A new perspective on the effects of price promotions in Taiwan: a longitudinal study of a Chinese society

This study investigated the effects of price promotions on consumers’ brand affect. Given the inconsistent findings in previous research, it is proposed that the effects of price promotion depend on two moderator variables: brand image and consumer loyalty. For high loyalty consumers of a prestigious brand, price incentive incompatible with the brand image can hurt the brand affect. When a non‐prestigious brand is involved, brand affect is positively influenced. However, these effects are limited to high loyalty consumers only. There was no effect on low loyalty consumers. In a longitudinal study of the Taiwanese market using emails, these hypotheses were tested and supported.     

产品质量变化对母子品牌名-质量联结关系的影响

消费者对母品牌产品的感知质量是决定品牌延伸成功的关键因素。文章通过两个实验,考察母子品牌延伸条件下产品质量变化对品牌名与质量联结关系的影响。结果表明：⑴当母品牌产品质量高时,子品牌产品质量下降将同时减弱母、子品牌与高质量的联结强度;反之,对母品牌影响不显著。(2)当子品牌产品质量高时,母品牌产品质量下降减弱母品牌与高质量的联结强度,提高子品牌名与高质量的联结强度。反之,同时减弱母、子品牌与质量的联结强度。最小均方联结主义模型比联想记忆模型更适合解释品牌名-质量联结关系的变化。     

调节定向在品牌忠诚动态形成过程中的作用

现有基于消费者—品牌关系对品牌忠诚影响因素的实证研究发现,品牌信任和品牌情感是品牌忠诚的决定因素。尽管很多学者认为应该从动态的视角认识忠诚的概念,却没有随着时间推移来研究消费者品牌忠诚的发展过程的文献。为了弥补现有营销文献中这一理论的不足,文章提供了一个关于品牌情感和品牌信任同时影响品牌忠诚形成过程的动态研究。通过一个纵向情境模拟实验研究发现随着时间的推移,品牌信任和品牌情感在品牌忠诚的形成过程中作用在不断变化,并且消费者自我调节定向与品牌信任或品牌情感的的匹配会增强其在品牌忠诚形成过程中的作用。     

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.     

Don’t put all your green eggs in one basket: Examining environmentally friendly sub-branding strategies

Although marketers are increasingly developing strategies to promote environmentally-friendly images for their brands, little is known about green brand architecture strategies. The current study examines two sub-branding strategies and finds that when green products are dispersed across several sub-brands (vs. concentrated within one sub-brand), consumers are more likely to infer that the overall parent brand is environmentally friendly. The sincerity of the company’s sustainability efforts is found to mediate the effects of the sub-branding strategy on consumers’ eco-friendly beliefs of the parent brand. Specifically, consumers associate dispersed strategy (vs. concentrated strategy) with intrinsic motive (vs. extrinsic motive) of the company’s sustainability policy. As a result, dispersed strategy instead of concentrated strategy promotes spillover effects of sustainability to the parent brand, demonstrating the impact of brand structure on spillover to the parent brand equity. Managerial implications are discussed related to the automobile company’s sub-branding strategy.     

Implications of parent brand inertia for multiproduct pricing

This paper explores and quantifies the importance of parent brand state dependence to forward looking pricing outcomes in the area of umbrella branding and multi-product firms. We show through numerical simulations that loyalty (inertia) to the parent brand can decrease prices and reduce profits, as well as mitigate or even reverse the benefits of joint profit maximization relative to sub-brand profit maximization. These effects are mediated by brand asymmetries and the relative magnitude of sub-brand state dependence effects. Empirically, we focus on the Yogurt category, where we consider parent brands with several sub-brands. Using household level scanner data, we estimate the parameters that characterize consumer demand while flexibly accounting for consumer heterogeneity. We also estimate unobserved product costs based on a forward looking price setting game. Through counterfactual analysis, we study the overall effect of parent brand state dependence on prices and profits, as well as the empirical impact of joint profit maximization and changes in firms’ beliefs regarding consumer inertia. Our findings have implications for markets where demand is likely characterized by parent brand dynamics.     

