The impact of service failure on brand credibility

Recent studies have examined the consequences of brand credibility, with the majority of works embedded in physical goods. Despite the growing attention service branding receives, little is known about how service failure and recovery efforts impact on brand credibility in service organisations. The purpose of this study is to examine how brand credibility is affected by service failure and an organisations recovery efforts. An online self-completion survey of airline consumers (n=875) was employed to test the relationships between the focal constructs. The results show that a service firm’s effective complaint handling positively impacts satisfaction with complaining, overall satisfaction and service brand credibility. The study also finds that the higher the perceived magnitude of failure, the more difficult it is to satisfy a customer. These results demonstrate that it is possible to maintain service brand credibility during a service failure, provided brand managers develop and implement effective complain handling procedures.     

The effect of a limited-edition offer following brand dilution on consumer attitudes toward a luxury brand

This research examines the impact of a luxury limited-edition offer in the face of core brand image dilution of a luxury brand. Through utilizing two millennial subgroups (college- vs. post-college age) as research participants in two studies, the findings suggest that in a brand dilution condition, the limited-edition product enhances consumers’ attitudes toward the luxury brand and that these effects are more pronounced for consumers with a higher self-presentation motive. We also find that college-age millennials are more strongly influenced by social influences than post-college age millennials. The implications for academic researchers and luxury brand retail managers are discussed.     

Themed flagship brand stores in the new millennium: theory, practice, prospects

The flagship brand store is an increasingly popular venue used by marketers to build relationships with consumers. As we move further into an experience economy in the new millennium, retailers are refining the flagship brand store into new forms such as the themed retail brand store. This new form not only promotes a more engaging experience of the brand’s essence but also satisfies consumers looking for entertainment alongside their shopping. In this article, we conceptualize and explore themed flagship brand stores in terms of the mythological appeal of the narratives conveyed by their physical and symbolic structure. We utilize a field study of ESPN Zone Chicago to examine these features in a sports-themed retail brand store. Finally, we offer some projections, based on our research, of the possible transformations of the flagship brand store as the new century unfolds. We conclude that mindscape-related themes, which combine entertainment, therapeutics, and spiritual growth, are at the frontier of retail theming.     

The effects of in-store themed events on consumer store choice decisions

Retailers are increasingly using in-store events to provide shoppers with unique experiences that will enhance shopping value and help differentiate their stores from competitors. However, relatively little is known about how consumers respond to experiential retail events in terms of their store choice decisions. The purpose of this research was to find out how in-store retail events affect consumers in terms of their store choice decisions. The paper presents findings from a discrete choice experiment that manipulated the presence of different types of in-store themed events in a do-it-yourself (DIY) category. Participants were 312 randomly recruited residents of Melbourne, Australia, who had recently shopped at a hardware store. The experiment was implemented as a mail-back survey. Using logit models the authors assess the effects of the in-store events along with those of various traditional store attributes, including store appearance, price image and distance, on consumer store choice decisions.     

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.     

Ambient scent and consumer behavior: a field study in a florist's retail shop

Numerous studies have shown that ambient scents influence human behavior including customers' behavior in real retail environments. However, the effects of scents in a closed-in plant and flower shop have not yet been examined. This study proceeded to measure customer behavior in two different situations taking place in a French flower shop: when lavender aroma was diffused and when it was not. The results showed that lavender aroma increased both the number of customers who bought plants and/or flowers and the amount of purchasing.     

The impact of weather on consumer behavior and retail performance: Evidence from a convenience store chain in China

Despite extensive use of weather data to adjust replenishment and inventory strategies in the retail industry, these companies do clearly know the effect of weather on consumer behavior and retail performance. How does weather affect consumers' purchasing behavior and thus retail performance? We study empirically these questions by analyzing more than 6 million transactions made by more than 1.62 million unique consumers at 146 convenience stores in a convenience store chain in China. We choose sun, rain, temperature, and air quality index as the main weather variables. We use the average number of items per order and the average price of each item in each order as indicators of consumer behavior, and use store daily sales as an indicator of retail performance. We found that under rainy weather, people will buy more products with higher item prices in one order. When temperature rises, people will buy fewer products with a lower item price in one order. In addition, sunny weather and rainy weather have a positive impact on daily sales than cloudy weather. Air quality has a negative impact on daily sales, while temperature has a positive impact on sales. Finally, we study the impact of weather on different product categories. We find that the results depend on the product category characteristics.     

Retail Spectacles and Brand Meaning: Insights from a Brand Museum Case Study

This article explores the expansion of brand meaning within a spectacular, retail environment. Spectacular retailing environments include themed retailing, brandscapes, flagship brand stores, themed entertainment brand stores, themed flagship brand stores, and brand museums. This research uses an extended case-study method to investigate the World of Coca-Cola brand museum located in Atlanta, Georgia. A brand museum is a type of themed flagship brand store, but there are some unique aspects. One key feature of brand museums is the resemblance to traditional museums, but, in the former, the brand is positioned within historical and educational contexts. Within the brand museum context, this study explains how brand meaning can be expanded along seven dimensions: humanization, socialization, localization, globalization, contextualization, theatricization, and characterization. Retailing implications are discussed.     

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.     

Experiencing atmospherics: The moderating effect of mall experiences on the impact of individual store atmospherics on spending behavior and mall loyalty

Retailers invest in atmospherics to create effective environments that engage shoppers in their shopping journey and promote business success. However, the link between store-level atmospherics and mall-level experiences remains opaque. In a quasi-experimental field study, we confirm that the quality of in-store atmospherics positively impacts in-store spending and reveal for the first time that it also positively influences loyalty intentions toward the mall as a whole. Both effects are mediated by perceived store atmosphere and moderated by mall experiences. The effects on spending are stronger for shoppers who are seeking hedonic experiences (seductive, recreational, and social) and are less interested in the functional experience. However, the impact on mall loyalty is stronger for shoppers pursuing material (functional) and avoiding social experiences. For retailers and mall owners, these findings underscore the importance of matching store atmospherics with mall experiences. Similarities and differences in the effects of atmospherics between and within the store and mall levels are discussed.     

