C. Whan Park

Evaluation of Brand Extensions: The Role of Product Feature Similarity and Brand Concept Consistency

This article examines two factors that differentiate between successful and unsuccessful brand extensions: product feature similarity and brand concept consistency. The results reveal that, in identifying brand extensions, consumers take into account not only information about the product-level feature similarity between the new product and the products already associated with the brand, but also the concept consistency between the brand concept and the extension. For both function-oriented and prestige-oriented brand names, the most favorable reactions occur when brand extensions are made with high brand concept consistency and high product feature similarity. In addition, the relative impact of these two factors differs to some extent, depending on the nature of the brand-name concept. When a brands concept is consistent with those of its extension products, the prestige brand seems to have greater extendibility to products with low feature similarity than the functional brand does. Copyright 1991 by the University of Chicago.

Consumer Knowledge Assessment

The results of studies reported in this article suggest that product-related experience has a greater influence on self-assessed knowledge judgments than does stored product class information and that this greater influence is due to greater accessibility in memory. In addition, stored product class information was found to be a more important determinant of objective than self-assessed knowledge, while product-related experience was a more important determinant of self-assessed than objective knowledge. We discuss implications of these results for the relationship between self-assessed and objective knowledge and for future research involving consumer knowledge constructs. Copyright 1994 by the University of Chicago.

Students and Housewives: Differences in Susceptibility to Reference Group Influence

Two different samples consisting of housewives and students, respectively, were examined in terms of differences in their susceptibility to reference group influence. The results reveal significant differences between housewives and students in terms of the influence which the three types of reference groups have upon brand selection. The findings raise a serious question concerning the external validity of studies which use students as subjects yet make generalizations to a broader population base.

Product-Level Choice: A Top-Down or Bottom-Up Process?

Examination of the process by which consumers form decision criteria and subsequently evaluate and choose product-level alternatives when purchase goals are well defined indicates that decision criteria are formulated in a goal-driven, top-down fashion rather than a product-driven, bottom-up fashion. Evaluations of alternatives follows a within-product strategy, as opposed to a within-attribute strategy, and is characterized by less reliance on price information than reported in previous research. Even without a specific goal for product decisions, the formation and utilization of decision criteria did not follow the bottom-up process. Alternative explanations are offered for these contrasts along with implications for future research on product-level decisions. Copyright 1989 by the University of Chicago.

Incommensurate Resources: Not Just More of the Same

The pricing literature is replete with research that focuses on how consumers respond to sales promotions when both the reference level and the change are expressed in dollar terms (i.e., discounts). The psychophysics of pricing suggests that changes in monetary magnitude are not based on their absolute level, but rather on their deviation from some reference level, or how the change is “framed.” Often, however, a promotion is presented in nonmonetary terms (e.g., a premium). When two resources are delivered simultaneously, but in different currencies (e.g., receive a free razor with the purchase of a can of shaving cream), the marginal value of the nonmonetary, incremental benefit may be difficult to evaluate in relation to the focal product or its price. Therefore, the value of the premium may be less likely than a comparable discount to be viewed in a relative sense and thus less likely to suffer from diminishing marginal returns. This research explores how people often fail to exhibit the same diminishing sensitivity to an incremental benefit, or cost, when it is accrued in a currency other than the referent currency. The authors define two different carriers of wealth or welfare (i.e., resources) that are difficult to convert into any meaningful common unit of measurement as “incommensurate.” This research introduces a novel mechanism for influencing whether people attend to absolute rather than relative differences. This work also offers guidance to managers who might benefit from the strategic use of nonmonetary promotions.

Promotional Perspectives of Reference Group Influence: Advertising Implications

Abstract This study suggests various theoretical and practical promotional implications based upon empirical tests of reference group influence. The authors examine the role of reference groups and promotional appeals in satisfying consumer motivations. Three motivational reference group functions are emphasized: informational, utilitarian, and value-expressive.

Not as Happy as I Thought I'd Be: Affective Misforecasting and Product Evaluations

We introduce the concept of affective misforecasting (AMF) and study its impact on product evaluations. Study 1 examines whether and when AMF affects evaluations, finding that AMF has an impact on evaluations when the affective experience is worse (but not when better) than forecasted. Study 2 tests a process model designed to understand how and why AMF influences evaluations. The extent of elaboration is shown to underlie the observed effects. The studies demonstrate the robustness of the findings by controlling for alternative factors, specifically experienced affect, expectancy disconfirmation, and actual performance, which might have an impact on these judgments.

Dilution and Enhancement of Celebrity Brands Through Sequential Movie Releases

This article examines the effects of sequential movie releases on the dilution and enhancement of celebrity brands. The authors use favorability ratings collected over a 12-year period (1993–2005) to capture movement in the brand equity of a panel of actors. They use a dynamic panel data model to investigate how changes of brand equity are associated with the sequence of movies featuring these actors, after controlling for the possible influence from the stars’ off-camera activities. The authors also examine the underlying factors that influence the magnitude and longevity of such effects. In contrast with findings from existing research in product branding, the authors find evidence that supports the general existence of dilution and enhancement effects on the equity of a celebrity brand through his or her movie appearances. They also find that star favorability erodes substantially over time. Finally, this research offers insights for actors regarding how to make movie selections strategically to maximize their brand equity.

Judgmental Rules and Stages of the Familiarity Curve: Promotional Implications

Abstract This paper suggests how the consumers usage of various composition rules is likely to vary as his product and brand familiarity increase over time. The relationships suggested are based u...

The Adaptive Information Processing Hypothesis: Accounting for the V-Shaped Advertising Response Function

Abstract Previous research at Anheuser-Busch reported that the relationship between advertising expenditures and sales can exhibit a V-shaped pattern, with greater sales at both increased and reduced levels of advertising expenditures. While the right-side of the V-effect is consistent with the traditional perspective on the advertising-sales relationship, the left-side is not. Though the existence of the V-effect has considerable implications for advertising efficiency, theory which accounts for its effects or the conditions under which it occurs is limited. This paper critically evaluates previously proposed segment-based explanations for the V-effect and proposes a new (Adaptive Information Processing) hypothesis to account for its effects. The hypothesis suggests interesting implications for advertising decisions.