Showing papers on "Brand equity published in 1992"

The Effects of Brand Extensions on Market Share and Advertising Efficiency

Abstract: The authors examine the effects of brand strategy (i.e., brand extensions vs. individual brands) on new product market share and advertising efficiency, and the degree to which these effects are mo...

The Value of Brand Equity

Abstract: Through the 1960s and early 1970s, Schlitz beer was a strong number‐two beer brand supported by the well regarded gusto campaigns, such as the “You only go around once in life—so grab all the gusto you can.” In the mid‐1970s, Schlitz converted to a fermentation process that took four days instead of 12 and substituted corn syrup for barley malt to gain a strategic cost advantage. The result was a beer that became flat or cloudy after time on the store shelf; Schlitz developed an image of being a “green” beer with “cheap” ingredients.

The Discounting of Discounts and Promotion Thresholds

Abstract: This study examines consumers' response to retailers' price promotions. It shows that consumers discount the price discounts. It also suggests that the discounting of discounts and changes in purchase intention depend on the discount level, store image, and whether the product advertised is a name brand or a store brand. The study goes one step further to investigate the existence of promotion thresholds. We use experimental data and an econometric methodology to gather empirical evidence that consumers do not change their intentions to buy unless the promotional discount is above a threshold level. This threshold point differs for name brands and store brands. Specifically, we find that the threshold for a name brand is lower than that for a store brand. In other words, stores can attract consumers by offering a small discount on name brands while a larger discount is needed for a similar effect for a store brand. The study also indicates the existence of a promotion saturation point above which the effect of discounts on changes in consumers' purchase intention is minimal. These results confirm consumers' S-shaped response to promotions.

A model of brand awareness and brand attitude advertising strategies

Abstract: A model is described that helps guide advertising strategy, based upon careful attention to brand awareness and brand attitude. In this model, an important distinction is drawn between recognition brand awareness and recall brand awareness. Brand attitude strategy is seen as reflecting an interaction between a potential consumer's involvement with the purchase decision and the underlying motivation to purchase. Applications of the model are discussed.

Evaluating the Multiple Effects of Retail Promotions on Brand Loyal and Brand Switching Segments

Abstract: The authors determine the multiple effects of retail promotions on brand loyal and brand switching segments of consumers. Segments are determined by an iterative Bayesian procedure. The variations ...

Strategic brand management: New approaches to creating and evaluating brand equity

Abstract: Thousands of companies now recognize that brand names are their most valuable assets, but too often branding is merely a tactical decision, almost an afterthought. In this thought-provoking work, Jean-Noel Kapferer, an international authority on brand management and marketing, provides the most comprehensive model for strategic brand management to date. With hundreds of examples and case studies of brands throughout the world, Kapferer deals with the very essence and culture of branding and provides an overall philosophy for every aspect of brand management. At the heart of the book is Kapferer's concept of the brand as a pyramid with three levels: the apex is the kernel or core identity; the middle is the style or personality; and at the bases are the underlying themes and advertising programs. A brand, Kapferer argues, is not a product, but the product's essence, its meaning, and its direction. Strategic brand management starts with a holistic understanding of this gestalt rather than its component parts: the brand name, logo, design or packaging, and image. This gestalt must be managed, not just in marketing, but throughout the entire company. The most successful brand managers, Kapferer explains, search for new opportunities and new markets through the explosive phenomenon of global branding. Kapferer takes the reader through a comprehensive list of benefits, dangers, and pitfalls, and also step-by-step through each of the globalization phases -- from name transitions to maintaining consistency. He describes the conditions under which global branding works best, and the appropriateness of a multi-domestic marketing mix as opposed to a global mix. He also dealswith the corporate barriers to having global brands and the structural changes that corporations may have to undergo if they are to fully maximize the benefits of global branding. This hook, already a standard reference in Europe, brings branding in the U.S. into the 1990s.

