Perceived fit and deal framing: the moderating effect of perceived fit on sales promotions in line and brand extensions

2014 ◽  
Vol 23 (4/5) ◽  
pp. 295-303 ◽  
Author(s):  
Feng Shen
Keyword(s):  
Brand Extension ◽  
Future Research ◽  
Perceived Fit ◽  
Sales Promotions ◽  
Experimental Conditions ◽  
Content Type ◽  
Perceived Performance ◽  
Line Extension ◽  
Performance Risk ◽  
Parent Brand

Purpose – The purpose of this study is to examine how perceived fit between a line/brand extension and its parent brand moderates the evaluation of two economically identical promotions, i.e. buy one get one free (BOGOF) and 50 per cent off. A travel-sized painkiller is the product in this study. Design/methodology/approach – A 2 (perceived fit: high or low) × 2 (promotion type: BOGOF or 50 per cent off) between-subjects design is used in this study. Participants, who are college students, are randomly assigned to the four experimental conditions. Findings – The results indicate that parent brand attitude is more closely associated with line-extension attitude than with brand-extension attitude, line extension leads to lower perceived performance risk and higher stockpiling tendency than brand extension and BOGOF is preferred over 50 per cent off for line extension but 50 per cent off is preferred over BOGOF for brand extension. Research limitations/implications – For a low-price, non-conspicuous and stock-up product category such as painkillers, marketers should consider using BOGOF to promote a line extension and 50 per cent off to promote a brand extension. It is important to explore in future research as to how the findings can be applied to other product categories, other promotion types, other packages and non-student consumers. Originality/value – This study is the first that examines how perceived fit of a line/brand extension moderates the evaluation of economically identical promotions. It integrates the literature of line/brand extension, perceived performance risk and prospect theory to advance the research on sales promotions for new products.

Drivers of successful luxury fashion brand extensions: cases of complement and transfer extensions

2018 ◽  
Vol 22 (4) ◽  
pp. 476-493 ◽  
Author(s):  
Irem Eren-Erdogmus ◽  
Ilker Akgun ◽  
Esin Arda
Keyword(s):  
Brand Extension ◽  
Consumer Involvement ◽  
Brand Extensions ◽  
Necessary Condition ◽  
Perceived Fit ◽  
Holistic Model ◽  
Content Type ◽  
Luxury Brand ◽  
Fashion Brand ◽  
Parent Brand

PurposeIn recent years, brand extension has become a popular and fundamental strategy of most luxury brands. The purpose of this paper is to clarify the factors that affect the success of luxury brand extensions by incorporating luxury brand value perceptions, parent brand attitude, fit perceptions and consumers’ product category involvement and innovativeness in a holistic model. The model is tested for two hypothetical luxury brand extensions types: complement and transfer.Design/methodology/approachThis study employs a fuzzy-set qualitative comparative analysis (fsQCA) technique to identify the variables that combine to produce a positive or a negative attitude towards luxury brand extensions. The research was conducted on 555 young women professionals (254 for brand extension Type 1 – complement (umbrella); and 301 for brand extension type – transfer (seating furniture), respectively).FindingsThe results show that perceived fit between the parent brand and extension is a necessary condition for a positive evaluation of both extension types. Other than perceived fit, hedonic and symbolic values and consumer involvement are proven to be necessary antecedent conditions for the evaluation of transfer extensions. This study also proposes several configurations for forming a positive attitude towards each brand extension type and makes implications for luxury managers and further research.Originality/valueThe results of the research are significant in several ways. First, this study adds to the extant literature by exploring a somehow neglected subject: luxury fashion brand extensions. The study tests a more holistic model than those of previous studies on luxury brand extensions and utilises two different extension contexts adapted from Aaker and Keller (1990). Second, this study is the first to apply fsQCA to identify the factors of luxury brand extension evaluations. fsQCA is highly applicable to large-scale data without the loss of detail or the potential for complexity.

