Subodh Bhat

Symbolic and functional positioning of brands

Some brand strategists have distinguished between symbolic and functional brands, i.e. brands that basically satisfy consumers’ functional or product‐related needs and brands bought to enhance self‐ or social esteem. It has been suggested that brands should be positioned as either functional or symbolic but not both. However, empirical research on the dimensionality of brand symbolism/functionality has been lacking. In this study, scales were developed to assess a brand’s symbolic or functional association with consumers. Subsequent data analysis suggests that brand symbolism and functionality are separate phenomena and, further, that symbolism comprises two dimensions, termed prestige and personality expression. Thus, contrary to current thinking, it seems that brands can be successfully positioned as both symbolic and functional and, if a symbolic brand concept is desired, prestige or upscaleness is just one of the possible positioning options available.

To extend or not to extend: Success determinants of line extensions.

The authors study the determinants of line extension success using data on 75 line extensions of 34 cigarette brands over a 20-year period to investigate the relative effects of brand, extension, a...

Predicting new venture survival: An analysis of "anatomy of a start-up." cases from Inc. Magazine

Abstract This article tests the insights and predictions of venture success as offered by reporters and experts in Inc. magazine, to the predictions generated from an analysis of data from a venture screening questionnaire. The venture screening questionnaire, consisting of 85 items covering four broad categories: (1) Individual Characteristics; (2) Entrepreneurial Behaviors; (3) Strategy; and (4) Environment, was used to evaluate 27 “Anatomy of a Start-up” articles from Inc. magazine. The creation of the questionnaire was guided by the following premises: Individual Characteristics. We hypothesized that the chances of venture survival would be improved if: (1) entrepreneurs had substantial knowledge and ability at the beginning of the start-up story; (2) entrepreneurs gained knowledge and ability during the start-up process; and (3) entrepreneurs continued to demonstrate substantial knowledge and ability at the end of the start-up story. Entrepreneurial Behaviors. We hypothesized that entrepreneurs who expended more effort in any of the following activities would be in new ventures that survived compared to entrepreneurs who expended less effort: Finding and Refining the Opportunity —comprised of 9 different activities, such as, defining the purpose of the business, planning, analyzing competitors; Acquiring Resources and Help — comprised of 15 different activities, such as, finding investors, getting advice from lawyers, getting a loan, acquiring technical expertise; Operating the Business —comprised of 5 different activities, such as, dealing with distributors, managing the day to day operations of the business; Identifying and Selling to Customers —comprised of 5 different activities, such as, identifying specific customers to sell to, selling to customers, managing sales channels; Outside of the Business Issues —comprised of 4 different activities, such as, dealing with family problems, spouse, and friends. Strategy and Environment. The strategy and environment variables were characteristics requiring comparisons of the relative performance of new firms vis-a-vis other competitors and their industry characteristics, much like the questions used in PIMS research: first to entry, degree of innovation, rate of industry growth, size of market, relative price, and relative quality. There were 28 questions in this section of the instrument. We hypothesized that niche oriented strategies and high growth environments might be strategy and environmental characteristics common to startups that survived. In total, there were 85 questions that comprised the venture screening questionnaire. New Venture Survival. The measure of new venture survival for this study was a determination of whether the new venture described in each Inc. magazine article (Longsworth 1991) was still in operation as of January 1995. This date is nearly 4 years after the last case study that we analyzed was published (September 1990), and nearly 7 years after the first case study was published (February 1988). We were able to determine that of the 27 new ventures profiled in the “Anatomy of a Startup” series published in Longsworth (1991) , 17 of these ventures were still in operation. A discriminant analysis was performed that resulted in seven variables that correctly classified 85% of the cases into new venture survivors or non-survivors. New ventures that survived were more likely to have: (1) entrepreneurs who gained knowledge and ability during the founding process; who devoted greater efforts to (2) dealing with suppliers; (3) analyzing potential new entrants and who (4) devoted less time to determining the identity of the business; businesses that had (5) “fundable” resource requirements (6) focused on products or services that were designed or produced to order; and (7) were in high growth industries. The classification accuracy of the model was much better than industry experts (55% correct), competitors (55% correct), venture capitalists and financiers (40% correct), and customers (38% correct). Even though the discriminant analysis was better able to predict venture survival or non-survival compared to the experts, there are significant limitations to the reliability and validity of this one particular model, and the data set used. The primary value of this exercise involves making obvious the variables that observers use to make judgments about predicting venture success. One of the frustrations we experienced in analyzing the expert’s predictions was our inability to glean consistent and general “rules of thumb” about new venture success from their observations. We conclude by discussing the value of academic research on new venture success predictors vis-a-vis other avenues of inquiry and expertise: popular journalism and practice.

