Investigating the service brand: A customer value perspective

Despite considerable interest in the nature and role of marketing using a service perspective [Vargo S., Lusch R. Evolving to a new dominant logic for marketing. J Mark 2004; 68 (1): 1-17] there is limited research about branding. Research to date tends to be qualitative [e.g., Berry L. Cultivating service brand equity. J Acad Mark Sci 2000; 28: 128-137; de Chernatony L., Segal-Horn S. The criteria for successful services brands. Eur J Mark 2003; 37 (7/8): 1095-1118] rather than quantitative. This research closes this gap by developing and testing a theory of the influence of the service brand on the customer value-loyalty process. The model includes the traditional influence of brand image plus three additional influences that more fully reflect the broader service perspective (company image, employee trust, and company trust). Using survey data of a sample of 552 airline customers, the analysis shows there is a direct influence of all the aspects of the brand on customers' perceptions of value. In addition brand image, company image and employee trust have a mediated influence on customer value through customers' perceptions of service quality. Finally the analysis shows that a service brand does not have a direct influence on customer loyalty but rather its influence is mediated through customer value. This paper concludes with a discussion of the managerial and research implications.     

Cross-cultural advertising communication: Visual imagery, brand familiarity, and brand recall

The focus of this paper is to address the issue of visual imagery in cross-cultural consumer research. The authors investigate the relationship between visual imagery, brand familiarity, and brand claim recall in two distinct cultural environments — the U.S. and Russia. The paper consists of two studies that explored imagery potency from the point of view of memory-evoking effects. The results suggest that image-intensive tools generate different returns depending on the level of brand familiarity and cultural media. The research findings may be of interest to marketing scholars studying cross-cultural consumer behavior as well as to practitioners operating in international advertising and global brand building.     

Does competitive clutter in television advertising “interfere” with the recall and recognition of brand names and ad claims?

This paper contrasts the effects of competitive clutter on the recall and recognition of information from ads for familiar brands. An experiment was conducted utilizing ads for the type of relatively familiar brands typically advertised on network television; the dependent variables were recall and recognition of brand names and ad claims. Results showed that brand name recall scores were substantially reduced by competitive clutter. However, exposure to competitors' ads had little effect on ad claim recall. These data are consistent with the view that information about familiar brands will tend to be compartmentalized in memory, reducing interference effects in attribute recall. Exposure to competitive clutter had relatively little effect on recognition task performance. Suggestions for future advertising research considering competitive interference and brand familiarity issues are provided.The authors thank the editor and two anonymous reviewers for their guidance. Ray Burke. Frank Kardes, James Kellaris, Karen Machleit, Joe Mandese, and Don Schumsky provided helpful comments on various aspects of this research.     

Fast and frequent: Investigating box office revenues of motion picture sequels

This paper conceptualizes film sequels as brand extensions of a hedonic product and tests (1) how their box office revenues compare to that of their parent films, and (2) if the time interval between the sequel and the parent, and the number of intervening sequels, affect the revenues earned by the sequels at the box office. Using a random sample of 167 films released between 1991 and 1993, we find that sequels do not match the box office revenues of the parent films. However, they do better than their contemporaneous non-sequels, more so when they are released sooner (rather than later) after their parents, and when more (rather than fewer) intervening sequels come before them. Like other extensions of hedonic products, sequels exhibit satiation to the extent that their weekly box office collections fall faster over time relative to contemporaneous non-sequels. Managerial implications of the results are discussed.     

Brand response to environmental turbulence: A framework and propositions for resistance,recovery and reinvention

As valuable assets of corporations, governments and not-for-profit organizations, brands have attracted considerable research attention. We know a lot about how brands create knowledge in their target consumers’ minds, which leads to an attitude towards or relationship with the brand that translates into a number of favorable outcomes. The resultant brand equity is often associated with improved performance of the organization in reaching its objectives such as increasing market value. We know less about the dynamic nature of brand equity and, in particular, how it may interact with turbulence in the external environment in which the brand competes, both positively and negatively. We examine three key dimensions of brand equity—brands’ access to their target markets, perceived differentiation, and level of brand engagement with their target consumers—that influence the effect environmental turbulence has on diminishing equity or providing future opportunities for brand equity growth. Borrowing from the strategy literature, we suggest ways in which agile and resilient firms can use brand equity to resist environmental turbulence, recover from any damage that may result from it, and reinvent themselves to leverage opportunities created by a radically altered external environment. We close with a set of propositions intended to guide managers in anticipating and responding to environmental turbulence and inform and shape future research in this area.     

Compromising the compromise effect: Brands matter

Consumer behavior research has a long history indicating that preferences are influenced by the relative positions of members of a choice set. The realism of this work, however, is somewhat limited because alternatives are typically labeled with letters rather than with real brand names. We investigate the boundaries of prior research by testing whether preferences for alternatives in compromise and superior positions generalize to a more realistic market scenario that includes choices between real brands. In particular, we conduct two studies that examine if preferences for brands in a choice set are moderated by the inclusion of more or less familiar brand names. We find that consumers prefer extreme brands when compromise brands are relatively less familiar and compromise brands when they are relatively more familiar. In this scenario brand familiarity and not the position of the alternatives determine choice. In situations where a choice alternative is superior, we find no moderation due to brand familiarity.

