In the context of strategic marketing and market commitment models, modeling of brand switching behaviour of consumers is of extreme use in determining the performance potential…
Abstract
In the context of strategic marketing and market commitment models, modeling of brand switching behaviour of consumers is of extreme use in determining the performance potential of the existing players. This paper revisits the static models of Ehrenberg and Hendry and introduces a dynamic model of brand switching based on market shares. In terms of a χ2 measure of closeness, these three models have been compared to ascertain their modeling performances. A case study has been carried out for the field of sanitary napkin to give some further insight into this problem. Studies have also been included for a few FMCG items. In all the cases, the proposed model gives a better description of the actual situation than the existing static models.
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Isita Lahiri and Amitava Gupta
The purpose of this paper is to examine situations in which brand extensions are likely to dilute beliefs associated with family brands.
Abstract
Purpose
The purpose of this paper is to examine situations in which brand extensions are likely to dilute beliefs associated with family brands.
Design/methodology/approach
Hypotheses are developed and tested in a consumer survey that included experimental and control groups.
Findings
The findings show the congruity of the extension with the family brand is an important factor, the absence of which increases the chances of dilution of the family brand. Perceived success/failure of the extension is a more important factor that also enhances or dilutes the image of the family brand.
Research limitations/implications
Brand names can be hurt by brand extensions, which contain attributes incompatible with or negating favorable family brand beliefs.
Practical implications
If managers feel the dilution is occurring because of an extension, they can increase perceptions that the extension is atypical of the family brand.
Originality/value
This paper identifies certain key attributes of extensions that, if ignored, may dilute the image of the family brand.