Claudiu V. Dimofte

Global Brands in the United States: How Consumer Ethnicity Mediates the Global Brand Effect

Previous cross-cultural research has demonstrated a consistently positive effect of brand globality on consumer perceptions, attitudes, and purchase intentions. The authors evaluate these effects on three ethnic segments of U.S. consumers. Drawing on survey data analysis and the estimates of a structural equation model, the research shows that associations with global brands as a general category vary across ethnic groups. Caucasian consumers show less of an appreciation of global brands, whereas African Americans and Hispanics show patterns similar to those in prior research. Although the average consumer views brand globality as an attribute of little importance, the structural equation findings show a direct effect of globality on attitudes and purchases. Overall, mainstream consumers in the United States are less favorable toward global brands than minority groups but patronize them at the same overall rate.

Consumer Response to Polysemous Brand Slogans

Polysemous brand slogans have multiple meanings that may convey several product attributes. We build on extant research by suggesting that some consumers automatically access multiple meanings of a polysemous brand slogan, whereas others access only a single, immediately available meaning. A novel measure of automatic access to secondary meaning (the Secondary Meaning Access via the Automatic Route Test, or SMAART) is developed to capture this individual difference and show its consequences for consumer responses to polysemous slogans with unfavorable secondary meanings. The automatic-access account is further validated by employing the Implicit Association Test (Greenwald, McGhee, and Schwartz), suggesting that the unconscious impact of polysemous brand slogans can be more influential than intuitively expected. (c) 2007 by JOURNAL OF CONSUMER RESEARCH, Inc..

Consumer Valuation of Modularly Upgradeable Products

Although product modularity is often advocated as a design strategy in the operations management literature, little is known about how consumers respond to modular products. In this research we undertake several experiments to explore consumer response to modularly upgradeable products in settings featuring technological change. We consider both the initial product choice (between a modularly upgradeable product and an integral one) and the subsequent upgrade decision (replacement of a module versus full product replacement). First, we show that consumers tend to discount the cost savings associated with modular upgrades excessively (insufficiently) when the time between the initial purchase and the upgrade is short (long). This suggests that modular upgradability as a product feature has higher profit potential for slowly rather than rapidly improving products. Second, we observe a preference reversal between the initial purchase and the point of upgrade: At the point of initial purchase, people foresee making a full product replacement in the future, yet, when faced with the actual upgrade decision, they are more likely to revert to modular upgrades. Finally, we discuss and test several pricing and product design strategies that the firm can use to respond to these cognitive biases. This paper was accepted by Kamalini Ramdas, entrepreneurship and innovation.