Competition and consumer brand attitudes make introducing a new brand risky and very expensive, increasing the attractiveness of brand extensions. Brand extension research has established that original brand quality perceptions, product category fit, consumer perceptions of the product category complementarity and substitutability, plus the transferability of design and manufacturing capability significantly influence extension attitude formation. However, these studies fail to differentiate between brand types and have aggregated out category effects. Using a national survey we show that brand type (prestige, functional) and extension category are important variables in consumer brand extension attitude formation. Perceived quality influences functional brands more than prestige brands as prestige brand attitudes assume quality. Functional brands experience less dilution than prestige brands, implying less risk and greater expandability than argued by previous authors.
Viral stealth marketing is a contemporary marketing technique, which has evolved in reaction to the increasingly competitive marketing environment. This paper notes that despite its huge potential, very little research is being targeted towards understanding the utility of viral stealth marketing, particularly in the context of Generation Y, whose behavioural characteristics are particularly suited to this form of marketing. This paper explores the nature of viral stealth marketing and its ethical implications; then formulates an agenda for future research that has a potential to add significant value to organisations.
PurposeThe purpose of this paper is to examine the dominant consumer decision theory models and understand why that theory has received little empirical validation. A “decision waves” theory is proposed – an alternative, multi‐phase approach to decision making using image theory. An approach to validating empirically the multi‐phase theory is outlined.Design/methodology/approachThis conceptual paper examines the foundations of modern consumer decision theory and argues for a more representative model of actual consumer decisions.FindingsDecision waves provide a theoretical approach to represent more accurately consumer decision making and improve understanding in this foundational component of marketing. Decision waves do not change detailed empirical findings: however, they do change the macro perspective of how those findings are assembled for marketing.Research limitations/implicationsAn empirical test of decision waves theory is ongoing.Practical implicationsThe concepts outlined in this paper will change segmentation, positioning and how tactical plans are developed within the marketing mix, particularly for promotional strategies.Originality/valueA theoretical approach that represents decision making more accurately will bring us closer to understanding this foundational component of marketing. It provides a basis for differentiation in congested markets.
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