Vertical versus horizontal line extensions: a comparison of dilution effects

2018 ◽  
Vol 27 (6) ◽  
pp. 670-683 ◽  
Author(s):  
Michelle Childs ◽  
Byoungho Jin ◽  
William L. Tullar
Keyword(s):  
Horizontal Line ◽  
Perceived Fit ◽  
Growth Strategies ◽  
Content Type ◽  
Line Extensions ◽  
Line Extension ◽  
Parent Brand ◽  
Brand Dilution ◽  
Brand Concept ◽  
Dilution Effects

Purpose Many apparel brands use growth strategies that involve extending a brand’s line horizontally (same price/quality) and/or vertically (different price/quality). While such opportunities for growth and profitability are enticing, pursuing them could dilute a highly profitable parent brand. Categorization theory’s bookkeeping model and the cue scope framework provide the theoretical framework for this study. The purpose of this study is to test whether specific attributes of a line extension (i.e. direction of extension, brand concept, price discount and perceived fit) make a parent brand more susceptible to dilution. Design/methodology/approach This experimental study manipulates brand concept (premium or value brand) and price level (horizontal or vertical: −20per cent, −80per cent) and measures perceived fit to test effects on parent brand dilution. ANOVA and t-tests are used for the analysis. Findings Vertical extensions dilute the parent brand, but horizontal extensions do not. Dilution is strongest for premium (vs value) brands and when line extensions are discounted (i.e. −20per cent or −80per cent lower than the parent brand), regardless of the perceived fit between brand concept and brand extension price. Overall, brand concept is the strongest predictor of parent brand dilution in the context of vertical-downward extensions. Originality/value This study establishes which factors emerge as important contributors to parent brand dilution. Although previous studies on brand dilution are abundant, few studies have compared the effects of horizontal and vertical extensions on brand dilution. This study offers strong theoretical as well as practical implications.

Place–brand stereotypes: does stereotype-consistent messaging matter?

2018 ◽  
Vol 27 (7) ◽  
pp. 754-767
Author(s):  
Brittney C. Bauer ◽  
Clark D. Johnson ◽  
Nitish Singh
Keyword(s):  
Mediating Effect ◽  
The Novel ◽  
Perceived Fit ◽  
Experimental Conditions ◽  
Content Type ◽  
Global Brands ◽  
Place Brand ◽  
Foreign Brands ◽  
Improve Attitude ◽  
Post Hoc

Purpose The purpose of this paper is to address an overarching question: Does matching consumer place–brand associations with stereotype-consistent messaging affect consumer perceptions of an advertisement? Design/methodology/approach This paper presents two experiments that examine participants’ differing evaluations of advertisements under various experimental conditions. Study 1 examines the match of place–brand warmth versus competence stereotypes and the use of symbolic versus utilitarian advertising messaging for both new foreign and domestic brands. Study 2 examines this match for global brands. Findings The paper reveals that stereotype-consistent messaging increases the perceived fit between the advertisement and the brand for new foreign brands but not for new domestic or global brands. Furthermore, in a post-hoc analysis, this congruence is found to improve attitude towards the brand, purchase intentions and brand response, through the mediating effect of attitude towards the ad. Originality/value Place–brand stereotypes impact consumer attitudes and opinions regarding brands from different countries. This paper applies two universal social judgment dimensions from social psychology—warmth and competence—to the novel context of advertising messaging to examine previously unexplored facets of the place–brand image.

