Search results

Companies often extend brands to higher or lower quality tiers to access different market segments. However, the impact of such extensions on the brand and its subsequent offerings is not yet conclusive. While some studies found an “averaging” pattern (all models contribute equally to the overall perception of the brand: a symmetric effect), others found a “best-of-brand” pattern (the positive impact of an upstream extension is much greater than the negative impact of a downstream extension: an asymmetric effect). This paper aims to reconcile these seemingly conflicting findings by assessing the conditions under which each pattern is likely to emerge.

Three experimental studies are presented to test the conditions under which a symmetric or asymmetric pattern of brand evaluation would merge. Study 1 examined the impact of judgment focus (quality vs expertise) on the pattern of brand evaluations. Study 2 tested the impact of having a comparative set on the assessment of specific brand dimensions. Study 3 examined the impact of the informativeness of price positioning on product quality expectations.

Brand evaluations and attitudes are determined by the presence of a comparative brand and judgment focus. When brands are evaluated without a comparison, a symmetric pattern emerges, as a low-tier extension hurts a brand as much as a high-tier extension helps it. In contrast, when brands are evaluated with a comparison, focusing the assessment on quality leads to a symmetric pattern, while focusing it on expertise leads to an asymmetric one.

The present research specifies conditions under which a low-tier model may hurt brand perceptions. We used hypothetical brands to avoid the impact of preexisting attitudes. While we expect our results to generalize to real brands, this may be considered a limitation of the present research.

The current research delineates the circumstances under which vertical line extensions have positive, neutral or negative impact on brand perceptions and future product expectations. We introduce the presence of a comparison set as a key variable and show how it interacts with assessment focus to affect brand evaluations. When thinking about the impact of extensions on brand perceptions, marketers need to consider which assessment focus is likely to be triggered by environmental cues and whether comparisons are salient.

Brand extension is an important area of investigation as evidenced by the vast literature dedicated to the subject. The present paper advances knowledge in this area by identifying key factors affecting the impact of vertical extensions on brand perceptions.

The aim of this paper is to investigate competitive pricing strategies of apparel brands and retailers.

The paper begins with a broad discussion of competition by examining Porter's five forces model, and narrows by examining price competition within price tiers in the retail apparel industry according to store format and brands. Included are case studies of apparel retailers and brands incorporating concepts of pricing strategies, brand positioning, and price competition, with a focus on retail channel relationships. The paper analyzes the impact of price competition on apparel retailers and brands, and further examines price tiers as a competitive strategy.

The study reveals that the concept of price tiers is applicable to apparel retailers and brands. Price tiering is a vehicle for market positioning for the retail apparel industry. Retailers are enacting a price tier strategy by branding their retail store formats or engaging store brands as a vehicle of differentiation for a tier. Retailers and brands can be successful with a price tier strategy, unless they fail to differentiate between tiers on factors other than on price alone.

The lack of relevant price competition literature, relating to the retailer apparel industry, forced the exploration of price competition literature from grocery and automotive sectors.

The paper provides useful information on the impact of price competition on apparel retailers and brands, and also price tiers as a competitive strategy.

This study aims to propose a theoretical framework and provide empirical evidence on the most successful marketing strategies for obtaining behavioural loyalty in small and medium enterprises (SMEs).

The data are based on 475 telephone surveys conducted among Spanish hairdressers. The authors have used ordinary least squares to estimate the empirical model.

Pricing, services and communication (Web page and in-store communication) are the main drivers of customer loyalty. SMEs have to be cautious with the use of social networks to avoid damaging loyalty. In addition, those positioned at high-price segments should pay more attention to communication on the Web, and all companies should find a balance between in-store communication and the sale of products for use at home.

Further research should try to replicate the findings with data from consumers and firms.

Service managers need to understand the optimal strategy to succeed in the market. The key insights of this study could also apply to other sectors, such as health, personal care and wellness services.

Previous research focussed mainly on large companies, while the role of loyalty in the success of SMEs has been poorly studied, with focus only on the antecedents and the measurement of loyalty. This study contributes to the previous research by analysing the effect of the strategy (price, range of services, communication, size and location) in the achievement of loyalty in SMEs.

Este trabajo propone un marco teórico y aporta evidencia empírica sobre las estrategias de marketing más exitosas en la consecución de lealtad comportamental en PYMEs.

Se ha realizado una encuesta telefónica a 475 peluqueros españoles. El modelo utilizado para la estimación es el de mínimos cuadros ordinarios.

Precio, servicios, y comunicación (página web y comunicación en la tienda) son los principales generadores de lealtad. Las PYMEs tienen que ser cautelosas con el uso de las redes sociales para evitar dañar la lealtad. Además, aquellas posicionados en altos precios deben prestar más atención a la comunicación en la web y todas deben encontrar un equilibrio entre la comunicación en el tienda y la venta de productos para su uso en casa.

