Consumer Brand Preferences Research Articles

The Impact of Mergers and Acquisitions on Brand Equity: A Structural Analysis

An overlooked strategic benefit of mergers and acquisitions (M&As) is their impact on brand equity. M&As may affect consumer brand preferences, which in turn will affect a firm’s profit. We develop a structural model with a difference-in-differences specification to measure how M&As affect a firm’s profit through three mechanisms: brand equity, cost synergies, and product portfolios. We analyze Lenovo’s acquisition of IBM’s PC division in China’s PC market and find that the increase in brand equity contributed the most to increasing Lenovo’s profit, followed by cost synergies. To explore the generalizability of our modeling approach, we apply it to Geely’s acquisition of Volvo and also find that the gains in brand equity contributed the most to Geely’s profit increase.

A study on consumers brand preference towards purchasing car in tirunelveli district

The consumer attaches considerable importance to the brand image in the purchase of products.Several branded cars are sold in Tirunelveli. There is cut turn out competition among manufacturing companies.Therefore every company has to make a study about the psychology of consumers and their attitude towardsbrand preference of cars. There fore studying psychology of consumers and to recommend to the companies about the consumers brand preference towards cars was taken by the researcher. Hence there is strong competition among sellers. The necessity arrives among these forms to conduct a study about consumer brandpreference. The researcher realizing their necessity and understanding the present problem, undertaking this study and wants to give suggestion for this problem in his findings at the last.

Approaching the best while avoiding the worst option: Consumer choice modeling via TOPSIS

Multi-attribute decision-making models are often employed for assessing consumer brand preferences. We introduce Hwang and Yoon’s (1981) Technique for Order Performance by Similarity to Ideal Solution (TOPSIS) methodology from the field of decision sciences and empirically contrast it with Fishbein’s (1967) Multi-Attribute Attitude Model that is widely used in marketing. The Fishbein model assesses brand preferences by combining attribute belief ratings with their importance weights, while TOPSIS evaluates brands by optimizing their distances from positive and negative ideal solutions—a framework consistent with behaviors instigated by approach-avoidance motivations. The advantages and suitability of the TOPSIS method within consumer research are discussed.

Investigating brand preferences across social groups and consumption contexts

Using a unique dataset on U.S. beer consumption, we investigate brand preferences of consumers across various social group and context related consumption scenarios (“scenarios”). As sufficient data are not available for each scenario, understanding these preferences requires us to share information across scenarios. Our proposed modeling framework has two main building blocks. The first is a standard continuous random coefficients logit model that the framework reduces to in the absence of information on social groups and consumption contexts. The second component captures variations in mean preferences across scenarios in a parsimonious fashion by decomposing the deviations in preferences from a base scenario into a low dimensional brand map in which the brand locations are fixed across scenarios but the importance weights vary by scenario. In addition to heterogeneity in brand preferences that is reflected in the random coefficients, heterogeneity in preferences across scenarios is accounted for by allowing the brand map itself to have a discrete heterogeneity distribution across consumers. Finally, heterogeneity in preferences within a scenario is accounted for by allowing the importance weights to vary across consumers. Together, these factors allow us to parsimoniously account for preference heterogeneity across brands, consumers and scenarios. We conduct a simulation study to reassure ourselves that using the kind of data that is available to us, our proposed estimator can recover the true model parameters from those data. We find that brand preferences vary considerably across the different social groups and consumption contexts as well as across different consumer segments. Despite the sparse data on specific brand-scenario combinations, our approach facilitates such an analysis and assessment of the relative strengths of brands in each of these scenarios. This could provide useful guidance to the brand managers of the smaller brands whose overall preference level might be low but which enjoy a customer franchise in a particular segment or in a particular context or a social group setting.

