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1 – 10 of over 1000Muhammad Rashid Saeed, Richard Lee, Larry Lockshin, Steven Bellman, Song Yang and Justin Cohen
Low-fit brand extensions offer several potential benefits, yet their success is challenging. Building on construal level theory, this study aims to investigate how different…
Abstract
Purpose
Low-fit brand extensions offer several potential benefits, yet their success is challenging. Building on construal level theory, this study aims to investigate how different advertising appeals can improve the evaluations of low-fit brand extensions through two different processes (cognitive and affective).
Design/methodology/approach
Two experiments were conducted with US consumers. Study 1 used a 2 (extension fit: high, low) × 2 (ad appeal: abstract, concrete) between-subjects design. Study 2 applied a 2 (brand associations: promotion, prevention) × 2 (ad appeal: promotion, prevention) between-subjects design. Multivariate analyses and follow-up means comparisons were used to analyse data.
Findings
Study 1 found that an abstract ad appeal is more effective for promoting low-fit brand extension because it improves the perception of fit. Study 2 showed promotion vs prevention ad appeals lead to better evaluation of low-fit brand extensions when matched with parent brand associations (promotion vs prevention) in terms of construal level. This matching effect is underpinned by processing fluency.
Research limitations/implications
Ad appeals can influence low-fit brand extension evaluation by influencing the perception of fit (cognitive process) or processing fluency (affective process). Future research could consider different ad appeals and other construal related factors to generalise these findings.
Practical implications
Marketers can design different ad appeals to effectively advertise low-fit brand extensions. These findings can guide managers in the development of effective advertising strategies.
Originality/value
This research offers a new perspective on how ad appeals can enhance low-fit brand extension evaluation.
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Gabriel Pedrosa, Helena Nobre and Ana Sousa
This study aims to understand how consumers evaluate downscale vertical line extensions of a prestige/luxury original equipment manufacturer (OEM) in the European automotive…
Abstract
Purpose
This study aims to understand how consumers evaluate downscale vertical line extensions of a prestige/luxury original equipment manufacturer (OEM) in the European automotive market. The authors investigate the moderator effects of innovativeness and the need-for-status traits on the relationships between consumers' extension perceived fit (EPF), extension attitude (EA) and extension perceived value (EPV).
Design/methodology/approach
Experimental design with quantitative analyses based on a sample of 419 participants. Participants were randomly assigned to two treatments: low-fit and high-fit extension simulations.
Findings
The purchase intention of the downscale vertical extension of a luxury OEM brand is directly influenced by EPV and indirectly influenced by consumer EA and EPF with the parent brand. Findings also suggest that parent brand equity is transferable to extensions that present closeness and consistency with the brand’s heritage. Moreover, the need for status strengthens the relationship between the EPF and the extension perceived social value (EPSV).
Originality/value
The authors developed a realistic simulation of a downscale model of a well-known prestige/luxury car brand. The authors test the influence of innovativeness and need-for-status personal traits on consumer extension acceptance.
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Yue He, Zan Mo and Huijian Fu
Downward line extension is a valuable growth strategy that enables multiple products and services to meet diverse customer needs. However, downward extended products launched by…
Abstract
Purpose
Downward line extension is a valuable growth strategy that enables multiple products and services to meet diverse customer needs. However, downward extended products launched by high-status brands may be challenged by horizontal extended products launched by relatively low-status brands when these two types of products target similar consumers. This study aims to examine the impact of product type (horizontal extended versus downward extended) on consumers’ purchase intentions, the underlying mechanism and the moderating role of power distance belief.
Design/methodology/approach
Four scenario-based experiments were conducted to probe the research questions.
Findings
Consumers develop lower purchase intentions for downward (versus horizontal) extended products due to the reduction of perceived fit and self-congruity (Study 1). Beyond that, power distance belief moderates the impact of product type on consumers’ purchase intentions, as a low power distance belief reduces the negative effect of downward line extension (Studies 2a, 2b and 2c). Perceived fit and self-congruity mediate the interaction effect between product type and power distance belief on consumers’ purchase intentions (Study 2c).