Investigaciones futuras podrían replicar este estudio usando datos de consumidores y de empresa.

Los gerentes necesitan entender la estrategia óptima para tener éxito en el mercado. Las ideas claves de este trabajo podrían aplicarse a otros servicios personalizados de salud y bienestar.

La investigación previa se centra principalmente en grandes empresas mientras que el papel de la lealtad en el éxito de las pymes ha sido escasamente investigado y se ha centrado en los antecedentes y la medición de la lealtad. Este estudio realiza una contribución al analizar el efecto de la estrategia (precio, surtido de servicios, comunicación, tamaño y localización) en la consecución de la lealtad en las pymes.

Lealtad; pequeñas y medianas empresas; Pymes; peluqueros; estrategia de marketing; salon

Artículo de investigación

The purpose of this study is to propose differential marketing tactics for high-quality products versus low-price products by building on construal level theory.

Two studies were conducted, one using students and another using data collected from more than 7,000 online auctions.

When consumers consider high-quality products, they use more abstract mental models, and when they consider low-price products, they use more concrete mental models. Differentiation based on primary features product is more effective for products that are positioned on quality, while differentiation based on the secondary features is more effective for products that are positioned on price. Also, marketing efforts to attract attention are more effective for products positioned on quality than those positioned on price.

This research focused on how consumers use different mental models for considering high-quality versus low-price product offerings but did not examine whether a given segment/consumer uses different models in considering high-quality versus low-price alternatives.

Managers wishing to reinforce a high-quality position should focus on marketing efforts compatible with consumers’ high level construal by enhancing and highlighting the primary features, and drawing consumers’ attention to their product offerings. Managers wishing to reinforce a low-price positioning should focus on marketing efforts that are compatible with consumers’ low level construal by enhancing and highlighting secondary features.

This research makes an important theoretical link between construal theory and brand positioning.

The purpose of this paper is to identify factors influencing customers' willingness to purchase new store brands.

The paper develops a 3×3 design to investigate the impact of price and quality positioning on the willingness to purchase new store brands in five product groups. A total of 990 respondents completed a questionnaire about store brand perception, aspects of purchasing behavior and willingness to buy. Data are analyzed with analysis of variance and partial least squares.

The paper finds that customers' willingness to buy new store brands differs between different product groups. It is lowest for product groups associated with high social risk. Accordingly, premium store brands are preferred for these categories. The influence of price is small and nonlinear. Furthermore, the attitude towards a specific store brand has a large impact on customers' willingness to purchase, while the attitude toward store brands in general is less important. The drivers influencing customers' attitude towards specific store brands depend on the respective product group.

The results indicate that price is not the only factor influencing customers' willingness to buy new store brands. Therefore, the results encourage retailers to position store brands also in premium segments, especially for product groups where social acceptance is important.

This paper differs from other papers in the literature in that it analyses factors influencing the success of new store brands. Furthermore, it analyzes many different potential influencing factors, namely product group, price and quality positioning, store brand perceptions, attitudes and aspects of purchasing behavior.

The broad area of the wine industry and the marketing of wine, particularly, are focused on with regard to the changing environment in which wine is made and consumed. The marketing process is described in the context of its application in the wine industry and the environment in which it operates: changing consumption patterns in the industrialised nations, new distribution patterns, and different social and environmental issues. The segmentation of the wine market into two distinct areas, fine wines and beverage wines, each operating independently of the other, is described and the marketing mix factors which the wine marketer can deploy in order to maximise opportunities in these markets are detailed, utilising research into wine consumers' behaviour. The factors detailed are the product, its tangible and intangible benefits; the price — market skimming, market penetration, neutral pricing; the communication mix — word of mouth, journalism, sales promotion, advertising; branding and positioning; ranging, and the distribution channels. It is shown that marketing planning is essential for the winemaker, whether a one‐person boutique winery or a large multinational. The steps to take in preparing a marketing plan are described and guidance is given so that the winemaker can make it happen, both to satisfy consumers' needs and to make a profit.

The purpose of this study is to examine the effects of identifying suppliers on private label (PL) packaging on the perceived quality, brand image, loyalty intention and relative price of the national brands (NB) produced by dual manufacturers, considering the possible moderating effects of the images of both the NB and PL.

The study uses an experimental setting with two different categories of grocery products.

The empirical evidence reveals different effects of PL supplier identification, according to brand images.

This paper contributes to brand extension literature on the effects on evaluations of the parent brand. It also contributes insights about the identity and identification of PL manufacturers.

