A train of thought in product experientiality: Working memory,distraction, and inconsistencies in cue order effects

The sequence of informational cues and the level of distraction have an impact on the judgment of a product’s quality and preference. Two quasi-experimental studies (N_total = 340) investigate the influence of the force behind the processing of these cues – working memory (WM). Previous research found that, in the presence of a distractor, high WM individuals are more able to recall the initial cue, and thus derive their product judgment from the initial strong cue. Study 1 contradicts these findings and raises important methodological questions regarding the conceptualization of strong and weak cues. Specifically, commonly accepted strong cues (e.g., product reputation) might not influence consumers as expected. Additionally, in a sequence of product evaluation with high vs. low degree of experientiality, study 2 reveals that consumers tend to show a primacy effect that is stronger for higher levels of WM capacity. Moreover, in a sequence of assessing low vs. high degree of experientiality products, consumers reveal stronger recency effects, thus showing that WM reinforces this recency effect. Our findings have important implications for marketers by suggesting that consumers with high WMC are more able to process complex stimuli and retrieve previously presented information on a product quality. These consumers also have a higher tendency to retrieve more information from product scenarios with a high degree of experientiality.     

The effects of competitive context on consumer response to price changes

ABSTRACT

This paper aims to understand how a brand’s price level, relative to its competitors, will affect consumers’ responses to price changes of the brand. The study uses experiments to examine brand choice responses to price increases and decreases across contexts differing in competitor brands and their respective prices. These experiments are conducted with six consumer goods categories. The research identifies three key factors that affect the size of responses to brand price changes – (1) passing a competitor brand’s price, (2) narrowing versus widening the price gaps with competitors, and (3) whether competitors are predominantly higher or lower priced brands.     

Flagship stores for FMCG national brands: Do they improve brand cognitions and create favorable consumer reactions?

National brands have begun to engage in direct distribution, displaying the brand in its own biotope. Such operation of flagship stores is one means of forward verticalization. From samples of visitors to two flagship stores of fast-moving consumer goods brands, this study analyzes the effects of the flagship store visit on brand experience, brand equity, brand attachment, and loyalty. In the low-involvement FMCG context, flagship stores are useful for reinforcing brand experience. However, flagship store-fueled brand experience does not necessarily lead to favorable consumer reactions; its effect on future purchases is mediated by both brand equity and brand attachment.     

Is brand alliance always beneficial to firms?

In this research, we develop a fresh analytical model to examine the impact of brand quality on the firms’ performances when two firms selling substitute products form a brand alliance. Our results indicate that when two products have equal brand qualities, brand alliance is always a beneficial strategy for two firms to employ. However, when two products have different brand qualities, brand quality differential shows a positive relationship with the profit of the firm with the low-quality brand but demonstrates a negative relationship with the profit of the firm with the high-quality brand in the brand alliance. Our results also show that brand quality differential has a greater effect on the profit of the firm with the high-quality brand than on that of the firm with the low-quality brand. In addition, we find that brand alliance becomes much more valuable to the firm with the high-quality brand when the brand quality differential decreases, but the value of brand alliance has a concave relationship with the profit of the firm with the low-quality brand when the brand quality differential increases.     

Brand Management as an Internationalization Strategy for SME: A Multiple Case Study

ABSTRACT

This research examines the role of branding in the Portuguese SME internationalization process and how the internationalization and brand strategies are articulated in the search for a better business performance within a competitive framework and increasing competitiveness environment. The article aims specifically at: (a) the strategy of creation and brand management; (b) the relevance given to the brand; (c) the importance of brand creation and management in the internationalization strategy. We chose a qualitative methodology, based on four cases studies. Our results suggest that branding strategies of SME cannot be compared with the strategies of multinationals. Budgetary constraints and human resources lead companies to invest in low-cost strategies. The importance of the brand lies in the distinction that allows competition with similar products within the sectors. Management of the brand does not come up as an essential strategy for the internationalization of a Portuguese SME.     

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.     

Brand effect on extended warranty valuation: Subjective value versus popularity

In five experiments, we explore the effect of brands on warranty valuation and the conditions under which two mechanisms – liking based and availability based – determine the effect. We explore the moderating role of focused deliberation, which accentuates the brand effect under availability mechanism but reduces the effect under subjective value-based mechanism. In Experiment 1, we consider brands that vary in terms of both subjective value and popularity. When a brand is better in both subjective value and popularity, it commands higher warranty WTP. Focused deliberation moderates this effect of brand on warranty valuation. In Experiment 2, we consider brands that vary only in terms of subjective values (but not popularity). While the warranty valuation of the two brands does not differ under no deliberation, deliberation decreases WTP for brands with higher subjective value. In Experiment 3, we consider brands that differ only in terms of popularity (and not subjective value). In this context, deliberation increases warranty WTP for the more popular brand. Experiments 2A and 3A use warranty choice as the dependent variable and conceptually replicate the effects obtained in experiments 2 and 3, respectively.     

Managing a Global Retail Brand in Different Markets: Meta-Analyses of Customer Responses to Service Encounters

This study investigates how retailers can leverage their brand to shape customers’ satisfaction with service encounters. It develops and tests hypotheses about how brand, store, and consumer factors moderate customer responses to experience clues during retail service encounters. Six meta-regression analyses synthesize and compare results from 842 satisfaction equations describing customers’ encounters with a global retailer operating 400 stores in 32 countries. The results show how customers weigh their perceptions of service encounters differently depending on brand, store, and consumer factors. In markets where customers believe the retailer has high holistic brand quality, they place less weight on experience clues within the store. In markets where customers believe the retailer’s service brand promise, they place more weight on in-store experience clues. In markets where the retailer promises utilitarian value, customers weigh functional experience clues more heavily. In markets with an online purchasing channel, the effect of experience clues common to offline and online store environments is magnified, and unique clues are diminished. In addition, customers heavily weigh experience clues that fit their goals. In general, retail success factors include high brand quality (which makes customers more forgiving), a service brand promise that is mirrored in the store image (which makes customers attend to the experience clues aligned with them), and the careful monitoring and managing of retail touchpoints (to customize experience clues to each market). In this way, retailers can use customer-based strategies to effectively design and manage their global retail brand in different markets.     

Proactive versus reactive apparel brands in sustainability: Influences on brand loyalty

Building on the literature in brand loyalty and sustainable consumption of apparel, this study compares the loyalty formation mechanism between sustainable fashion and fast fashion brands. A series of hypotheses proposing the difference in the loyalty formation between the two types of apparel brands were developed. A structural equation modeling tested the research model with a sample of 556 U.S. respondents. Although somewhat inconsistent, the results suggest that consumers form brand loyalty toward sustainable versus fast fashion in a different manner. Implications for marketers as well as directions for future research are discussed.     

Crowded identity: Managing crowdsourcing initiatives to maximize value for participants through identity creation

In this article, we consider crowdsourcing from the consumer perspective. Specifically, we examine the identity value (i.e., sense of self) that consumers accrue by participating in creative crowds. How can managers structure crowdsourcing initiatives to maximize value for participants through identity creation and expression? We strive to answer this question first by examining the different types of crowdsourcing initiatives from a value co-creation perspective. Then we evaluate how consumers construct identities through consumption and review the literature on identity theory. Finally, we link the identity type—personal, extended, or social—to the management of crowdsourcing ventures and offer suggestions for practitioners.