Abstract
Abstract The purpose of this study is to evaluate the effects of information on consumer adoption when introducing a new beef brand to the Vietnamese markets. Three variables proxy the impacts of information are prior knowledge, usage experience, and price. This study developed three pieces of advertised information and combined them with three levels of price to indicate the relevant information to diffuse at the introduction of a new brand. Three kinds of information include: (1) distinction information, which defines a new brand to be distinct from existing competitive brands; (2) differentiation information, which identifies a new brand to be different from one existing brand; (3) similarity information, which defines a new brand to be similar to one existing brand. The survey was conducted via direct interviews with 480 customers at the food outlets in Ho Chi Minh City, Vietnam. The ordered logit model was applied to examine the influence of each kind of information on consumer preferences for a new beef brand. The results indicated that (1) the effect of information on consumer adoption for a new brand at early stage depends on how that information defines the new brand in consumers’ perception; (2) the distinction information generates the highest economic added value; (3) the similarity information creates the information bias at introduction; (4) the usage experience can be diagnostic for the information bias.
Highlights
One major problem with a new brand/product introduction is information asymmetry due to the knowledge gap between marketing agencies and consumers (Rogers, 2003)
We investigated the case of Japanese Wagyu beef (JPW) in the Vietnamese market
Three levels of price were applied randomly for Japanese Wagyu beef comprising 500,000 VND (n=161), 650,000 VND (n= 162), and 800,000 VND (n=157), while the price of other beef items was kept at constant: Australian beef at 200,000 VND; American beef at 300,000 VND; Australian Wagyu beef at 450,000 VND; and Kobe beef at 1,000,000 VND
Summary
One major problem with a new brand/product introduction is information asymmetry due to the knowledge gap between marketing agencies and consumers (Rogers, 2003). Firms should launch the appropriate marketing communication program to shorten the knowledge gap and to enhance the learning process of consumers about the new brand or product. The information processing is the major period in consumer buying model Understanding this process provides marketing agencies with a lot of benefits, especially the relevant information in diffusion to reduce the failure rate at the early stage. Nicosia (1966), the first scholar developed the consumer-buying model for a new product, expressed the importance of information in the adoption process. Inconsistency, Schiffman and Kanuk (2007) developed the multi-stage adoption process of consumers for a new brand/product. Theories have stated the role of information at introduction stage, there is a lack of studies to quantify its impacts as well as to apply the theoretical models in a particular marketing situation
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
