Should We Hire David Beckham to Endorse our Brand? Contextual Interference and Consumer Memory for Brands in a Celebrity's Endorsement Portfolio

Imagine that you are browsing through a magazine, and you see one of your favorite celebrities in an advertisement. Then, a bit further into the magazine you see that same celebrity in an ad for a different product. A few hours later, you think of the celebrity again and try to remember the products s/he was endorsing, but what will you actually recall? This paper examines consumer memory for celebrity advertising under conditions where a single celebrity advertises for more than one brand. Using contextual interference as the theoretical lens, the current research posits and demonstrates how brands in a celebrity's “endorsement portfolio” compete with one another when consumers use the celebrity as retrieval cue for information that was contained in the ads. The findings of the laboratory experiment reveal that brands sharing either a high or low match with the celebrity win the battle during retrieval and inhibit consumers’ ability to accurately recall ad information for brands sharing a more moderate match with the celebrity. The theoretical practical implications of these findings are discussed.     

Country of origin: A competitive advantage?

Country of origin has been identified in the literature as an important cue that might be used by global marketers to influence consumers' valuation of the brand. Its effect on consumer perceptions, affect and behavioral intentions has been widely documented, based on consumer surveys and laboratory experiments. Despite this empirical evidence, we argue that country of origin is only one extrinsic cue among many extrinsic and intrinsic cues available to the consumer in a real purchase situation. Furthermore, in real life, consumers are likely to engage in some level of information search, which would further dilute the country of origin effect in the marketplace. Based on these arguments, we conclude that country of origin might not necessarily lead to a competitive (dis)advantage in terms of a price premium or discount. For a sample of products, we show that the objective product quality varies significantly by country of origin, and that these differences are consistent with extant research on country of origin effects on consumers' perceptions. After controlling for quality differences across brands, we demonstrate that marketers from different countries charge prices that are justified by differences in product quality. Price premiums or discounts are therefore explained by differences in product quality rather than the image effect produced by the country of origin cue.     

Private label personality: applying brand personality to private label brands

Private label brands (PLBs) are an important facet of the retail offering within the supermarket sector. Although research has focused on the risk factors of private label purchasing, there has been little research that explores the brand management of private labels including the development of a brand personality. In this study, we investigate how the Aaker brand personality scale applies to a PLB available in two different retail chains and examine its effect on customer attitudes towards private label quality. A factor analysis of these brand personality measurement items shows that five dimensions, confidence (a new dimension), sincerity, ruggedness, excitement and competence are relevant for PLBs. Although much of the original Aaker scale was included in the analysis, one factor, sophistication, was not evident. A regression analysis shows that all private label personality dimensions influenced the private label quality measure with the confidence and sincerity dimensions having the greatest impact.     

Understanding premium private labels: A consumer categorisation approach

Worldwide premium private labels (PPLs) are a new and rapidly growing phenomenon. However to date, little is known about consumers' perceptions of these newer entrants relative to other brand types. Therefore it is difficult for marketers to understand the opportunities and threats created by this new generation of brands. This study examines the ways in which consumers categorise PPLs compared to more traditional value private labels (VPLs) and national brands (NBs) on the three dimensions of quality, value for money and trust. The data includes seven packaged goods categories in three countries, the United States, the United Kingdom, and Australia. The findings show that PPLs sit on a separate island, in between VPLs and NBs in consumer memory. While consumers generally view PPLs as a separate subgroup of brands, PPL are connected to other subgroups in that they are perceived to have the value characteristics of VPLs but quality characteristics of NBs. Finally, consumers with past experience with VPLs have a stronger ability to categorise PLs into distinct brand tiers.     

Motivating purchase of private brands: Effects of store image, product signatureness, and quality variation

This study examines the effects of intangible extrinsic cues on consumer quality perception and purchase intention of private brands. We find that store image and product signatureness enhance quality perception and purchase intention of private brands while quality variation reduces both outcomes. All effects of the three extrinsic cues on purchase intention are partially mediated by quality perception. In addition, consumer value consciousness strengthens the relationship between quality perception and purchase intention of private brands.     

