Dwane Hal Dean

Developing and validating measures of facets of customer-based brand equity

Abstract This article presents four studies that develop measures of “core/primary” facets of customer-based brand equity (CBBE). Drawing from various CBBE frameworks, the facets chosen are perceived quality (PQ), perceived value for the cost (PVC), uniqueness, and the willingness to pay a price premium for a brand. Using numerous advocated scale developmental procedures, the measures of these facets showed evidence of internal consistency and validity over 16 different brands in six product categories. Results also suggest that PQ, PVC, and brand uniqueness are potential direct antecedents of the willingness to pay a price premium for a brand, and that willingness to pay a price premium is a potential direct antecedent of brand purchase behavior.

Consumer Reaction to Negative Publicity Effects of Corporate Reputation, Response, and Responsibility for a Crisis Event

Corporate crises often result in negative publicity, threatening the image of the company. The present study investigated the effects of company reputation for social responsibility prior to a crisis event, response to a crisis event, and responsibility for the event on overall consumer regard for the firm. The study is, in part, an experimental test of image restoration strategies conceptualized in the literature. Each of the three factors was found to exhibit a significant main effect. For the crisis scenario used in this study, responsibility explained the largest proportion of variance and response explained the least. An unexpected finding was that an inappropriate response by a “bad” company resulted in an increase in regard toward the firm, whereas the same response by a “good” company resulted in a decrease in regard for the firm.

Brand Endorsement, Popularity, and Event Sponsorship as Advertising Cues Affecting Consumer Pre-Purchase Attitudes

Abstract The ability of three advertising cues—third-party product endorsement, brand popularity, and event sponsorship—to affect consumer perceptions with regard to product quality, uniqueness, manufacturer esteem, and corporate citizenship is the focus of this study. A factorial experimental design, with cue level as either present or absent, yields eight cells with a total of 185 respondents. Results suggest significant main effects for both endorsement and sponsorship cues, with endorsement affecting perceived quality, uniqueness, and esteem, and sponsorship affecting only citizenship. The popularity cue lacks a significant main effect. The three cues do not significantly interact with each other.

Associating the Corporation with a Charitable Event Through Sponsorship: Measuring the Effects on Corporate Community Relations

Abstract On the basis of balance theory, corporate sponsorship of a well-liked charitable event is hypothesized to result in significant enhancement of consumer-perceived corporate community relations. However, on the basis of attribution theory, it is proposed that subjects would employ negative attributions (i.e., corporate self-interest) to explain the sponsorship. Furthermore, it is hypothesized that a structural equation model of charitable event sponsorship will show a significant negative path leading from the negative attributions construct to the outcome construct. As predicted, event sponsorship resulted in a significant enhancement of corporate community relations. However, the hypothesized path was not significant. The effects of sponsorship linkage on the outcome variable were largely mediated through the positive attributions construct.

Third-Party Organization Endorsement of Products: An Advertising Cue Affecting Consumer Prepurchase Evaluation of Goods and Services

Abstract Advertisements containing product endorsements by a third-party organization (TPO), product endorsements by a celebrity, or no endorsement were compared for their ability to affect the dependent variables of perceived product quality, attitude toward the manufacturer, purchase risk, and information value of the ad. In addition, prior brand evaluation and source (endorser) trustworthiness were tested as moderators of the endorsement effect. In two factorial experiments, one for a desktop computer and one for auto insurance, significant main effects were found for endorsement and brand but not for trustworthiness. Brand interacted with endorsement in the quality perception of computers. In both experiments, TPO endorsement was particularly effective in enhancing respondent perceptions of product quality. It is concluded that TPO endorsement may function as an extrinsic quality cue in advertising.

Consumer Evaluation of Low Price Guarantees: The Moderating Role of Reference Price and Store Image

This article reports the findings of 2 studies that examined the effects of low price guarantees (LPG) in retail advertisements within the framework of signaling theory. Overall, an LPG in an ad resulted in higher value perceptions and shopping intentions. Findings also suggest that the effect of an LPG is likely to be moderated by other price cues such as reference prices and by the price image of the store. An LPG resulted in higher value perception and shopping intention when reference prices were low or absent, but lowered search intention in the presence of a high reference price. Additional findings suggest that intention to search for a better price was lower, particularly when an LPG was offered by a low price image store. For high price image stores, an LPG increased value perceptions and shopping intentions, while also increasing search intentions, indicating the possibility that LPGs can act as a double-edged sword in certain instances. Managerial and public policy implications are also noted.

Evaluating potential brand associations through conjoint analysis and market simulation

A novel method for evaluating the benefits of a potential brand association is presented. The uniqueness of the method is considering brand association as just another product attribute, subject to the usual analysis used to determine the attributes desired by consumers in a new product. The method was illustrated using automobile tires as the product, and designation of the tire as the “Official” tire of NASCAR as the brand association. A set of tire profiles was created, describing hypothetical tires as combinations of levels of five attributes. Subjects ranked these profiles for preference, and this preference was decomposed through conjoint analysis to yield part‐worths for each attribute level for each subject. Association with NASCAR had an average impact of 14.8 percent on consumer preference, comparable with that of speed rating (13.8 percent), and not much below that of brand (20.5 percent). Rudimentary market simulation suggested that associating the underdog tire brand with NASCAR would result in dramatically improved market share. Evaluating potential brand associations by their simulated effects on market share may be a useful managerial tool.

An Assessment of Low Price Guarantee Signals: A Process Model of Consumer Evaluations

This article reports the findings of a study that examines the effects of low price guarantees (LPG) in retail advertisements within the frameworks of signaling theory (Spence 1974) and economics of information (Stigler 1961, Urbany 1986). A low price guarantee may be defined as a policy where a retailer offers the lowest possible price for a product or a group of products and promises to match or better any lower price found in the local market. The promise normally includes a provision to refund the difference between the seller’s offer price and the lower price. The guarantee may also include a self-imposed penalty for not having the lowest price.