Practical implications
This study provides marketing practitioners with guidance on implementing the strategy of downward line extension.
Originality/value
This study serves as a preliminary effort to compare consumers’ responses between downward and horizontal extended products, which deepens the understanding of downward line extension. It also contributes to the body of knowledge about line extension and power distance belief by demonstrating the moderating role of power distance belief in a line extension context.
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Jinhua He, Jiaxin Xiang and Jing Wang
This study explores the influence of heritage brand extension on consumer purchase intention and analyses the effects of pop culture involvement. The extension of heritage brands…
Abstract
Purpose
This study explores the influence of heritage brand extension on consumer purchase intention and analyses the effects of pop culture involvement. The extension of heritage brands is becoming increasingly difficult because such an extension needs to be consistent with the unique characteristics of brands and resonate with consumers. However, few scholars discuss the influence of consumers' level of pop culture involvement on brand extension and purchasing behaviour.
Design/methodology/approach
Taking time-honoured brands as an example, this study established a conceptual model based on a comprehensive review of the literature, and then tested the model using a sample of 255 respondents who were familiar with one of the selected Chinese time-honoured brands. Structural equation modelling was used to analyse the relationships amongst brand extension fit, pop culture involvement, perceived value and purchase intention.
Findings
Time-honoured brand extension fit has a positive impact on consumer purchase intention, and this path is significantly influenced by the mediation mechanisms of perceived value. Situational pop culture involvement can significantly strengthen the relationship between time-honoured brand extension fit and perceived value, whereas enduring pop culture involvement does not.
Originality/value
The results clarify and expand on the different roles of cultural involvement in time-honoured brands and broaden research on the influence of cultural involvement in this regard. This study has significant theoretical value for the inheritance and revival of heritage brands and provides a reference for the practice of time-honoured brands.
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Hoang Tran Phuoc Mai Le, Tianbao Ren and Jungkun Park
This paper aims to investigate the key characteristics of parent brands and the relationships among customer perceived value (a second-order construct containing financial…
Abstract
Purpose
This paper aims to investigate the key characteristics of parent brands and the relationships among customer perceived value (a second-order construct containing financial, functional, individual and social attributes), parent brand loyalty and the willingness to pay for a premium extended brand. Moreover, the moderating effect of self–brand integration on the influences in the model is examined.
Design/methodology/approach
Data were collected in two countries, the USA (n = 535) and China (n = 511), through an online survey. Structural equation modeling and a multi-group analysis were used to analyze the data.
Findings
The results show that perceived quality and premium brand authenticity are two important predictors of perceived value. The relationships among perceived value, parent brand loyalty and willingness to pay for an extended premium brand were significantly supported. In addition, self–brand integration was found to moderate the relationship between perceived value and loyalty to the parent brand.
Practical implications
Wine marketers and managers can use recommendations to establish effective brand extension strategies to help the industry know what essential characteristics of a parent brand to focus on and maintain sustainable development through the customer–extended brand relationship.
Originality/value
Previous researchers have discussed wine consumption behaviors or branding strategies. By limiting combining two theories (flow theory and the theory of planned behavior), this paper proposes a chain of behaviors to optimize customer experience to develop a brand extension strategy based on key characteristics of the parent brand.
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Deryck J. Van Rensburg, Pete Naudé and Izak Fayena
Consumer product firms renowned for marketing appear to be complementing brand creation, extension and acquisition with minority equity investments in entrepreneurial brand…
Abstract
Purpose
Consumer product firms renowned for marketing appear to be complementing brand creation, extension and acquisition with minority equity investments in entrepreneurial brand ventures (EBVs) for strategic purposes. Similarly, EBVs are looking for growth and resources that can be accessed via inter-organizational partnerships. This flourishing industry practice and the paucity of empirical research indicates the potential for new studies. The research objective was to examine why and how large incumbents were implementing strategic brand venturing (SBV), and with this understanding to develop a framework useful for descriptive and normative purposes.
