Modeling the brand extensions' influence on brand image

Brand-extension strategies enhance success chances of new products, even though they expose brand image to dilution risks. The present work analyzes how brand-extension evaluation can affect the current brand image and proposes a theoretical model formed by five main factors related to brand associations, extension congruency and extension attitude. The model estimation includes structural equation analysis using data from 699 surveys developed under market conditions. The results verify that extension attitude influences brand image, whereas initial brand associations and perceived fit between the new product and either the remaining products (category fit) or the brand image (image fit) are able to strengthen consumer attitude. The study also explains the role of consumer innovativeness as a moderating factor, suggesting that the characteristics of consumer personality could be more important than expected.     

Analysis of customers' satisfaction with baby products: The moderating role of brand image

The previous experience of customers is assessed by textual reviews and ratings to reflect their levels of satisfaction with the service or product. Online reviews and ratings have played a vital role to assess the performance of the services or the quality of goods. This research explores customers' levels of satisfaction with baby products on Amazon.com through text mining and survey-based methodologies. The moderating role of a brand image is also investigated on the relationship between customers' satisfaction and recommendations to others. Two sources of data were utilized, online reviews from the Amazon portal and responses of the participants on a large-scale survey. The research model is developed based on the factors that were extracted from the text mining approach. Following that, a questionnaire was distributed and the collected data were inspected using Partial Least Squares Structural Equations Modeling (PLS-SEM). The findings revealed that several dimensions have an influential effect on customers' experiences with baby products, among which are comfortableness, material quality, easy use, easy return, design, price, packaging, and size information. In addition, the moderating influence of the brand image on the hypothesis between customers' satisfaction and recommendations to others was significant. By deploying the two-phase methodology, baby product vendors can understand the influential variables in customers' experiences and their impacts on customers’ satisfaction more accurately.     

Effects of social influence on consumers' voluntary adoption of innovations prompted by others

Research on innovation adoption focuses on voluntary adoption, although non-voluntary or prompted adoption decisions are prevalent in real life, especially for high-tech products and services. This study aims to investigate the effect of social influence on consumers' innovation adoption in the context of prompted adoption. In particular, the present paper models the duration of voluntary adoption as a function of social norms, attractiveness of the prompter, number of prompters, and so on. Prior knowledge is not only a control variable, but also a moderating variable for a few social factors. This paper validates models relying on the illustrative application of a mobile gift service called Gifticon. The results provide much insight for marketing practitioners on how to accelerate consumers' adoption behavior and therefore the diffusion of innovative products.     

Brand origin and country of manufacture influences on brand equity and the moderating role of brand typicality

This research investigates how country macro and micro images associated with both brand origin (BO) and country of manufacture (COM) impact two main dimensions of brand equity-brand image and brand quality. Whereas BO images relate positively to both dimensions of brand equity, COM images exert an impact on brand quality, not on brand image. The typicality of the brand as a representative of the country of origin moderates the impact of BO on brand equity, such that the effects of BO on brand equity are stronger when the brand is more typical. The authors explore implications for theory and practice.     

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.     

The moderating effect of individual level collectivist values on brand loyalty

In today's dynamic business environment the success of a firm often depends on its ability to create brand loyalty. While there is a large body of research exploring brand loyalty and its antecedents, little has been done to examine how the relationship between these antecedents and brand loyalty is moderated by consumer differences in individual level collectivist values. This understanding is important however as consumers high in individual level collectivist values have been found to make different brand choices than consumers low in individual level collectivist values. We develop and test theory that suggests consumer differences in individual level collectivist values have a significant moderating effect on the relationship between perceived value, perceived quality, brand trust and brand loyalty. The results show that consumers high in individual level collectivist values are significantly more loyal to a focal brand, especially when brand trust and perceived quality are at relatively low levels.     

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.     

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.     

Connected consumers' responses to negative brand actions: The roles of transgression self-relevance and domain

Brand misdeeds abound in the marketplace, but prior research indicates that having a strong connection with a brand buffers consumers from adverse effects of brand transgressions. However, the present research questions the scope of this buffering effect. The studies in this research demonstrate that strongly connected consumers are not so forgiving of a brand transgression if the brand's actions are personally relevant to them or if the negative actions are of an ethical nature rather than related to product performance. In particular, this research finds that the well-documented buffering effect emerges only when negative brand actions are not self-relevant for the individual consumer and the negative actions lie in the product, not ethical, domain. Therefore, contrary to the findings of prior research, connected consumers' brand attitudes are far from immune to brand misdeeds. Implications for managing brand crises conclude the article.     

Bundling as a new product introduction strategy: The role of brand image and bundle features

Marketers can bundle an unknown brand with a strong brand as a new product introduction strategy. Drawing upon the categorization theory and the elaboration likelihood model, this study examines how a new brand can benefit from bundling with a strong brand. The results of two studies indicate that consumers’ quality perception of a new brand will be affected by the brand image of a bundle partner, and this effect is moderated by the bundle forms and the complementarity of bundle components. Academic and managerial implications of these findings are presented, along with suggestions for further research.     

