Jill Avery

Adding Bricks to Clicks: Predicting the Patterns of Cross-Channel Elasticities over Time

The authors propose a conceptual framework to explain whether and when the introduction of a new retail store channel helps or hurts sales in existing direct channels. A conceptual framework separates short- and long-term effects by analyzing the capabilities of a channel that help consumers accomplish their shopping goals. To test the theory, the authors analyze a unique data set from a high-end retailer using matching methods. The authors study the introduction of a retail store and find evidence of cross-channel cannibalization and synergy. The presence of a retail store decreases sales in the catalog but not the Internet channel in the short run but increases sales in both direct channels over time. Following the opening of the store, more first-time customers begin purchasing in the direct channels. These results suggest that adding a retail store to direct channels yields different results from adding an Internet channel to a retail store channel, as previous research has indicated.

Building brand knowledge structures: Elaboration and interference effects on the processing of sequentially advertised brand benefit claims

Two experiments are reported that examine the effects of an ad campaign designed to link two different benefit claims to a brand. The findings indicated that recall for a subsequently advertised claim depended on the strength of existing brand–benefit links in memory. If prior advertising strongly established a benefit claim in memory, then proactive interference effects inhibited the recall of subsequently advertised benefit claims unrelated in meaning. Additional analyses suggested that these interference effects appeared to be a result of difficulties with encoding the newly advertised claims. If the original benefit claim was not as strongly established in memory, however, then unaided recall of the subsequently advertised benefit claims was actually higher than if there had been no prior advertising at all. In fact, less accessible and memorable claims, whether they preceded or followed more accessible and memorable claims, enhanced recall of the stronger claims. Additional analyses suggest that these elaboration effects occurred because prior or subsequent advertising improved brand awareness and thus later brand claim recall as a result.

The Strategic Use of Brand Biographies

Purpose – We introduce the concept of a brand biography to describe an emerging trend in branding in which firms author a dynamic, historical account of the events that have shaped the brand over time. Using a particular type of brand biography, “the underdog,” we empirically show how managers can strategically use brand biographies in brand positioning, in this case to mitigate the curse of success. As brands grow and become successful, they are often marked by the negative stigma associated with size and power, which elicits anticorporate sentiment from consumers. An underdog brand biography can be strategically wielded to prevent or offset anticorporate backlash stemming from consumers’ negative perceptions of firms’ size and/or market power. Methodology/approach – Lab experiments. Findings – We find an underdog effect: consumers like and prefer brands with underdog brand biographies because they identify with them. We show that an underdog brand biography can mitigate the curse of success by making large firms more attractive to consumers. Practical implications – Firms can use brand biographies to weave compelling narratives about their brands that help protect them from negative consumer attitudes and actions. Originality/value of the chapter – Extant branding theory has a dearth of theoretical constructs and frameworks that allow for the dynamism and evolution of brands over time. Through our observation and study of emerging marketplace branding practices, we have identified a new construct, the brand biography, to complement existing theoretical frameworks for understanding brand meaning.

Adding Bricks to Clicks: On the Role of Physical Stores in a World of Online Shopping

Abstract E-commerce is gaining ground and leaving the role of traditional brick-and-mortar stores open to question. With this in mind, a team of researchers performed a case study to determine what effects the store openings of one multichannel retailer of fashion, home furnishings and high-end accessories would have on its catalog and online sales. The opening of brick-and-mortar stores had positive and negative effects for the retailer, but complementary consequences clearly outweighed sales drops in individual channels: In the short term, only catalog sales declined slightly. But over time, both the catalog and online channels increasingly benefited from the presence of the new brick-and-mortar stores. Within 79 months, catalog sales recovered to a level that would have been expected had the store never opened and subsequently continued growing more than in a sample without new stores. An enhanced understanding of both positive and negative cross-channel effects helps retailers better anticipate and respond to changes in sales in existing channels when a new one is added. It is the basis for strategically managing a company’s channels as a portfolio rather than as separate entities.

Contemplating the futures of branding

The creation and implementation of an intended brand personality has become a prevailing topic, both for practitioners and researchers. Especially in luxury industry, where brands hold a strong symbolic meaning, marketers are faced with the challenge of successfully establishing an intended brand personality and turning it into a realized brand personality among consumers. However, research identifying drivers for successful brand personality implementation is scarce. Therefore, the aim of this chapter is to first identify factors which influence duality of the brand personality concept by accounting for both the intended and the realized brand personality perspective and factors that influence the fit between the two perspectives. Second, we will focus specifically on brand personality implementation strategies that involve the interplay between strategic considerations of brand managers, the corresponding implementation activities, as well as the customer’s perspective. We will integrate the results of an exploratory qualitative study that compiled interviews with luxury marketing managers in Switzerland.