scholarly journals Research on brand extension feedback effects based on customer equity

2015 ◽  
Vol 46 (1) ◽  
pp. 97-105
Author(s):  
J. Shao ◽  
J. Zhang ◽  
K. Chen

As a strategy for enterprises to expand the scale of their operations, brand extension could also generate feedback effect diluting parent brand's customer equity. This study proposes and estimates a theoretical model examining the influence of brand extension on the drivers of parent brand's customer equity, namely value equity, brand equity, and retention equity using data of 850 questionnaires from ordinary consumers in China. The model indicates whether the drivers of a parent brand's customer equity change after brand extension, and how fit and consumer evaluations of brand extension influence the drivers of the parent brand's customer equity. The results show that firstly brand extension influences the drivers of parent brand's customer equity, secondly fit and consumer evaluations of brand extension directly affect the drivers of parent brand's customer equity, consumer evaluations also perform an intermediary function between fit and the drivers of parent brand's customer equity. Finally, this paper talks about managerial implications of the finding.Limitations and suggestions for future research are also discussed.

2017 ◽  
Vol 9 (1) ◽  
pp. 91 ◽  
Author(s):  
Isaac Twum Asare ◽  
Shen Lei

In the field of brand management, numerous studies have been conducted on brand equity conceptualization, measurement and validation. Also, previous researchers have shown that consumer-based brand equity via its dimensions can be created and maintained through a company’s marketing mix activities. Brand equity according to Keller, is the differential effect of brand knowledge on consumer response to the marketing activities performed on the brand. Due to cultural differences, consumers’ reaction will differ and thus these marketing efforts will have varying results in different markets.Drawn from both Aaker’s & Keller’s conceptualizations of brand equity, the current study develops a brand equity creation process model similar to Yoo et al.’s and examines its cross-cultural invariance through a structural invariance test using data from two important growing markets—Ghana and China. Results prove that some marketing efforts and dimensions of brand equity have invariant effects on brand equity across the Ghana and Chinese samples. Specifically, the effect of price on perceived quality was not equivalent in both markets. Relationship among brand equity dimensions were also not equivalent, however these dimensions all show an equivalent, positive effect on brand equity. Managerial implications for international brands and limitations for future research are discussed.


2016 ◽  
Vol 50 (1/2) ◽  
pp. 145-165 ◽  
Author(s):  
Chun Qiu ◽  
Peter Popkowski Leszczyc

Purpose – The purpose of this paper is to study firms’ decisions of voluntary disclosure of high product quality by sending their products to intermediaries for review, and how the nature of the reviews subsequently substitutes the brand names in terms of affecting the price of the product. Design/methodology/approach – Using data on camcorders and point & shoot digital cameras collected from multiple intermediary sources, this paper empirically tests the relationships among brand equity, send for review decisions, the nature of reviews and pricing, controlling for endogeneity. Findings – This paper finds that firms are likely to send their high-quality products to the intermediaries for review, but such likelihood varies across different brands. Relatively weak brands are more likely to send their products for review than relatively strong brands. By doing so, weak brands receive two benefits: first, intermediary reviews help eliminate price differentials between weak brands and strong brands. The more positive is the review, the higher is the price. When intermediary reviews are not obtained, some strong brands effectively charge a price premium over weak brands. Second, intermediary reviews subsequently attract more consumer word of mouth (WOM). The more positive is the review, the more consumer WOM is attracted. Researchlimitations/implications – One limitation is that this paper does not account for the influence of intra-brand competition. The second limitation is related to the assumption that intermediary reviews are accurate. Practicalimplications – This paper offers managerial implications to brand managers concerning send-for-review and pricing decisions. It proposes how managers leverage third-party endorsement in launching a new product. Originality/value – This paper is one of the few papers empirically studying the interaction of two communication approaches: disclosure and brand signaling. It modifies the commonly assumed relationships among brand, quality and price by demonstrating the substitute effect of intermediary reviews and brand names on price. This paper is also the first research that empirically examines the impact of firms’ “send-for-review” decisions on generating consumer WOM. Managerially, this paper substantiates Godes et al.’s (2005) framework on how firms should manage social interactions upon the release of new products.


2013 ◽  
Vol 29 (6) ◽  
pp. 1897 ◽  
Author(s):  
Richard Chinomona ◽  
Maxwell Sandada

There is an increasing attention being accorded to mobile marketing activities in recent business management literature in the past decade as both academicians and practitioners recognize that mobile activities have potential influence on mobile marketing acceptance and customer purchase intention. Notwithstanding this, there is dearth of research on the same in the African context. In view of this development, the purpose of this research paper is to investigate the extent to which mobile marketing activities influence customers mobile marketing acceptance and their purchase intention in South Africa. Five research hypotheses are postulated and using data collected from mobile marketing activities partakers, the hypotheses are tested using Structural Equation Modelling (SEM) approach (Smart PLS). Managerial implications of the findings are discussed and limitations and future research directions are indicated.


2011 ◽  
pp. 729-747
Author(s):  
Shih-Chen Liu ◽  
Lorne Olfman ◽  
Terry Ryan

This article presents the empirical testing of a theoretical model of knowledge management system success. The Jennex and Olfman model of knowledge management system success was developed to reflect the DeLone and McLean model of information systems success in the knowledge management context. A structural equation model representing the Jennex and Olfman theoretical model is developed. Using data from a prior study aimed at knowledge management system use and individual learning, this model is tested. The overall fit of the model to the data is fair, although some interpretation of the estimated model parameters is problematic. The results of the model test provide limited support for the Jennex and Olfman theoretical model, but indicate the value of continued investigation and refinement of it. Suggestions for future research are provided.