Reviving brand loyalty: A reconceptualization within the framework of consumer-brand relationships

This paper uses the perspective of interpersonal relationship theory to critically examine, reposition, and extend the notion of brand loyalty. Depth interviews among eight coffee-consuming adults who qualified as brand loyal by traditional criteria provide the data. The result is a deeper appreciation of the character of loyal consumer-brand relations and a sharper awareness of the limitations to understanding that current theoretical frameworks impose. Specifically, the authors suggest that: (1) not all loyal brand relationships are alike, in strength or in character; (2) many brand relationships not identified as ‘loyal’ according to dominant theoretical conceptions are especially meaningful from the cunsumer's point of view; and (3) current approaches to classification accept some brand relationships that, upon close scrutiny, do not possess assumed characteristics of ‘loyalty’ or ‘strength’ at all. Ideas stemming from a reframing of loyalty as one component in a multifaceted construct of relationship strength are put forth, encouraging a move from the metaphor of ‘loyalty’ to the broader notion of ‘relationships’ that encompasses it.     

Brand equity and the exacerbating factors of product innovation failure evaluations: A communication effect perspective

When both high-equity and low-equity brands experience an innovation failure, does the high-equity brand fare better? This study investigates this question by exploring how consumers view and evaluate brands following an innovation failure. The researchers examine whether brand equity, preannouncement of the innovation, and word-of-mouth from an opinion leader exacerbate or alleviate the negative impact of the failure. Two experiments with a total of 816 subjects show that high-equity brands suffer less than low-equity brands from the adverse effects of innovation failures. However, innovation failures are more detrimental to high-equity brands that have preannounced the innovation and to low-equity brands that do not receive supportive word-of-mouth from an opinion leader after the failures occur.     

Transformation and Rebirth of Chinese Brands: A Case From the Hotel Industry

ABSTRACT

Chinese domestic brands have developed rapidly in recent years, and yet few of them have entered global competition as product or service brands brands with exceptions such as Huawei. In addition, the evolution of Chinese brands has hardly been understood or introduced properly by international business educators. In this article, we identify the development patterns of Chinese domestic brands by using a local hotel brand as an example. Particularly, we examine and discuss how a Chinese brand can be established with specific positioning, brand image, and product offering, as well as how the brand can grow by vertical and horizontal extensions based on balancing market opportunities and the brand’s own capabilities. Moreover, we expect this research to facilitate the understanding of Chinese brands among international business education.     

Brand crises: The roles of brand familiarity and crisis relevance in determining the impact on brand evaluations

Brand crises, defined as well-publicized claims of unsubstantiated or false brand propositions can do severe damage to brands. Yet, the damaging effects of brand crises may not always be uniform. In other words, the effects of crises may be subject to moderators such as the relevance of the crisis to the brand and brand familiarity. We propose a framework that helps us understand the effects of brand crises on consumers' brand evaluations. We test the hypotheses that crisis relevance interacts with familiarity in its effect on brand evaluations, and that this effect is mediated by perceptions of the seriousness of the crisis. Results from two experiments support these predictions.     

Brand extension feedback: The role of advertising

Firms often use brand extensions as a way of introducing their new products, although they also risk diluting their brand image. In order to understand how consumers assess extensions and extended brands, the present work proposes and estimates a theoretical model, using the structural equation methodology. The results of the estimation indicate that the attitude towards the extension influences brand image and that this attitude is a consequence of the initial brand beliefs and the coherence of the new product. A multisample analysis also reveals that favoring the introduction of extensions through adequate advertising constitutes an efficient way of protecting brand image.     

论“品牌即关系”——关系生态下的品牌新构建

本文首先对品牌和关系这两个元概念进行演绎,提出“品牌即关系”的论断。并从社会学和公共关系学的角度切入,结合蒙牛和耐克的实例,证明了该论断提出的必要性和正确性;并在“品牌即关系”的论断下,重新挖掘和认识品牌的新涵义——品牌的内在运营机理和外在运行状态,为各社会组织制胜于品牌竞争环境之中提供了一条新的思路。     

Sponsorship portfolio as brand image creation strategies: A commentary essay

This essay discusses Chien, Cornwell, and Pappu's (forthcoming) paper, “Sponsorship portfolio as brand image creation strategy.” Although Chien et al. (forthcoming) seek to enhance understanding of the impact of a brand's sponsorship portfolio on its brand image they are not completely successful in this endeavor. One of their key constructs, the event personality fit (EPF) construct, has no significant effect on brand meaning. This essay suggests that this finding is because of limitations in the brand personality metrics in the study and because of the tautological nature of the hypotheses proposals. Their sponsorship category relatedness (SCR) construct, however, is a useful construct for those seeking to assemble a portfolio of sponsored products that builds positive brand meaning for the sponsor's brand.     

