Showing papers on "Brand equity published in 1990"
TL;DR: In this article, two studies were conducted to obtain insights on how consumers form attitudes toward brand extensions, i.e., use of an established brand name to enter a new product category.
Abstract: Two studies were conducted to obtain insights on how consumers form attitudes toward brand extensions, (i.e., use of an established brand name to enter a new product category). In one study, reacti...
2,902 citations
TL;DR: This paper found that consumers with no brand awareness tended to sample more brands and selected the high-quality brand on the final choice significantly more often than those with brand awareness, when quality differences exist among competing brands, consumers may pay a price for employing simple choice heuristics such as brand awareness in the interest of economizing time and effort.
Abstract: Results of a controlled experiment on the role of brand awareness in the consumer choice process showed that brand awareness was a dominant choice heuristic among awareness-group subjects. Subjects with no brand awareness tended to sample more brands and selected the high-quality brand on the final choice significantly more often than those with brand awareness. Thus, when quality differences exist among competing brands, consumers may “pay a price” for employing simple choice heuristics such as brand awareness in the interest of economizing time and effort. However, building brand awareness is a viable strategy for advertising aimed at increasing brand-choice probabilities.
918 citations
Posted Content•
TL;DR: Brand Intangible Value as mentioned in this paper measures the component of brand value which cannot be directly attributed to the physical product, thus measuring the value created by such factors as brand name associations and perceptual distortions.
Abstract: Using actual consumer choice data from a single-source scanner panel, we construct two measures of brand value which capture different aspects of brand equity. Brand Value measures perceived quality, the value assigned by consumers to the brand, after discounting for current price and recent advertising exposures. Brand Intangible Value isolates the component of brand value which cannot be directly attributed to the physical product, thus measuring the value created by such factors as brand name associations and perceptual distortions. We illustrate these measures in a study of the powder laundry detergent category and briefly relate the results to strategic variables (order of entry and cumulative advertising expenditures).
578 citations
TL;DR: The authors developed, calibrate, and test a disaggregate model of customer brand choice with customers' price expectations as the mediating construct and used a two-stage modeling procedure.
Abstract: The authors develop, calibrate, and test a disaggregate model of customer brand choice with customers’ price expectations as the mediating construct. They use a two-stage modeling procedure. The fi...
430 citations
TL;DR: In this article, the role of brand loyalty in determining optimal price promotional strategies used by firms in a competitive setting is analyzed, where loyalty is operationalized as the minimum price differential needed before consumers who prefer one brand switch to another brand.
Abstract: This paper analyzes the role played by brand loyalty in determining optimal price promotional strategies used by firms in a competitive setting. Loyalty is operationalized as the minimum price differential needed before consumers who prefer one brand switch to another brand. Our objective is to examine how loyalties toward the competing brands influence whether or not firms would use price promotions in a product category. We also examine how loyalty differences lead to variations in the depth and frequency with which price discounts are offered across brands in the same product category.
The analysis predicts that a brand's likelihood of using price promotions increases with an increase in the number of competing brands in a product category. In the context of a market in which a brand with a large brand loyalty competes with a brand with a low brand loyalty, it is shown that in equilibrium, the stronger brand i.e., the brand with the larger loyalty promotes less frequently than the weaker brand. The results suggest that the weaker brand gains more from price promotions. The analysis helps us understand discounting patterns in markets where store brands, weak national brands, or newly introduced national brands compete against strong, well known, national brands. The findings are based on the unique perfect equilibrium in a finitely repeated game. The predictions of the model are compared with the data on 27 different product categories. The data are consistent with the main findings of the model.
383 citations
TL;DR: Fenton et al. as mentioned in this paper investigated the factors contributing to consumer brand confusion and found that consumers buy the imitator brand thinking it is the original (Loken, Ross, and Hinkle 1986).