Online Brand Expansion towards the Offline Setting

2014 ◽  
pp. 69-89
Author(s):  
Rafael Bravo ◽  
Leif E. Hem ◽  
José M. Pina
Keyword(s):  
Brand Image ◽  
Brand Extension ◽  
Perceived Fit ◽  
Brand Alliances ◽  
Product Categories ◽  
Online Branding ◽  
Parent Brand ◽  
Emotional Dimensions ◽  
Online Brands ◽  
The Impact

Brand extension and brand alliances are two possible strategies to expand the brand towards different product categories. In this chapter, the authors focus on brands that are well-known for their online services launching offline products. They analyse the results of these strategies in terms of their effects on parent brand image and under different conditions of initial brand image and perceived fit. In order to meet these aims, an empirical study was conducted to 407 undergraduates in a Spanish University. Data are analysed through multivariate analysis of variance. Main results lead us to conclude that: (1) the effects of extensions and alliances are mainly negative on the online brand image, (2) the impact is focused specially on the functional and emotional dimensions of brand image, (3) the effect is more negative for online brands with higher image than for online brands with lower image, and (4) the effect is more negative in the case of an alliance with an offline brand with low image than in the case of an alliance with an offline brand with high image or in a brand extension. This work covers some gaps in the previous literature in online branding. The authors apply concepts and theories used in brand extensions and alliances literature in an offline setting by delving into the differences of these effects on the brand image dimensions. The results obtained in this work may help brand practitioners expand their brands towards different product categories.

Online Brand Expansion Towards the Offline Setting

2017 ◽  
pp. 383-405
Author(s):  
Rafael Bravo ◽  
Leif E. Hem ◽  
José M. Pina
Keyword(s):  
Brand Image ◽  
Brand Extension ◽  
Perceived Fit ◽  
Brand Alliances ◽  
Product Categories ◽  
Online Branding ◽  
Parent Brand ◽  
Emotional Dimensions ◽  
Online Brands ◽  
The Impact

Brand extension and brand alliances are two possible strategies to expand the brand towards different product categories. In this chapter, the authors focus on brands that are well-known for their online services launching offline products. They analyse the results of these strategies in terms of their effects on parent brand image and under different conditions of initial brand image and perceived fit. In order to meet these aims, an empirical study was conducted to 407 undergraduates in a Spanish University. Data are analysed through multivariate analysis of variance. Main results lead us to conclude that: (1) the effects of extensions and alliances are mainly negative on the online brand image, (2) the impact is focused specially on the functional and emotional dimensions of brand image, (3) the effect is more negative for online brands with higher image than for online brands with lower image, and (4) the effect is more negative in the case of an alliance with an offline brand with low image than in the case of an alliance with an offline brand with high image or in a brand extension. This work covers some gaps in the previous literature in online branding. The authors apply concepts and theories used in brand extensions and alliances literature in an offline setting by delving into the differences of these effects on the brand image dimensions. The results obtained in this work may help brand practitioners expand their brands towards different product categories.

Consumer empowerment in insurance

2018 ◽  
Vol 36 (6) ◽  
pp. 1073-1097 ◽  
Author(s):  
Pascal Buehler ◽  
Peter Maas
Keyword(s):  
Decision Making ◽  
Self Efficacy ◽  
Service Providers ◽  
Time Lag ◽  
Decision Making Process ◽  
Consumer Empowerment ◽  
Content Type ◽  
Perceived Performance ◽  
Performance Risk ◽  
The Impact

Purpose The purpose of this paper is to enhance the understanding of consumer empowerment in the relationship between consumers and service providers. It draws on self-efficacy theory to conceptualize consumer empowerment and explain the impact on perceived performance risk in insurance decision making. Design/methodology/approach This study employs data collected from an online survey involving 487 consumers in Switzerland, who recently decided on an insurance service. A structural equation model quantifies both the psychological effects on consumers’ perception of insurance services and behavioral effects on their decision-making process. Findings Perceived consumer empowerment is conceptualized by perceived self-efficacy and perceived controllability. Both have a significant impact on perceived performance risk, while the former is partially mediated by the preference to delegate the decision to a surrogate. Moreover, customers’ involvement in the purchase process moderates both the direct and indirect effect of perceived self-efficacy on perceived performance risk. Research limitations/implications The results are based on consumers’ perceptions from a single country. Furthermore, consumers’ perceptions were surveyed with a time lag after the decision-making process. To increase rigor, perceptions should be collected during decision making. Practical implications Results show that consumer empowerment can be employed as a risk reduction strategy. Consumers with self-efficacy and controllability beliefs perceive significantly less performance risk; however, practitioners should consider that consumers are also motivated to make decisions independently rather than delegating their decisions. Furthermore, consumer empowerment depends on consumer will. For largely indifferent consumers, empowerment does not affect risk or decision delegation preference. Originality/value The study is among the few empirical works to examine the effects of consumer empowerment on the consumer-service provider relationship on an individual level. Furthermore, applying consumer empowerment in relationship marketing implies a shift in research focus to the question of how consumers construe decision-making situations rather than objectively measuring the state of consumer relationship.

