Demand-Side Economies of Scope in Big Tech Business Modelling and Strategy

The purpose of the paper is to discuss the issue of economies of scope in platform research and to attract attention to the importance of scope economies for the strength and growth of Big Tech corporations. Hitherto, most attention has been on network effects and demand-side economies of scale, on the role of platforms in lowering transaction costs, and on the importance of big data. More specifically, the research question addressed in this paper is how economies of scope, driven by the demand side, contribute to the strength of successful Big Tech corporations. The answer is related to two aspects: one is concerned with bundling of services and products, and the other with the acquisition and processing of data on users and their activities using digital services and applications

Brand Inertia in Seed Demand: State Dependence and Heterogeneity

A commonly observed feature of differentiated product markets is brand inertia, the tendency of consumers to purchase brands they have purchased in the past. In this paper, we develop and estimate a micro-level random coefficients logit model to study two competing explanations of brand inertia, state dependence and heterogeneity, in the U.S. soybean seed industry. Specifically, heterogeneity is captured by brand-specific random coefficients and state dependence is incorporated through a brand purchase history variable. We further deal with two important issues in the identification: we apply a correction to the initial conditions problem similar to the procedure outlined in Wooldridge (2005); and to deal with price endogeneity, we use the control function approach in our nonlinear regression environment. The model is estimated using a large dataset of more than 200,000 seed purchase decisions by roughly 28,000 farmers over the period 1996-2016. We find that state dependence and heterogeneity are both important features of seed demand. On average, farmers are willing to pay (WTP) an additional $6.77/unit for a brand if it was purchased in the previous period, equivalent to about 15% of the average retail price. We also find that farmers are willing to pay large premiums for brand labels and the glyphosate tolerance (GT) technology, however there is considerable heterogeneity in this willingness. To investigate the implications of state dependence, especially as it relates to the introduction and diffusion of the GT innovation, we simulate several counterfactual scenarios (with/without state dependence and/or the GT technology). Our simulations show that state dependence has little effect on the diffusion of the GT technology, but it functions as a cushion for the structural benefits brought about by the innovation—it reduces the gains/losses in brands’ market shares. We also show that there is an “early adoption” advantage associated with the marketing of the GT trait, which is reinforced by state dependence

Economic rationale behind differences in the composition of seemingly identical branded food products in the Single Market

This report presents the results of a review of the economic literature about the problem of Difference in Composition of Seemingly Identical Branded Product (DC-SIP). The problem is also referred to as dual quality. Academic literature about DC-SIP is almost non-existent. Consequently, this report focuses on contributions that are indirectly related to the topic and yet are able to foster an understanding of the economic principles of DC-SIP. The report provides a conceptual analysis in order to explain the rationale for brand owners to use DC-SIP practices and policy related issues; it does not bring empirical evidence as it is not available in the literature.JRC.D.4-Economics of Agricultur

Emotional antecedents of customer loyalty in the formal retail industry of South Africa