The influence of positive affect on consideration set formation in memory-based choice

Although prior research has examined whether positive affect can impact consideration set size in stimulus-based choice, unknown to this point is whether affective influences also characterize memory-based consideration processes. This distinction is important insofar as consideration in memory-based choice entails psychological processes (including those involving the accessibility of brands) that are unique to choice undertaken in memory-based settings. Experiment 1 provides an initial demonstration of positive affect’s ability to shape memory-based consideration by documenting that positive (versus neutral) affect leads to larger consideration sets. Two additional experiments extend these findings by showing that the influence of positive affect on consideration set size is moderated by characteristics of brands (typicality) and consumers (regulatory focus). Experiment 2 demonstrates that this increase in memory-based consideration set size is attributable to a greater number of atypical, but not typical, brands being considered under positive affect. Experiment 3 documents the moderating effect exerted by consumers’ regulatory focus by showing that the ability of positive affect to increase consideration set size is more likely for consumers high (but not low) on promotion focus. The theoretical and managerial implications of these findings are discussed as are suggestions for future research.     

Brand Loyalty Versus Store Loyalty: Consumers’ Role in Determining Dependence Structure of Supplier–Retailer Dyads

Purpose: This article aims to integrate consumers into a channel dependence framework and explores the influence of consumers’ brand loyalty and store loyalty on the dependence structure within the supplier–retailer relationship. It also examines effects of the dependence structure on perceived conflict.

Methodology/approach: The authors test the proposed triadic relationship model among department store, supplier, and consumer by collecting matched data from both retailers and consumers in a Chinese retailing channel of sports and leisure apparel. Polynomial regression in conjunction with a response surface analysis (RSA) approach is used to test the hypotheses.

Findings: The results indicate that consumers’ brand loyalty positively affects retailer’s dependence on supplier, while consumers’ store loyalty positively affects supplier’s dependence on retailer. In addition, the retailer’s dependence is higher when consumers’ brand loyalty is higher than store loyalty; the supplier’s dependence is higher when consumers’ store loyalty is higher than brand loyalty; and the retailer’s dependence increases with the increase of both consumers’ brand and store loyalty when consumers’ brand and store loyalty are equal. Moreover, supplier’s dependence has a negative linear effect on retailer’s perceived conflict, whereas retailer’s dependence has an inverted U-shape effect on perceived conflict. A retailer would perceive more conflict when the retailer is relatively more dependent on the supplier; but the symmetrical interdependence has no significant effect on retailer perceived conflict.

Research implications: Researchers are encouraged to explore channel behaviors from a network perspective. Consumers, in particular, should be included in research frameworks related to channel dependence and behaviors. Suggestions for further research on the effects of dependence on the conflict are also proposed.

Originality/value/contribution: This study goes beyond the dyadic paradigm by integrating consumers into the framework of the channel dependence structure. It develops and tests a mechanism of consumers’ brand and store loyalty influencing dependence structure within a supplier–retailer dyad. It also enriches the literature of channel conflict by exploring the effects of retailer and supplier unilateral dependence on retailer perceived conflict with RSA methods.

Practical implications: The article provides several insightful implications for managers in understanding and managing interdependence structure in business-to-business marketing, especially in supplier–retailer relationships.     

Dual branding strategy for a successful new product launch in China

Marketers may increase the chance of success for a new product launch by using a sub-brand name and a parent brand name simultaneously. In this article, we report the successful case of using two brand names—dual branding strategy—by practitioners in China for the Minute Maid Orange Pulp juice drink launch. A suggestive sub-brand name helps consumers recall the key benefits and features of the new product. A suggestive parent brand name communicates the benefits of the product category. A dual branding strategy addresses the problem of using only one brand name for a new product launch. After the successful launch of the first new product by a parent brand, marketers are able to launch other new products under other sub-brand names in the future to meet different consumer needs. Marketers may use the same parent brand to introduce different products to build scale for the brand, and are able to clearly differentiate the different product offerings under different sub-brand names. If a company acquires a brand from another company, a marketer may position the acquired brand as a sub-brand under the parent brand if the marketer has defined the business scope of the parent brand broadly enough and with a suggestive parent brand name.     

