product) on consumer responses and its potential psychological mechanisms. Furthermore, it examines the moderating role of power distance belief (PDB) in the relationship between status product type and consumer responses. The results indicate that consumers develop lower product evaluations and purchase intentions for upward-extended status products compared to non-extended status products (Studies 1, 2a, 2b, and 2c). Perceived fit and signaling effectiveness mediate the effect of status product type on consumer responses (Study 1). More importantly, PDB moderates the effect of status product type on consumer responses, as high-PDB consumers respond similarly to upward-extended and non-extended status products, whereas low-PDB consumers respond more negatively to upward-extended status products compared to non-extended status products (Studies 2a, 2b, and 2c). Perceived fit and signaling effectiveness mediate the interaction effect between PDB and status product type on consumer responses (Studies 2a and 2b). This study augments the literature on vertical brand extension and PDB, and provides practical guidance for marketers intending to launch upward line extension.     

Communicating brand gender through type fonts

The marketing literature suggests that positioning a brand in terms of brand gender (i.e., brand masculinity and brand femininity) generates favorable consumer responses, yet there is little research on how brand gender perceptions arise. This research examines whether type font can be employed to create brand gender perceptions in the context of unfamiliar brands. Building on the theoretical framework of personality inferences based on static cues, three studies involving a range of type fonts, brand names, and product categories demonstrate that type font influences consumers’ perceptions of brand gender. Type font effects emerged for brand names presented in isolation (Study 1), brand names presented on signage (Study 2a), and brand names on product labels (Studies 2b and 3). Importantly, type font effects on brand gender persisted in the presence of a competing brand gender cue (i.e., brand name with gender associations), and type font and brand name influenced brand gender perceptions independently. A fourth study demonstrates that type fonts representing the brands influence consumers’ likelihood to recommend the brand. The article concludes with a discussion of theoretical and brand management implications.     

Consumer Attitudes toward Sponsors’ Counterambush Marketing Ads

Since the existing measures to prevent ambush marketing are widely ineffective, sponsors can use countercommunications, a public response to an ambushing attempt that aims to strengthen their own brand, relative to the ambusher. This research examines consumer responses to three types of counterambush marketing ads: humorous complaining, naming and shaming, and consumer education. Three experimental studies using both real and fictitious brands as well as different event settings indicate that a humorous counterad (vs. naming and shaming and consumer education counterads) results in more favorable consumer evaluations of the countermessage. The studies also show that perceptions of the advertising tactic's appropriateness mediate these effects and that a humorous counterad is only advantageous when consumers hold positive (vs. negative) attitudes toward the practice of ambush marketing. In addition, comparing the three types of counterads with a common sponsorship leveraging ad suggests that a humorous counterad and simply ignoring the ambusher produce equal perceptions of tactical appropriateness and similar positive indirect effects on consumer attitudes toward the ad. The studies thus provide implications for how sponsors can respond to ambushers.     

The effects of product knowledge on the evaluation of warranteed brands

This study explores the effects of consumer knowledge on respondents' evaluations of both known and unknown brands that include either a 2-year or a 20-year warranty. Both experts and nonexperts evaluated warranty as more important than brand name in their product quality decision. Warranty length was positively correlated with product quality perceptions for both known and unknown brands. With the unknown brand, nonexperts perceived significant improvement in product quality when the warranty length was increased from 2 to 20 years. For the known brand, nonexperts perceived little difference in quality for the two warranty lengths. Experts indicated no significant differences in perceived quality, given the four brand/warranty-length conditions. The results indicate that warranty length is most heavily weighted as a cue to product quality when consumers are not highly knowledgeable, and the brand name is not well known. © 1996 John Wiley & Sons, Inc.     

Cute brand logo enhances favorable brand attitude: The moderating role of hope

A brand logo has significant influences on consumer evaluations of a brand. However, little research has examined the effectiveness of brand logo design. The present research thus seeks to extend the literature in this area by examining how cuteness associated with a brand logo might produce a more favourable brand attitude. Across two experimental studies, this research provides empirical evidence that a cute (vs. non-cute) brand logo can increase positive consumer attitude toward a brand, especially among those experiencing the emotion of hope (but not happiness or a neutral emotional state). Further, this effect is driven by the perceptions among consumers feeling hopeful (but not happy) that a cute (vs. non-cute) brand logo has higher levels of growth potential. The findings of this research thus make theoretical implications on the literature on brand logo, cuteness, and emotion literature, and offer managerial implications in terms of brand logo design effectiveness.     

The trustworthy brand: effects of conclusion explicitness and persuasion awareness on consumer judgments

Two studies examine how a consumer’s awareness of marketing tactics influences the effectiveness of conclusion explicitness advertising (implicit, open-ended or explicit, closed-ended conclusions). Study 1 shows that persuasion awareness and conclusion explicitness influence brand evaluations. Persuasion aware consumers prefer implicit conclusions in comparative advertising that allow them to decide which brand is superior, rather than explicit conclusions which state the superior brand. Persuasion unaware consumers show no difference for conclusion explicitness. Brand trust mediates the results. Study 2 demonstrates the robustness of these effects. Research contributions include persuasion awareness as a moderator of conclusion explicitness effects and the role of trust as a mediator. For managers, results show how implicit conclusions can improve the brand evaluations of persuasion aware consumers.     

