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1 – 10 of 16
Article
Publication date: 4 February 2022

Lars Erling Olsen, Bendik Meling Samuelsen, Ioannis Pappas and Luk Warlop

Brand managers can choose among two fundamentally different brand positioning strategies. One is a broad brand strategy, focusing on many favorable brand associations. The…

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Abstract

Purpose

Brand managers can choose among two fundamentally different brand positioning strategies. One is a broad brand strategy, focusing on many favorable brand associations. The other is a narrow brand strategy, focusing on just a few and thus more mentally accessible associations. Building on associative memory theory, this paper aims to examine which of these brand positioning strategies performs better under dynamic market conditions.

Design/methodology/approach

Three experiments test the effect of brand positioning strategy on memory accessibility and competitive brand performance. Study 1 tests how brand strategy (broad vs narrow) affects defensive brand performance. Study 2 tests how broad vs narrow brands perform differently in a brand extension scenario (offensive brand performance). Study 3 uses real brands and situation-based attributes as stimuli in a defensive scenario.

Findings

The results show that a narrow brand positioning strategy leads to a competitive advantage. Narrow brands with fewer and more accessible associations resist new competitors more easily and have higher brand extension acceptance than do broad brands.

Research limitations/implications

The study shows how to use accessibility as evidence of associative strength and test how accessibility influences competitive brand performance in a controlled experimental context.

Practical implications

Brand managers would benefit from a narrow brand positioning strategy in accordance with the unique selling proposition (USP) school of thought used by many marketing practitioners.

Originality/value

The paper demonstrates that narrow brand positioning performs better than broad brand positioning in dynamic markets, and to the knowledge is the first to do so.

Details

European Journal of Marketing, vol. 56 no. 3
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 8 May 2017

Radu Dimitriu, Luk Warlop and Bendik Meling Samuelsen

The purpose of this paper is to show that high similarity between a parent brand and an extension category can have a detrimental effect on how a brand extension is…

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Abstract

Purpose

The purpose of this paper is to show that high similarity between a parent brand and an extension category can have a detrimental effect on how a brand extension is perceived to perform on specific attributes. This happens because similarity influences the perceived positioning of a brand extension: lower similarity extensions can be perceived as “specialized” products, whereas high similarity extensions are perceived as “all-in-one” products not performing exceptionally well on any specific attribute.

Design/methodology/approach

The authors test the hypothesized effect through three experimental studies. The authors manipulate similarity both within subjects (Study 1a) and between subjects (Study 1b and Study 2). Further, the authors test the effect for specific attributes that are physical/concrete in nature (Study 1a and Study 1b) as well as attributes that are abstract/imagery-related in nature (Study 2).

Findings

High compared to low similarity improves perceptions of overall performance (i.e. performance across all attributes). But as expected, the authors also find that a high similarity brand extension is perceived to perform worse on the attribute on which a low similarity brand extension specializes, even when the parent brands of the extensions possess that attribute to the same extent. This perception of attribute performance carries on to influence brand extension purchase likelihood.

Practical implications

The degree of brand extension similarity has consequences for how brand extensions are perceived to be positioned in the marketplace. Although high similarity extensions receive positive evaluations, they might not be suitable when a company is trying to instil a perception of exceptional performance on a specific attribute.

Originality/value

The authors demonstrate a consequential exception to the marketing wisdom that brands should extend to similar categories. Although the degree of brand extension similarity has been repeatedly shown to have a positive effect on brand extension evaluation, the authors document a case when its effect is actually detrimental. This study’s focus on the dependent variable of perceived performance on specific attributes is novel in the brand extension literature.

Details

European Journal of Marketing, vol. 51 no. 5/6
Type: Research Article
ISSN: 0309-0566

Keywords

Abstract

Details

Review of Marketing Research
Type: Book
ISBN: 978-0-85724-726-1

Book part
Publication date: 1 January 2008

Sebastiaan Morssinkhof, Marc Wouters and Luk Warlop

This article addresses purchasing decisions and the use of total cost of ownership (TCO) information. TCO is based on a monetary quantification of nonfinancial attributes…

Abstract

This article addresses purchasing decisions and the use of total cost of ownership (TCO) information. TCO is based on a monetary quantification of nonfinancial attributes and aggregation into a summary measure (such as cost per hour, per wafer, or per kilometer). From an accounting point-of-view, one intricate issue is the accuracy of the monetary quantification and how this affects decision-making. We distinguish three different kinds of inaccurate monetary quantification, and we investigate the weight that decision makers attach to attributes that are inaccurately monetarily quantified and subsequently included in TCO information. Specifically, we investigate whether this weight depends on reflective thinking and experience. This question is relevant beyond TCO, for all decision-making situations that involve monetary quantification of attributes and subsequent aggregation, such as in activity-based costing, net present value calculations for capital budgeting decisions, or cost-benefit analyses in public administration.

