The impact of brand personality and sales promotions on brand equity

This research assesses the relative impact of a long-term brand management instrument (brand personality) and a short-term marketing mix instrument (sales promotions) on brand equity formation. The authors measure consumer perceptions of promotional intensity and brand personality and model their impact on brand equity. They find a positive impact of brand personality and a negative impact of sales promotion intensity on brand equity at the aggregate level. In line with research that identifies varying consumer responses to promotional deals, this study posits that the relative impact of the two elements varies across consumer groups. Three homogeneous consumer groups differ according to the relative impact of brand personality and consumer promotions on brand equity, following an application of a finite mixture partial least squares procedure.     

Brand personality appeal,brand relationship quality and WOM transmission: a study of consumer markets in Vietnam

This study investigates the impact of brand personality appeal on both brand relationship quality and word-of-mouth (WOM) transmission in Vietnam. It also examines the role of consumer attitudes towards advertising and public relations on brand personality appeal as well as brand relationship quality. An empirical test with a sample of 477 consumers by means of structural equation modelling reveals that brand personality appeal has a positive impact on both brand relationship quality and WOM transmission and that brand relationship quality has a positive effect on WOM transmission. Furthermore, attitudes towards public relations have positive impacts on both brand personality appeal and brand relationship quality. Finally, attitudes towards advertising have a positive impact on brand personality appeal but not on brand relationship quality.     

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.     

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.     

Effects of comparative advertising format on consumer responses: The moderating effects of brand image and attribute relevance

In this research we distinguish between ads that compare two different brands (Across-Brand Comparison or ABC ads) and those that compare different versions of the same brand (Within-Brand Comparison or WBC ads). Results from an experiment indicate that when comparative ads use attributes that are relevant to product performance, ad type and brand image interact such that an ABC ad leads to less favorable consumer perceptions than a WBC ad when image of the sponsor brand is low but not when it is high. However, when the ads use attributes that are irrelevant to product performance an ABC ad leads to less favorable consumer outcomes than a WBC ad, regardless of the image of the sponsor brand. We further propose and show that ad believability mediates these effects. Theoretical and practical implications of the findings are discussed and directions for future research are provided.     

Functional brand qualities and perceived value: The mediating role of brand experience and brand personality

Brand experience and brand personality have become two important theoretical constructs in the branding literature. However, research on the antecedents of these two constructs has been focused on intangible brand characteristics and qualities, underestimating the role of functional features. This study aims to overcome this gap by postulating that two key functional brand qualities, quality and innovativeness, help shape brand experience and personality, which, we ultimately predict, contribute to perceived value. Investments in quality and innovation have grown substantially, but how they materialize in benefits for customers and firms remains unclear. Accordingly, this study provides insights into how firms can engender the characteristics of their offer to build brands that are perceived by consumers as generating a valued brand experience and personality. The results from two samples provide broad support to the proposed model. Both brand quality and innovativeness contribute to brand experience and personality. Moreover, we observe that both brand experience and personality relate to perceived value. Finally, we also determined that brand personality and experience partially mediate the relationship between brand innovativeness and quality and perceived value. Hence, these results provide relevant implications for both theory and the practice of brand management.     

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.     

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.     

Slowing the adoption and diffusion process to enhance brand repositioning: The consumer driven repositioning of Dunlop Volley

What should you do when your brand becomes ‘hot’ overnight among influential endorsers? Do you exploit this sudden rise in popularity and mainstream the brand, or do you attempt to slow the diffusion process and seek to understand how to market to these consumers? Drawing on the case of Dunlop Volley in Australia, we argue that mainstreaming the brand by targeting later adopters results in a short-term fashion cycle rather than creating long-term brand value. Since these brands are ‘discovered’ by consumers, marketers must first understand the value system underlying this adoption and then fit the marketing program to these values. In the case of Dunlop Volley, slowing diffusion rates was achieved through four tactics: the rejection of hard sell marketing, appearing authentic, targeting alternative distribution channels and delaying launch to the mainstream audience. These activities ensured the ongoing credibility of the brand with endorsers and helped revitalize a long-thought ‘dead’ brand.     