Consumer Evaluations of Competing Brands: Perceptual versus Predictive Validity

This study applies the concepts of consumer predictive and confidence values of information to consumer evaluations of food quality. Examining hypothetical findings from a thought experiment, the study offers advances in cue utilization, predictive validity, and achievement of consumer's perceived quality and actual quality. Separately, metrics for these concepts were applied in a consumer product‐quality evaluation study of three brands of peanut butter. Actual quality was operationally defined in terms of Consumers Union ratings of the peanut butter. Using a between‐groups, posttest only experimental design, female graduate students (n = 98) tasted and rated one of three peanut butters on the basis of quality and nine product attributes. These informants received no knowledge of brand names or comparative qualities prior to the test. The analysis indicates a nonsignificant correlation between actual quality of the brands and quality as perceived by the informants. The major cues used by informants in making their qualitative judgments (cue utilization) differed from the significant dimensions associated with actual quality (predictive validity). The findings inform the suggestion for consumer training in the process of making accurate quality evaluations.     

Price–Quality and Market Share of Consumer Goods in Spain: Retail Brands and Manufacturer Brands1

The development of retail brands has been favoured by the creation of large chains and by the high level of business concentration in the retail sector. It has been supported by an increasing number of consumers who are aware of value and consider that retail brand is the best alternative, with quality levels similar to those of leading manufacturer brands but with lower prices. In this survey, we analyse the price differentials between manufacturer brands and retail brands in several categories of widely consumed products. We study the relationship between the price differential and the mean category price with the market share of retail brands, for foodstuff, perfumes and cleaning materials categories. Finally, we determine the possible connection between the price of a consumer good brand and its real quality.     

The Future of Private Labels: Towards a Smart Private Label Strategy

Modern day store brands (SB) or private labels (PL), now also popularly called private brands, are brands generally owned and marketed by retailers. They have been active on the market for about 70 years. Over this time span, these brands have evolved from generic, cheap, low-quality economy or budget private labels to lower-priced-than-national brand but acceptable-quality value or standard private labels. Over time, retailers extended the value proposition to the consumer segment seeking higher quality by offering premium private labels. This strategy, called the tiered-private label, comprises offering economy PL to the price-sensitive but not quality sensitive consumers, standard PL to mainstream consumers seeking acceptable quality at lower prices, and premium PL to the quality-sensitive segment seeking value. Over the last 40 years (1980–2020), these versions of private labels have witnessed substantial growth around the world, though the growth is said to be tapering in recent times.As retailers chart the future strategy for their private labels in 2020 and beyond, a pertinent question they face is: Should they continue to offer value or even tiered PL with the same formula that brought them success in the past, or should they morph and adopt new strategies in keeping with current market trends? We support adopting a new strategy that we call the smart PL strategy. The value PL strategy and its manifestation as the tiered PL strategy cater to different consumer segments but focus primarily on price and quality as attributes of choice. In the current marketplace, consumers care not only about price and quality, but also about sustainability, ethics, social responsibility, image, so forth, perhaps more so than earlier generations. They are also more tech-savvy in using digital tools for search and purchase. Retailers, on their part, are now endowed with rich, extensive data that they can tap into to understand customers’ diverse needs, and they are able to harness technology for developing the right product and communication. Thus, the smart PL strategy is a strategy by which retailers can leverage data and technology to market private labels that meet diverse customer needs and achieve greater retail differentiation, store loyalty, margins, and profits. This thought piece provides a road map for developing such a smart PL strategy and directions for future research.     

The effects of store brand loyalty on store loyalty: evidence from the Spanish market

This article studies the impact of retailers' store brands on store performance. Specifically, we analyze the extent to which store brands contribute to store loyalty. On the one hand, a positive relationship between customers' familiarity with and loyalty to the retailer's own brand and customers' loyalty to the retailer should result from the potential of the store brand to differentiate the retailer. On the other hand, an negative relationship between customers' familiarity with and loyalty to the retailer's own brand and customers' loyalty to the retailer may result from store brands' association with more price-sensitive customers, who have a higher propensity to buy at different stores that offer the best bargain. The empirical analysis, conducted with a sample of customers of leading retailers in the Spanish detergent market, shows no relationship between store brand loyalty and loyalty to the retailer. Although the purchase of store brands relates positively to higher loyalty to the retailer, this relationship deteriorates with the degree of exclusivity of store brands within the customer's shopping basket.     