Responses to other similar customers in a service setting – analyzing the moderating role of perceived performance risk

2014 ◽  
Vol 28 (2) ◽  
pp. 138-146 ◽  
Author(s):  
Anna Dorothea Brack ◽  
Martin Benkenstein
Keyword(s):  
Boundary Condition ◽  
Service Provider ◽  
Empirical Studies ◽  
Mediating Effect ◽  
Customer Relationship ◽  
Content Type ◽  
Positive Effects ◽  
Perceived Performance ◽  
Performance Risk ◽  
Service Setting

Purpose – The purpose of this paper is to identify the effect of similarity in a customer-to-customer-relationship and of perceived performance risk as a boundary condition in a service setting. Design/methodology/approach – Following theoretical methodology, hypotheses were developed in order to analyze the effect of similarity as well as perceived performance risk. An experimental scenario-based design was used to manipulate similarity and performance risk and to test the hypotheses. Findings – The analysis reveals that similarity is an important dimension in the customer-to-customer-relationship. Positive similarity effects are shown in relation to subjects' willingness to interact with present customers, joining and recommending a service provider, and subjects' evaluation of the service provider. A mediating effect of positive emotions (joy and interest) on the link between similarity and willingness to interact with customers present is shown. Performance risk is also discovered as a boundary condition under which the predicted relationships are weakened. Practical implications – This study suggests that similarity in the customer-to-customer-relationship leads to positive effects. If managers take this into account, their business may benefit from these positive effects. The study offers suggestions on how to “manage” customers' similarity. Originality/value – As this study is one of the first empirical studies to concentrate on the effect of similarity in a customer-to-customer-relationship, it is meaningful. Moreover significant effects are shown; further research ideas are developed and management implications are proposed.

Direct and Moderating Influence of Perceived Fit, Risk and Parent Brand Trust on Brand Extension Success of a Personal Care Brand in India

2018 ◽  
Vol 19 (6) ◽  
pp. 1681-1692 ◽  
Author(s):  
Vibhuti Tripathi ◽  
Pooja Rastogi ◽  
Suresh Kumar
Keyword(s):  
Brand Extension ◽  
Brand Extensions ◽  
Brand Trust ◽  
Substantial Influence ◽  
Perceived Fit ◽  
Personal Care ◽  
Product Categories ◽  
Parent Brand ◽  
Marketing Area

The shifting market dynamics and harsh rivalry of the worldwide economy have augmented the role of brands to an incomparable level. Brand extension has emerged as a popular strategy in the marketing area. While it brings brands closer to success, it is also imperative and important to understand how consumers evaluate and presume similar or dissimilar extensions and what is the substantial influence of risk and subsistence of parent brand on extension success? Identifying and analysing such relationships could be helpful and important for personal care brands in India to gain an edge over competitors. Data were collected from 500 consumers who were proverbial with the brand extensions of Dettol in similar or dissimilar product categories. Regression analysis showed that though perceived fit and risk directly influence the success of brand extension, nevertheless on incorporating parent brand conviction as a moderator the relationships between perceived fit and brand extension success and risk and brand extension success are strengthened. Limitations and future scope have also been mentioned.