Antecedents of brand preference for mobile telecommunications services

PurposeThis paper aims to report on a study into the antecedents of consumer brand preference, in the context of telecommunications service brands in Jordan.Design/methodology/approachA questionnaire‐based survey was used to gather attitudes towards brand preference and its antecedents in the context of mobile telecommunications service providers in Jordan. The questionnaire was distributed, in Arabic, to university students in Jordan, a group selected as being active users of mobile phone services; 648 completed questionnaires were received. Data were entered into SPSS. Principal component analysis (PCA) was applied to identify the antecedents of brand preference. Multiple regression was conducted in order to investigate the relative impact of the identified factors on brand preference.FindingsFactor analysis identified 11 antecedents of brand preference; these can be theoretically clustered into three groups: awareness antecedents (controlled communication (advertising), and uncontrolled communication (publicity, word of mouth)); image antecedents (service value attributes (price, quality), provider attributes (brand personality, country of origin, service (employee + location)), and corporate status (corporate image, corporate reputation)); and, customer attribute antecedents (satisfaction, perceived risk, and reference group). Multiple regression showed the contribution of each of these antecedents to brand preference.Originality/valueThis paper contributes to theorise by proposing and testing one of the first holistic models to integrate consideration of many of the antecedents of brand preference.

A Study on Consumer Brand Preference on the Consumption of Cooking Oil of Various Income Groups in Chennai

Indian markets from low-involvement to high-involvement product categories have been experiencing sweeping changes in the past decade. Changing lifestyles, fragmented market segments and consumer preferences, and intense competition from the brands of multinational corporations (MNCs) have made branding strategies a prerequisite for marketing success. India has been going through radical changes in the marketing arena in the last decade. Globalization in terms of multinational corporation (MNC) brands entering Indian markets, the emergence of young professionals in urban areas, the opening up of luxury and leisure markets, the impact of mass media and the influence of Westernization are some of the critical aspects which have forced Indian marketers to adopt branding strategies. These strategies have been formulated against the backdrop of an Indian culture which is strongly entrenched in the consumer psyche, and amidst changes in the social environment. Each year, India consumes over 10 million tonnes of edible oils. Edible oils have a high penetration of 90% in India. However, per capita consumption of edible oils is around 11 kg per year. The Indian edible oil market is the world’s fourth-largest after the USA, China and Brazil. A growing population, increasing rate of consumption and increasing per capita income are accelerating the demand for edible oil in India. This paper analyses the trend in edible oil consumption and also attempt has been made by the researcher to assess the consumer behavior on consumption of edible oils from various income groups. In India, most vegetable oil is purchased by household or industrial buyers (food processors, restaurants and hotels) for frying or baking needs and is sold as loose oil or vanaspati (partially hydrogenated vegetable oil). Only a small percentage of edible oils are sold in branded form at the retail level. Therefore Efforts will be made by the researcher to find out what kind of edible oil people consume, since there are varieties of edible oil like Palm oil, soya bean oil, mustard oil, groundnut oil, rice barn, and cotton seed oil and so on. For this purpose the researcher would be undertaking a survey taking using a pre planned structured questionnaire to test the influence factors of the customers to buying a particular brand of oil, to buy particular edible oil, amount of consumption, point of purchase and so on. Cluster sampling technique will be followed as customers of edible oil from high income, middle income and low income will be considered for this study. Based on the responses the researcher will have an idea about the fastest moving and the most preferred brand of edible oil , choice of a particular variety of edible oil , amount of consumption of edible oil and so on , most importantly all these information will be gathered based on the demographic profile of the consumers based on income composition .

Religiosity and consumer behavior of older adults: A study of subcultural influences in Malaysia

Abstract Although differences in consumption patterns across countries are often inferred to be the result of different cultural values and religious orientations, they raise issues of validity because of the many country‐specific factors that may affect behavior. Furthermore, the effects of religiosity are confounded with those of variables that are associated with religiosity such as age. This paper examines the effects of religiosity on well‐being and changes in consumer preferences of 645 adults age 50 and older living in different regions of Malaysia who were surveyed via personal interviews. The results confirm the positive effects of religiosity on well‐being but show differences across the three main ethnic subcultures of Malaysia (Malays, Indians, and Chinese), and they provide little support for the hypotheses that the consistency of consumer brand and store preferences is influenced by religious values. It is suggested that the relationship between religiosity and consumer behaviors warrants additional research, focusing also on variables that relate to religiosity, method of analysis, and on mechanisms that link religiosity to consumer behaviors. Copyright © 2011 John Wiley & Sons, Ltd.

