Why do firms delete brands? Insights from a qualitative study

Large consumer goods firms manage and market an assortment of brands and consistently deal with strategic challenges related to brand portfolio management, such as creating or acquiring brands, growing brand equity, managing brands in the portfolio and deleting brands. There is substantial research on several areas of brand portfolio management except in the area of brand deletion. This situation exists despite the fact that deleting weak brands has important implications for a firm and its brand portfolio. Therefore, it is critical to understand why firms delete brands from their portfolios. This research applies a qualitative approach using semi-structured interviews and thematic analysis in the context of firms that adopt a ‘house of brands’ brand architecture and presents findings guided by the strategic decision-making literature.     

Antecedents and financial impacts of building brand love

Brand love has garnered increasing interest among practitioners and scholars, but little is known about how marketing actions drive brand love, and whether and how brand love transmutes to firm profitability. Using longitudinal brand love data collected from more than 20,000 customers of 152 corporate brands and financial data of firms who own these brands during 2006–2017, the authors examine the antecedents and financial impacts of building brand love. The results show that advertising investments help firms build brand love with diminishing returns after reaching an optimal point, whereas R&D investments positively contribute to brand love. The analyses further show that although brand love does not affect firm profitability and market value in the short term, it increases firm profitability and market value in the long term. More important, the results indicate that the positive effect of brand love on firm performance is stronger for hedonic brands, for firms in product categories that matter greatly to consumers, and those operating in highly competitive markets. Overall, the findings have important implications for marketing theory and provide actionable insights for managers into how to build and manage brand love.     

Brand Management and Strategic Performance

ABSTRACT

This article reports on a study using a previously published checklist to assess the brand management practices of South African firms. Indications are that the perceptions of a sample of senior managers regarding how well their institutions manage their brands are reasonably positive, and that the management of brands has effects on a firm's profitability, market share and growth compared to competitors. While the checklist used seems to possess the characteristic of reliability, further development needs to be done on aspects of its underlying structure. Implications for managers and further avenues for research are identified and discussed.     

Role of customer perceived brand ethicality in inducing engagement in online brand communities

In recent times, ethical consumerism has motivated firms to behave ethically to garner various benefits for their brands. More specifically, firms have become more conscious of consumers' perceptions of brand ethicality. Thus, recent research on this topic attempts to explore the factors that can lead to the formation of perceptions of brand ethicality and its favorable outcomes for the brand. This research contributes to the existing literature on brand ethicality by examining the role of perceived brand marketing communications in engendering perceptions of brand ethicality among consumers. Further, this research explores online brand community engagement as the outcome of perceived brand ethicality. The study's results based on the analysis of 397 responses exhibit that various elements of brand communications tend to generate favorable perceptions of brand ethicality. Such perceptions of the brand ethicality further induce an inclination towards engaging with online communities of such brands. The study offers specific implications for academicians and practitioners.     

Legitimately luxurious: Creating authentic luxury brands

In recent years, greater disparities in incomes and growth in wealthy consumers have fueled new opportunities in luxury markets. As firms launched luxury brands, some have thrived as others stumbled. One important difference between those who succeed and those who struggle, we suggest, is brand authenticity. Scholars have studied authenticity extensively, and research has isolated different sources of authenticity. How firms draw on these sources to create legitimate luxury brands has, however, received surprisingly little attention. In this article, we discuss the research on the sources of brand authenticity, and we explore how brands rely on those sources to craft authentic luxury brands. Using the examples of Canada Goose and Shinola, we illustrate how one firm drew on multiple sources of authenticity and, through the symbolism of its actions, successfully created an authentic luxury brand. We conclude with a discussion of the implications for other firms seeking to enter the luxury market.     

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.     

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.     

How can Indian small-scale fashion retailers survive COVID-19 disruption?-A Brand Portfolio Optimization Perspective

Fast fashion trends have led to an enormous local brand proliferation in India. Brand proliferation has further led to an overchoice effect among the Indian consumers due to which, they are now increasingly less satisfied with their apparel purchases. These factors have created immense stress on the small fashion retailers (SFR) which are currently responsible for about 80% of retailing in India. In the pre-COVID times, SFR's followed the practice of overstocking many brands for capturing the maximum market and then clearing the inventory at the end of the season through heavy discounting. This strategy became ineffective after the COVID-19 disruption. SFR's must now optimize their brand portfolio to minimize the overchoice effect and maximize the inventory turnover ratio. To this effect, we propose an efficient fuzzy probability-based brand portfolio optimization model, which relies on primary data analysis to classify brands in groups of substitutes. Brands with maximum market share from each group must be included in the portfolio. We demonstrate the efficacy of our model through a case study on SFR. Our results show that the inventory turnover ratio was increased from 2 to 4. We further show that our grouping strategy can be used to identify competitive brands for a local band.     