We found support for the hypothesis that reflective thinking increases the weight decision makers attach to the attribute that is included as a minimum cost in the TCO-numbers, but not for the hypothesis that reflective thinking would reduce the weight attached to the attribute that is included as a maximum cost in the TCO-numbers. Students and practitioners differed significantly in the weight they attached to an attribute that was excluded from the TCO-numbers, and practitioners gave less weight to such attributes. Together these results suggest that TCO-numbers should be provided with care and possible inaccuracies should be clarified.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-84855-267-8

Abstract

Details

Review of Marketing Research
Type: Book
ISBN: 978-0-7656-1306-6

Content available
Book part
Publication date: 1 January 2008

Abstract

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-84855-267-8

Abstract

Details

Leading with Presence: Fundamental Tools and Insights for Impactful, Engaging Leadership
Type: Book
ISBN: 978-1-78714-599-3

Abstract

Details

Review of Marketing Research
Type: Book
ISBN: 978-0-85724-727-8

Article
Publication date: 2 March 2022

Gurumurthy Kalyanaram, Gordhan K. Saini, Suresh Mony and N. Jayasankaran

Pricing is always a fundamental marketing element. In the digital marketing/e-commerce context, there are two universal phenomena: desire to micro-segment and customize…

Abstract

Purpose

Pricing is always a fundamental marketing element. In the digital marketing/e-commerce context, there are two universal phenomena: desire to micro-segment and customize, and the adverse reaction upon unfair perception of price. A third related question is how should firms consider price increases and decreases? Specifically, this paper aims to address the following three research and practice questions: What are the theoretical underpinnings of perception of fairness/unfairness in pricing, and what are the findings? What are the theoretical underpinnings of response to price increases and decreases? What should be online pricing strategy, consistent with the findings on (un)fairness perception of pricing and response to price increases and decreases?

Design/methodology/approach

The present approach is integrative review and critical analyses, and synthesis. The review dates back to 1960s, and is inter-disciplinary, including apposite findings in behavioral science, economics, marketing and operations management/research. The authors search for insights with significant empirical support to address these questions.

Findings

Perception of unfair price impacts consumer choice, probability of purchase, intent to buy and attitude to product/service/firm adversely. Consumers react differently to perceived unfair and fair prices. Consumers react more strongly and negatively to perceived unfair prices (compared to prices perceived to be fair) in their intent to buy and other related metrics. Consumers react differently to price increases and price decreases relative to the reference price. Consumers react more strongly to price increases than to price decreases. There is substantial heterogeneity in the magnitude of loss-aversion effect, depending on the product/service category and estimation methods.

Originality/value

The authors review and discuss potential viable pricing strategies. Based on the generalizable findings, this study provides actionable insights to managers for pricing in digital marketing context. Also, the authors provide useful directions for future research.

Article
Publication date: 14 September 2012

Eric Van Steenburg

The paper aims to determine the effectiveness of specific online advertisements, comparing banner ads that are brand‐reinforcing versus ones that are product‐reinforcing.

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Abstract

Purpose

The paper aims to determine the effectiveness of specific online advertisements, comparing banner ads that are brand‐reinforcing versus ones that are product‐reinforcing.

Design/methodology/approach

The research uses three experimental design studies to empirically test the hypotheses based on the elaboration likelihood model (ELM) by manipulating type of online banner advertisement (brand‐type versus product‐type) and measuring individual need for cognition (NFC).

Findings

Consumers high in NFC recall product‐type banner ads more readily than those low in NFC, while brand‐type banner ads are more likely to be recalled by low‐NFC consumers. However, high‐NFC consumers recall brand‐type ads under all situational influences tested. And while consumers low in NFC recall product‐type banner ads featuring a directive better than their high‐NFC counterparts, they do not recall directive ads at a greater rate than high‐NFC consumers recall brand‐type ads.

Research limitations/implications

While previous research has found that variations in ad size, color, interactivity, and web site location affect recall, this research only measured static banner ads that appear at the top of the page. However, because it is the first to examine involvement in terms of NFC in combination with brand‐ and product‐type ads, the research sheds new light on consumer awareness of two types of banner ad strategies adopted by marketing managers today.

Practical implications

In an online context, the type of banner ads used by marketing managers should be paired with the web site based on how much time consumers spend at the site and how many pages they click through at the site. All things being equal, however, managers should favor brand‐type banner ads over product‐type banner ads.

Originality/value

The research extends understanding of ELM as it relates to type of banner ad while establishing a potential research stream for better understanding of how consumers process various types of online ads. At the same time, it provides new evidence that can help marketing managers make better strategic decisions regarding their online marketing mix.

Details

Journal of Product & Brand Management, vol. 21 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

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