Text in English with abstracts in Zulu and AfrikaansDespite its substantial growth and contribution to the economy of the country, the South African retail industry is faced with various challenges, including customers’ changing buying habits and expectations, the evolution of e-commerce, the entry of giant retailers into the retail market, and the growing importance of the urbanised middle class and its potential purchasing power. This creates risks that are mostly beyond retailers’ control. Therefore, there is a general drive among retail brands to build customer loyalty in order to respond to these contemporary dynamics within the industry and, ultimately, enhance sustainability. It is noted from literature that current understanding of customer behaviour in the South African retail space is largely the result of rational behavioural measurement, while the subconscious behaviour of customers is often neglected. The study on which this thesis reports attempted to address this gap in the current knowledge base. The current study makes a novel contribution to knowledge in using complementary traditional and neuromarketing instruments in a sequential mixed method research design to measure verbal, non-verbal and physiological emotions, which indicate the key influential cognitive and emotive factors shaping shopping decisions. For a comprehensive understanding of customer behaviour, the study primarily explored the emotional antecedents of customer loyalty in the formal retail industry of South Africa. In order to explore and describe both retail brands and customers’ experiences regarding the drivers of retail brand loyalty, the empirical phase of the study adopted a sequential mixed method research design. This design comprised eight individual semi-structured interviews, which focused on and explored the fundamentals of behavioural and attitudinal loyalty within the context of a customer relationship management strategy. x Based on the findings emerging from the quantitative mall intercept survey with 300 retail customers, the study identified the motivating factors of greatest likelihood among customers that best explain retail brand loyalty, namely product quality, convenience of location, customer care, product variety and availability, as well as fair pricing. Furthermore, findings emerging from the inferential analysis (structural equation modelling, two-step cluster analysis, optimal scaling and multivariate binary regression analysis) showed that brand trust, brand affect and attitudinal loyalty are key predictors of behavioural loyalty. Additionally, customer loyalty differs depending on customer predisposition towards the major retail brands tested. In this regard, Pick n Pay, Massmart and Shoprite/Checkers recorded the most favourable perceptions among customers. As Despite its substantial growth and contribution to the economy of the country, the South African retail industry is faced with various challenges, including customers’ changing buying habits and expectations, the evolution of e-commerce, the entry of giant retailers into the retail market, and the growing importance of the urbanised middle class and its potential purchasing power. This creates risks that are mostly beyond retailers’ control. Therefore, there is a general drive among retail brands to build customer loyalty in order to respond to these contemporary dynamics within the industry and, ultimately, enhance sustainability. It is noted from literature that current understanding of customer behaviour in the South African retail space is largely the result of rational behavioural measurement, while the subconscious behaviour of customers is often neglected. The study on which this thesis reports attempted to address this gap in the current knowledge base. The current study makes a novel contribution to knowledge in using complementary traditional and neuromarketing instruments in a sequential mixed method research design to measure verbal, non-verbal and physiological emotions, which indicate the key influential cognitive and emotive factors shaping shopping decisions. For a comprehensive understanding of customer behaviour, the study primarily explored the emotional antecedents of customer loyalty in the formal retail industry of South Africa. In order to explore and describe both retail brands and customers’ experiences regarding the drivers of retail brand loyalty, the empirical phase of the study adopted a sequential mixed method research design. This design comprised eight individual semi-structured