On congruence between brand and human personalities

PurposeThe purpose of this research paper is to uncover the relations between brand and human personality by identifying brand preferences of consumers with different personality types.Design/methodology/approachBased on the existing literature, 15 propositions are suggested linking Ekelund's DI types as parsimonious proxies of human personality and brand personality dimensions as suggested by Aaker. Propositions were tested through statistical analysis of survey data collected in two stages.FindingsIt was found that consumers prefer brands with personalities that match their own. For example, consumers with Blue DI type exhibit clear aversion from the excitement dimension of brand personality, whereas consumers with Red DI type exhibit clear preference for the sincerity dimension of brand personality. No clear findings emerged concerning the Green DI type, mostly likely linked to the individualistic, non‐conformist and innovative orientations of such individuals. In addition data revealed a possible hierarchy of brand personality dimensions' influence.Practical implicationsFindings provide guidelines for better tailoring of promotional materials based on target customer groups, as well as the ability to evaluate underperforming brands in terms of a brand‐human personality mismatch.Originality/valueThe paper fills a gap in the literature about the congruence between brand and human personalities, and demonstrates how brand personality dimensions impacts brand preference among different consumer types.

Competitive Non-linear Pricing and Bundling

We examine the impact of multiproduct nonlinear pricing on profit, consumer surplus and welfare in a duopoly. When consumers buy all their products from one firm (the one-stop shopping model), nonlinear pricing leads to higher profit and welfare, but often lower consumer surplus, than linear pricing. By contrast, in a unit-demand model where consumers may buy one product from one firm and another product from another firm, bundling generally acts to reduce profit and welfare and to boost consumer surplus. In a more general model where consumers may buy from more than one firm and where consumers have elastic demands for each product, nonlinear pricing has ambiguous effects. Compared with linear pricing, nonlinear pricing tends to raise profit but harm consumer surplus when: (i) demand is elastic, (ii) there is substantial product differentiation, (iii) there is substantial heterogeneity in consumer demand, (iv) consumers face substantial shopping costs when visiting more than one firm, and (v) a consumer's brand preference for one product is strongly correlated with her brand preference for another product. Nonlinear pricing is more likely to lead to welfare gains when (i), (ii), (iv) and (v) hold, but (iii) does not.

Latent segmentation using store‐level scanner data

Purpose – The purpose of this paper is to incorporate explicitly consumer heterogeneity into market response models estimated with store‐level scanner‐data.Design/methodology/approach – Latent structures in market response to a product category using aggregated scanner data registered by a supermarket are identified. Specifically, latent consumer segments with diverse preferences towards brands and different responses to marketing stimuli from data consisting of daily marketing actions (i.e. price, promotions, advertising, etc.) and sales of competing brands are identified.Findings – The existence of different latent segments with diverse preferences and response patterns to marketing stimuli were detected. More specifically, the fit of the statistical analysis for the different model possibilities made it possible to identify four market segments. It was also found that the intrinsic brand attractiveness as a measure of consumer brand preference is different between segments. Finally, the price sensitivi...

Brain activity correlates of consumer brand choice shift associated with television advertising

This study uses brain activity measures to examine the relationship between television advertising and changes in consumer brand preference. Prior to and after viewing a television programme that included grocery advertisements 198 right-handed females selected six ‘door prizes’ from six grocery categories. One of the advertisements featured a jam that was available as a door prize. Steady-state topography (SST) was used to estimate brain activity at eight scalp sites, including left and right lateral prefrontal sites previously shown to index the strength of long-term memory (LTM) encoding. Our hypothesis, that lateral prefrontal activity would be higher during branding for the 18 participants who shifted to the advertised jam compared to those consistently selecting the competitor jam, was confirmed, but only for the left hemisphere. Our findings suggest that SST activity at lateral prefrontal sites during television advertisement branding may be a useful indicator of advertising effectiveness.