Strategic Brand Management: New Approaches to Creating and Evaluating Brand Equity

Abstract: Thousands of companies now recognize that brand names are their most valuable assets, but too often branding is merely a tactical decision, almost an afterthought. In this thought-provoking work, Jean-Noel Kapferer, an international authority on brand management and marketing, provides the most comprehensive model for strategic brand management to date. With hundreds of examples and case studies of brands throughout the world, Kapferer deals with the very essence and culture of branding and provides an overall philosophy for every aspect of brand management. At the heart of the book is Kapferer's concept of the brand as a pyramid with three levels: the apex is the kernel or core identity; the middle is the style or personality; and at the bases are the underlying themes and advertising programs. A brand, Kapferer argues, is not a product, but the product's essence, its meaning, and its direction. Strategic brand management starts with a holistic understanding of this gestalt rather than its component parts: the brand name, logo, design or packaging, and image. This gestalt must be managed, not just in marketing, but throughout the entire company. The most successful brand managers, Kapferer explains, search for new opportunities and new markets through the explosive phenomenon of global branding. Kapferer takes the reader through a comprehensive list of benefits, dangers, and pitfalls, and also step-by-step through each of the globalization phases -- from name transitions to maintaining consistency. He describes the conditions under which global branding works best, and the appropriateness of a multi-domestic marketing mix as opposed to a global mix. He also dealswith the corporate barriers to having global brands and the structural changes that corporations may have to undergo if they are to fully maximize the benefits of global branding. This hook, already a standard reference in Europe, brings branding in the U.S. into the 1990s.

Brand Extensions: When to Use Them

Abstract: This empirical study investigates whether brand extensions should be introduced early or late in the life cycle of a product category. The longitudinal/cross-category sample of frequently purchased consumer brands is used to analyze how the performance of brand extensions depends on order of entry. The results indicate that early-entering brand extensions do not perform as well on average as either early-entering new-name products or late-entering brand extensions. This conclusion is based on four findings. First, the brand extensions were introduced later on average than the new-name products. Second, the early brand extensions had a lower probability of surviving than either the early-entering new-name products or the late-entering brand extensions. Third, the brand extensions earned higher market shares on average than new-name products, controlling for order of entry. Fourth, the extensions obtained smaller market share premia from entering early than did new-name products.

The handbook of brand management

Abstract: As the number of competing products increases, companies are having to fight harder to defend their market share and maintain the popularity of their key brands More than ever, brand management is becoming a key issue for general managers, not just the marketing department Based on the brand expertise of Ashbridge Management College, this book is an up-to-date summary of brand practice It deals with each stage of the strategic decision-making process, from research and market-testing to implementation and monitoring performance Also included are case histories and practical advice

Market Share Response When Consumers Seek Variety

Abstract: Using a model of consumer variety-seeking, the authors study the long-term market share implications of changes in variety-seeking intensity, brand preferences, and pairwise similarities between br...

Brand Loyalty and Marketing Strategy: An Application to Home Appliances

Abstract: In the academic literature, the modelling of brand choice and switching behavior has a long history for frequently purchased packaged goods. Comparable efforts with consumer durable goods, however, are generally absent. This paper presents an application of the brand switching model proposed by Colombo and Morrison 1989 to a set of four major home appliances. Appliance brand loyalty, however, is shown to be a function of the timing of replacements, a factor that has not entered into the modelling of packed goods. As a result, the brand switching matrices are analyzed over the replacement cycle. This application illustrates how a brand switching analysis can be used to assess the relative competitive position of a firm in terms of the primary customer sources that a brand attracts.

Depth versus Breadth Strategies for Global Brand Image Management

Abstract: Developing and maintaining a brand image is vital to any successful marketing and communication campaign. An image that clearly communicates the needs satisfied by the brand contributes to brand equity and helps combat brand parity. The normative model of brand image management suggests that marketers should base their images on a single set of consumer needs (depth strategy), rather than multiple sets of needs (breadth strategy). The extent to which depth strategies outperformed breadth strategies (in terms of annual change in sales volume, profit margin, and market share) was investigated for U.S. consumer goods exported into international markets. These markets varied in terms of level of economic development, cultural context, and competition. While the results indicate that depth strategies do tend to perform best, there are conditions under which breadth strategies perform just as well.

Brand Globally but Advertise Locally?: An Empirical Investigation

Abstract: In the heated debate about marketing globalization, the issue of brand standardization has received much less attention compared with advertising standardization. When both issues have been addressed, empirically or conceptually, they have not been considered simultaneously. The current study develops and empirically tests a framework to simultaneously consider brand and advertising standardization strategies. A survey was conducted among brand managers in firms operating in Canada, with data collected on a brand level. The results revealed an independence of brand and advertising standardization practices. It was also found that brand standardization was practised to a much higher degree than advertising standardization, with the most used combined strategy involving brand name standardization and non‐standardization of advertising. Effects of product type and brand age were also investigated. The findings clearly indicate that companies tend to “brand globally, advertise locally”.

