Emerald | European Journal of Marketing

Brand Alliances: The Role of Brand Concept Consistency

Lars Erling Olsen, Even Johan Lanseng — 2012-09-14 00:00:00.0

Abstract

Purpose - Previous research demonstrates the importance of product category fit in evaluating brand alliances. However, many factors determine fit between alliance partners. For example, conclusions from brand extension research suggest that the evaluation is a question not only of product category fit, but also of brand concept consistency. Therefore, this study introduces brand concept consistency in research on brand alliances. Design/methodology/approach - The paper builds on the categorization and incongruence literature. An experiment was employed to test the two hypotheses in the study.Findings - The results indicate that both product category fit and brand concept consistency influence consumers’ evaluations. However, the results also show that product category fit is important in only functional and mixed-brand concept-based alliances. For expressive brand alliances, product category fit is not important in evaluating the alliance.Practical implications - Managers should take care in finding potential alliance partners who have brands that in some way, either on the product category level or in brand concept, fit well with their company’s brands. However, managers of a functional brand should find a partner whose brand has high product category fit, since low-fit partners presumably will hurt the potential alliance.Originality/value - The paper demonstrates that brand concept consistency, not only product category fit, is an important variable in consumer evaluations of brand alliances.

The Benefits of Manufacturer Brands to Retailers

Mark Glynn, Roderick John Brodie, Judy Motion — 2012-05-10 00:00:00.0

Abstract

Purpose - To investigate how manufacturers’ brands benefit retailers and how these benefits affect retailer evaluations of the brand.Design/methodology/approach - The researchers develop a conceptual framework, from a literature review and qualitative interviews, which outlines the benefits of manufacturers’ brands for retailers. A series of hypotheses tests the effects of these brand benefits on retailer brand attitudes. Data is collected using a survey of supermarket category buyers and analysed with structural equation modelling in order to validate this framework. Findings - Manufacturers’ brands deliver four benefits to retailers: financial, manufacturer support, meeting customers’ expectations and brand equity. Financial benefits and customer expectations have a stronger effect on retailer satisfaction with the brand compared to manufacturer support and brand equity. Retailer satisfaction with the brand is an antecedent to the retailer assessment of brand performance as well as trust and commitment of the brand. An alternative model shows that brand equity influences retailer commitment to the brand and that financial benefits affect retailer performance assessment of the brand.Practical implications - Manufacturers should think of their brands as channel resources when dealing with retail buyers and need to consider how to best utilise these four brand benefits to encourage channel support.Originality/value - This study proposes a conceptual model and measures the influence of manufacturer brand benefits on longer term retailer attitudes towards the brand, which research has not previously addressed.

Destination Discount: A Sensible Road for National Brands?

Barbara Deleersnyder, Oliver Koll — 2012-05-10 00:00:00.0

Abstract

Purpose - We study the consequences of listing national brands in discounters: Is the discount channel a promising outlet for manufacturer brands? Is it an effective means to attract new buyers? Which combination of brand and discount destination at which price is best suited for this strategic move?Design/methodology/approach - Based on a unique dataset (tracking grocery purchase behavior for a representative sample of German households) and employing both descriptive and multivariate statistical techniques, we examine the outcome for 134 national brands introduced in six discount chains in Germany between January 2003 and July 2004.Findings - Both the manufacturer and discounter are able to grow their total performance in excess of the market following the introduction for the majority of the brands. Hence, potential cannibalization is more than offset by incremental revenues. We find that, on average, close to 80% of national brand’s sales at a discounter is from new brand buyers. Discounters typically benefit less, as only 29% of brand sales is from new category buyers at their store.Practical implications - Including manufacturer brands into a discount assortment will benefit both the manufacturers and the discounters. Examination of the substantial cross-brand differences reveals that manufacturers and discounters attract more new customers with brands for which market penetration is still modest. Also, discounters gain more from adding branded offerings in underperforming categories, and benefit from brands that enjoy higher customer loyalty. Finally, national-brand prices should be set carefully at discounters. It is advised to maintain their price premium even at a discounter.Originality/value - Discounters are the fastest growing grocery format in Europe. Lately, many discounters add national brands to their private-label dominated assortment, a move widely discussed in media with substantial implications for grocery channel management. This study provides a comprehensive evaluation of that trend.

Matching Service Recovery Solutions to Customer Recovery Preferences

Doan T. Nguyen, Janet R McColl-Kennedy, Tracey Sara Dagger — 2012-09-14 00:00:00.0

Abstract

Purpose - We argue that, traditionally, service recovery attempts have paid little attention to customer preferences. Despite attempts to recover the customer, firms generally do not know if the recovery solution is what the customer expects. Hence, we examine whether customer recovery preferences influence customers’ evaluation of the recovery attempt in terms of recovery satisfaction and repurchase intentions. Design/methodology/approach - First, we conducted a two stage qualitative study. We then empirically tested our research model on a sample of 431 consumers using a multivariate analysis. Findings - The findings support our argument that customers have distinct recovery preferences. Moreover, customers are satisfied with the service recovery solution only when it matches the most demanding recovery preference. Customer’s recovery preferences have a significant impact on their satisfaction with recovery and their repurchase intentions. Research limitations/implications - First, the model developed is tested on a cross-sectional sample. Second, our measure of recovery satisfaction and repurchase intentions was relatively simple. Third, we rely on repurchase intentions instead of actual behavioral data. Practical implications - Our research indicates that customers have a preference for how service recovery should be undertaken. Given these distinct recovery preferences, different recovery solution should be applied to appropriately address each preference. Originality/value - It is widely accepted in the service recovery literature that customers’ perceptions of a service recovery attempt are often different to those of the service provider. However, our research suggests that customer recovery preferences need to be carefully considered given their effect on customer satisfaction and repurchase intentions.

