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.     

Convergence in the high-technology consumer markets: Not all brands gain equally from adding new functionalities to products

Convergence in the electronics sector has allowed the addition of new functionalities to products (e.g., mobile television to a cell phone). It is proposed that the goal congruence of the added functionality (i.e., whether it has similar or different goals as the base product) would affect the relative gain to high versus lower quality brands. While lower quality brands would gain when a congruent functionality is added, high quality brands would gain from an incongruent addition. The former hypothesis was confirmed significantly and the latter marginally in two experimental studies.

Understanding the antecedents of collateral learning in new product alliances

Recognizing that strategic alliances represent an important means for developing knowledge in critical arenas such as new product development, the authors advance the notion of collateral learning that assesses knowledge acquisition internal to a firm in the alliance. To examine its antecedents, the authors build on the behavioral theory of the firm and propose strategic importance and performance vulnerability as the motivational components and organizational similarity and alliance experience as the awareness components advocated in the theory. Results from 133 alliance firms suggest that both the motivational and awareness components are important in influencing collateral learning in new product alliances. Specifically, to develop collateral learning, firms should have extensive alliance experience and an acknowledged stake in their alliance partners. The results also support the theorized U-shaped relationship between organizational similarity of the alliance partners and collateral learning. Thus, collateral learning is facilitated when organizations are either similar or dissimilar, while medium levels of organizational similarity facilitate collateral learning to a relatively lower extent. Although performance vulnerability is found to be associated negatively with collateral learning, extensive alliance experience can attenuate this negative effect.     

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.     

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.     

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.     

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.     

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 dark side of consumer life in the age of virtual and mobile technology

ABSTRACT

This study extends the nascent stream of research that investigates the contributions of mobile and virtual technology to consumer misbehaviour and dark side of consumer life. Using a qualitative approach, the present research explores the nature of consumer–technology relationship, specifically virtual and mobile technology, at the level of lived experience. The findings reflect eight important facets of technology-related dark-side consumer behaviour that, in one way or another, cause harm to the individual user, other consumers or society at large. These themes showcase human entrapment in mobile and virtual technology. The findings have significant implications for marketing managers as well as consumer well-being.     

Retailers with traits of consumer: Exploring the existence and antecedents of brand loyalty in small unorganized retailers

Retail in most emerging countries, like India, is dominated by the informal sector consisting of small unorganized retailers and marketers selling through them desperately want to win them over because it can be a powerful competitive advantage in these markets.Small unorganized retail store is a unique setting because most of these stores are owned and managed by individual proprietors who are neither schooled in systematic business decision making and nor have access to professional expertise and scientific tools to assist in taking business decisions in a systematic way. With loads of decisions to be made by this individual, it can be assumed that heuristics and common sense drive a lot of their business decisions and this makes them very similar to the decision making done by the end consumers, who also engage in buying decisions but are not scientific in their approach.Based on this similarity, this study attempts to explore a simple but profound question that like individual consumers, do these retail customers’ buying decisions also get affected by brand loyalty? In that direction, the study assesses the role of three variables - salesperson quality, self-experience with the brand and perceived company support, for predicting brand loyalty in small unorganized retailers.Using Structured Equation Modelling on data collected from 543 retailers, the proposed hypothesized paths have been tested. The results strongly support the proposition made. This study extends the application of the existing attitudinal – behavioural framework of brand loyalty to retailers and puts forward a vital and a unique way for marketers to get these retailers on-board and work as an influencer to push their brand.     

Research frontiers on the dark side of consumer behaviour: The case of materialism and compulsive buying

ABSTRACT

Materialism and compulsive consumption are viewed as dimensions of the dark side of consumer behaviour and have been the focus of consumer research for several decades. This article first shows that previous efforts to study compulsive buying and materialism have been limited in part because they have relied on single perspectives and inadequate methods. Second, it suggests that research in this area could be advanced by adopting emergent approaches and methods that have been used in social and behavioural sciences to study the onset and development of maladaptive behavioural patterns. Third, the article presents the multi-theoretical life course research paradigm that has been widely adopted in numerous disciplines as an approach to the study of various forms of maladaptive behaviour. Fourth, it illustrates how this approach could be employed to study the onset and development of materialism and compulsive buying. Finally, drawing from this paradigm, the article offers new insights in the form of propositions and conceptual directions to help researchers improve their efforts in studying materialism and compulsive buying as well as other forms of the dark side of consumer behaviour.     

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.     

The financial advice puzzle: The role of consumer heterogeneity in the advisor choice

We investigate motivational drivers of financial advisor use, accounting for investor heterogeneity, with the goal of helping institutions increase the use of financial advisor services. The results from a latent class choice model reveal two distinct segments that differ in their approach to the financial advice decision. While higher levels of risk tolerance, trust, and self-efficacy increase financial advice use for both segments, albeit at much higher propensities for Segment 1, personality only matters for Segment 1. Moreover, their regulatory focus differs with Segment 1 being promotion and Segment 2 being prevention focused. Using these results, we offer suggestions for marketing strategies.     