Abstract: An Investigation of Factors Contributing to Consumer Brand Confusion A quick glance at the shelves of grocery and drug stores shows that many consumer goods companies are employing what has been referred to as an "imitation strategy." Imitation strategies involve any or all of the marketing mix elements, including price, product, distribution, and promotion, and they occur along a continuum of physical and strategic similarity, with one end of the continuum being complete similarity of product and marketing strategy and the other end completely different product and strategy. Thus a series of increasingly imitative strategies is envisioned, e.g., legally permissible emulation of an established brand to emulation of an established brand exceeding legal limits (infringement) to brand counterfeiting. The aim of the creators of imitator brands is to position the new product next to a better known (often market leader) brand. One simple means of achieving this objective is to emulate the package design of the well-known market leader. Such emulation may include not only package shape and size, but also label print style and layout, as well as package color or other distinctive marks (see Diamond 1981 for examples of imitation strategies that have been used). One potential result of brand imitation is consumer brand confusion, where consumers buy the imitator brand thinking it is the original (Loken, Ross, and Hinkle 1986). (1) Brand imitation is not a minor problem. In 1987 alone, the courts dealt with brand imitation cases involving automobiles, fraternities, sportswear, travel companies, professional sports associations, petroleum products, limousine services, fast food restaurants, insurance companies, casinos, pharmaceuticals, wristwatches, and food products, to mention only a few (Fletcher and Wald 1987). Imitation strategies beyond a certain point can have harmful consequences for both firms and consumers. Two occasions for potential harm to firms occur when a consumer unknowingly purchases an imitator brand. First, the consumer may be dissatisfied with the product purchased and attribute his or her dissatisfaction to the original brand, never realizing that the brand consumed was an imitator. Second, the consumer may be satisfied with the imitator brand, become aware that it is not the original brand, and switch brand preferences in favor of the imitator brand. Competitor imitation strategies and resultant confusion can thus harm firms by reducing the number of consumers who become repeat or loyal purchasers. The Lanham Act of 1946 was passed to protect originating firms from this type of harm from imitators (Burgunder 1985). Under this act, hundreds of trademark infringement cases have been litigated in recent years (Fletcher and Wald 1987; Leeds and St. Landau 1987). Imitation costs U.S. firms both time and money: one firm (the Walt Disney Company) has filed fifteen infringement suits against 3,000 individual defendants since 1986 alone, and counterfeiting is estimated to have cost U.S. manufacturers $20 billion in sales annually (New york Times 1988; Roberts 1985). The likelihood of consumer confusion is a key element the courts use in such cases to decide whether or not trademark infringement has occurred (Boal 1983; E.I. Du Pont 1951). Unfortunately, there has been little consensus to date regarding the nature of consumer brand confusion or the extent to which consumers must be confused before courts should rule in favor of the original brand. While the courts focus on consumer confusion in enforcing the Lanham Act, they do so only from the point of view of how such confusion might harm original firms. However, confusion clearly can also harm consumers themselves. Confused consumers may suffer physical harm when they unknowingly buy a product other than the one they intend to buy (Fletcher and Wald 1987). Imitator or counterfeit brands may contain different (and inferior) ingredients from original brands, and unknowing exposure to these ingredients can threaten a consumer's health. …
140 citations
TL;DR: This paper argued that advertising is essential to the creation and continued success of brands, and that in the 1990s advertising will become more brand focused, and discussed the value of brands and advertising versus promotion.
Abstract: Considers the plight of the advertising industry during the 1980s. Discusses the value of brands, advertising versus promotion, the nature of brands, how brands are advertised, and brand equity. Argues that advertising is essential to the creation and continued success of brands, and that in the 1990s advertising will become more brand focused.
57 citations
Abstract: Three principles are presented to help companies achieve sustainable, differentiated service in the 1990s. The “service brand” concept is introduced and the contrast made between a service brand and the conventional product brand. Practical methods to mobilise company‐wide support for the service brand are described, and the essential nature of brand contracts is outlined with a view to the new environment where forming a strong service network is of crucial importance.
37 citations
TL;DR: In this paper, the authors investigate brand name awareness and image perceptions of nationally known women's brand name apparel and identify these characteristics of female consumers which influence brand preferences, finding that brand preference was affected by brand attributes, clothing interest, clothing expenditure, and age.
Abstract: The objectives were (1) to investigate brand name awareness and image perceptions of nationally known women's brand name apparel and (2) to identify these characteristics of female consumers which influence brand preferences. The statistical analysis of data collected from 130 female students and 75 working women indicated brand name awareness was influenced by subjects' occupational status and clothing expenditure. Calvin Klein and Ralph Lauren showed more distinctive image characteristics than 12 other national apparel brands. Brand preference was affected by brand attributes, clothing interest, clothing expenditure, and age. A few marketing implications were suggested.