2013 ◽  
Vol 44 (2) ◽  
pp. 57-66 ◽  
Author(s):  
R. Chinomona ◽  
E. Chinomona

Despite increasing awareness of the importance of managing the negative effects of organizational politics at the workplace, research on consequences relating to employees’ perceptions of the same in small and medium enterprises (SMEs) in Africa has received little attention. Therefore, using data from 250 SMEs in Zimbabwe, this study examines the effects of employees’ perceptions of organizational politics on turnover intentions and the mediating influence of employees’ perceptions of equity and organizational commitment. All the posited six hypotheses were supported by the sample data. Managerial implications of the findings are discussed and limitations and future research directions are indicated.


2019 ◽  
Vol 4 (1) ◽  
pp. 8-22 ◽  
Author(s):  
Hartanto Yuwo ◽  
John B. Ford ◽  
Mustika Sufiati Purwanegara

This study examines in detail the use of customer-based brand equity for a tourism destination (CBBETD) as a strategic tool for use with a specific city (Bandung City, Indonesia in this instance). The CBBETD scale developed by Konecnik (2005) and empiricized by Konecnik and Gartner (2007) was successfully adapted using qualitative and quantitative refinements for the city of Bandung. A sample of 400 visitors to Bandung was surveyed, and empirical psychometric assessment was run. The scale required minor adaptations but was found to be appropriate for use in this new context. The components of customer-based brand equity for a tourism destination were found to be: awareness, image, quality and loyalty. The successful adaptation of the scale is encouraging as it provides strategic insight on strengthening destination positioning in the minds of both current and future tourists. Managerial implications and suggestions for future research are provided.


2017 ◽  
Vol 26 (7) ◽  
pp. 690-703 ◽  
Author(s):  
Kelley A. O’Reilly ◽  
Alhassan G. Mumuni ◽  
Stephen J. Newell ◽  
Branden J. Addicott

Purpose This study aims to examine the relative impact of three drivers affecting consumers’ usage consideration for a brand extension into a service category using data from actual consumers of a national oil change retailer contemplating various service brand extensions. Design/methodology/approach Data for the study were collected in two separate surveys using structured self-administered questionnaires. Three drivers were measured for their effect on consumers’ usage consideration for service brand extensions (dependent variable), namely, parent brand evaluation, extension fit and degree of service intensity of the extension. Findings The results indicate that parent brand evaluations are the strongest drivers of brand extension usage consideration, regardless of the extension fit or the degree of service intensity of the extension. In addition, the findings suggest that the closer the fit to the parent brand, the more likely the extension will be considered. In contrast, consumers are less likely to consider using an extension as the level of service intensity increases. Originality/value This study’s use of actual customers of the brand, for real service brand extensions provides a higher degree of external validity than previous work in this area, and it yields a deeper understanding of the criteria used by consumers when evaluating service brand extensions. The study also provides managerial implications that are of practical value to academics and practitioners alike.


2017 ◽  
Vol 26 (7) ◽  
pp. 671-689 ◽  
Author(s):  
Michelle Childs

Purpose The purpose of this study is to review and summarise the current body of literature on brand extension feedback effects and to identify which research issues are inhibiting advancement in this stream of literature. Based on this analysis, suggestions for future research are provided. Design/methodology/approach In a systematic literature review, criteria were used to identify relevant journal publications that have specifically investigated brand extension feedback effects (n = 53). Research articles were subsequently evaluated for further analysis. Findings Several issues may inhibit advancement in the literature on brand extension feedback effects. These include issues related the conceptual, methodological and context of research, as well as related to the consumer, product, brand and marketing. Specific research questions are provided which address issues found in this literature stream. Research limitations/implications This paper aims to resolve issues in research on brand extension feedback effects to facilitate more rapid advancement in this stream of literature. Originality/value This research fills a need to summarise the current state of the literature and identifies research issues that need to be addressed in the future.


2016 ◽  
Vol 23 (4) ◽  
pp. 355-364 ◽  
Author(s):  
Tahir Albayrak ◽  
Nesli Çömen

This study investigates the effects of shopping attributes on shopping satisfaction by considering asymmetric relationships between these constructs. In addition, the study examines how the effects of various attributes differ according to nationality by using data collected from German, Dutch and British tourists in the historic town of Side. First, factor analysis results reflected ‘tangibles’, ‘staff’ and ‘products’ as the underlying shopping attributes. Next, an asymmetric impact performance analysis was used to categorize shopping attributes according to both their performances and their asymmetric effects on shopping satisfaction. Analyses of the results revealed that attributes’ categorization varied according to country of residence. While the products attribute was identified as an excitement factor with high performance for German tourists, it was a basic factor with high performance for the British tourists. These findings confirmed the asymmetric effects of the attributes on satisfaction. The study concluded with theoretical and managerial implications of the findings and future research recommendations.


2012 ◽  
Vol 457-458 ◽  
pp. 1118-1121
Author(s):  
Qing Min Kong ◽  
Xiu Qing Liang

In recent years, more enterprises start to take seriously to customer loyalty programs. However, customer loyalty programs do not generate relationship outcomes as people expect. This paper introduces relationship benefits into the research of customer loyalty programs. Using data mining, this study show that relationship benefits in customer loyalty can generate relationship outcomes which are customer satisfaction with customer loyalty programs and customer loyalty on customer loyalty programs. The findings of this paper are directions for future research and managerial implications.


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