Do Trademark Infringement Lawsuits Affect Brand Value: A Stock Market Perspective

Many firms find that they can benefit from copying orotherwise misusing the trademarks of their competitors. Firmsthat have maintained a positive brand image are likely to fightany dilution or eventual loss of their trademark by using lawsuitsagainst offending firms. These lawsuits help to staunch any lossesto the brand and leave the potential for the benefits from thetrademark to flow back to the firm. These benefits will be temperedby legal costs, potential infringement by other firms in futureand the need to file lawsuits in response. In contrast, firmsthat have infringed on a trademark are likely to lose if theowner of the trademark challenges them in court. This study relatesthe stock returns of firms to the filing of lawsuits to defendtrademarks. We study the impact of both the filing of the lawsuitand the eventual verdict of the court on the stock market valueof defendant and plaintiff firms. The protection of a trademarkby a plaintiff using a lawsuit resulted in a negative returnto the shareholders of the defendant firm that infringed on thetrademark. The returns to the plaintiff firms were mixed andof marginal magnitude due to offsetting factors although largefirms experienced positive returns.     

电视媒体在品牌传播中的背书效应分析——以中央电视台为例

本文将研究视角聚焦于电视媒体的背书效应,以中央电视台为例,力图通过分析消费者品牌偏好与媒介偏好之间的关系,探讨新营销传播图景之下传统大众媒体在广告主品牌传播活动中的角色与价值,以期为广告主更好地控制品牌信息、提高传播效率提供借鉴。     

Cultural influences on global firms' decisions to cut the strategic brand ties that bind: A commentary essay

Today's global firms face increasing pressure to protect their brand identity from encroachments of copycat brands that seek to benefit from associations firms have established in the minds of consumers. This essay is a commentary to the article “Marking your trade: cultural factors in the prolongation of trademarks” by Melnyk, Giarratana and Torres that raises several important issues warranting further attention by researchers. This essay comments on the paper's contributions, limitations, and opportunities contributing to future research about trademark practices and strategies. Furthermore, the essay suggests useful extensions relative to the more general strategic issue of prolongation or abandonment of intangible brand assets in global markets and the dynamic interface between firm-created and consumer-created brand meaning.     

Brand death: A developmental model of senescence

Drawing on literature underpinning brand management in marketing, product life cycles in economics, fads in sociology and aging in biology, this paper argues that brand demise is inevitable and not necessarily caused by managerial incompetence. Rather, this demise is a natural part of a brand's developmental process, instigated by consumers seeking to satisfy not only their material needs (constitutive utility), but also their self-image (symbolic utility). This paper presents a model of brand senescence to explain this phenomenon and concludes with a discussion of the implications for managerial practice and marketing theory.     

Managing brand extension via licensing: An investigation into the high-end fashion industry

Brand managers are increasingly confronted with the option of licensing their brands when pursuing brand extensions. Such decisions are typically based on evaluation of the risks associated with such a contractual form, and with the nature of the asset at stake, i.e., the brand. Drawing on transaction cost economics and the brand extension literature, the authors investigate how managers balance the advantages of rapidly accessing new product categories through licensing with the risk of negative reciprocal effects and licensees' opportunistic behavior. Our results suggests that firms tend to be strategically conservative when examining how to extend their brands, as managers see the risk of negative effects on the parent brand as outweighing the advantages associated with licensing.     

Do extrinsic cues affect purchase risk at international e-tailers: The mediating effect of perceived e-tailer service quality

The inherent nature of the international e-tailing environment leads to the consideration of purchase risk. In this study, an attempt is made to investigate the effect of three extrinsic cues, e-tailer brand equity, Country-Of-e-tailers (COE) and guarantee quality, within such an environment in Taiwan. The research findings support the proposed hypotheses that these exogenous factors affect a mediator, i.e., perceived e-tailer service quality, which in turn affects purchase risk perceived by online shoppers in a borderless marketplace. In conclusion, managerial implications of the research results as well as future research directions are presented and discussed.     

Co-creating brands: Diagnosing and designing the relationship experience

The traditional goods-dominant logic of marketing is under challenge and leading researchers are now emphasizing the new service-dominant logic [Vargo, S.L., Lusch, R.F., Evolving to a new dominant logic for marketing. J Mark 2004; 68 (1): 1-17.]. One of the key foundational propositions of this logic is the customer as “always being a co-creator of value” where “the brand becomes the experience” [Prahalad, C.K., The co-creation of value. J Mark 2004; 68 (1): 23.]. In this paper, the authors examine the concept of brand relationship experience in the context of co-creation and service-dominant logic and outline a conceptual model for designing and managing the customer experience. Case study research illustrates how this model helps in the design and management of the brand relationship experience for an innovative new product.