Capturing Consumer Preferences and Interests in Developing a State Plant Promotional Program

Two separate studies using intercept survey methodology were conducted to define the components of a state plant promotional program—Pennsylvania Gardener Selects (PGS)—based on consumer preference and appeal. The first study, conducted 6 and 7 Mar. 2003 at the Philadelphia Flower Show in Philadelphia, Pa., involved 243 Pennsylvanians. Objectives were to define current gardening-related shopping habits, sources of gardening information, motives and limitations for pursuing gardening, and history of purchasing other Pennsylvania products. Responses were analyzed using cluster analysis to identify consumer–gardener segments that would potentially purchase PGS plants. Three distinct consumer segments were generated: “Novice Gardeners” (consumers with limited experience in gardening), “Casual Gardeners” (consumers with limited confidence in their gardening knowledge), and “Avid Gardeners” (consumers who express great interest in gardening). “Avid Gardeners” exhibited a greater level of interest in purchasing plants evaluated for Pennsylvania (average response, 6.5; based on a scale of 1 to 7, where 1 is very unlikely and 7 is very likely), with 73% indicating that they had purchased Pennsylvania products; hence, they were a potential market for PGS plants. The second study, conducted 8 to 10 Mar. 2004 at the Philadelphia Flower Show involved 250 Pennsylvanians. Objectives for this study were to define consumer brand and product preferences, including container colors for the PGS program, plant tag style/color, and retail price (based on a scale of 1 to 7, where 1 is very unlikely to purchase and 7 is very likely to purchase), as well as brand attributes these consumers valued. Responses were analyzed using conjoint analysis. Participants awarded the highest utilities to the white container with a black-and-white PGS logo (0.1149), keystone-shaped tag with color image and PGS logo (0.1099), and a retail price of $1.98 (0.4751). Spearman's rho was used to identify relationships among existing and related brand attributes. Correlations between participants’ response to brand attributes, including locally grown, ideal for local conditions, quality assurance, and independent testing program, as well as plant guarantee and publication with gardening tips, suggest that promotional materials should emphasize and include these qualities. Results from these studies indicate that there is interest in a state plant promotional program for Pennsylvania. To use resources wisely, consumers classified as “Avid Gardeners” would be the most appropriate to target first. To attract consumer attention and encourage purchasing at a retail outlet, containers and plant tags should have distinctive colors, and brand attributes and resulting consumer benefits should be emphasized on promotional materials.

The Brand Choice Model of Wine Consumers: A Multinomial Logit Model

The objective of this study is to determine factors influencing brand preferences of wine consumers in the Marmara region where viniculture and wine production is so important in Turkey. First, the consumers’ preferences survey has been conducted with 1022 persons in the region randomly selected and evaluated. Then, the informative factors influencing brand preferences collected in these surveys have been determined by the multinomial logit model. A lot of independent variables have been used in the multinomial logit model, but, because some independent variables were not found as significant according to Likelihood Ratio test, these variables are not included in the multinomial logit analysis. Six important factors influencing wine brand preferences have been determined. These factors are brand change causes of consumers, occupation of consumers, marital status of consumers, birthplace of consumers, income of consumers and gender of consumers. In addition, whether the wine brand preferences are independent, has been tested with Testing Independence of Irrelevant Alternatives of Hausman. According to this test, it has been found that the wine brand preferences are independent.

The Influence of Advertising on Consumer Brand Preference

The proliferation of assorted brands of food drinks in the country has led to cutthroat competition for increased market share being witnessed among the operators in the food drink industry. When c...

