Brand response to environmental turbulence: A framework and propositions for resistance,recovery and reinvention

As valuable assets of corporations, governments and not-for-profit organizations, brands have attracted considerable research attention. We know a lot about how brands create knowledge in their target consumers’ minds, which leads to an attitude towards or relationship with the brand that translates into a number of favorable outcomes. The resultant brand equity is often associated with improved performance of the organization in reaching its objectives such as increasing market value. We know less about the dynamic nature of brand equity and, in particular, how it may interact with turbulence in the external environment in which the brand competes, both positively and negatively. We examine three key dimensions of brand equity—brands’ access to their target markets, perceived differentiation, and level of brand engagement with their target consumers—that influence the effect environmental turbulence has on diminishing equity or providing future opportunities for brand equity growth. Borrowing from the strategy literature, we suggest ways in which agile and resilient firms can use brand equity to resist environmental turbulence, recover from any damage that may result from it, and reinvent themselves to leverage opportunities created by a radically altered external environment. We close with a set of propositions intended to guide managers in anticipating and responding to environmental turbulence and inform and shape future research in this area.     

On the Extendibility of Brands with Subordinate versus Basic Category Concepts

In this paper, we use a series of experimental studies to show that consumers’ response to the extension of a brand associated with a basic versus a sub-category depends on the closeness of the brand's parent and extension categories. When the two categories are close, consumers respond more favorably to the extension of a brand with a basic category concept, but the pattern reverses when the categories are far apart. However, a brand with a basic category concept can mitigate its disadvantage in a distant category by first launching an intervening line extension. Our results suggest that brands with sub-category concepts are not limited in their ability to extend, and can help retailers meet the twin objectives of leveraging the high growth of specialized categories and rationalizing their brand portfolio. They also suggest that managers should aim to extend brands with sub-category concepts into distant categories where the modifier in the brand concept is relevant rather than into close categories.     

Brand Management and Strategic Performance

ABSTRACT

This article reports on a study using a previously published checklist to assess the brand management practices of South African firms. Indications are that the perceptions of a sample of senior managers regarding how well their institutions manage their brands are reasonably positive, and that the management of brands has effects on a firm's profitability, market share and growth compared to competitors. While the checklist used seems to possess the characteristic of reliability, further development needs to be done on aspects of its underlying structure. Implications for managers and further avenues for research are identified and discussed.     

Anti-consumption and brand avoidance

This article focuses on a particular form of anti-consumption; brand avoidance. Specifically, it explores why people may avoid some brands, even when their financial circumstances allow them the option to purchase. The authors use qualitative data to develop a conceptual framework that helps clarify why consumers avoid certain brands. This study reveals three types of brand avoidance: experiential, identity and moral brand avoidance. Experiential brand avoidance occurs because of negative first hand consumption experiences that lead to unmet expectations. Identity avoidance develops when the brand image is symbolically incongruent with the individual's identity. Moral avoidance arises when the consumer's ideological beliefs clash with certain brand values or associations, particularly when the consumer is concerned about the negative impact of a brand on society. Finally, this study highlights potential strategies that managers could implement to deal with brand avoidance.     

Image feedback effects of brand extensions: Evidence from a longitudinal field study

This paper examines the issue of image feedback effects and potential drivers of these effects by analyzing real-world extensions that have been introduced successfully in the market, using a longitudinal field study. Within the context of typical FMCG extensions, the authors find strong evidence that even for successful extensions, negative image feedback effects can occur, particularly when the perceived quality of the extension fails to meet the quality level of the parent brand. Strong brands tend to be more vulnerable to negative image feedback effects because consumers have a higher reference level for their extensions than for those of weaker brands. The likelihood of negative feedback effects decreases as the level of perceived fit and consumers’ perceptions of the general extendibility of the parent brand increases. But managers cannot, at least in the short run, mitigate negative image feedback effects through increased advertising support. Finally, the findings demonstrate that the feedback effects of a new extension product on parent brand image diminish over time.

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.     

An ex-ante approach to brand capability valuation

There are numerous financial metrics available in the academic and commercial world to estimate brand value. In the context of mergers and acquisitions, managers often use such metrics when purchasing or selling brands. However, the measurement of brand equity in a going-concern has received scant attention in the academic literature. The well-known Interbrand™ approach is an ex-post calculation of brand value. This paper extends Interbrand's brand strength valuation model by developing an ex-ante approach to guide managers in their budgeting and strategic decision-making processes geared towards building brand value. It then empirically tests the model in a company with an internationally recognized brand.     

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.     

Vulnerability of global brands to negative feedback effects

Going global is a successful strategy to leverage a brand's equity, in part, because global is synonymous of quality for consumers. This research examines the impact of competitor brand familiarity on the quality perceptions of global brands in Chile when the brand extends into new product categories. The results indicate that there is a negative impact on the quality perceptions of brand extensions when an extension competes with well-known and well-liked competitor brands. However, brand extension quality beliefs seem to produce negative feedback effects on parent brand quality beliefs only for narrowly extended parent brands but not for broadly extended ones.     

Exploring the changing role of brand archetypes in customer-brand relationships: Why try to be a hero when your brand can be more?

For over 20 years, managers have been encouraged to leverage archetypal meaning to strengthen their brands. Prior research has studied archetypes as universal patterns present in the collective unconscious that trigger an instinctive response in customers, arguing that brands should evoke one archetype at a time. However, recent evidence seems to suggest that the single archetype view proposed in previous work may have lost its relevance in the marketplace. This article responds to calls for further research into brand archetypes by analyzing more than 2,400 brands and the archetypes they evoke in their marketing communications. The current findings support the continued relevance and importance of brand archetypes in marketing, showing that brands connect with customers by consistently evoking specific archetypes. Critically, however, strong brands tend to leverage multiple archetypes at a time rather than just one as previously believed. We explore key implications of our findings for theory and management, discuss avenues for future research, and provide actionable guidelines for managers wishing to leverage archetypal meaning to build strong brands.     