The effects of service brand dimensions on brand loyalty

The present paper uses a modified version of the Service Brand Verdict (SBV) model. The objective of the study is to incorporate service brand loyalty as an ultimate dependent measure seen as the outcome of consumers' evaluation of various service brand dimensions and communication, and test the generalizability of the modified SBV model in two different service sectors and cultural settings. Two studies using on-line survey data were conducted in Denmark and Norway in two different service industries (airlines and banks respectively). Previous findings suggesting that brand evidence significantly influences consumer satisfaction, attitude and behavioural loyalty towards service brands were confirmed. Moreover, contrary to previous findings, controlled communication elements (i.e. advertising and promotions) did not have any influence on customer satisfaction with service brands. However, the same communication elements directly and significantly shaped customers' perceptions of the various brand dimensions and their overall attitude towards the brand.     

The mediating influence of trust in the adoption of the mobile wallet

The technology of paying at the point-of-sale with a smartphone is available, but has not yet been accepted by consumers or retailers in North America. Retailers are reluctant to invest in the technology to upgrade their store equipment until there is a wider acceptance by the consumer. The research model in this study is based on the Technology Acceptance Model, which posits that consumers will accept the mobile wallet when they perceive usefulness. They discover features through informal learning and are concerned about trust. The model is extended with these constructs and empirically tested with a sample of Canadian consumers. The results, which show that perceived usefulness is a key influencing factor and that informal learning is mediated by trust, are of value to researchers and practitioners.     

The competing roles of variety seeking in new brand adoption

We examine how consumers' attribute-level variety-seeking behaviors can explain their propensity to adopt a new brand in the consumer packaged goods (CPG) market. We leverage consumers' purchase history among extant brands prior to a new brand introduction as an indicator of the new brand adoption upon its launch. We incorporate variety seeking at two product attribute levels – brand and flavor – and find that variety seeking along these two dimensions predicts different outcomes for new brand adoptions. The estimation results of our discrete-time hazard model show that consumers' brand-level and flavor-level variety-seeking behaviors affect their likelihood to adopt a new brand in different manners: consumers who purchase various brands are more likely to adopt a new brand, whereas those who choose various flavors are less likely to adopt a new brand. The results also show that the new brand's price promotions and in-store displays can affect the role of variety seeking in consumers' new brand adoption. We assess the robustness of our findings by replicating our empirical model with an additional measure of variety seeking as well as a variety-seeking measure in another product category.     

Consumption situations and the effects of brand image on consumers' brand evaluations

This research examines the role consumption situations play in determining the effects of brand image on consumers' brand evaluations. Results from the first experiment suggest that when consumption situations are experimentally manipulated for the same brand, conspicuousness does not significantly moderate the relative effects of actual and ideal congruence on brand evaluations. Further, marketers can manage the effects of image congruence (between brand image and self-image) by promoting varying consumption situations. Results from the second experiment demonstrate how a dynamic concept of situational ideal self-image (the image consumers perceive as being ideal to project in a particular situation) is a better predictor of brand attitudes than are static concepts of self-image such as actual and ideal self-image. Developing effective brand images must be coupled with a consideration of the potential situations in which the product is to be consumed. © 1997 John Wiley & Sons, Inc.     

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.     

Building strong brands in Asia: selecting the visual components of image to maximize brand strength

Asian brands have often struggled to develop quality images. The visual aspects of branding have received little attention on how they might be used to strengthen brand perceptions in Asia. Guidelines for designing visual brand stimuli are developed using evaluations of logos in China and Singapore. There is a significant relationship between design and the responses companies seek, including positive affect, perceptions of quality, recognition, consensus in meaning, and feng shui. How designs are perceived, and their effect on consumer responses, were similar between China and Singapore. Companies are encouraged to leverage design to strengthen their brands. In particular, they should select logo designs that are elaborate, natural, and harmonious as these created positive affect and quality perceptions, clear meaning, true recognition, and feng shui. Many of these relationships hold in the United Sates as well, implying that the visual aspects of brand strategies may accomplish companies' goals across international borders.     

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.     

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.     

The role of brand exposure and experience on brand recall—Product durables vis-à-vis FMCG

The purpose of this study was to examine the role of brand exposure and experience on brand recall, mediated by three affectional drivers: brand trust, brand image and self-image congruence. The study distinguishes between an individual consumer׳s brand exposure and experience, and how these impact brand recall. Using original data collected from a survey of 219 consumers, brand recall models in two product categories (Fast Moving Consumer Goods FMCG and durable goods) were tested. Structural equation modelling (SEM) was applied, resulting in models for the two types of goods, establishing notable differences between durables and FMCGs. Experience influences brand recall in durable goods while brand recall is established via exposure for fast-moving consumer goods. This suggests that consumers are better able to recall durable goods brands if they have personally used them, while consumers of FMCG are more heavily influenced by advertising. Our study also established that brand trust has a significant role in mediating both of these relationships. Ultimately, the study establishes key differences between the brand recall of product categories, as well as the mediating role of brand trust, providing a framework for future brand recall research.     

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.