EXPRESS: The Context (In)Dependence of Low Fit Brand Extensions

Low fit brand extensions, while often presenting profitable opportunities for existing brands, are known to meet with varying levels of consumer acceptance. This research identifies conditions under which low fit extensions can succeed. Specifically, the authors show that the extent to which consumers consider the context in forming judgments (i.e., are context dependent) determines the acceptance of low fit extensions. In four studies, the authors examine the combined effects of context (in)dependence and type of information, and show that context dependent individuals form their evaluations on the basis of the type of brand extension information provided. For context dependent individuals, providing benefit-based information enhances the evaluations of low fit extensions, whereas providing attribute-based information leads to a reliance on extension fit and subsequent unfavorable evaluation of low fit extensions. In contrast, context independent individuals are more likely to base their judgments on extension fit regardless of whether attribute- or benefit-based information is provided. The acceptance of high fit extension is unaffected by context (in)dependence and type of information. Our findings provide a two-step strategy (i.e., sensitizing consumers to context and providing them benefit-based extension information) for managers to successfully launch low fit extensions and leverage existing parent brand equity.

Tradition or innovation? Cafe Galavis, a brand with an international vision

Research methodology An interview was conducted with the general manager and semi-structured interviews with Likert scale to the main clients, collaborators and suppliers to establish the key competencies of the firm. Secondary information was collected through the organization’s historical and strategic documents. Learning outcomes At the end of the case study, students will be able to learn international marketing, innovation, strategic management, international business strategy; analyze the brand equity construct through the associative neural network model for decision-making; determine the internationalization strategy using the dual pressures model and sources of competitive advantage for international marketing management; and propose the innovation of a product by applying creativity techniques or innovation models to enter international markets. Case overview/synopsis Café Galavis is a family business leader in the production and commercialization of roasted and ground coffee for 103 years in Colombia. The new chief executive officer recovered the financial stability during his management during the period from 2015 to 2019, implementing internationalization processes. However, the sanitary crisis caused by the COVID-19 pandemic in 2020 in Colombia, generated an economic recession, which led to a decrease in coffee consumption. How to innovate in the development of a product or service in times of pandemic? What internationalization strategy implement? These are the challenges that the new management and its collaborators will confront. Complexity academic level The teaching case is aimed at students of postgraduate academic programs in areas Management or MBA. In the modules of Marketing the case allows the orientation of the concepts of brand equity or branding. Likewise, in the modules of International Management, the definition of the internationalization strategy through the analysis of dual pressures and sources of competitive advantage. Finally, in the modules of Innovation different methodologies or techniques for innovation can be applied such as: SCAMPER, Design thinking or the Stage Gate Model. Supplementary materials Teaching notes are available for educators only. Subject code CSS 5: International Business

Factors Influencing Consumer Brand Choice Service Tailoring Shop in Thailand, Focusing on Ermenegildo Zegna, Brioni and Local Brand

The study compares foreign and local brands, focusing on Ermenegildo Zegna, Brioni, and local brands, in order to uncover the elements that impact customers' brand choice decisions in Thailand. The study looked at the elements that influence a customer's decision to buy a custom-made suit, in order to figure out what the most important component is. Understanding how Marketing Mixed affects customer happiness and purchase decisions is especially important. The second goal is to investigate how brand equity affects sales, with a particular focus on customer brand preferences and market expansion. The author chose the survey approach for this study, which is a quantitative research. Data was collected at random online through 346 legitimate questionnaires, and data was analyzed using cross tabulation and multinomial logistic regression. The study's findings show that all of the investigated factors, including product, price, location, promotion, brand equity, and customer purchase behavior determinants, have a positive impact on tailoring's customer brand choice decision in Thailand, with some specifications of each factor being found to be significant. Finally, when comparing these three brands, certain results are noteworthy.

Brand Equity and Usage Intention Powered by Value Co-Creation: A Case of Instagram in Kazakhstan

Purpose: Unprecedented communication features of social media noticeably reinforce the active role of consumers in the value co-creation (VCC) of offline and online brands including social media. From the consumer perspective, this study examines a contribution of VCC behavior to consumer-based brand equity (CBBE) and consequent intention to use social media based on Instagram as the most popular platform in Kazakhstan. Methodology: A web-based survey provided data from 550 Instagram users in Almaty city. Empirical analysis includes testing statistical assumptions using SPSS 23, conducting confirmatory factor analysis (CFA), and structural equation modeling (SEM) using Warp PLS 7.0. Findings: With the result of this study investigation, the paper develops the model that explains the effect of VCC on continuous usage intention to use social media through CBBE comprising brand associations, brand loyalty and brand perceived quality. Originality: Even though the importance of social media in the brand VCC process is widely recognized, a brand equity view of social media brands with users’ participation is under-investigated. However, brand equity’s importance for firm sustainability in terms of long-term business strategy is indisputable. This research enhances brand equity theory and VCC concept with the empirical data within the modern social media context. Practical implications: Owners and managers of social media brands can use the conceptual model to grow, maintain and assess their brands’ equities through their marketing efforts on the consumer motivation for brand VCC activities driving continuous usage of the brands.

Social media as a bridge to e-commerce adoption in Indonesia: A research framework for repurchase intention

Consumers today are individuals who fulfill life needs such as shopping using e-commerce. In its fulfillment, consumers can change in terms of purchasing decisions from one e-commerce to another e-commerce. This requires the company to always have a good strategy to compete in a healthy manner in terms of business. To learn about the importance of social media marketing activity, this study will find out how much influence the social media marketing activity received by e-commerce companies has on brand equity, customer relationships and repurchase intention. In addition, the study will learn how much influence brand equity and customer relationship have on an e-commerce company's repurchase intention. In this study, the survey is conducted by distributing questionnaires to respondents online where the research sample has several questions related to the habits and behavior of respondents. This research uses a sample of 210 people who are domiciled in Indonesia. In the research model, the study uses Structural Equation Modeling (SEM) analysis and the software used for this research is IBM SPSS AMOS. The results of the influence of social media marketing activities have the largest positive influence on customer relationships, brand equity is the main and biggest factor that positively and significantly affects repurchase intention in this research model. The accumulated experience and knowledge of consumers about a brand is a factor that can influence consumers to repurchase the same brand. Brand equity not only provides immediate benefits, but also long-term benefits by retaining consumers to continue to repurchase their products. A strong brand will make consumers always remember the brand. The study explains that customer relationships do not have any significant effect on repurchase intention. The main function of customer relationships at first and now is to try to reach their consumers more broadly, especially related to purchases, but this is not proven in repurchases, especially in this study. Customer relationships in the study did not have any significant effect on repurchase intention.