Re-branding brand genericide

Genericide refers to situations where brands lose their legal protections due to the fact that their original name has become the generic term for a new category of products in the market that the brand first helped to create. Despite notorious instances of brands falling prey to this curse, marketing specialists—unlike lawyers—generally do not consider that the widespread use of a brand name represents any real danger and instead view it as a sign of brand strength. Herein, we take a new look at this debate, using a case study of Google to re-investigate the phenomenon of genericide. The article also offers managerial guidance on the most effective ways of developing genericization and avoiding genericide. It concludes by pointing out the need for brand managers to precisely differentiate between different types of brands and markets when deciding whether they should protect themselves from the risk of genericide or else encourage the genericization of their brand.     

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.     

Entrepreneurs: Invent a new brand name or revive an old one?

This paper discusses launching an entrepreneurial venture by acquiring a once popular brand name and reviving it. Interviews were conducted with 10 executives who acquired dormant brands and successfully relaunched them into the market. Their comments suggest that, with proper planning, an entrepreneur may be able to substantially increase his or her chances of success by reviving brands, rather than spending the enormous amount of capital required to build new brand image. Conclusions suggest that nostalgia targeting is not enough; the revived brand must be repositioned to satisfy today's customer values. Evidence also suggests licensing a revived brand name to unrelated industries may prove very profitable for the entrepreneur.     

Brand extension feedback: The role of advertising

Firms often use brand extensions as a way of introducing their new products, although they also risk diluting their brand image. In order to understand how consumers assess extensions and extended brands, the present work proposes and estimates a theoretical model, using the structural equation methodology. The results of the estimation indicate that the attitude towards the extension influences brand image and that this attitude is a consequence of the initial brand beliefs and the coherence of the new product. A multisample analysis also reveals that favoring the introduction of extensions through adequate advertising constitutes an efficient way of protecting brand image.     

Brand attachment and customer citizenship behaviors

Service brand attachment has emerged as a growing body of research. Although previous studies have examined the relationship between brand attachment and customer behaviors, the mechanism underlying this relationship remains unknown, particularly in a service context. The purpose of this study was to examine the relationship between brand attachment and customer citizenship behaviors and to clarify the role of perceived value among regular customers of international hotel brands in Taiwan. To examine this model, confirmatory factor analysis was employed to analyze survey data from 299 hotel customers, the results of which indicated that perceived value completely mediated the relationship between brand attachment and customer citizenship behaviors. Therefore, perceived value is the mechanism that explains how service brand attachment is associated with customer citizenship behaviors. These results demonstrate the importance of perceived value and imply that service managers should strengthen customers’ perceived value of service brands to enhance customer citizenship behaviors.     

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.     

Desire,need, and obligation: Examining commitment to luxury brands in emerging markets

The availability of a wide variety of luxury brands has resulted in declining commitment toward a single brand. Enhancing brand commitment has, therefore, become a significant challenge for international businesses and marketing managers. We develop a multi–dimensional brand commitment framework underpinned by marketing, organizational, and social psychology literature streams. The simultaneous examination of brand–commitment dimensions based on consumer desire, need, and obligation in our framework offers a novel perspective that advances research on brand commitment. Our findings demonstrate stability of the framework in important emerging markets for luxury brands, namely China, India, Russia, Turkey, and Thailand. The framework, incorporating affective, continuance, and normative brand commitment dimensions, offers a conceptually robust fit. We demonstrate that each brand commitment dimension is influenced by distinct antecedents, and we show the direct and interactional impact of consumers’ emotional attachment, economic motivations, and normative pressures on purchase intentions. Supported by well-established theories in organizational and social psychology, our study offers new insights on how consumers commit to brands. We provide international brand managers with a blueprint for strengthening brand commitment across countries.     

The process of de-iconisation of an iconic brand: a genealogical approach

Brand iconisation refers to the way a brand comes to symbolise the values, needs, and aspirations of the members of a particular cultural group. More than a decade of research has emphasised the many benefits that iconic brands bring to companies and has identified how brands become icons through a process of matching with cultural opportunities emerging in society. However, the way an iconic brand comes to be de-iconicised and how managers can shield brands from this risk is still under-researched. The aim of this paper is to contribute to knowledge regarding iconic brands by following the life of one iconic brand at national level, examining its history and its impact from the point of view of cultural performance.

Our research contributes to the field of cultural branding through a genealogical study of how a brand becomes a national icon before becoming de-iconicised as circumstances change. Our research identifies five types of brand episode that can lead to de-iconisation. Our research therefore adds new developments to iconic brand theory. It also contributes to discussing the concept of iconic brand resilience, mainly through the role of cultural intermediaries, such as filmmakers.     

Antecedents and financial impacts of building brand love

Brand love has garnered increasing interest among practitioners and scholars, but little is known about how marketing actions drive brand love, and whether and how brand love transmutes to firm profitability. Using longitudinal brand love data collected from more than 20,000 customers of 152 corporate brands and financial data of firms who own these brands during 2006–2017, the authors examine the antecedents and financial impacts of building brand love. The results show that advertising investments help firms build brand love with diminishing returns after reaching an optimal point, whereas R&D investments positively contribute to brand love. The analyses further show that although brand love does not affect firm profitability and market value in the short term, it increases firm profitability and market value in the long term. More important, the results indicate that the positive effect of brand love on firm performance is stronger for hedonic brands, for firms in product categories that matter greatly to consumers, and those operating in highly competitive markets. Overall, the findings have important implications for marketing theory and provide actionable insights for managers into how to build and manage brand love.