interviews, which focused on and explored the fundamentals of behavioural and attitudinal loyalty within the context of a customer relationship management strategy. x Based on the findings emerging from the quantitative mall intercept survey with 300 retail customers, the study identified the motivating factors of greatest likelihood among customers that best explain retail brand loyalty, namely product quality, convenience of location, customer care, product variety and availability, as well as fair pricing. Furthermore, findings emerging from the inferential analysis (structural equation modelling, two-step cluster analysis, optimal scaling and multivariate binary regression analysis) showed that brand trust, brand affect and attitudinal loyalty are key predictors of behavioural loyalty. Additionally, customer loyalty differs depending on customer predisposition towards the major retail brands tested. In this regard, Pick n Pay, Massmart and Shoprite/Checkers recorded the most favourable perceptions among customers. As a complement to the quantitative research phase of the study, a Self-Assessment Manikin attitude measure was applied to a sample of 120 customers. This phase of the study highlighted pertinent emotional elements as key mediators in securing sustainable retail brand loyalty. In this regard, Woolworths and Pick n Pay recorded the most favourable perceptions on four stimuli, namely quality, customer rewards, customer care and brand logos. The study also applied eye tracking and galvanic skin response techniques to a sample of 10 participants to determine customers’ psychophysiological reaction to the four stimuli. Galvanic skin response findings showed that customers were especially engaged with Spar, Shoprite/Checkers and Pick n Pay, while eye tracking findings showed customers’ higher visual engagement with Shoprite/Checkers, Pick n Pay and Spar. A key overall finding of this study was the significant role of feelings and emotions in driving customer loyalty. Retail brands lose relevance when they fail to connect emotionally with customers, and without that emotional attachment, brands can easily be replaced by generic imposters. A comprehensive understanding of customer behaviour remains a quandary for marketing and business practitioners. In an attempt to address this limitation, the current study used insights from non-verbal attitudinal and psychophysiological measures to obtain a more comprehensive behavioural understanding of retail customers.Nakuba imboni yezitolo ezihwebayo yaseNingizimu Afrika ibonise ukukhula nokudlondlobala okukhulu futhi idlala indima esemqoka emnothweni wezwe, ibhekene nezinselelo eziningana futhi ezihlukahlukene, kubandakanya indlelakuthenga yamakhasimende eguquguqukayo kanye nalokho okulindelwe ngamakhasimende nezimfuno zawo, ukungenisa ngezinkani kwemboni yokuhweba nge-intanethi nobuxhakaxhaka bobuchwepheshe besimanjemanje, ukungena kwezitolo eziyizikhondlakhondla emakethe yezitolo ezihwebayo, kanye nokukhula kokubaluleka kwabantu abahlala emadolobheni abasesigabeni sempilo esimaphakathi kanye namandla abo okuthenga. Lokhu kudala ubungozi obuvamise ukuba ngaphezu kwamandla nolawulo lwezitolo ezihwebayo. Ngakho-ke, kunomkhankaso oqhutshwa yizitolo zonkana ezihlose ngawo ukwakha ubudlelwano namakhasimende kanye nokuqinisekisa ukwethembeka kwamakhasimende ukuze zikwazi ukumelana nezimo ezikhona esikhathini samanje embonini yezitolo ezihwebayo, futhi ekugcineni, ukuze zikwazi ukusimamisa ibhizinisi lazo liqhubeke njalo futhi likhule lidlondlobale. Kuphawulekile emibhalweni efundiwe ukuthi ukuqonda kanye nolwazi olujulile olukhona njengamanje mayelana nokuziphatha kwamakhasimende eNingizimu Afrika emkhakheni wezitolo ezihwebayo ikakhulukazi kuwumphumela wokukalwa kwezinga lokuthatha izinqumo ngobuhlakani nokwenza izinto emva kokucabangisisa, kepha-ke ngakolunye uhlangothi kuvamise ukushaywa indiva ukwenza izinto kwamakhasimende ngaphandle kokuqaphela nokucophelela futhi ngokuthathela izinto phezulu noma ngaphandle kokucabangisisa ngalokho akwenzayo. Lolu cwaningo okubikwa ngalo kulo mbiko wocwaningo luzamile ukubhekana naleli gebe elikhona njengamanje eliphathelene nokuntuleka kolwazi. Lolu cwaningo lwamanje lufaka isandla esinohlonze kanye nemibono ephusile olwazini olukhona, ngokusebenzisa amathuluzi asekelayo ajwayelekile kanye nalawo asebenzisa ubuchwepheshe bokukala ukusebenza kwengqondo, ngaphansi kwedizayini yocwaningo egxile kwindlela-kusebenza exubile yokwenza izinto ngokulandelana kwazo, ngenhloso yokukala imizwa ezwakaliswa