An empirical comparison of two brand personality scales: Evidence from India

Aaker's (1997) brand personality scale has been widely used to measure the personality of brands. However, studies also show that Aaker's brand personality dimensions are not stable across cultures. In pursuance of this issue, we examine the structure of brand personality dimensions in India. This research presents the results of two studies conducted to develop a brand personality scale in Indian context, and to make an empirical comparison between Indian brand personality scale and Aaker's brand personality scale. Results reveal that brand personality in India can be described in six dimensions: sophistication, excitement, popularity, competence, trendiness and integrity. The findings empirically support the reliability and validity of the scale developed. The results also reveal that Indian brand personality scale is a suitable alternative to Aaker's brand personality scale in Indian context.     

Managing the retail format portfolio: An application of modern portfolio theory

We apply modern financial portfolio theory (MPT) to managing portfolios of retail formats. The objective of MPT is to maximize overall portfolio return for a given level of portfolio risk. We applied MPT to three prominent hotel firms to determine the ideal mix of formats in their hotel brand portfolios, using revenue per available room (RevPAR) as a proxy for return on investment. We found that all three firms could improve their returns and reduce their risk by reallocating the number of hotel rooms (i.e., scarce resources) across their different retail formats.     

Relating brand anxiety,brand hatred and obsess: Moderating role of age and brand affection

Proficient brand management, including retail brands, is crucial for the success of the firms or retailers. One area of interest is consumers’ negativity towards brands (e.g., hate) due to negative consumer-brand relationships. The present article examines the relationships between brand anxiety, brand hatred and obsess, and illustrates the impacts of age and brand affection on these relationships. Data were collected through an online survey, and partial least squares path modelling was used to test the proposed paths on a sample of 416 consumers. The findings revealed that brand anxiety influenced obsess directly and indirectly through brand hatred. It was also evident that age moderated the path between brand anxiety and brand hatred, while brand affection strengthened the relationship between brand hatred and obsess. Theoretical contributions and managerial implications are discussed subsequently.     

Cigarette brand loyalty and purchase patterns: An examination using US consumer panel data

This study analyzes data on cigarette purchasing using an extensive panel dataset. Major findings are: (1) cigarette purchasing in this market exhibits a reverse-J, or NBD (Negative Binomial Distribution)-like shape: many infrequent buyers and fewer frequent buyers; (2) Cigarette brands do exhibit high loyalty compared to other consumer categories, and show a trend to higher brand loyalty over time coinciding with fewer price promotions; (3) The data shows a weak double jeopardy pattern of smaller brands enjoying somewhat lower loyalty; (4) Smokers of a given brand are on average more likely to purchase another large cigarette brand than another small brand; (5) A straightforward analysis method identifies occurrences of excessive cross-brand cannibalization in the portfolio of one of the major tobacco corporations; and (6) Certain brands enjoy particular appeal among specific demographic groups. The study sheds more light on consumer behavior towards a product with addictive qualities and known harmful effects.     

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.     

Service brand coolness in the construction of brand loyalty: A self-presentation theory approach

As service brands need to find new methods to overcome consumers' distrust of physical spaces in the post-COVID-19 era, we explore how niche and mass service brands can recover their experiential value through perceptions of coolness. In three studies, we evaluate service brand coolness and its consequences for communal–brand connection and loyalty. In Studies 1 and 2, we examine consumers’ thoughts on coolness and communal connection when describing their encounters with service brands. In Study 3, we test the relations among service brand coolness, communal–brand connection, and loyalty. Our findings show that for both niche and mass firms, service brand coolness similarly enhances communal–brand connection and loyalty.     

The brand personality dimensions of business-to-business firms: a content analysis of employer reviews on social media

ABSTRACT

Purpose: The purpose of this paper is to explore the brand personalities that employees are creating of their employer brands, in particular business-to-business (B-to-B) brands, when describing these brands on social media. We examine how the brand personalities, based on written online reviews, differ between high- and low-ranked, and high- and low-rated brands.

Methodology/Approach: 6,300 written employee reviews from a social media platform, Glassdoor, are used for content analysis in DICTION, to determine the brand personality dimensions they communicate (J. L). An independent B-to-B brand ranking data source, Brandwatch, is used as a reference to various brands’ level of ranking, while an ANOVA test is used to determine whether there is a difference in the brand personality trait means when comparing high and low-ranked, and high- and low-rated brands.

Findings: Our findings suggest that a strong social media presence does not equate to a strong employer brand personality perception among employees, since there are no significant differences between B-to-B firms based on their rankings.

Research Implications: Extant literature has mostly explored the impact of either critical reviews or favourable customer ratings and reviews on company performance, with very little research focusing on the B-to-B context. In addition, research employing DICTION for the purposes of content analysis of reviews is sparse. The methodology used in this study could thus be employed to further compare and contrast the reviews from a single company, dividing top and low starred reviews to compare discrepancies.

Practical Implications: The results of this study show how online shared employee experiences of employer brands contribute to the formation of a distinct employer brand personality. From a managerial viewpoint, engaging with current and past employees and being cognizant of the online narratives that they share on social media, may be an early indicator of where the firm is lacking (or showing strength) in its’ employee engagement. This would offer a way for firms to both understand their employer brand personality as well as gauge how they compare to top employers in a specific sector or industry.

