The role of retailers during brand scandals: insights from a case study

PurposeThe role of retailers in influencing consumer attitude during a brand scandal is quite complex, as retailers are in direct contact with both marketers and consumers. The purpose of the exploratory research is to propose a theoretical model to capture the influences retailers exercise on consumers during brand scandals.Design/methodology/approachA qualitative approach has been adopted in the study. The study employs the grounded theory approach on the data collected by conducting in-depth interviews with 25 retailers.FindingsFour contextual conditions and six behavioral antecedents of the retailer's role in the context of the brand scandal were identified. Then, the study finds that companies tend to follow two broad approaches during a brand scandal to address retailers' queries and apprehensions. On these bases, the study proposes a six-pronged typology to better understand retailers' role in shaping consumers' brand perception.Originality/valueExisting literature has not paid adequate attention to this aspect of retailers' role in influencing consumer choices during brand scandal. To the best of the authors' knowledge, there is no prior research which investigates the role and influence of retailers in shaping consumer attitude during brand scandals. It is important to underline that the current research advocates retailers' significant role during a performance-based brand scandal. Specifically, the authors explored a health-related defective scandal of a well-known food brand. In addition, the study focuses on traditional grocery retailers, which already have special relationships with their consumers. Based on retailer perspectives, the authors' contribution is also updating the discussion of branding theory in case of scandals. The identified variables and constructs may be used for empirical investigation on the role of retailers in shaping consumer attitudes toward the scandalized brand.

A makeover for Dudley’s Q+

Theoretical basis The Dudley Beauty case illustrates a contemporary branding, management and marketing challenge facing many companies that are 50 plus years old. Movahhed (2016) highlights the six elements to consider during brand strategy: the target audience, the brand promise, brand perception (past, current and future), brand values, brand voice and brand positioning. The times have changed with changing macroenvironmental factors including political, economic, sociological, technological, legal and other environmental (PESTLE) changes that affect a business but which the business does not directly control. Research methodology The case is based upon an interview with Dudley Beauty CEO and President Ursula Dudley Oglesby and secondary sources. Case overview/synopsis The “A Makeover for Dudley’s Q+” case explores the challenges of a second-generation textured hair care and personal care company in the direct selling channel as it faces an aging market and changing business and economic environment. A Black-owned company, begun in 1967 by her parents, Dudley Beauty is led by the founders’ daughter, Harvard College and Harvard Law School-educated, Ursula Dudley Oglesby. At over 50 years old, the company has continually created new textured hair products and has high brand awareness among older Black consumers but has not adequately addressed changing hair trends and shifting communication preferences of younger consumers. The company is at a critical point needing to reach a younger, larger market to survive. The business situation supports marketing, management, strategy, and/or entrepreneurship undergraduate students in understanding how macroenvironmental forces and internal structures affect businesses. Complexity academic level This case is intended primarily for use by undergraduates in a variety of courses. It is suitable for courses in Principles of Marketing, Entrepreneurial Marketing, general Entrepreneurship and Marketing Strategy courses covering topics such as direct selling, the role of environmental factors in business, rebranding efforts using digital and social media marketing and women/minority business owners.

Warmth or competence? The effects of cool and cuteness on the perceived quality of digital products

PurposeThe purpose of this paper is to explore the effect of cuteness and cool on the perceived quality of digital products, the mediating effect of brand perception (warmth and competence) and the moderating effect of the individual perception level.Design/methodology/approachThis paper utilizes experimental design and survey methods to collect data and the ANOVA, independent sample t-test and bootstrap analysis methods to verify the assumed hypotheses.FindingsStudies 1 and 2 demonstrate that cuteness (vs cool) is more likely to promote the perception of brand warmth (vs competence), and the brand perception plays a mediating role between cuteness (cool) and the perceived quality. Study 3 replicates the findings of Study 2 and indicates that people with high-cuteness (vs low-cuteness) perception are the same to perceive the brand warmth to promote the perceived quality of digital products, but people with high-cool (vs low-cool) perception are more likely to perceive the brand competence to promote the perceived quality of digital products.Practical implicationsBased on the conclusions in this paper, marketers could emphasize the cool information of digital products in advertisements to promote the perceived quality to promote younger consumers' willingness to pay (WTP). Furthermore, firms could shape warm brand images by the perception of cuteness because cuteness is positively associated with the warmth of brand perception (e.g. the logo of Three Squirrels, a Chinese nut business brand that consists of three cute squirrels).Originality/valueFrom a theoretical standpoint, this paper contributes to the brand perception when consumers accept product information with the characteristics of cuteness or cool. Second, a model of perceived quality of digital products is built based on the stereotype content theory. Third, this paper considers individual perception levels on cuteness and cool as the boundaries to conduct further conceptual model.