27 citations
Book•
18 Jan 1990
TL;DR: The benefit of valuing brands is discussed in this article, where the role of brand valuation in brand licensing brands as legal property organizing the branding function is discussed. But the authors do not discuss how to quantify the benefits of brand valuations.
Abstract: The benefit of valuing brands alternative methods of valuing brands an accountancy perspective brand valuation and its role in investment banking the role of brand valuation in brand licensing brands as legal property organizing the branding function.
26 citations
TL;DR: In this article, the authors provide additional cross-national testing of the established relationship between perceived risk and brand loyalty, and show that although the concepts of perceived risk, brand loyalty and perceived risk exist outside of the USA, the magnitude of each varies by country and by product.
Abstract: When choosing among alternative brands, most buyers perceive risk Previous research in the United States has shown that consumers therefore develop risk reduction strategies, such as commitment to a brand This paper provides additional cross-national testing of the established relationship between perceived risk and brand loyalty The study shows that although the concepts of perceived risk and brand loyalty exist outside of the USA, the magnitude of each varies by country and by product The results strengthen the case for further cross-cultural empirical marketing research: it is conceivable that other marketing principles and consumer behavior models that operate in the United States may also not be applicable to international markets
Book•
01 Jan 1990
TL;DR: In this article, what is a brand, what distinguishes a successful brand from an unsuccessful one, principles of brand evaluation regional variations in branding practices global branding issues, analysis of what makes a successful international brand appraisal of the top 150 international brands arranges by product category.
Abstract: Part 1 Introduction: what is a brand what distinguishes a successful brand from an unsuccessful one principles of brand evaluation regional variations in branding practices global branding issues. Part 2 Internatonal brands: analysis of what makes a successful international brand appraisal of the top 150 international brands arranges by product category. Part 3 National brands: Australia France Italy Japan UK USA West Germany the rest of the world.
TL;DR: In this paper, the effect of brand name present/absent condition on consumer price limits was examined in an experimental setting and the results support the past findings that brand name affects price perception.
Abstract: The effect of brand name present/absent condition on consumer price limits was examined in an experimental setting. The findings of this study have important implications for pricing managers. The results support the past findings that brand name affects price perception. Branded products are perceived to be higher priced than unbranded products (higher acceptable price). That is, branded products seem to command a price premium as compared to unbranded products. The findings suggest that the well-known brand name should be positioned in the upper acceptable price range and the not so well-known brand names in the lower acceptable price range. This brand positioning strategy, in turn, will determine the product's position in the product line, the marketplace, its competition, and its use patterns. Price is very much a part of the product and branding policy.
TL;DR: In this article, a framework is presented to audit the five factors influencing brand success, including the manufacturer, distributor, consumer, competitor and the wider marketing environment, and it is concluded that by adopting a strategic perspective to branding, rather than the more naive views of branding as design, naming or promotion, strategies to sustain the differential advantage valued by consumers should enhance the potential for brand success.
Abstract: A framework is presented to audit the five factors influencing brand success. The factors reviewed include the manufacturer, distributor, consumer, competitor and the wider marketing environment. To adopt an offensive brand distribution strategy this audit forms an input to evaluating how well matched are each of the firms′ brands with each distributor. By considering a matrix of brand strengths versus distributor attractiveness, brand investment programmes can be prioritised. It is concluded that by adopting a strategic perspective to branding, rather than the more naive views of branding as design, naming or promotion, strategies to sustain the differential advantage valued by consumers should enhance the potential for brand success.
Journal Article•
TL;DR: In this paper, a nonlinear programming model is proposed to maximize the total profit of a retailer and a wholesaler by making two key decisions: whether to stock a TV set at all, and the appropriate order quantity.
Abstract: Many retailers and wholesalers stock items, such as TV sets, which are produced by different manufacturers and marketed under different brand names. Two key decisions need to be made for any given brand: (1) whether to stock it at all, and (2) the appropriate order quantity. Because some customers may purchase a substitute brand if their first choice is not stocked, demands are dependent. Decisions about a given brand are related to the decisions for the others. This paper describes a nonlinear programming model which makes both decisions so as to maximize total profit.