ngomlomo, ngezenzo noma ngeminyakazo yomzimba, okuyinto ebonisa izimo nezici-bunjalo ezisemqoka futhi ezinomthelela omkhulu eziphathelene nokusebenza kwengqondo kanye nemizwa, okuyizona ezilawula izinqumo zamakhasimende eziphathelene nokuthenga. Ngenhloso yokuqonda ngokuphelele ukuziphatha kwamakhasimende, lolu cwaningo lwacubungula futhi lwahlaziya ikakhulukazi izici-bunjalo zemizwa elawula ukwethembeka kwamakhasimende embonini yezitolo ehlelekile yaseNingizimu Afrika. Ukuze kucutshungulwe futhi kuchazwe kokubili izinhlobo zezitolo kanye nezimo ahlangabezane nazo amakhasimende mayelana nezici-bunjalo ezenza amakhasimende athembeke esitolo esithile futhi athenge kusona ngaso sonke isikhathi, isigaba socwaningo esiphathelene nolwazi oluphathekayo nolubonakalayo sasebenzisa idizayini yocwaningo egxile kwindlela-kusebenza exubile yokwenza izinto ngokulandelana kwazo. Le dizayini beyibandakanya ama-semi-structured interviews enziwa nababambiqhaza bocwaningo abayisishiyagalombili, okuyizingxoxo ezabe zigxile ekucubunguleni ukwethembeka kwamakhasimende okuphathelene nokuziphatha kwawo kanye nendlela abuka ngayo izinto ngaphansi kwesimo seqhingasu lokuphathwa kobudlelwano namakhasimende. Ngokususela kwimiphumela eyatholakala kwinhlolovo ebandakanya abathengi abangama-300 okwaxoxiswana nabo ezikhungweni ezinenxanxathela yezitolo, ucwaningo lwahlonza izimo nezi-bunjalo ezikhuthaza futhi zihehe amakhasimende okuyizona ezingasetshenziswa ukuchaza kangcono ukwethembeka kwamakhasimende ezitolo ezithile, okuyikhwalithi yomkhiqizo, ukufinyeleleka kalula kwendawo lapho kutholakala khona isitolo, ukunakekelwa kwamakhasimende, imikhiqizo ehlukahlukene kanye nokutholakala kwayo, ngokunjalo namanani-ntengo angambi eqolo. Ngaphezu kwalokho, imiphumela eyatholakala ohlaziyweni lwezinqumo ezithathwe ngokubheka ubufakazi kanye nokuqonda okujulile (structural equation modelling, two-step cluster analysis, optimal scaling kanye ne-multivariate binary regression analysis) yabonisa ukuthi ukwethenjwa kohlobo lomkhiqizo, ukukhanga nokuthandeka komkhiqizo kanye nokwethembeka okuphathelene nendlela-kubuka kuyizibikezeli ezisemqoka zokuziphatha kwamakhasimende okuhambisana nokwethembeka emikhiqizweni ethile. Futhi ngaphezu kwalokho, ukwethembeka kwamakhasimende kuyehluka, futhi lokhu kuncike ekuhehelekeleni kwamakhasimende ezitolo enkulu ezihloliwe. Mayelana nalokhu-ke, abakwa-Pick n Pay, Massmart kanye nabakwa-Shoprite/Checkers yizona zitolo ezibonise ukuthandwa kakhulu ngamakhasimende. Njengendlela yokweseka nokunezezela phezu kwesigaba socwaningo olukhwantithethivu olwenziwe, kwasetshenziswa isikali sendlela-kubuka esibizwa nge-Self-Assessment Manikin kwisampula yamakhasimende ayi-120. Lesi sigaba socwaningo saqhakambisa izimo nezici-bunjalo eziphathelene nemizwa ezifanelekile njengezinto ezisemqoka kakhulu ekuqinisekiseni ukwethembeka kwamakhasimende esitolo esithile ngokuqhubekayo. Mayelana nalokhu, abakwa-Woolworths kanye nabakwa-Pick n Pay babonisa ukuthandwa kakhulu ngamakhasimende mayelana nezici-bunjalo ezihehayo futhi ezikhuthazayo ezine, okuyikhwalithi, imivuzo yamakhasimende, ukunakekelwa kwamakhasimende kanye nemibala egqamile, igama elidumile nezimpawu zesitolo. Ucwaningo lwasebenzisa futhi nezindlela zokucwaninga eziphathelene nokulandela umkhondo wamehlo amakhasimende kanye nezimpawu zemizwa yamakhasimende ezibonakala esikhumbeni semizimba yawo, okuyizindlela zocwaningo ezasetshenziswa kubabambiqhaza bocwaningo abayi-10 ngenhloso yokuhlonza indlela-kusabela kwamakhasimende ephathelene nengqondo nomzimba kulezi zicibunjalo ezikhuthazayo futhi ezihehayo ezine ezishiwo ngenhla. Imiphumela yendlela yocwaningo ebheka izimpawu zemizwa yamakhasimende ezibonakala esikhumbeni semizimba yawo yabonisa ukuthi amakhasimende ahehelekela ikakhulukazi kwabakwa-Spar, Shoprite/Checkers kanye nabakwa-Pick n Pay, kanti ngakolunye uhlangothi imiphumela yendlela yocwaningo ebheka futhi ilandele umkhondo wamehlo amakhasimende yabonisa ukuheheka kwamehlo okuphakeme ezitolo zabakwa-Shoprite/Checkers, Pick n Pay kanye nabakwa-Spar. Umphumela omkhulu futhi osemqoka otholakale kulolu cwaningo yindima ebaluleke kakhulu edlalwa yimizwa ekukhuthazeni ukwethembeka kwamakhasimende. Izitolo zilahlekelwa yiwozawoza yazo kumakhasimende uma zihluleka ukuxhumana namakhasimende ngokwemizwa, futhi ngaphandle kwalokho kuxhumana ngokwemizwa nokuzwana, izitolo zingazithola kalula zisesimweni lapho indawo yazo isithathwe yizitolo-mbumbulu ezingosandanezwe. Ukuqondakala okuphelele kwendlela aziphatha ngayo amakhasimende futhi enza ngayo