Design/methodology/approach
This qualitative research study comprised in-depth interviews and multiple data sources across seven case studies drawn from US subsidiaries of global firms within the consumer products industry. Grounded in resource theory, the dimensions of strategic brand equity investments are abductively derived.
Findings
The findings delineate 16 process capabilities within four aggregate clusters entailing, the designing of the SBV program, opportunity identification, brand entrepreneur partnerships and venture portfolio management. Prefaced by endogenous and exogenous antecedents, these process capabilities help to contribute strategic and financial value when implemented.
Research limitations/implications
This qualitative research study yielded analytical rather than statistical generalizations. A range of market and economic factors exist in the United States contributing towards a favorable entrepreneurial and brand incubation climate. This may render the SBV concept as contingent and contextual. Furthermore, the view of brand entrepreneurs' regarding the design of the process model were not explicitly sought but inferred from the discourses of the venturing units interviewed.
Practical implications
The article outlines several important implementation imperatives for corporations endeavoring to competitively advantage their brand portfolios via adoption of a minority equity investing strategy in EBVs. Practitioners are cautioned against myopically adopting this process alone as a success heuristic given other factors may impact success such as changes in corporate strategy or upper echelon sponsorship.
Social implications
Mission preservation for social brand ventures being tethered to a large incumbent may need to be taken into account prior to and during SBV relationships.
Originality/value
The research contributes to the call for greater insights into the investment processes used in venturing relationships as well as coverage of new industry sectors beyond technology industries that often characterize corporate venture capital studies. Several novel findings emerged related to the importance of—the industry ecosystem; symbiosis between the founding brand entrepreneur and brand culture; synchronization of investment strategies with an emerging brand life-cycle model and serendipitous corporate entrepreneurial opportunities.
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Kevin Teah, Billy Sung and Ian Phau
This study aims to examine the moderating role of principle-based entity (PBE) of luxury brands and its effect on perceived corporate social responsibility (CSR) motives, consumer…
Abstract
Purpose
This study aims to examine the moderating role of principle-based entity (PBE) of luxury brands and its effect on perceived corporate social responsibility (CSR) motives, consumer situational scepticism and brand resonance.
Design/methodology/approach
Structural equation modelling using multigroup analysis was used. Data were collected through a consumer panel.
Findings
Values-driven motives lowered consumer situational scepticism (CSS) significantly more in PBE than non-PBE. However, egoistic-driven motives increased CSS significantly more in PBE than non-PBE. Stakeholder-driven motives and strategic-driven motives did not elicit CSS, contrary to prior studies in non-luxury brands. PBE status also weakens the relationship between CSS and brand resonance more than non-PBE status.
Originality/value
This study is the first to provide empirical insights into PBE status and its effects on perceived motives, CSS of CSR initiatives and its influence in consumer and management outcomes in luxury brands.
Jacqueline Burgess and Christian Martyn Jones
This study aims to investigate consumer perceptions of inauthenticity due to adulteration of a narrative brand ending by using the research context of the final season and ending…
Abstract
Purpose
This study aims to investigate consumer perceptions of inauthenticity due to adulteration of a narrative brand ending by using the research context of the final season and ending of the television series, Game of Thrones.
Design/methodology/approach
Two data sets totalling 2,032 online comments detailing consumer reactions to the final season of Game of Thrones were analysed using thematic analysis and human interpretive analysis. The coding was an iterative and continuous process, and posts were returned to and re-examined to refine codes and groupings as the analysis progressed.
Findings
The results indicate consumers perceived the ending of the eighth and final season of the television series, Game of Thrones, did not meet their expectations and was not authentic due to rushed writing and illogical character and plot developments. Consumers judged this adulteration was so great that it was a moral violation and transgression. Consumers also sought to assign blame for the inauthenticity, which they attributed to the writers and showrunners, who became the subject of revenge behaviours.
