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Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited
Article Type: Editorial From: Journal of Product & Brand Management, Volume 20, Issue 4
In a perfect world, a brand should allow a company to establish a specific niche in the marketplace that would enable a company to enjoy ongoing recognition by the consumer, thus allowing for profitability by the company, and ongoing customer loyalty.
However, realistically we live in a complex global marketplace that demands that in order to succeed, marketers have to not only understand the various nuances of the marketplace itself, but also the various groups of consumers that comprise that market. Then of course a company may have to consider introducing a new brand into a specific marketplace, engaging in brand extension, or even brand acquisition. The complexity of this effort should not be considered as a secondary effort, but rather should be viewed as a major challenge if a company is to succeed.
Burnaz and Bilgin examine whether companies in business-to-business (B2B) markets can leverage their brands extended into business-consumer (B2C) markets and how consumers can evaluate these extensions. The authors found that branding strategies that stretch B2B brands into the domain of consumer markets can be successful in cases where consumers perceive a fit with respect to skills and resources, brand concept, and existing products, and when the parent brand is perceived as high quality, innovative and environmentally responsible.
Damoiseau, Black and Raggio address the following question: “What causes firms to choose brand creation versus brand acquisition for brand portfolio expansion?”. Significant factors were found at the market and firm levels, with competitive intensity of the market having the strongest effect, followed by a firm’s financial leverage, market concentration and market growth. Contrary to prior expectations, external factors at the market and firm levels have an impact on choice of acquisition versus creation. However, internal factors may serve as moderators of strategy effectiveness.
Fandos Herrera and Flavián Blanco study how moderating the role of consumers’ familiarity with a food product with a protected denomination of origin (PDO) influence consumer behavior. Results of this study suggest that there are significant differences between consumers with high and low levels of familiarity in the influence of trust on satisfaction, as well as in the influence of satisfaction on loyalty. In consumers with greater familiarity and experience with the PDO, the effects of trust on satisfaction and satisfaction on loyalty are higher. Thus, marketing managers employing a PDO strategy should emphasize two main factors: intrinsic and extrinsic quality attributes.
Patwardhan and Balasubramanian attempt to explain consumer attraction to brands when stimulation needs are paramount using the perspective of the Self-expansion Model. This allows for the identification of brand romance – a more proximal construct to brand loyalty and offers a complementary perspective to understand emotional attachment to brands. Consumers are likely to remain loyal to brands they are attracted to. The brand romance construct captures this attraction. Marketers need to infuse their brands with novel perspectives, resources and identities on a continuous basis to satisfy stimulation needs and keep attraction string. This involves creating new brand associations that help the brand stay relevant.
In this issue you will also find our Pricing Practices & Pricing Strategy section and our Book review section.
Richard C. Leventhal