消费者怀旧情感对品牌忠诚的影响

每个消费者都或多或少存在怀旧情感,企业很早就开始利用消费者的怀旧需求开展怀旧营销。消费者品牌关系是品牌忠诚的重要影响因素,而消费者怀旧水平对品牌信任与依恋有一定的影响,品牌信任和依恋对品牌承诺有很大的促进作用,品牌承诺是品牌忠诚的核心驱动因素。由此可见,消费者的怀旧情感可以通过品牌关系的中介而作用于品牌忠诚,企业可以通过开发各种营销策略,为消费者提供怀旧体验的平台,从而提高消费者的品牌忠诚度。     

Impact of Food Brand Controversy on Consumers’ Attitude Toward Brand and Company

It is critical to understand the impact of controversy on the consumer. There is a scarcity of research measuring post-controversy consumer attitude on both product and corporate brand during a controversy. The study is based on a recent brand controversy linked with instant noodle brand “Maggi” in India. The study examines impact on brand perceived quality, credibility, trust and loyalty, and attitude about brand and company. Data have been collected during July–October 2015 when the brand Maggi was banned in India due to quality-related controversy. Results indicate that respondents, with higher post-controversy brand loyalty, hold positive attitudes about brand. The interaction effect reveals that the relationship is significant and positive. During controversy, consumers’ attitude about brand and company is not identical. For a strong brand, consumers may have positive attitude but they become quite negative about company.     

Consumers' Trust in a Brand and the Link to Brand Loyalty

Brands are important in the consumer market. They are the interface between consumers and the company, and consumers may develop loyalty to brands. This study proposes that trust in a brand is important and is a key factor in the development of brand loyalty. Factors hypothesized to influence trust in a brand include a number of brand characteristics, company characteristics and consumer-brand characteristics. Respondents representing a broad spectrum of Singapore consumers were surveyed. The findings reveal that brand characteristics are relatively more important in their effects on a consumer's trust in a brand. The results also show that trust in a brand is positively related to brand loyalty. Marketers should, therefore, take careful consideration of brand factors in the development of trust in a brand.     

Crosswise and reciprocal interdependencies within retailers’ multichannel structures

Understanding consumer behavior across channels is the fundamental basis for implementing successful multichannel retailing strategies. This study analyzes the crosswise and reciprocal relationships between offline and online brand beliefs, offline and online retail brand equity and consumers’ conative loyalty to a retailer in multichannel structures. The relationships are contextualized by investigating fashion and grocery retail sectors and different prior channel performances that are likely to affect the paths to loyalty across channels. To provide insight into these issues, two cross-sectional and two longitudinal models are employed. The results show that former brick-and-mortar retailers are able to significantly increase consumers’ loyalty to the firm by primarily designing offline (secondary online) attributes and beliefs. The results hold for retailers in both fashion and grocery retailing, however, with stronger effects in fashion, as well as for retailers with strong vs. weak prior channel performance. However, indirect effects indicate that online brand beliefs and offline retail brand equity are the central strategic levers for prior strong (vs. weak) retailers. Reciprocal relationships between online and offline retail brands underline important channel interdependencies. Managers thus need to take these crosswise and reciprocal interdependencies between channels into account when designing successful multichannel retailing systems. This study introduces the novel idea of simultaneous crosswise and reciprocal relationships within multichannel retail structures and shows that paths to loyalty vary for retailers in different retail sectors and retailers with strong vs. weak offline and online channel performances.     

Impacts of product,store and retailer perceptions on consumers’ relationship to terroir store brand

This research shows that consumers’ relationship to terroir store brand, measured through attachment and two facets of brand loyalty (attitudinal and behavioral) is respectively influenced by their perceptions of the product, retailer and store. More specifically, the perceived authenticity of the products of the terroir store brand and its perceived value have a positive and significant influence on the attachment and behavioral loyalty of the regular buyers of this store brand and a positive and significant influence on the attachment of its occasional buyers. Trust in the retailer has a positive and significant impact on the behavioral loyalty of the regular buyers of this terroir store brand while perceived image of the store has only a positive and significant impact on the attitudinal loyalty of its occasional buyers.     