Product quality,attributes, and brand name as determinants of price: The case of consumer electronics

This paper proposes and illustrates an approach to measuring one aspect of brand equity, viewed as a price premium and defined as the increment that a brand name contributes to the price of a product above and beyond that justified by its quality (where quality is determined by an assessment of the relevant attributes, features, or characteristics). Two illustrative studies apply the proposed measure to consumer-electronics products found in home-theater or audio-video entertainment centers. Study 1 uses data presented byConsumer Reports to regress market price on overall quality and on dummy variables coded to represent brand names. Here, the results for home-theater products suggest a conspicuous absence of incremental brand-name effects. Study 2 generalizes this result by analyzing data for various electronic products offered by theCrutchfield Catalog. Across six product categories, when controlling for differences in an attributes-based index of product quality, a significant brand-related price premium appears to occur only for Carver. This finding again casts doubt on the importance of brand equity in the market for consumer electronics.The author gratefully acknowledge the support of the Columbia Business School's Faculty Research Fund.     

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.     

Machines learn neuromarketing: Improving preference prediction from self-reports using multiple EEG measures and machine learning

A basic aim of marketing research is to predict consumers’ preferences and the success of marketing campaigns at the population-level. However, traditional marketing tools have various limitations, calling for novel measures to improve predictive power. In this study, we use multiple types of measures extracted from electroencephalography (EEG) recordings and machine learning (ML) algorithms to improve preference prediction based on self-reports alone. Subjects watched video commercials of six food products as we recorded their EEG activity, after which they responded to a questionnaire that served as a self-report benchmark measure. Thereafter, subjects made binary choices over the food products. We attempted to predict within-sample and population level preferences, based on subjects’ questionnaire responses and EEG measures extracted during the commercial viewings. We reached 68.5% accuracy in predicting between subjects’ most and least preferred products, improving accuracy by 4.07 percentage points compared to prediction based on self-reports alone. Additionally, EEG measures improved within-sample prediction of all six products by 20%, resulting in only a 1.91 root mean squared error (RMSE) compared to 2.39 RMSE with questionnaire-based prediction alone. Moreover, at the population level, assessed using YouTube metrics and an online questionnaire, EEG measures increased prediction by 12.7% and 12.6% respectively, compared to only a questionnaire-based prediction. We found that the most predictive EEG measures were frontal powers in the alpha band, hemispheric asymmetry in the beta band, and inter-subject correlation in delta and alpha bands. In summary, our novel approach, employing multiple types of EEG measures and ML models, offers marketing practitioners and researchers a valuable tool for predicting individual preferences and commercials’ success in the real world.     

The shape of premiumness: Logo Shape's effects on perceived brand premiumness and brand preference

Logos are the brands’ visual identity, which can influence brand positioning and contribute to brand success. However, little is known about the effect of logo shape on brand premiumness perception. Thus, we conducted four studies, including one archival dataset analysis, to examine this issue. Results revealed that consumers perceive angular-logo brands as more premium than circular-logo brands. Such logo shape effect is driven by perceived psychological distance between the brand and consumers. We further identified the downstream consequences of perceived brand premiumness. To express status, consumers are more likely to choose angular-logo brands, which are perceived as more premium. However, consumers unmotivated by status-expressing goals will be unaffected by such perceptions. These findings have theoretical implications regarding brand logo and positioning, and practical implications for logo design.     

Building a human brand: Brand anthropomorphism unravelled

Brand anthropomorphism has been found to enhance the ability of consumers to recognize the inherent value of brands. However, there is limited knowledge among practitioners on how to build a brand with humanlike characteristics. After a literature review of brand anthropomorphism in general and the theory of warmth and competence in particular, we present the Human Brand Model of how to build a brand that is perceived to be human. There are four steps in this process; the first three indicate the brand inputs and the last indicates the results of those inputs. This model guides brand managers on how to make their brand more human. The use of this model should result in the organization having an excellent brand reputation; stronger, more meaningful relationships with its customers; and improved brand loyalty.     

The effects of ad heuristic and systematic cues on consumer brand awareness and purchase intention: Investigating the bias effect of heuristic information processing

With growing numbers of digital users, social media advertising becomes a vital marketing channel for attracting and sustaining consumers. Drawing on the heuristic-systematic model, this research investigates the effects of advertisement systematic cues including ad informativeness and ad persuasiveness, and ad heuristic cue which is ad poster category on the consumer brand awareness, and the sequential effect on consumer purchase intention. An experimental design featuring two categories of ad poster, namely, firm and influencer, is created for empirical evidence collection. Results show that ad informativeness and ad persuasiveness contribute to greater consumer brand awareness and purchase intention. The poster category can positively bias the influence of ad informativeness, and firm poster outperforms the influencer poster when controlling the advertisement content the same. The findings demonstrate the co-occurrence of heuristic and systematic information processing in the social media advertising context. This research deepens current understanding of social media advertising and provides practical implications for marketers to capitalize on different ad posters according to advertisement informativeness and persuasiveness feature.     