izinto kusalokhu kuyinkinga nesithiyo esikhulu kwizazi nezisebenzi ezenza umsebenzi wokukhangisa nokuqhuba ibhizinisi. Njengomzamo wokubhekana nalesi sithiyo, lolu cwaningo lusebenzise ulwazi nokuqonda okujulile okutholakale kwizikali zendlela-kubuka yamakhasimende kanye nezikali zesimo sengqondo nesomzimba samakhasimende ukuze kutholakale ukuqonda okuphelele futhi okujulile okuphathelene nokuziphatha kwamakhasimende athenga ezitolo kanye nendlela enza ngayo izinto.Ondanks sy stewige groei en aansienlike bydrae tot die landsekonomie, het die Suid-Afrikaanse kleinhandelsbedryf met verskeie uitdagings te kampe. Veranderinge in kliënte se koopgewoontes en verwagtings, groeiende e-handel, reusekleinhandelaars wat die kleinhandelsmark betree, die toenemende invloed van die verstedelikte middelklas en sy potensiële koopkrag is enkele hiervan. Dit gee aanleiding tot risiko’s wat grotendeels buite die beheer van kleinhandelaars is. As gevolg van die hedendaagse dinamiek in die bedryf, poog kleinhandelsmerke om kliëntlojaliteit te verstewig en hulle eie volhoubaarheid te verseker. Dit blyk uit die literatuur dat die kleinhandelsektor se siening van kliëntgedrag in Suid-Afrika op die meting van rasionele gedrag berus, en dat die onbewuste gedrag van kliënte verontagsaam word. Hierdie tesis doen verslag van ʼn studie om hierdie leemte in die huidige kennis te probeer aanvul. Dit lewer ʼn bydrae deur aanvullende tradisionele en neurobemarkingsinstrumente in ʼn opeenvolgende gemengde metode as navorsingsbenadering te gebruik. Verbale, nieverbale en fisiologiese emosies is gemeet aangesien hulle die kognitiewe en emotiewe faktore is wat inkopiebesluite bepaal. Hierdie studie het hoofsaaklik die emosionele antesedente van kliëntlojaliteit in die Suid-Afrikaanse formele kleinhandelsbedryf verken om ʼn grondige begrip van kliëntgedrag te kry. Ten einde kleinhandelsmerke en kliënte se ervarings van die drywers van kleinhandelsmerklojaliteit te beskryf en te verken, is ʼn opeenvolgende gemengdemetode-navorsingsontwerp gevolg. Dit het uit agt halfgestruktureerde, private onderhoude bestaan. Hierin is gekonsentreer op die grondslae van gedragsen houdingslojaliteit teen die agtergrond van ʼn kliënteverhoudingsbestuurstrategie. Op grond van die bevindings van ʼn kwantitatiewe winkelsentrumopname onder 300 kleinhandelskliënte, is die motiveringsfaktore met die grootste waarskynlikheid aangetoon. Hulle is produkgehalte, ʼn gerieflike ligging, kliëntesorg, produkverskeidenheid, beskikbaarheid en billike pryse, en bied die aanneemlikste verklaring vir kleinhandelsmerklojaliteit. Volgens die bevindings van die inferensiële ontleding (struktuurvergelykingmodellering, tweestaptrosontleding, optimale skalering en meerveranderlike binêre regressieanalise) is merkvertroue, merkaffek en houdingslojaliteit betroubare aanwysers van bedragslojaliteit. Afgesien hiervan verskil kliëntlojaliteit na gelang van kliëntpredisposisie jeens kleinhandelsmerke wat getoets is. Kliënte was vir vier stimuli (naamlik gehalte, kliëntbelonings, kliëntesorg en merklogo’s) die ontvanklikste vir Pick n Pay, Massmart en Shoprite/Checkers. Aanvullend tot die kwalitatiewe navorsingsfase van hierdie studie is ʼn selfasseringsmodelhoudingmeting op ʼn steekproef van 120 kliënte toegepas. Hierdie fase het die aandag gevestig op pertinente emosionele elemente as sleuteltussengangers in die opwekking van volhoubare kleinhandelsmerklojaliteit. Vir die vier stimuli (naamlik gehalte, kliëntbelonings, kliëntesorg en merklogo’s) was kliënte se persepsies van Woolworths en Pick n Pay die gunstigste. Hierbenewens is oogvolg- en galvaniese velreaksietegnieke op ʼn steekproef van 10 deelnemers toegepas om hulle psigofisiologiese reaksie op die vier stimuli te bepaal. Die galvaniese velreaksietoetse het aangedui dat kliënte besonder ontvanklik was vir Spar, Shoprite/Checkers en Pick n Pay, en volgens die oogvolgtoetse visueel meer aangetrokke tot Spar, Shoprite/Checkers en Pick n Pay was. Hierdie studie het bevind dat emosies in die algemeen ʼn deurslaggewende rol in kliëntlojaliteit speel. Kleinhandelsmerke raak irrelevant as hulle nie ʼn emosionele band met kliënte smee nie. Sonder hierdie emosionele verbintenis kan generiese bedrieërs maklik die plek van kleinhandelsmerke inneem. Bemarkings- en sakepraktisyns het nie ʼn deeglike begrip van kliëntgedrag nie. Om dit reg te stel, het hierdie studie nieverbale houdings- en psigofisiologiese toetse toegepas om die gedrag van kleinhandelskliënte beter te begryp.Business ManagementD. Com. (Business Management

