scholarly journals Corporate brand extensions based on the purchase likelihood: governance implications

2018 ◽  
Vol 7 (1) ◽  
pp. 64-75
Author(s):  
Spyridon Goumas ◽  
Dimitrios Charamis ◽  
Eirini Maroukla ◽  
Alexandros Garefalakis
Keyword(s):  
New Products ◽  
Product Category ◽  
Brand Extensions ◽  
Consumer Electronics ◽  
Corporate Brand ◽  
Brand Knowledge ◽  
Service Companies ◽  
Service Brand ◽  
Purchase Likelihood ◽  
Literature Service

This paper is examining the purchase likelihood of hypothetical service brand extensions from product companies focusing on consumer electronics based on sector categorization and perceptions of fit between the existing product category and image of the company. Prior research has recognized that levels of brand knowledge eases the transference of associations and affect to the new products. Similarity to the existing products of the parent company and perceived image also influence the success of brand extensions. However, sector categorization may interfere with this relationship. The purpose of this study is to examine Greek consumers’ attitudes towards hypothetical brand extensions, and how these are affected by consumers’ existing knowledge about the brand, sector categorization and perceptions of image and category fit of cross-sector extensions. This aim is examined in the context of technological categories, where less-known companies exhibited significance in purchase likelihood, and contradictory with the existing literature, service companies did not perform as positively as expected. Additional insights to the existing literature about sector categorization are provided. The effect of both image and category fit is also examined and predictions regarding the effect of each are made.

scholarly journals An exploratory qualitative study of brand associations as a means for brand extensions: Part 2

2014 ◽  
Vol 8 (4) ◽  
pp. 377-392
Author(s):  
H Kasper ◽  
Y Strepp ◽  
NS Terblanche
Keyword(s):  
Qualitative Study ◽  
New Products ◽  
Product Category ◽  
Qualitative Approach ◽  
Considerable Extent ◽  
Brand Extensions ◽  
Brand Name ◽  
Brand Associations ◽  
Quantitative Nature

One of the more familiar means to capitalise on the reputation of an established brand, is to use the brand name to introduce new products in a different product category. Various factors impact on the extent to which brand extensions can benefit from or even detract from the original brand. The focus of this study is on brand associations as means to extend the original brand. A qualitative study, in contrast with the quantitative nature of most earlier studies, was used to elicit an unbiased picture of consumers’ associations of a brand. The use of a qualitative study also made it possible to follow up on and probe  the comments made by respondents. The study examined consumers’ reactions to a variety of fictitious extensions for four different popular brands (Coca-Cola, Benetton, Yamaha, and Kellogg’s). The key rationale for this study was to observe how consumers’ associations of a brand impact on their evaluation of extensions to that brand. Six propositions were investigated. Because of the considerable extent of the findings generated by the qualitative approach, the research is reported in two parts. The findings on three propositions were reported in Kasper, Strepp and Terblanche (2005). The findings on the remaining three propositions are described in this second part of the reported research.

The interactive effect of insight and cuteness in driving purchase likelihood: a lay belief of creativity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Felix Septianto ◽  
Rokhima Rostiani ◽  
Widya Paramita
Keyword(s):  
New Products ◽  
Interactive Effect ◽  
Experimental Studies ◽  
New Product ◽  
Underlying Mechanism ◽  
Content Type ◽  
Narrative Study ◽  
Managerial Implications ◽  
Purchase Likelihood

PurposeWhile new product introductions can potentially promote growth and benefit for brands, it remains unclear how marketers can develop effective communication strategies to increase the chance of success for new products. The present research investigates the role of cuteness in leveraging the effectiveness of a narrative emphasizing an insight versus an effort in this regard.Design/methodology/approachThis research presents two experimental studies. Study 1 examines the moderating role of cuteness on the likelihood of purchasing a new product featuring an insight-based (vs effort-based) narrative. Study 2 extends the findings of Study 1 using different stimuli and establishes the underlying mechanism.FindingsResults show that when a cuteness appeal is present, an insight-based (vs effort-based) narrative will lead to a higher purchase likelihood. However, these differences do not emerge when a cuteness appeal is absent (a control condition). Further, perceived brand creativeness will mediate this effect.Originality/valueThe findings of this research contribute to the literature on lay belief of creativity, cuteness, and product narrative, as well as managerial implications on how to promote new products.