The effect of negative online customer reviews on brand equity and purchase intention of consumer electronics in South Africa

This study investigated the effect that negative online customer reviews have on brand equity and purchase intention. This research examined the influence of negative electronic word of mouth (eWOM) on brand equity, as influenced by customer review quality, product involvement and source credibility. A 3 (high quality review versus low quality review versus no review) × 2 (high product involvement versus low product involvement) factorial experiment with 236 respondents was conducted. The results revealed that the presence of negative eWOM has a significant detrimental effect on brand equity and purchase intention. Furthermore, the effect of negative online customer reviews is more detrimental to the brand equity of a high involvement product than a low involvement product. The results also revealed that high quality reviews are more influential than low quality reviews with respect to brand equity, and the difference between the levels of eWOM source credibility has no significant effect on brand equity.     

Disentangling the effect of exploratory learning and exploitative learning in product innovation process

Although studies have highlighted the importance of exploratory and exploitative learning in new product development, little is understood about the distinctiveness of team‐level exploratory and exploitative learning in the distinct phases of the product development process. This study uses a two‐phase product innovation process model to examine the differences in the effects of the two distinct learning strategies in the initiation and implementation phases. The findings from 126 teams show that (a) the effect of exploratory learning on innovativeness in the initiation phase is greater than that of exploitative learning and (b) exploitative learning can strengthen the link between the initiation phase's innovativeness and new product success more than exploratory learning. Copyright © 2013 ASAC. Published by John Wiley & Sons, Ltd.     

Perceived uncertainty and behavioral logic: Temporality and unanticipated consequences in the new venture creation process

In this study, drawing on effectuation theory, we combine analytical strategies for process data to examine inductively and theorize how founder teams' perceptions of uncertainty and behavioral logics develop during new venture creation processes. The results reveal four phases and suggest a possible evolution from a causal conditional relationship between perceived uncertainty and behavioral logics to an integrative relationship. We bring to light the notion of temporality and unanticipated consequences, discuss their central roles in perceived uncertainty, effectuation, and causation, and offer revelatory insights into why and when effectuation is used in relation to uncertainty and entrepreneurial action.     

Creation of consumer loyalty and trust in the retailer through store brands: The moderating effect of choice of store brand name

Within the current economic context, store brands play an important role in differentiation strategies based on assortment and positioning in terms of distributor prices. To begin with, this study identifies three determining aspects of retail loyalty and trust: satisfaction with price levels, the perceived image of the assortment and loyalty to the store brands (SB). Secondly, this study proposes a theoretical relational model among the aforementioned aspects. Finally, this study analyzes the moderating role that the strategy of choosing SB name (umbrella brand label vs. brands different from the label brand) plays in the relationship between loyalty to SB and loyalty to and trust in the retailer. By including this moderating variable, we seek to contribute to current academic research and to provide insights into the importance that SB strategy (label vs. own name) has for the effect of loyalty to SB on the relative results of the retail company. Our research results show that making the umbrella SB name the same as the label brand name increases the positive effect of customer loyalty to SB on loyalty to the retailer, but not the effect of trust on this loyalty compared to chains that use SB names different from those of the label. These results have important implications for management.     

The role of endowments,technology and size in international trade: new evidence from product-level data

Using product-level trade data, we empirically investigate the export patterns of more than 150 countries in their exports to the USA, Brazil, India, and Japan. We document strong evidence that exporters specialize according to their relative factor endowments, technology, and economic size. More developed, capital abundant countries are found to export products of higher unit values and a wider range of products to developed, emerging and developing markets. More developed, economically larger, and technologically advanced countries are also the major exporters of new products, spanning a wide range of product categories with high unit values. Our findings provide important insights into the macro phenomenon that a large proportion of the global trade takes place among developed economies, and that the latter are also major exporters to developing markets.     

Entrepreneurial actions and optimistic overconfidence: The role of motivated reasoning in new product introductions

Optimistic overconfidence (OO), that is, being certain of success only to end up disappointed, represents a potentially catastrophic error. However, few studies have identified which entrepreneurial actions are associated with it. To explore this issue, we examined 55 small companies and found that OO of product success was positively related to introducing products that required more resources and were more pioneering. Furthermore, satisfaction with company performance had a curvilinear (U-shaped) relationship with overconfidence. Both high and low levels of satisfaction were associated with greater OO in product introductions. In addition, the bias was positively correlated with entering hostile environments; that is, environments that are characterized by intense competition that threatens a firm and its introductions. Contrary to expectations, however, OO was negatively associated with environmental dynamism; defined as environments that embody frequent and large changes. The research also compared general knowledge overconfidence to OO, concluding that each represents a distinct bias with distinct effects.