Originality/Value/Contribution: The study attempts to grow the literature of employee brand engagement in a B-to-B context, by recognizing the important role that employees play in engaging with their employer brand online. Two main contributions are offered. The first contribution relates to the finding that employees perceive highly-rated B-to-B brands as being more competent, exciting, sincere and sophisticated than low-rated B-to-B brands. Second, the methodology used in this study proves to be a novel and accurate way of comparing employee reviews and perceived employer brand personality, with the employer-created intended brand image.     

The relationship between store image and store brand equity: A conceptual framework and evidence from hypermarkets

Retailers are making considerable efforts to improve their brand management. The challenge they face, however, is how best to integrate coherently their stores, as brands, and their various distributor brands (store brands, private labels, etc.), in order to increase their brand equity and offer the market differential value that will stimulate customer loyalty. From this perspective, it is crucial for retailers to investigate the relationship between the store and their own brands. This study proposes two theoretical models showing the mechanism whereby store image helps increase the equity of a specific type of distributor brand (the store brand). The approach used in this analysis is based, on the one hand, on defining brand equity through its components, using the model in Aaker (1991), and on the other, on including (social and strategic) corporate dimensions in measuring store image. The empirical research made in the hypermarket sector in the Basque province of Gipuzkoa backs the majority of the proposed hypotheses. The results show that store image can be used by retailers to influence all components of store brand equity, essentially through its commercial and strategic dimension. This research is intended to address the clear lack of research on store brand equity.     

Desire,need, and obligation: Examining commitment to luxury brands in emerging markets

The availability of a wide variety of luxury brands has resulted in declining commitment toward a single brand. Enhancing brand commitment has, therefore, become a significant challenge for international businesses and marketing managers. We develop a multi–dimensional brand commitment framework underpinned by marketing, organizational, and social psychology literature streams. The simultaneous examination of brand–commitment dimensions based on consumer desire, need, and obligation in our framework offers a novel perspective that advances research on brand commitment. Our findings demonstrate stability of the framework in important emerging markets for luxury brands, namely China, India, Russia, Turkey, and Thailand. The framework, incorporating affective, continuance, and normative brand commitment dimensions, offers a conceptually robust fit. We demonstrate that each brand commitment dimension is influenced by distinct antecedents, and we show the direct and interactional impact of consumers’ emotional attachment, economic motivations, and normative pressures on purchase intentions. Supported by well-established theories in organizational and social psychology, our study offers new insights on how consumers commit to brands. We provide international brand managers with a blueprint for strengthening brand commitment across countries.     

Measuring consumer-based brand authenticity

Postmodern consumers use brands to create an authentic self and to reconnect to place, time, culture and others. Although previous research has identified that consumers draw on a range of cues in order to attribute authenticity to branded objects, no scales exist to measure the construct of brand authenticity. Building on the existing literature, this paper uses quantitative methods to develop a psychometrically robust measure of brand authenticity from a consumer's perspective. Findings demonstrate convergent, discriminant and predictive validity, whereby 14 items represent three interrelated first order factors labeled quality commitment, sincerity and heritage that correspond with a higher order brand authenticity construct. This study extends our understanding of the consumption of authenticity. Moreover, it provides a tool by which firms can evaluate the effectiveness of strategic decisions designed to deliver an authentic brand offering to consumers. Limitations and directions for future research are discussed.     

On the Extendibility of Brands with Subordinate versus Basic Category Concepts

In this paper, we use a series of experimental studies to show that consumers’ response to the extension of a brand associated with a basic versus a sub-category depends on the closeness of the brand's parent and extension categories. When the two categories are close, consumers respond more favorably to the extension of a brand with a basic category concept, but the pattern reverses when the categories are far apart. However, a brand with a basic category concept can mitigate its disadvantage in a distant category by first launching an intervening line extension. Our results suggest that brands with sub-category concepts are not limited in their ability to extend, and can help retailers meet the twin objectives of leveraging the high growth of specialized categories and rationalizing their brand portfolio. They also suggest that managers should aim to extend brands with sub-category concepts into distant categories where the modifier in the brand concept is relevant rather than into close categories.     

Sponsorship portfolio as a brand-image creation strategy

The meanings held by events are sometimes transferable to a brand through sponsorship. The perceived sponsor-property fit affects brand evaluations. This research hypothesizes that in the case of a sponsorship portfolio, the source of image transfer can be composite, and brand image association may depend on the perceived fit between sponsorships. Building on theories of social cognition and categorization, this research proposes two dimensions of fit: sponsorship category relatedness and event personality fit. Two experiments show that categorical relatedness between sponsorships not only leads to the creation of a unified brand personality for the sponsor, but also enhances brand meaning consistency and clarity. Central category-related traits cue a category membership framework that integrates sponsorships in the portfolio. Under conditions of category ambiguity, the impact of event personality fit emerges. Interestingly, the findings suggest that sponsored properties having a “spiky” brand personality (having both high and low performance on dimensions) may communicate most clearly in a portfolio.