Essays on differentiated products in oligopoly markets

The common theme running through my dissertation work is differentiated products in oligopoly markets with emphasis on the demand analysis. In the markets, consumers generally present heterogeneous preferences even for the same product, which brings additional dimension of differentiation for the market and add more complexity for the equilibrium. The purpose of this dissertation is to qualify and quantify consumers\u27 purchase behavior in relevant markets, and to further investigate the effects on firms\u27 pricing strategy, the market structure, and the effectiveness of policy regulations. The second chapter studies consumers\u27 heterogeneous demands for two transportation fuels, E10 and E85, and evaluates the Renewable Fuel Standard (RFS) program that promotes the consumption of E85. The RFS sets mandate volumes for the consumption of biofuels. Because E85 contains more ethanol than E10, the Renewable Fuel Standard Program conveys a subsidy to E85, relative to E10. A central question for RFS policy concerns the pass-through of the induced subsidy to consumers. To investigate the issue, we develop a structural model suitable to study the pass-through rate at retail level. We consider two dimension of heterogeneity: consumers\u27 randomly distributed locations, which make fuel products provided by different gas stations horizontally differentiated; and their heterogeneous propensities for the two different fuel products, which are vertically differentiated. Accordingly, we build the model from the Hotelling framework and extend it to also include the vertical dimension of heterogeneity. The model provides a natural way to represent the role of imperfect competition at the retail level. We then calibrate the model parameters using real world data and simulate the Nash Equilibrium results of the model. Our results show that the pass-through rate is about 0.7 at the baseline level of model parameters. More market power, higher subsidy level, and consumers\u27 higher preferences for subsidized product are related to lower pass-through rate. The third chapter empirically models heterogeneity in the seed demand and also focuses on a crucial issue in farmers\u27 purchase behavior—brand inertia. Brand inertia has long been a topic of interest in the Economics and Marketing literature, and it refers to the situation that an individual is more likely to choose the brand he/she has purchased previously. Among the potential explanations for this tendency, researchers have been particularly interested in the importance of state dependence, defined as the causal dependency of an individual\u27s future choices on their current state. In this chapter, we develop and estimate a micro-level random coefficient logit model—the random coefficient is to capture unobserved heterogeneity over farmers and state dependence is modeled by incorporating the previous purchased brand. Our results show that on average, farmers are willing to pay an additional $5.31/unit for a brand if it was purchased in the previous period, equivalent to about 12% of the average retail price, and there is substantial heterogeneity in the estimates. In the counterfactual analysis of two temporary shocks, price discount and late technology innovation adoption, we find that state dependence implies long-lasting effect on farmers\u27 choice decision