The visual naturalness effect: Impact of natural logos on brand personality perception

A logo is a critical visual element that uniquely identifies a brand and can affect consumers' brand perceptions. Naturalness reflects the degree to which a sign depicts objects from the natural and sensitive world. The logo strategy literature identifies naturalness as a universal and critical design dimension influencing consumers' cognitive, affective and behavioural reactions. In practice, both high and low natural logos are frequently used by brands. However, the current understanding of the effects of logo naturalness is limited. This research thus investigates the influence of natural logos on consumer perceptions of brand personality. The data were collected in four experiments using a set of 10 manipulated logos as stimuli. Our results suggest that high (vs. low) natural logos positively affect the perception of brand sincerity personality and that this effect occurs because high natural logos are easier to process and elicit stronger impressions of authenticity. Moreover, we demonstrate that the positive effect of logo naturalness is enhanced among brands with products made from natural-made (vs. human-made) ingredients. These findings therefore suggest that brands should avoid using low natural logos if their sincerity perception is critical or if most of their products contain high levels of natural ingredients. Hence, our results reinforce the visual design and branding theories and offer marketing practitioners actionable insights.     

Why negative brand extension evaluations do not always negatively affect the brand: The role of central and peripheral brand associations

This research introduces the concept of brand association centrality and distinguishes central brand associations (CBAs) and peripheral brand associations (PBAs). Study 1 shows that the consistency with CBAs and PBAs influences perceived brand extension fit. However, the brand extension consistency with CBAs positively affects consumer–brand extension evaluations, while the brand extension consistency with PBAs does not have a significant effect. Study 2 demonstrates the mediating role of perceived fit between brand extension consistency with CBAs and brand extension evaluations. The study shows that the more inconsistent the product extension is with CBAs, the more the brand's image is altered and the faster brand evaluations deteriorate. In contrast, the brand extension inconsistency with PBAs does not affect brand evaluations.     

Understanding brand and dealer retention in the new car market: The moderating role of brand tier

Dealers may contribute to brand retention through their sales and service efforts. In this study we investigate the degree to which dealers contribute to brand retention and how this contribution is moderated by brand tier. To this end we distinguish between economy, volume and prestige brands. We also investigate how the effectiveness of dealer instruments to increase dealer retention differs across these brand tiers. We collected data on brand retention and dealer retention among consumers who recently purchased a new car. Our findings show that dealers selling volume brands are able to improve brand retention rates. In contrast, dealers of prestige and economy brands are unable to affect brand retention. In line with the notion of brand-dealer fit we also find that the effects of dealer extrinsic service quality and dealer payment equity on dealer retention differ between prestige, volume, and economy brands. Extrinsic dealer service quality has the smallest effect for dealers selling economy brands, while dealer payment equity is the most important determinant of dealer retention for these dealers.     

Brand personality appeal in retailing: Comparing fashion- and grocery retailing

In a mature retail market, branding can offer retailers opportunities for setting themselves apart. This study examines the construct ‘brand personality appeal’ (BPA; Freling et al., 2011) in retailing. Two consumer surveys are administered, on fashion retailing (n = 104) and grocery retailing (n = 101), focusing on (1) store personality, (2) BPA, and (3) retailer brand equity. A SmartPLS estimation shows that ‘enthusiasm’ is a personality trait that appeals to consumers regardless of the retail context, whereas ‘sophistication’ matters more in fashion retailing and ‘unpleasantness’ in grocery retailing. BPA is a significant driver of retail brand equity, regardless of the retail context.     

The impact of brand equity and the hedonic level of products on consumer stock-out reactions

We investigate the impact of brand equity and the hedonic level of the product on consumer stock-out responses. We also examine whether the hedonic level of the product moderates the effect of brand equity. Using a sample of Dutch consumers divided over eight product groups and eight retail chains, we tested our hypotheses and found that consumers were more loyal to high-equity brands than to low-equity brands in the case of a stock-out situation. In hedonic product groups, consumers were more likely to switch to another store. Purchasers of high-equity brands in hedonic product groups were, compared to purchasers of high-equity brands in utilitarian product groups, less inclined to postpone the purchase but were more likely to switch to another item by that brand. In addition to these two main variables, we also investigate the effect of variables from prior research and some new variables, such as stockpiling and impulse buying. Finally, we discuss the theoretical and managerial implications of the findings.