Originality/value
This study indicates consumers of narrative brands, due to their strong emotional attachments to their characters and storyworlds, may perceive unexpected and extensive changes to them as moral violations and transgressions and thus inauthentic. Consumers establish the authenticity of a narrative brand by regularly scrutinising narrative and character development against their expectations as shaped by prior narrative content. Due to their emotional attachment, consumers may attempt to attribute blame for the inauthenticity. The findings have not been established in prior research, and inauthenticity in a narrative brand context is also explored for the first time.
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Matthew A. Hawkins and Fathima Z. Saleem
Recent literature identifies the importance of influencer-brand fit, a congruence between the narrative of the social media influencer (SMI) and the branded product being…
Abstract
Purpose
Recent literature identifies the importance of influencer-brand fit, a congruence between the narrative of the social media influencer (SMI) and the branded product being reviewed, on purchase intentions. In creating brand-related content, SMIs can post content that can be either sponsored by the brand or unsponsored. This research merges these literature streams to examine how influencer-brand fit impacts purchase decisions and whether sponsorship status moderates this relationship.
Design/methodology/approach
Using a 2 (poor vs good influencer-brand fit) × 2 (sponsored vs unsponsored post) experimental design (n = 198), the relationship between influencer-brand fit and purchase intention, the mediating role of SMI trust and the moderating role of perceived sponsorship are tested. The PROCESS macro was used to analyze direct and indirect paths.
Findings
The results demonstrate that influencer trust mediates the relationship between influencer-brand fit and purchase intention, highlighting the importance of a congruent influencer and brand image in both increasing influencer trust and purchase intentions. Surprisingly, despite the reductions in purchase intentions from conducting a poor-fitting review, purchase intentions are the same between a poor-fitting unsponsored review and a good fitting sponsored review.
Practical implications
Decision-makers of both corporations and SMI personal brands should consider influencer-brand fit when selecting SMI partners to sponsor and brands to work with, respectively, and should aim for good fit between both parties. SMIs should avoid conducting sponsored, poor-fitting product reviews to limit reductions in trust. Influencers seeking to branch out of their area of expertise can initially consider unsponsored content before venturing into sponsored partnerships. Companies seeking to widen their reach through poor-fitting SMIs should consider alternative strategies to sponsorship.
Originality/value
As sponsored content is common, it is necessary to merge the influencer-brand fit and influencer sponsorship literature. Additionally, this study considers the mediating role of influencer trust, an important variable in predicating purchase intentions as well as helping SMI grow their audience.
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John J. Sailors, Jamal A. Al-Khatib, Tarik Khzindar and Shaza Ezzi
The Islamic world spans many different languages with different language structures. This paper aims to explore one way in which language structure affects consumer response to…
Abstract
Purpose
The Islamic world spans many different languages with different language structures. This paper aims to explore one way in which language structure affects consumer response to the marketing of cobrands.
Design/methodology/approach
Two between subject experiments were conducted using samples of participants from Saudi Arabia and the USA. The first manipulated partner brand category similarity and brand name order, along with the structure of the language used to communicate with the market. The data for this study includes Arabic speakers in Saudi Arabia as well as English speakers in the USA. The second study explores how targeting a population fluent in multiple languages of varied structure nullifies the findings from the first study and uses Latino participants in the USA.
Findings
This study finds that when brands come from similar product categories, name order did not affect cobrand evaluations, but it did when the brands come from dissimilar product categories. Here, evaluations of the cobrand are enhanced when the invited brand is in the position that adjectives occupy in the participant’s language. The authors also find that being proficient in two languages, each with a different default order for adjectives and nouns, quashes the effect of name order otherwise seen when brands from dissimilar product categories engage in cobranding.
Originality/value
By examining the impact of language structure on the effects of cobrand evaluation and conducting studies among participants with differing dominant languages, this research can rule out simple primacy or recency effects.
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