Consumer attitudes and loyalty towards private brands

Private or store brands improve the efficiency of consumer decision making by offering equivalent quality products at lower prices. The present study evaluated consumer attitudes towards private brands with the goal of understanding their appeal in order to enhance efforts to convince more consumers to buy them. We used three samples (ns = 279, 245 and 305) of US consumers to compare attitudes of buyers of private and national brands in three product categories: orange juice, cereal and bottled water. The results show that private label buyers (23% of orange juice, 6.5% of cereal and 14% of bottled water buyers) consider brands themselves to be less important and private brands to offer better performance than do national brand buyers. When asked about specific brands, national brand buyers tended to be price insensitive towards national brands, and private label buyers price insensitive towards store brands. In addition, the national brand buyers saw some of the national brands to be more relevant to their lifestyles and needs, but the private label buyers saw the private labels the same way. Being relevant to consumers' lives appears to influence brand selection. Besides touting lower prices, private brand promotions might stress the equivalent performance of private labels and create promotions showing how these brands can be relevant to consumers' lifestyles and needs.     

The Arduous Journey of Private Labels: Insights From the South African Market and Further Afield

This article presents an overview of private label brands (PLBs) by considering both the status quo and emergent trends in this sphere. The initial focus is profiling private labels in the country of South Africa, with developments from abroad then being juxtaposed against the local retail landscape. Global market trends are brought to the fore at the end of the article. PLB adoption in South Africa currently sits at a paltry 18% (little moved in the last 5 years), compared with a European average penetration rate of 30%. The reasons for this lackluster growth are varied, with a lack of retailer R&D at the root cause. Yet the conditions are right for rapid growth of this merchandise should household incomes continue to remain under pressure and should consumers fully appreciate the value proposition of such brands. Furthermore, it is expected that the global share of the market will reach 50% by 2025 (double that presently) with retailers abandoning B-brands and replacing these with their own substitute PLBs.     

The Power of Promoting Healthy Brands: Familiarity in Healthy Product Decision Making

This research investigates consumer decision making and brand commitment for brands promoted as “healthy.” The authors examine the relationship of brand familiarity to brand credibility, brand quality, purchase intentions, and brand commitment. The findings indicate that familiarity can help increase purchase intentions and brand commitment for healthy brands with low credibility. However, to go beyond a transactional exchange to one that is relational in nature, familiarity, credibility, and quality are all crucial for fostering brand commitment.     

How Differing Demographic Factors Impact upon Customer Loyalty Towards National or International Fast-Food Chains: A Comparative Study in Emerging Markets

ABSTRACT

The aim of this paper is to study differing demographic factors affecting fast-food customers loyalty towards national or international fast food chains. A variety of variables used to gain a holistic view, which includes factors such as quality, price, food and demographic profile of consumers affecting loyalty of fast food chains. The study adopts the theory and method of the trust-commitment-loyalty explanation chain and examines the consumer survey adapted from Fast food by Sahagun et.al (2014). The present analyses 542 filled questionnaires in which systematic sampling is used. Indians prefer global fast food chains compared to Indian fast food chains. Loyalty towards global brands is higher than that for Indian brands because they are found to be of better quality which leads to higher frequency of visit and recommendation of the brands to their friends and colleagues. There is ethnic variation towards global and Indian fast food chains.     

Consumer Regulation Strategies: Attenuating the Effect of Consumer References in a Voting Context

Consumption cues (e.g., brands, money, and advertisements) can have powerful effects on cognition, perception, and behavior, yet how people regulate responses to such cues is not well understood. This is surprising given that consumption cues are increasingly present in nontraditional consumer contexts, such as healthcare, education, and politics. This research develops a measure of two types of consumer regulation strategies, cue‐based and budget‐based (studies 1–4), and demonstrates that these strategies influence how people respond to consumption cues in a political context (study 5). Specifically, in a study involving the 2012 American Presidential Election, priming survey participants as consumers (versus citizens) influenced both voting intentions and self‐reported voting behavior, and the newly developed consumer regulation scale was instrumental in detecting this effect. These findings suggest there may be merit in the escalating debate and concern over referring to voters as consumers.     