Opportunity Recognition: An Exploratory Investigation of a Component of the Entrepreneurial Process in the Context of the Health Care Industry

In this study we build upon a conceptualization of part of the entrepreneurship process that is frequently labeled “entrepreneurial attitude orientation.” This study uses a contextually rich conceptualization of a new exploratory measure, “entrepreneurial opportunity recognition” (EOR), that is modeled after the attitudinal approach used by Robinson, Stimpson, Huefner, and Hunt (1991). The study also uses a relatively unexplored industry context, the change-charged health care industry, to explore the potential of this new scale to correctly classify entrepreneurs from non-entrepreneurs. Results suggest a promising potential for the EOR and the attitude approach in entrepreneurship research.

The reciprocal effects of extension quality and fit on parent brand attitude

The evidence for the reciprocal effects of a brand extension on its parent brand is unclear. An experiment was conducted to investigate the impact of an extensions quality, its fit with the parent brand, and parent brand dominance, on parent brand evaluation. The paper finds that extension quality and fit did not dilute parent brand attitude; in other words, an extension either left parent brand attitude unchanged or enhanced it moderately. The only effect of brand dominance was that it enhanced parent brand attitude when the extension was a good fit. Further, the introduction of an extension, regardless of its fit or quality, enhanced parent brand attitude for a durable product relative to a control group. It seems that parent brand attitudes are held strongly enough to resist the new information that is associated with a newly introduced brand extension.

An investigation of jeopardy effects in store choice

Abstract This study examines double jeopardy effects in store choice and explores the phenomenon of triple jeopardy in the same context. Analysis of IRI household panel data revealed modest evidence that relative to large stores, small stores, ie those with low sales volumes, have fewer customers who visit them less often (double jeopardy) and spend less per visit (triple jeopardy). Asymmetry of familiarity, generally offered as an explanation for double jeopardy, cannot explain triple jeopardy. A partial explanation for both jeopardy effects in the context of store choice may lie instead in the relatively small range of product offerings at small stores. Managerial implications of these findings are offered.

An investigation of consumer reactions to the use of different brand names

We examined consumer reactions to new products introduced under four different brand naming scenarios. The results suggest that when consumers see a high degree of fit between the new product and the existing brand, brand extensions, sub‐brands, and nested brands are about equally preferred. But when consumers perceive little fit, a new brand name is the most preferred, followed by nested brands, sub‐brands, and extensions, in that order.

Version 6.0.1, Anyone? An Investigation of Consumer Software Upgrading Behavior

Software upgrades are unique “modular” products in that they are neither new nor are they repeat purchases. This study sought to identify consumer attributes related to their upgrading likelihood for word processing and spreadsheet software used at home. Surveys incorporating questions related to the study were given to a sample of individual consumers. Individuals more likely to upgrade software tended to be those who 1) attached symbolic or status value to upgrading, 2) perceived themselves to be software experts, or 3) found the upgraded software to be of great value relative to the cost of upgrading. Females showed a greater inclination to upgrade than males. Managerial implications of these findings for targeting, segmentation, positioning, and promotion are also discussed.

Does communicating corporate parent brand heritage help spin‐off stock performance?

Purpose – The purpose of this paper is to examine whether communicating a corporate parent brands heritage in the form of the name, slogan or other reference helps a corporate spin‐off increase its post‐divestiture stock market value.Design/methodology/approach – The authors collected stock market valuation data on spin‐offs in the USA during the period 1992‐2004 both on the spin‐off date and a year from that date and compared the change in the spin‐offs stock market valuation to a change in a broad stock market index, the S&P 500.Findings – It was found that a spin‐off did not outperform a broad market index over the one year after divestiture. Second, spin‐offs that relied on parent brand heritage did not outperform those that did so. Third, using a parent brands name, a more direct reference to parent brand heritage, did not result in higher spin‐off valuation than using other parent identifiers such as tag lines or slogans.Research limitations/implications – A major implication of the findings is t...