Promoting brand benefits: the role of consumer psychographics and lifestyle

Because consumers can vary greatly in their value composition, they may seek a range of different benefits from products and brands and hence will react differently to marketing communications emphasizing selected brand benefits. The present study adapts a scale for measuring benefits that drive consumer preferences for craft beer. As part of this process, five dimensions of utility are identified, such as functional, value for money, social, positive and negative emotional benefit. In order to support decisions on market segmentation and brand positioning, those dimensions of benefit are profiled against consumer brand preferences, lifestyle segments, demographic and behavioral variables. Based on the results, guidelines for communication strategies are offered that address the benefits sought by specific segments more holistically.

The Influence of Pioneer Status and Experience Order on Consumer Brand Preference: A Mediated-Effects Model

Within the behavioral literature, two basic explanations of the pioneering advantage have been offered. Early work focused on order-based explanations. More recently, schema-based explanations have also been suggested. The authors propose a mediated-effects model of the pioneering advantage and test the model in two separate longitudinal studies. Both experiments support the proposed model. The authors find that experience order and pioneerstatus have additive effects on brand preference such that perceptions of first-in-market and first-experienced brands are more favorable, suggesting that both explana tions are operative. The authors also provide evidence that the effects of pioneer status on brand preference are medi ated by attitude toward the brand and company credibility, while the effects of experience order on brand preference are mediated by attitude toward the brand and attribute re call. These data support the notion that the effect of pio neer status on brand preference is the result of both brandlevel and company-level associations.

Segmenting customer brand preference: demographic or psychographic

A multi‐segmenting methodology is proposed for comparing the segmenting capabilities of segmentation variables and providing complete market segmentation information. Demographic and psychographic variables based on the differentiation of consumer brand preference were used to elicit the characteristics of market segments. In a comparative evaluation, the multi‐combination variables of demographic segmentation exhibited market‐segmenting capabilities equivalent to those of psychographic segmentation. The purpose of this research is utilizing multiple segmentation variables to identify smaller, better‐defined target sub‐markets for enhancing business competitive advantages.

The Influence of Brand Associations on Brand Preference and Purchase Intention

This study examines the preferences and purchase intentions of young South-east Asian consumers. Specifically, the study focuses on the non-product brand associations proposed by Keller (1998) and tests their effects on brand preference rating and purchase intentions toward different brands of fashion apparel. Data were gathered in Singapore via a self-administered survey and the results indicate differential effects of brand associations such as price perceptions, brand personality, brand-elicited feelings, self-image and brand-user-image congruency on consumer brand preferences and purchase intentions.

MEMBANGUN PREFERENSI MERER MELALUI PEMAHAMAN TERHADAP KEPRIBADIAN KONSUMEN

Consumer brand preference related to many factors which one is consumer personality. Under consumer behavior studies, personality means personel characteristic which determines and reflects how someone's respons to the environments. Personality theory which relevant to study the consumer behaviour are Freudian Theory, Neo Freudian Theory, and Trait Theory.A consumer tend to choose a specific product or brand which suitable which exiting aspects on his/her self personality. Beside that, they prefer to choose product or brand which can be used to enforce personality element for being confidence.The implementation of personality aspects weer focused on market segmenting that classified based on its personality. Market segmenting based on personality approach has advantage value on the product, because according that the company can promote its product based on its consumer personality which can build brand preference. Here, if the company can succesfully build brand preference, it will have impact on sales and consumer's loyalty.

Customer Poaching and Brand Switching

Firms sometimes try to poach the customers of their competitors by offering them inducements to switch. We analyze duopoly poaching under both short-term and long-term contracts assuming either that each consumer's brand preferences are fixed over time or that preferences are independent over time. With fixed preferences, short-term contracts lead to poaching and socially inefficient switching. The equilibrium with long-term contracts has less switching than when only short-term contracts are feasible, and it involves the sale of both short-term and long-term contracts. With independent preferences, short-term contracts are efficient, but long-term contracts lead to inefficiently little switching.