Examining the role of store design on consumers’ cross-sectional perceptions of retail brand loyalty

This paper compares new and established store design prototypes of the same retailer to examine the role of consumers’ cross-sectional perceptions of retail brand loyalty. In-store surveys were administered to capture consumers’ store-level perceptions towards a new store prototype and an older established prototype of the same fast fashion retailer. The data was subjected to multi-group analyzes with structural equations modeling. The findings suggest that store novelty and complexity promote both store design pleasure and retail brand loyalty outcomes. The different store designs do not, however, account for differences in brand loyalty perceptions at the overall retailer level when multi-group comparisons of both store designs are made. Consumers of newer store designs are found to possess a heightened sensitivity to price perceptions. Managerial implications of the effects of store novelty and complexity on retail brand loyalty are also presented.     

Brand Loyalty and Price Promotion Strategies: An Empirical Analysis

Though brand loyalty has been studied extensively in the marketing literature, the relationship between brand loyalty and retail pricing strategies is not well understood. Designing promotion strategies involves two key decisions: the percentage reduction in price from the existing price point (depth), and the frequency with which a product is promoted. These decisions, in turn, are critically dependent upon how many consumers can be convinced to switch to a brand by temporarily reducing its price, and how many are instead brand loyal. Theoretical models of how the strength of brand loyalty influence optimal promotion strategies have been developed, but there are no rigorous tests of their hypotheses that take into account wholesale price variation. We test how brand loyalty impacts promotion strategies for two frequently purchased consumer packaged good categories. Our results confirm that retailers promote strong brands shallower and more frequently compared to brands with weak loyalty. Our results highlight the importance of carefully modeling wholesale prices when testing behavioral models on retail pricing.     

Factors that influence manufacturer and store brand behavioral loyalty

This study examines the factors that are linked to consumer goods brands having unusually high or low behavioral loyalty, after controlling for the association between brand size and loyalty that occurs due to the ‘double jeopardy’ effect. Behavioral, or repeat-purchase loyalty is measured as the brand's average share of category requirements (in volume) among its buyers over a 12-month period. We examine a range of factors that theory or past evidence suggests are associated with higher or lower behavioral loyalty, including brand type (store brand/manufacturer brand), price level, promotion intensity, as well as average brand volume per occasion and pack size. Using extensive US panel purchasing data, we find that store brands exhibit relatively higher behavioral loyalty than manufacturer brands. We explain the theory behind this result. We also find that the brand's average pack size and volume bought per occasion has a markedly positive association with behavioral loyalty. Finally, we find that the effect of low price on excess loyalty is moderated via a positive association with average volume purchase per occasion. These findings add to the body of knowledge relating to patterns in behavioral brand loyalty for both manufacturer and store brands, as well as the marketing-mix factors that influence it.     

Does Having an Ethical Brand Matter? The Influence of Consumer Perceived Ethicality on Trust, Affect and Loyalty

The recent rise in ethical consumerism has seen increasing numbers of corporate brands project a socially responsible and ethical image. But does having a corporate brand that is perceived to be ethical have any influence on outcome variables of interest for its product brands? This study analyzes the relationship between perceived ethicality at a corporate level, and brand trust, brand affect and brand loyalty at a product level. A theoretical framework with hypothesized relationships is developed and tested in order to answer the research question. Data have been collected for 45 product categories in the fast moving consumer goods sector using a panel of 4,027 Spanish consumers. The proposed relationships are tested using structural equations modeling. The results suggest there is a positive relationship between perceived ethicality of a brand and both brand trust and brand affect. Brand affect also positively influences brand trust. Further, brand trust and brand affect both show a positive relation with brand loyalty. The managerial and academic implications of the results are discussed.     

Does Social Media Matter? Investigating the Effect of Social Media Features on Consumer Attitudes

The purpose of this study is to explore the impact of social media's features (i.e., entertainment, usefulness, informativeness and irritation) toward consumers’ attitude toward the brand. Subsequently, this study explores the impact of this attitude toward consumers’ brand loyalty, brand awareness and purchase intention. Data for this study was collected through a large public university in Australia. Paper surveys were distributed to students, their friends and members of their immediate families (N = 724). The findings show that entertainment feature has the strongest impact on consumers’ attitude toward the brand's social media use, followed by informativeness, usefulness and finally, irritation. Consumers’ attitude toward a brand's social media strongly influences consumer loyalty, awareness and purchase intention. The findings of this research provide some insights into the impact of different features of social media which will be useful for practitioners and academics interested in social media.     

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.