This supplier identification does not affect or positively affect to the perceived quality, brand image or loyalty toward NBs with lower images, but it negatively affects those with high images, especially when the PL also has a high image and adopts a stronger price positioning. Moreover, NBs with lower images appear more expensive or do not affect when they supply PLs for retailers with high images and stronger price positioning. However, if lower image NB supply a PL with the lower image, the effects do not affect or is perceived as cheaper.

This paper extends prior knowledge about the decision to function as a dual manufacturer from the manufacturer’s perspective.

This study aims to identify the price determinants of fine wines in a small and competitive market. These characteristics are found in many lesser-known wine-producing countries and are often difficult to analyse because of lack of data.

This study hand-collects and transcribes wine-related data for 149 Swiss wineries and 2,454 individual wines over the period 2014–2018 directly from wine lists provided by wineries. This study uses multivariate ordinary least squares regressions to analyse the relation between wine attributes and prices and to assess the effect of a currency shock caused by the sudden appreciation of the Swiss franc in 2015 as well as a reduction in information asymmetries induced by the novel coverage of Swiss wines by The Wine Advocate.

Prices mainly depend on collective reputation, production techniques and product positioning. Surprisingly, following a sharp appreciation of the Swiss franc, producers did not reduce prices. The arrival of a highly influential wine expert on the market also had a positive price effect on rated wines and producers. Both hint at wineries attempting to position themselves relative to competitors.

Few studies examine the price drivers in lesser-known wine markets, where competition is fierce. This study’s results show that wine pricing differs from other more famous and larger wine regions. In addition, to the best of the authors’ knowledge, this study is also the first to analyse the impact of a currency shock and a reduction in information asymmetries on wine prices.

The purpose of this paper is to focus in customer-based store brand value by comparing three different retailing formats – supermarkets, hypermarkets and discounters – in order to assess how store brand value stems from and to understand the store format influence.

Respondents were randomly selected and data were collected using an on-line structured questionnaire, focussing on Spanish large retailers. Then, hypotheses were tested performing structural equation modeling.

The results suggest that perceived quality, price image along with store commercial image have significant positive influence on store brand value and purchase intent. Moreover, store brands’ performance in the marketplace depends on different variables across the analyzed retailing formats.

These variables may be managed by retailers in order to enhance their own brands’ value proposition. These research implications should be considered within the context of a geographical limitation, despite providing the basis for further research on the topic.

The study adds to the growing literature in retailing a cross-store format comparative analysis, remaining a deeper understanding on how store brands create value from the consumers’ standpoint, based on an empirical research in a European developed market.

Why do some retail networks operate shop-in-shops along with stand-alone units while others do not? Drawing on a resource-based and intellectual capital (IC) perspective as a broad theoretical lens, the purpose of this paper is to focus on retailer-run shop-in-shops and examine the determinants of their adoption.

To gain a comprehensive understanding of shop-in-shop adoption by retail branded networks, a research design mixing a quantitative study (n = 170) and a qualitative study (n = 19) was adopted to test nine hypotheses regarding these determinants of the adoption of retailer-run shop-in-shops and explore in greater depth the processes whereby they actually occur.

The main findings show that intangible resources are major determinants of the choice to operate shop-in-shops while tangible resources are minor determinants. The more robust results of the analysis lie in the positive effect of own-label merchandise range, premium pricing strategy, positioning based on symbols, retail concept fast renewal and high sector specialisation on the choice to operate a shop-in-shop. The effect of financial constraints on the decision to expand via shop-in-shops is limited.

The authors emphasise the importance of marketing-related and company-related characteristics in differentiating the likelihood of retail networks to expand via shop-in-shops. These results lend support to the relevance of a resource-based and IC perspective in explaining the propensity of retailers to develop via shop-in-shops.

The decision to operate shop-in-shops should depend on the extent to which intangible resources – the most important being retail positioning grounded in symbols, an own-label merchandise range, and a high retail branded network reputation – can be valued and enhanced. Expanding a retail network via shop-in-shops does not appear to be a financially constrained expansion strategy: it must be considered as a relevant first best strategy when an independent and young retail company has intangible resources to value but limited tangible resources.

The study contributes to channel management and retailing research in four ways. First, it precisely delineates the specific characteristics of shop-in-shops. Second, it provides theoretical explanations – based on a resource and IC perspective – of determinants that influence the choice of shop-in-shops. Third, it empirically tests the influence of marketing-related and company-related characteristics when adopting shop-in-shops. Fourth, it provides insights into how adopting shop-in-shops. To the authors’ knowledge, the research is on the first to analyse theoretically and test the determinants for the choice of retailer-run shop-in-shops.