Book Review: Managing Brand Equity: Capitalizing on the Value of a Brand Name:

Abstract: Few topics have captured as much attention among both practitioner and academic communities as brand equity. On the basis of input from senior marketing executives, brand equity has risen to the top of the Marketing Science Institute's list of research priorities. Dozens of studies are in progress that explore a wide range of issues associated with this topic. What is particularly fascinating about knowledge development in this area is the breadth of approaches and perspectives being taken. Seldom does one topic appeal to so many communities. Indeed, studies related to brand equity are being undertaken from consumer, managerial, and financial perspectives and involve methods ranging from mathematical modeling to qualititative analyses of depth interviews. At least one implication of this level of attention is clear-we will be hearing and reading much about brand equity in the foreseeable future. In the midst of all this fanfare, however, is the quiet concern that we may actually know more about brand equity than we realize. Enter Managing Brand Equity. David Aaker's book provides a valuable contribution to the practice of product / brand management by synthesizing current thinking in this area. The author sets forth four objectives for the book (p. xi):

Product Quality, Attributes, and Brand Name as Determinants of Price: The Case of Consumer Electronics

Abstract: This paper proposes and illustrates an approach to measuring one aspect of brand equity, viewed as a price premium and defined as the increment that a brand name contributes to the price of a product above and beyond that justified by its quality (where quality is determined by an assessment of the relevant attributes, features, or characteristics). Two illustrative studies apply the proposed measure to consumer-electronics products found in home-theater or audio-video entertainment centers. Study 1 uses data presented byConsumer Reports to regress market price on overall quality and on dummy variables coded to represent brand names. Here, the results for home-theater products suggest a conspicuous absence of incremental brand-name effects. Study 2 generalizes this result by analyzing data for various electronic products offered by theCrutchfield Catalog. Across six product categories, when controlling for differences in an attributes-based index of product quality, a significant brand-related price premium appears to occur only for Carver. This finding again casts doubt on the importance of brand equity in the market for consumer electronics.

Brand character as a function of brand loyalty

Abstract: This study investigated the relationship between self-image, brand image, and brand loyalty by asking whether people use products to enhance self-image. Subjects described themselves on an adjective checklist, then listed product brands to which they consider themselves loyal or not loyal. One month later, using the same adjective checklist, subjects described the type of person who would buy a particular brand to which they are loyal and a brand to which they are not loyal for both gender and non-gender related products. Significant differences between the two groups and a high correlation between self and product user ratings, were found.

A simultaneous equations model of coffee brand pricing and advertising

Abstract: This paper explores the relationship between a differentiated brand's market share and its price in the con- text of a model that recognizes the endogeneity of the brand's advertising behavior and pricing decisions. The empirical analysis suggests that General Foods charged higher prices for its regular grind Maxwell House coffee in geographic areas where the brand's market share was relatively large. Available cross-sectional, time-series data and company documents sug- gest that this empirical relationship is attributable to the preference grocery retailers have for putting dominant coffee brands on special, rather than cross-sectional variations in costs, market concentration, or consumer tastes. I. Introduction r HIS paper explores the relationship between a differentiated brand's market share and its price in the context of a model that recognizes the endogeneity of the brand's advertising behav- ior and pricing decisions. By using price as the measure of economic performance (rather than accounting profits) and by recognizing that adver- tising is determined simultaneously with price, the empirical tests reported here avoid some of the more serious problems of structure-perfor- mance studies. Moreover, by focusing on the rela- tionship between a single brand's market share and price, this study analyzes the unilateral mar- ket power of a differentiated brand, as well as the effect of market-wide concentration on a brand's prices. The empirical analysis focuses on the hypothe- sis that the General Foods Corporation charged higher prices for its regular grind Maxwell House coffee in geographic areas where the brand's market share was large during the 1970s. We identify a statistically significant positive relation- ship between Maxwell House's wholesale price

Using Market Conventions to Create a New Wine Brand

Abstract: No brand of wine enjoys the market shares and premium prices obtained in other alcoholic beverage markets. Market conventions work to prevent a single brand having a large share. Uses an example of a structured new product development process to show the analysis and processes needed to overcome the factors constraining a wine brand. The analysis focuses on the central role of the designation of a wine as its key brand element. The process outlines the development of realistic looking dummy products carefully structured to explore the range of potential options when used in consumer research. Concludes that consumer‐based new product development processes could provide wine brands of similar size and strength to those found in other markets.