Can digital storytelling influence luxury brand perception? The case of Christian Dior

The research conducted in the context of this dissertation sought to study the influence of digital storytelling as a communication tool in consumers’ luxury brand perception of luxury brands. For this purpose, a case study of luxury brand Christian Dior was developed, through which digital stories produced and shared by the brand were analyzed and linked to its brand image among Portuguese consumers. For luxury brands, building their emotional appeal and symbolic value is crucial for their financial prosperity. More importantly, maintaining their luxury image, in the eyes of both luxury and non-luxury consumers, is considered fundamental. In turn, this aspirational and prestigious perception can be built from a unique brand identity, which needs to be properly communicated to the brands’ audiences. Hence, when a luxury brand makes the most out of storytelling’s capacity to educate consumers about a brand, communicate their identity, and kindle emotional connections, and symbolic brand value, by turning it into a piece of digital content, it becomes fair to question if it can influence consumers’ luxury perception of such brand. With the application of a mixed-methods approach, through a document analysis, qualitative content analysis, and survey, results show that, for the enquired Portuguese luxury and non-luxury consumers, digital storytelling had a persuasive effect, proving to have a positive influence on luxury brand perceptions of Dior for both sub-samples, although different dimensions of the concept were affected. The brand uses digital storytelling content in its digital campaigns to communicate its identity, engage with consumers emotionally, and showcase its aspirational and symbolic dimension, in order to build its high-end image. Results suggest that Dior could continue to use storytelling for the same branding purpose in future campaigns.A investigação realizada no contexto desta dissertação procurou estudar a influência do storytelling como instrumento de comunicação na perceção de marca de luxo por parte dos consumidores. Para este efeito, foi desenvolvido um estudo de caso da marca de luxo Christian Dior, através do qual narrativas digitais produzidas e partilhadas pela marca foram analisadas e associadas à sua imagem de marca entre os consumidores portugueses. Para as marcas de luxo, a construção da sua atração emocional e valor simbólico é crucial para a própria prosperidade financeira. Mais importante ainda, manter uma imagem de luxo, tanto aos olhos dos consumidores de luxo como dos não-consumidores de luxo, é considerado fundamental. Por sua vez, esta perceção aspiracional e de prestígio pode ser construída a partir de uma identidade de marca única, que precisa de ser devidamente comunicada ao público destas mesmas marcas. Assim, quando uma marca de luxo aproveita a capacidade do storytelling para educar os consumidores sobre si, comunicar a sua identidade, e estimular ligações emocionais, e o seu valor simbólico, transformando-o num conteúdo digital, torna-se justo questionar se este poderá influenciar a perceção de luxo dos consumidores sobre tal marca. Com a aplicação de uma abordagem de métodos mistos, através de uma análise documental, uma análise qualitativa de conteúdo e um inquérito, os resultados mostram que, para os consumidores de luxo e não-consumidores de luxo portugueses inquiridos, o storytelling digital teve um efeito persuasivo, provando ter uma influência positiva na perceção da marca Dior para ambas as subamostras, embora diferentes dimensões do conceito de “perceção de marca de luxo” tenham sido afetadas. A marca utiliza conteúdo de storytelling digital nas suas campanhas digitais para comunicar a sua identidade, envolverse emocionalmente com os consumidores e mostrar a sua dimensão aspiracional e simbólica, a fim de construir a sua imagem de topo de gama. Os resultados sugerem que a Dior poderá continuar a utilizar o storytelling para o mesmo propósito de branding em futuras campanhas

The economics of brands and branding

Consumer goods industries tend to be dominated by a small number of nationally-branded goods. In many cases, brands are one of the few sources of differentiation between otherwise physically undifferentiated products. In this chapter we survey the literature on the role of consumer branding and brand preferences in driving consumer demand. We also discuss the incentives for firms to invest in and build brands on the supply side. Finally, we discuss the measurement of the economic value of brands as intangible assets