How to retain customers in omnichannel retailing: Considering the roles of brand experience and purchase behavior

The opportunities and challenges of omnichannel in retail industry have been widely discussed, yet despite these benefits, the key elements that constitute an effective omnichannel and how customers respond to omnichannel retailing strategies remain unclear. This research conducted online surveys to test the effects of omnichannel elements on various brand experiences and customer retention, considering the moderating role of purchase behavior. The results indicate that omnichannel elements (integration, individualization, and interaction) are generally helpful in retaining customers, through omnichannel elements influence brand experiences differently. In addition, these omnichannel elements have different influences on customer retention due to different purchase behaviors. The findings suggest that retailers can use different omnichannel strategies to attract customers’ purchases and provide insights for practitioners who want to use omnichannel strategies to deliver superior experiences for customers.     

Category characteristics' effects on brand extension attitudes: A research note

Prior studies on attitudes towards brand extensions focus mainly on the effects of the perceived fit between the brand extension and the extension category. This exploratory paper contributes by describing two studies of how the following four extension category characteristics affect consumers' attitudes towards brand extensions: (1) the awareness set size; (2) the perceived similarity among existing brands; (3) the perceived category familiarity; and (4) overall category attitudes. Results from two studies suggest that consumers evaluate brand extensions more favorably when the awareness set size is small or when their attitude towards the extension category is favorable. Consequently, brand managers must analyze the extension category carefully when developing brand extensions.     

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.     

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 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.     

电视媒体在品牌传播中的背书效应分析——以中央电视台为例

本文将研究视角聚焦于电视媒体的背书效应,以中央电视台为例,力图通过分析消费者品牌偏好与媒介偏好之间的关系,探讨新营销传播图景之下传统大众媒体在广告主品牌传播活动中的角色与价值,以期为广告主更好地控制品牌信息、提高传播效率提供借鉴。     

Epic Aspects of Retail Encounters: The Iliad of Hollister

Much has been written about myth and the marketplace. Consumer research has added immeasurably to academics’ appreciation of the myths that inhere in fabulous flagship stores and experiential retailing more generally. Studies of consumer mythopoeia, however, have tended to muffle the martial side of retailing, the heroic struggles that some customers undergo in-store. This article argues that the epic offers valuable insights into martial matters, and more. Although epic and myth overlap, they are far from identical. The former is characterized by conventions that can help illuminate consumers’ quests, not least their disturbing journeys through the underworld. These are considered in relation to Hollister (HCo), a phenomenally successful retail chain that’s renowned for its antithetical atmospherics and inky interior design. A qualitative study of Hollister lovers and haters casts light on the epic in action and adds to scholars’ understanding of immersive retailing experiences.     

Dynamic assortment in the presence of brand heterogeneity

In this paper, we study the dynamic assortment planning problem in the presence of heterogeneous brands. Over a limited selling season, the retailer sells heterogeneous products from one store brand and one national brand. We use the nested multinomial logit (NMNL) framework to model consumer choice process, in which consumers choose first which brand to buy and then a product within that brand. We formulate this problem using the finite-horizon dynamic programming approach. Using available sales transaction data, we estimate the consumer choice behavior and empirically demonstrate existence of brand heterogeneity. Further, our results suggest that ignoring brand heterogeneity will make the retailer’s expected revenues significantly overestimated, and the potential revenue overestimation depends on initial inventories and prices of products of two brands. We finally show that the retailer will benefit from dynamic assortment optimization with the estimated consumer choice model.     

The Choice of Exclusive Dealing: Economic Rationales and Evidence from French Retail Chains

As one of the most common business practices in retailing, exclusive dealing (ED) restrictions are of great importance for business participants, academics and policy makers. Despite the rich theoretical analysis of this type of vertical restraint, evidence on the rationales of ED remains scarce. This paper uses a simple model to survey the vast theoretical literature on ED, and identifies two opposing motivations for ED contracts: anti-competitive versus efficiency-enhancing motivations. The theoretical predictions are subject to empirical investigation using unique French cross-sectional data encompassing diverse retail sectors. Our estimations provide evidence for both types of motivations for ED contracts, manifesting in different contexts. In particular, we find that the efficiency-enhancing motivation is more likely to explain the choice of ED when suppliers are less concentrated, whereas the anti-competitive motivation is present in highly standardized product markets. Moreover, our results reveal a positive linkage of ED and different types of investments, as part of branding strategy, with important retailing and marketing-related implications. In particular, we show that retailers have to be meticulous regarding the conditions of the retail contract before accepting the ED restriction, which may dampen their business efficiency in the long run.     

Building a strong services brand: Lessons from Mayo Clinic

A strong services brand is built and sustained primarily by customers’ interactions with the provider. A services branding model depicts the dynamics of brand creation. From the interrelationships among the presented brand, external communications, and customers’ experiences emerge brand awareness, meaning, and, ultimately, equity. The Mayo Clinic case study illustrates the services branding model by showing how one organization has created, extended, and protected a powerful brand through an unwavering commitment to the well-being of its customers. Managers outside of healthcare can benefit from three branding lessons embedded in the Mayo Clinic story: (1) attend to organizational values; (2) play defense, not just offense; and (3) turn customers into marketers.