Commentary: A Perspective on Brands

Abstract: Explores the problems facing the advertising industry in the 1980s, notably the charge that advertising was not effective enough. Compares advertising with promotion, before discussing the value of brands, the nature of brands and brand equity. Concludes that the consumer was rightly placed at the centre of all advertising and marketing efforts by advertising agencies during the 1980s, and that advertising agencies will become increasingly “brand‐focused” throughout the 1990s.

Building a European Presence through Acquisitions and Brand Management

Abstract: Discusses the example of the Whirlpool Corporation and its penetration of the European market in recent years. Examines the stages in the performance loop used to develop and sell products in any given market. Summarizes the approaches formulated from the planning stages above, such as acquisition, together with the introduction and positioning of new and existing brand names in the correct marketsegment. Concludes that marketing globally requires a flexible approach in order to meet the differing competitive scenarios.

Building brand equity at the Clorox company

Abstract: I want to share some concrete tips on how organizations can build and manage brand equities — particularly, how we do so at Clorox. My focus is primarily on packaged goods, but many of the techniques can be applied to other product categories.

A knowledge based system for the brand manager

Abstract: The job of a brand manager requires the consideration of a large number of entities or factors such as: characteristics and situation variables of the own brand, of competing brands, possible marketing actions that can be taken, competitive actions, major players in the distribution channel (e.g. retailing chains), etc. Moreover there are many interactions between these factors. Determining the effects of any action(s) on the various elements in the system is a non-trivial task requiring the use of both quantitative and qualitative reasoning. Mathematical models (such as the Multiplicative Competitive Interaction model Cooper & Nakanishi 88) have been used to model certain quantitative aspects of these interactions. They are however weak at modelling the qualitative and heuristic aspects of these systems. This paper explores the use of concepts from artificial intelligence (AI) for modelling and supporting the decision processes of a brand manager. Most prior applications of AI in marketing (see references) have focussed on building rule-based expert systems. Simple rule-based structures have important limitations in modelling complex systems. This paper studies the application of both object oriented programming (OOP), combined with framebased knowledge representation, and rule-based heuristic techniques to the (above) specified marketing situation. Integrating OOP and rule-based reasoning significantly extends the power of simple rule-based systems and yields several advantages in modelling the complex decision situation confronting a brand manager. The framebased knowledge structure makes it possible to handle deeper levels of reasoning: so-called model-based reasoning. A prototype system, BRANDFRAME, has been built to illustrate these ideas.

Basic Components of Consumer Cognition

Abstract: According to the common view in consumer behavior, consumers represent brands and product categories mentally as lists of independent product features and engage in feature matching when they evaluate brand-product category compounds such as brand extensions. However, we demonstrate that brand extension concepts are subject to context effects and largely contextually organized - empirical evidence which suggests that they are represented by more flexible mental structures than independent feature lists. As an alternative, brand extensions (e.g., McDonald's Theme Park) may be viewed as conceptual combinations in which the original brand or company name (e.g., McDonald's) acts on the "head concept" of the extension category (e.g., theme parks) as a "modifier." Moreover, we suggest that the contextual and relational structure of brand extensions may be explained more adequately by mental frames than feature list representations. Because of the increasing difficulty of building awareness and a positive image for a new brand, marketers have turned to brand extensions as a way to use established brand equity as a valuable asset for offering new products (Tauber 1988). In brand extensions, marketers attach an existing brand name to a new product category in order to transfer a favorable brand attitude to the new product. Whether or not an extension is successful depends largely on how consumers perceive and categorize the extension. Research on categorization provides a promising framework for understanding brand-product category compounds such as brand extensions. How do consumers cognitively represent brands and product classes? According to the common view in consumer behavior (Loken and Ward 1990; Sujan and Dekleva 1987), based on Rosch and Mervis's (1975) classic work in cognitive psychology, consumers form relatively stable, hierarchical representations of product classes (e.g., cars), product types (e.g., sports cars) and brands (e.g., Corvette) in long-term memory. These representations are organized around a central tendency - the prototype - and possess graded structure, i.e. , exemplars vary in their typicality to the category prototype. Most importantly, categories are cognitively represented as lists of independent features (e.g., product or brand characteris