The influence of quality cues and typicality cues on restaurant purchase intention

Prior research on cue management has dominantly focused on cues consumers use to infer product quality. Only a few studies have dealt with cues that allow consumers to infer category typicality. Connecting these research streams we show how different cues affect both product quality and category typicality assessments, how these perceptions interact, and how they influence purchase intention. Results of this conjoint experiment among 113 restaurant patrons indicate that typicality cues can also serve as inferences for quality, and that cues influence purchase intentions via their effect on perceived typicality rather than on perceived quality. Once a consumer has determined the usage situation and his inherent consumption goals, he is much more inclined to search for the cues such as table setting that signal the subcategory that is expected to satisfy these goals, than finding cues such as guidebook rating that are diagnostic of product quality (only). After carefully addressing typicality cues which are instrumental in stressing points of parity, brand managers can use quality cues to show the product's points of difference in a category.     

Nostalgia and brands: a sweet rather than a bitter cultural evocation of the past

Abstract

This study focuses on the cultural consumer environment of brands considered as nostalgic. The research questions are thus the following: what is the impact of culture on the consumer relationship with brands considered as nostalgic? In which cases are these relationships positive, and in which cases are they negative? To answer these questions, a longitudinal data collection was conducted, consisting of interviewing the same sample of respondents three times, at more or less one-year intervals. The results were analysed taking into account three dimensions of culture: time, place and social aspects. In the time-based approach, brands are associated with traditional celebrations and rites of passage. Thus, they give rise to ‘traditional purchase’ and consumer loyalty. In the place-based approach, brands evoke original authenticity and myths. They offer protection to reduce perceived risks and therefore facilitate consumers’ trust. In the social approach, brands are associated with symbolic icons and attract communities of fans. Finally, this article shows that culture involves sweeter rather than bitter nostalgic brand relationships. This article brings to light four cases when the consumer cultural environment may induce a rejection of the nostalgic brand: (1) the ‘corrupted’ brand; (2) the ‘immoral’ brand; (3) the ‘precarious’ brand; and (4) the ‘stereotypical’ brand. It shows that only one case – the ‘corrupted’ brand – may be particularly prejudicial due to its unwelcome role in History.     

Two-Tier Store Brands: The Benefic Impact of a Value Brand on Perceptions of a Premium Brand

A recent trend in the retail industry is the emergence of multi-tier store brands. In the current article, we contrast consumers’ expectations in a retailing context in which a single store brand is present to one in which two store brands are offered in the same category. We propose that when a retailer offers a single store brand, consumers expect it to be of lower quality even when it is described as a premium brand. On the other hand, quality perception of a premium store brand increases in the presence of a value store brand. Importantly, quality perceptions of a value store brand are not affected by the presence of a premium store brand. In two studies we find support for our hypotheses showing the benefic impact of a value store brand on quality perceptions of a premium store brand.     

Coke is It: How stories in childhood memories illuminate an icon

This paper builds on consumer storytelling theory and childhood memory research by proposing that earliest childhood memory stories are useful for developing brand myths and providing relevance to iconic brands. This article investigates consumers' childhood memories with Coca-Cola and finds that memories from early childhood are more predictive and insightful for understanding current brand attitudes than memories coming from adolescence. A focus group is unable to elicit memories from as early in life as the childhood memory session. In addition, the memories elicited by the group interviewer are not as relevant and meaningful to participants. When participants read experiences coming from the childhood memory session, those who connect with the earliest childhood memory stories have the strongest attitudes toward Coca-Cola. A discussion describes how this research method aids in generating insights about iconic brands and brands aspiring to become iconic.     

The Effect of Product Innovation,Promotion, and Price on Consumer Switching to Private Labels

The channel conflict that exists between retailers and manufacturers of branded products has dynamically shifted as large retailers have expanded their offerings of private label products. This study investigates the ability of consumer packaged goods companies to exert influence in the channel by testing which marketing initiatives implemented by manufacturer brands are more efficient in preventing consumer switching to private labels. We use a hazard model to simultaneously measure the effects due to product innovation, promotion, and price on consumer switching and how strong those effects are. We find that as expected product innovation, promotion, and price exert a negative effect on the consumer likelihood of switching to private labels. However, we find the strongest effect on promotion suggesting the importance of understanding how consumers perceive value in the national brands offer.