Unveiling the corporate brand: the role of portfolio composition

2020 ◽  
Vol 37 (3) ◽  
pp. 279-290
Author(s):  
Veronica Gabrielli ◽  
Ilaria Baghi
Keyword(s):  
Internal Consistency ◽  
Brand Equity ◽  
Brand Management ◽  
Product Category ◽  
Mediation Effect ◽  
Brand Strategy ◽  
Corporate Brand ◽  
Content Type ◽  
Moderated Mediation Model ◽  
Brand Portfolio

Purpose This paper aims to investigate the effects on corporate brand equity when a company moves from a house of brand strategy to a branded house. In fact, recently, most of large companies (Procter & Gamble, Unilever) are managing this swift in order to simplify and optimize their efforts. Design/methodology/approach A total of 433 consumers participated in a between-subject experimental design completing a questionnaire. Each respondent was exposed to one of eight hypothetical scenarios with real-existing brands. A moderated-mediation model was tested. Findings The number of individual brands interacts with the variety of product categories within the portfolio to define its internal consistency which, in turn, exerts a significant mediation effect on corporate brand equity. Research limitations/implications The study supports the mental accounting process (subtyping vs bookkeeping), demonstrating how this psychological framework is applicable within brand management. Practical implications The study unveils a strong dichotomy: consumers award very small portfolios focused on a single product category or, conversely, they appreciate a wide and highly diversified brand portfolio. No chances for intermediate and hybrid solutions. Findings demonstrate that a brand architecture shift might be a flexible opportunity to manage an on-going diversification strategy. Originality/value The study is the first to analyse the importance of internal consistency within a brand portfolio in case of a shift in the portfolio strategy. Moreover, it investigates the effects since the first announcement of a linkage between the individual brands and the corporate one.

Corporate brands as brand allies

2018 ◽  
Vol 27 (1) ◽  
pp. 41-56 ◽  
Author(s):  
Mayoor Mohan ◽  
Kevin E. Voss ◽  
Fernando R. Jiménez ◽  
Bashar S. Gammoh
Keyword(s):  
Empirical Support ◽  
Product Category ◽  
Brand Name ◽  
Corporate Brand ◽  
Content Type ◽  
Brand Alliance ◽  
Three Stage Least Squares ◽  
Category Knowledge ◽  
Corporate Brands

Purpose The purpose of this paper is to examine the role of the corporate brand in a brand alliance that includes one of the corporation’s product brands. Design/methodology/approach Using a scenario-based study, 899 participants were randomly assigned to one of 84 unique brand alliance scenarios involving a corporate brand, a product brand ally and a focal product brand; a total of 33 corporate brands were represented. Results were estimated using a three-stage least squares model. Findings Consumers’ evaluations of a focal brand were enhanced when a corporate brand name associated with a product brand ally was included in the brand alliance. The effect was mediated by attitude toward the product brand ally. The indirect effect of the corporate brand was stronger when consumers had low product category knowledge (PCK). Research limitations/implications Consistent with competitive cue theory, the findings suggest that a corporate brand can provide superior, consistent and unique information in a brand alliance. Practical implications Practitioners should note that the effectiveness of adding a corporate brand name into a product brand alliance is contingent on the extent of consumers’ PCK. Originality/value This paper examines when and why corporate brands are effective endorsers in product brand alliances. This paper adds empirical support to previous assertions that, if managed effectively, corporate brands can be valuable assets that convey unique valuable information to consumers.