Impact of cause-affinity and CSR fit on consumer purchase intention

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sudipta Sen Gupta ◽  
Deepti Wadera
Keyword(s):  
Purchase Intention ◽  
Online Survey ◽  
Primary Data ◽  
Business And Society ◽  
Perceived Fit ◽  
Experimental Conditions ◽  
Content Type ◽  
Indian Consumers ◽  
Strategic Csr ◽  
The Government

Purpose This paper aims to ascertain Indian consumers’ corporate social responsibility (CSR) perceptions; an affinity for stipulated causes and perceived fit between cause and industry in the current mandatory CSR era in India. Design/methodology/approach Primary data was collected through an online survey from 1,251 consumers via quota sampling and snowballing, across 36 Indian cities. Findings The findings indicate no skepticism, positive CSR support and company evaluation. Indian consumers have the greatest affinity for environmental protection. Segments of socially, environmentally and culturally conscious consumers were found. Under quasi-experimental conditions of CSR fit and cause-affinity, positive purchase intention is exhibited across fast-moving-consumer-goods sectors; in which case CSR perceptions cease to have a significant impact on purchase intention. Research limitations/implications This result contributes to understanding Indian consumers’ perspective in the mandatory CSR era and adds to the literature on strategic CSR and communication by segmenting consumers by cause affinity. Practical implications CSR practitioners could align with consumer-relevant causes that fit with their company’s core business, as controllable initiatives, instead of depending on positive, but less controllable, CSR perceptions of consumers. Implications of the findings on CSR policymaking by the government are also discussed. Social implications The mandatory CSR law has been viewed as a burden by corporate India. This research implies that it may be possible to look at it as an opportunity for strategic CSR, to create a win-win situation for both business and society. Originality/value One of the first studies on cause-affinity and CSR fit among Indian consumers using the government stipulated list of causes.

Examining consumers' perceptions of a 3D printing integrated apparel: a functional, expressive and aesthetic (FEA) perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tianyu Cui ◽  
Veena Chattaraman ◽  
Lushan Sun
Keyword(s):  
Purchase Intention ◽  
Online Survey ◽  
Three Dimensional ◽  
Positive Influence ◽  
Future Research ◽  
Perceived Fit ◽  
Content Type ◽  
Future Studies ◽  
Fea Model ◽  
3D Printed

PurposeThis study adopted the functional, expressive and aesthetic (FEA) consumer needs model, aimed to examine the influence of consumers' FEA perceptions of three-dimensional printing (3DP) integrated apparel products on their product satisfaction and purchase intention.Design/methodology/approachAn online survey was employed with a sample of 332 participants (165 female and 167 male) aged 19 to 76, mean age of 35 years. A gender-neutral, 3DP integrated hooded sweatshirt was developed for this study featuring flexible, white 3D printed insets fabricated with an FDM 3D printer and white TPU filament sewn with traditional gray knit fleece.FindingsThe findings of this study suggest that the FEA model is appropriate in predicting consumers' satisfaction with 3DP integrated apparel products. Specifically, aesthetic (perceived beauty) and expressive (perceived coolness) dimensions are more influential than functional factors, except for the positive influence of perceived fit, in predicting consumers' satisfaction and purchase intentions for 3DP integrated apparel products.Research limitations/implicationsFuture studies could consider data collection from participants' physical fit testing or try on evaluation to determine the importance of the functional dimension in consumer response to 3DP integrated apparel product. Future studies could also examine full 3D printed apparel, or other 3DP integrated wearable products to expand the understanding of consumer perception of the application of 3DP technology.Originality/valueDespite the increasing exploration of 3DP integrated apparel products and industry attempts to make this innovation in apparel more mainstream, research on how mainstream consumers perceive such 3DP integrated apparel products is limited. This study addresses this gap, providing critical implications for future research and design.

Sign in / Sign up

Export Citation Format

Share Document