The effect of corporate political advocacy on brand perception: an event study analysis

Purpose In recent years, brands have increasingly engaged in corporate political advocacy (CPA; also termed brand activism or corporate sociopolitical activity) by taking positions on polarizing sociopolitical issues. Recent experimental research suggests that consumers respond to CPA based on its alignment with their own values, and that it typically induces an overall negative response. This study aims to provide additional insights by exploring consumer brand perceptions following CPA. Design/methodology/approach An event study of 106 CPA events and weekly consumer brand perception data was conducted. A regression model was used to investigate the moderating effects of CPA effort, concurrence and the strength of the online protests evoked by the CPA. Findings The results show that CPA had a negative effect on consumers’ brand perceptions and that the effect was stronger for customers relative to non-customers. The negative effect was attenuated by CPA concurrence and amplified by effort. Additionally, online protests were driven by the CPA effort and had a strong negative effect on brand perception. Online protests were stronger in the past, and, in turn, the negative effects of CPA on brand perceptions have slightly weakened in recent years. Originality/value This study contributes to the existing literature by highlighting the role of online protests following CPA and distinguishing consumer and customer responses. This study also provides converging evidence of the moderating effects of effort and concurrence identified in previous studies.

EXPRESS: Befriending the Enemy: The Effects of Observing Brand-to-Brand Praise on Consumer Evaluations and Choices

Consumers have grown increasingly skeptical of brands, leaving managers in a dire search for novel ways to connect. The authors suggest that focusing on one’s relationships with competitors is a valuable, albeit unexpected, way for brands to do so. More specifically, the present research demonstrates that praising one’s competitor—via “brand-to-brand praise”— often heightens preference for the praiser more so than other common forms of communication, such as self-promotion or benevolent information. This is because brand-to-brand praise increases perceptions of brand warmth, which leads to enhanced brand evaluations and choice. The authors support this theory with seven studies conducted in the lab, online, and in the field that feature multiple managerially-relevant outcomes, including brand attitudes, social media and advertising engagement, brand choice, and purchase behavior, in a variety of product and service contexts. The authors also identify key boundary conditions and rule alternative explanations, further elucidating the underlying mechanism and important implementation insights. This work contributes to our understanding of brand perception and warmth, providing a novel way for brands to connect to consumers by connecting with each other.

A Brand Like a Friend—How Brand Likeability Influences Brand Perception

Being the customer’s friend is considered an advantageous position for a brand. To achieve this position, brand likeability, that is, the degree of perceived appeal a customer has for a brand, plays an important role. Research suggests that satisfaction and loyalty are outcomes of likeability. However, little is known about its influence on perceptions of objective brand attributes. The present study uncovers that brand likeability positively influences both product quality and price fairness. Moreover, likeability affects loyalty, both directly and mediated by the constructs of product quality, price fairness, and satisfaction. Thus, achieving likeability as a brand can be regarded as a key task of brand management. If a brand is perceived as likeable, the chances that customers will be willing to accept a price premium and overlook qualitative shortcomings of a product are higher.

Thirty years and “I'm still Lovin’ it!”: brand perceptions of McDonald's among generation Y and generation Z consumers in China

PurposeRecognizing the differences between generations Y and Z, this exploratory study uses generational cohort theory as a framework to examine the brand perception of McDonald's, an international brand which has grown up with consumers for over 30 years in China. The paper aims to discuss this issue.Design/methodology/approachMeasures of brand perception was built based on Aaker's brand personality model. A total 1,103 valid questionnaires were collected through an online survey platform. Factor analysis is the primary method to analysis the data.FindingsThe findings of this study reveal a favourable brand perception of McDonald's among young Chinese consumers which is consistent with Aaker's brand personality model and support the use of generational cohort theory as a market segmentation tool for brand perception. The differences between the two generational cohorts are not shown to be significant.Originality/valueThe most important contribution of this study is the evaluation of the personality of a major brand in China for Gen Z, a topic with very little existing research. Also, this research suggests future in-depth research into generational cohort theory in a Chinese context by recognizing homogeneity and heterogeneity exist simultaneously between generational cohorts.