Strategies used to Defend Pharmaceutical Brands from Generics

Dean Charles Wilkie, Les Johnson, Lesley White — 2012-09-14 00:00:00.0

Abstract

Purpose - This research provides an empirical comparison of the results of three brand’s marketing defence strategies used in advance of generic brands entering. By reviewing the effectiveness of these strategies, this research looks to extend the research on marketing defence strategies into the importance of anticipating competitor launches. Design/methodology/approach - A data set containing 243 weeks of scanned sales for 21 generic brands was used in a regression model aimed at measuring the effectiveness of each brand’s defence strategies in deterring entry and limiting the market share of these generic brands.Findings - The analysis shows that several marketing mix components were effective in limiting the impact of generic brands. What was critical to each component’s success was ensuring that they were implemented before the launch of the generic brands.Research limitations/implications - This research has the limitation of being confined to a category of pharmaceutical allergy brands which limits the generalisation of findings. Practical implications - The managerial relevance of this research has two parts. It will encourage managers to move from implementing strategies in reaction to a competitor launch to implementing strategies in advance of their entry. Secondly, it provides insights into the effectiveness of several strategic options for brands facing the entry of generic brands. Originality/value - This study brings together literature regarding entry deterrence and market share loss prevention to help highlight the importance of proactive marketing defence strategies in reducing both the number of entrants and the amount of market share lost. It uses a data set to provide an empirical review of a range of marketing mix components used by pharmaceutical brands against low price generic brands.

Effects of Message Framing and Involvement on Price Deal Effectiveness

Eyal Gamliel, Ram Herstein — 2012-09-14 00:00:00.0

Abstract

Purpose - Price deals are typically presented in "save" terms. However, Prospect Theory (Kahneman and Tversky, 1979) predicts that people will be more willing to waive a monetary gain than to lose the same amount of money. This study examined whether consumers would show more purchase intentions of a product offered in a price deal framed negatively (‘lose if you don’t purchase’) relative to the conventional positive frame (‘save if you purchase’).Design/methodology/approach - The purchase intentions of 189 participants, randomly assigned to either a positively or a negatively framed message, were examined. The participants’ perceived monetary gain in the deal and their involvement in the issue were also measured.Findings - Presented with a negative relative to positive frame, participants showed more purchase intentions of a product offered in a price deal, and perceived their monetary gain as higher. Highly involved and lowly involved participants exhibited similar framing effects. Research limitations/implications - The findings regarding lowly involved participants are inconsistent with previous findings. Future research is needed to clarify whether the message framing effect interacts with involvement in predicting purchase intentions of a product offered in a price deal.Practical implications - The theoretical explanation of the phenomenon presented in this study predicts that negative framing of messages will also be more effective in other consumer behavior contexts. Originality/value - This study is the first empirical demonstration of the effect of message framing on the effectiveness of price deal offers, suggesting that retailers should re-examine their conventional presentation of price deal offers in terms of gains, and consider rephrasing them in terms of loss.

Examining the Relationship between Brand Emotion and Brand Extension among Supporters of Professional Football Clubs

Ibrahim Abosag, Stuart Roper, Daniel Hind — 2012-05-10 00:00:00.0

Abstract

Purpose - There is debate and controversy about the use of branding in sport. Often, fans show loyalty to their club that many brands could only dream of, and a key argument of previous research is that supporters do not like to think of their club in commercial terms, as a brand (Chadwick and Beech, 2007; Chadwick and Holt, 2006). However, we argue that in today’s environment fans have a pragmatic attitude towards the necessity of branding and its importance in the future success of their clubs. Thus a model conceptualising the relationship between supporters’ emotional attachment, supporters’ brand perception/strength and their support for brand extension was developed and tested.Design/methodology/approach - In-depth interviews with, players, clubs’ officials and supporters, leading to the design of a survey instrument completed by 842 supporters of two professional Norwegian football clubs.Findings - The model confirms that fans that have a strong emotional attachment to their club have a stronger perception of the club as a brand and support brand extension.Research limitations/implications - This is a one country study.Practical implications - Club management needs to be careful when extending its brand. Brand extension must be designed to reflect the heritage and tradition of the club. Also, club management needs to show in brand extension an element of competitiveness which improves brand image, strengthens supporters’ belief in their club and attracts new supporters.Originality/value - We provide new evidence which contradicts existing theory. The study challenged the widely accepted argument that supporters of football clubs are likely to disapprove of and reject the thought of their favourite football club as a brand.