The effect of service brand extensions on corporate image

2006 ◽  
Vol 40 (1/2) ◽  
pp. 174-197 ◽  
Author(s):  
Jose M. Pina ◽  
Eva Martinez ◽  
Leslie de Chernatony ◽  
Susan Drury
Keyword(s):  
Corporate Image ◽  
Brand Extensions ◽  
Service Brand

scholarly journals Design awareness and purchase intention: an item response theory approach

2014 ◽  
Vol 27 (1) ◽  
pp. 138-155 ◽  
Author(s):  
Ana M. Arboleda ◽  
Julio C. Alonso
Keyword(s):  
Item Response Theory ◽  
Item Response ◽  
Purchase Intention ◽  
New Products ◽  
Product Category ◽  
Two Dimensions ◽  
Theory Approach ◽  
Theoretical Discussion ◽  
Response Theory ◽  
Content Type

Purpose The purpose of this paper is to evaluate the effect of design awareness on consumers’ purchase intention. Design/methodology/approach The experiment consisted of showing a new beer package design to 185 participants who evaluated it using a self‐administered questionnaire. Findings Using an Item Response Theory approach, results show that there are two dimensions of consumer design awareness: basic design and differential design. These findings are, to some extent, consistent with the theoretical discussion within design literature. Moreover, a multiple regression model estimates the effect of both dimensions on consumers’ purchase intention, and the paper concludes that both dimensions have a similar effect (p<0.05). The sign of the effects are consistent with the theoretical discussion. Practical implications The design of new products must consider attributes associated to the basic and practical use of a product as well as those attributes that mark a comparative difference in the product category. Originality/value This paper conceptually and empirically combines two different areas of knowledge (design and consumer behavior) under the design awareness construct. This concept evaluates consumers’ perceptions about new products, facilitating more accurate decisions in cases of innovation.

CSR practices, identification and corporate reputation

2020 ◽  
Vol 33 (3/4) ◽  
pp. 361-379
Author(s):  
Juan Manuel Bruno ◽  
Francisco J. Sarabia-Sanchez ◽  
Enrique Carlos Bianchi
Keyword(s):  
Financial Services ◽  
Corporate Reputation ◽  
Structural Equation ◽  
Product Category ◽  
Moderating Effect ◽  
Consumer Involvement ◽  
Content Type ◽  
Product Categories ◽  
Service Companies ◽  
The Individual

PurposeThis study verifies the influence of the dimensions of corporate social responsibility (CSR) practices and consumer involvement on the identification of the individual with the company and the corporate reputation, moderated by the product category.Design/methodology/approachA covariance-based structural equation modelling is used to test the model, using a sample of 568 Argentine consumers. A multigroup analysis is employed to assess the moderating effect of the product category.FindingsCSR practices have heterogeneous influence based on their dimension, and this influence is moderated by the product category. Accordingly, environmental practices promote consumer identification with the company, whereas those economically oriented have a direct influence on reputation. In contrast, social practices contribute to reputation if they are connected to the business model.Research limitations/implicationsThe study is focussed on Argentina, analysing two product categories (laptops and financial services for final consumers) and using a large, but not strictly random, sample. In order to mainstream the results, it would be relevant to replicate the proposed model in other countries and with other product categories.Originality/valueIt provides information about the perception of consumers regarding the CSR practices from a multi-dimensional perspective, since they have an uneven effect on identification of consumer with the company and corporate reputation due to the moderating effect of the product category. The findings of this study may be relevant for managers of technology and banking service companies.

Consumer Evaluations of Service Brand Extensions

2001 ◽  
Vol 3 (3) ◽  
pp. 220-231 ◽  
Author(s):  
Allard C. R. van Riel ◽  
Jos Lemmink ◽  
Hans Ouwersloot
Keyword(s):  
Brand Extensions ◽  
Consumer Evaluations ◽  
Service Brand
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