Cause-related marketing influence on consumer responses: The moderating effect of cause–brand fit

The traditional focus on the study of cause–brand fit in cause-related marketing (CrM) is that it is a mediator variable between consumer perceptions and subsequent responses. However, the literature is not conclusive on this point. This study adopts a new perspective, considering cause–brand fit as a moderator variable rather than a direct antecedent to consumer evaluations of CrM. Thus, the main objective of this research is to examine the moderator role of cause–brand fit in the influence of two corporate associations elicited in CrM (corporate social responsibility (CSR) and corporate ability (CA) associations) on brand attitude and two behavioural consumer responses (purchase intent and support to non-profit organisation (NPO)). For this, a theoretical model is proposed, and it is estimated with a sample of 595 Spanish consumers of insurance and personal hygiene and toiletries products. Results show that when consumers perceive high social cause–brand fit, the positive influence of CSR associations on the formation of brand attitude is amplified. However, when cause–brand fit is low, brand attitude is formed via CA associations. Finally, consumer behavioural responses in favour of the brand (i.e. purchase intent) and social cause (i.e. support to NPO) are reinforced in a context of high cause–brand perceived fit.     

Is a website known by the banner ads it hosts?

While marketers often rely upon banner ads to generate revenues, it is unclear as to how these ads might influence consumer perceptions of host websites. In this paper, we conduct three studies to examine the effect of animation and brand advertised in a banner ad on consumers’ attitude towards a host website, as well as word-of-mouth behaviour. Results of the first study reveal that consumers are irritated with unfavourable banner brands and that irritation, in turn, negatively affects their attitude towards the host website. We demonstrate that banner brand and banner type serve as contextual cues that influence judgements of the host website due to a forward spillover effect. Findings of the second study demonstrate that a host website, corol- larily, serves as a context to negatively influence evaluations of favourable brands mainly for animated banner ads - a reciprocal spillover effect. The third study validates and extends the findings of the first study by adopting methodological pluralism through a different approach to stimuli selection and experimental manipulation. Results indicate that, while presence of animation has a negative influence on the host site and WOM behaviour when the brand advertised is an unfavourable one, it neither benefits nor hurts a host website evaluation and WOM behaviour when a favourable brand is advertised. Managerial implications of our findings are also discussed.     

Determining Customer Satisfaction From Mobile Phones: A Neural Network Approach

Abstract

This research examines the effects of extension mode (online to online vs. online to offline), web-brand concept (function oriented vs. experience oriented) and extension similarity (high vs. low) on consumer web-brand extension evaluations, attitude, perceived quality, and purchase intention of the extension brands. The analysis reveals two significant interaction effects: (1) the positive effect of brand extension similarity on consumer evaluations is stronger when the parent brand is function oriented compared to the experience-orientated ones; (2) the positive effect of brand extension similarity on consumer evaluations is more pronounced when the web-brands extend to offline markets rather than to online markets. Implications for marketing theory and practice are discussed.     

Private labels ain’t bona fide! Perceived authenticity and willingness to pay a price premium for national brands over private labels

Abstract

As private labels are consolidating their gains in national markets, a conventional recommendation to national brand manufacturers would most likely be to invest more in marketing in order to increase the perceived quality gap between national brands and private labels. It is assumed that the quality gap would boost consumer willingness to pay a price premium for national brands over private labels. Differing from this conventional approach, the current study focuses on the perceived authenticity gap between national brands and private labels, to explore whether and how this factor influences the effect of marketing and manufacturing variables on willingness to pay. This relationship is relevant in milieus where consumers might take brand authenticity rather than quality perceptions to guide their brand evaluations. The current study finds that the perceived authenticity gap mediates the effect of only some particular conventional marketing tools on willingness to pay. The study suggests that national brand managers should take the presence of private labels in the national markets as an opportunity to exploit the dynamics of authenticity evaluations, rather than as a threat.     

Consumer evaluations of service co-branding

Rooted in signaling theory, this paper investigates the effects of co-branding structure, category fit, and types of sales promotion on consumers’ evaluations of service brand alliance. Results of a 2?×?2?×?2 experiment with co-branded credit cards as the focal product show that an equals co-branding structure (combination of two equally strongly established brands) is more likely to have greater consumer evaluations than any major-minor structure. The alliance of a low-equity host brand and a high-equity partner tends to enjoy better consumer evaluations than the arrangement of a high-equity host brand and a low-equity partner does, demonstrating a dominating effect. Category fit, which stands for signal consistency, positively moderates the relationships between co-branding structure and consumer evaluations. For any major-minor structure, consumers evaluate brand alliance with non-monetary promotion more favorably than that with monetary promotion. For equals co-branding structure, however, promotion type does not influence co-branding evaluations.     

Vulnerability of global brands to negative feedback effects

Going global is a successful strategy to leverage a brand's equity, in part, because global is synonymous of quality for consumers. This research examines the impact of competitor brand familiarity on the quality perceptions of global brands in Chile when the brand extends into new product categories. The results indicate that there is a negative impact on the quality perceptions of brand extensions when an extension competes with well-known and well-liked competitor brands. However, brand extension quality beliefs seem to produce negative feedback effects on parent brand quality beliefs only for narrowly extended parent brands but not for broadly extended ones.