Brand dilution effect of extension failure – a Taiwan study

Examines the negative impacts of brand extension failure upon the original brand by calibrating the difference of brand equity. Using data collected from college students in Taiwan, establishes four hypotheses to identify various effects of a failed brand extension in diluting the original brand’s equity. Analyzes the different effects among four types of equity-source brands for both close and distant extensions. Equity-source and equity level of the original brand is identified first. All components of brand equity-source are then used to evaluate the performance of a brand extension. Finds that an unsuccessful brand extension dilutes the original brand for all three high equity-source brands. Effects of brand dilution differ according to the type of equity source possessed by the original brand, but there is no difference in brand dilution effects from close and distant extension failures. © 2000, MCB UP Limite

How Should Green Messages Be Framed: Single or Double?

Researchers and marketers have been showing more interest in the areas of green product attributes. They found that consumers usually associate low quality with green products. Little is known about how to design a green message and how to present product attributes in the advertisement. The objective of this study is to examine the different impacts of message content (single vs. double message) and message order (green message presented first vs. later) on green brand attitude in green advertisement, and its moderating effects by its central and peripheral attributes. Two 2 × 2 experimental between-subjects designs were utilized to test the hypotheses. The results of Study 1 indicate that after consumers watched the double-message advertisement, they formed a significantly more positive green brand attitude toward the product compared to watching a single-message advertisement. The product attributes demonstrated their moderating effects on the above result. The central attribute expanded the difference between the double message and single message, but the peripheral attribute diluted the double-message effect. Study 2 examined the order effect in the double-message advertisement, and we found that presenting the green message first instead of later was the most effective method to persuade consumers. However, this effect was only significant when the green attribute of the product is the central attribute. The peripheral attribute would decrease the order effect in the double-message format. Implications and recommendations for future research are provided at the end of this paper

Brand experience and customer equity prediction

The objective of this research is to explore the relationship between brand experience and customer equity (value equity, brand equity, and relationship equity). We examine the impacts of different contact points\u27 experiences (media contact, physical environment contact, people contact, and product usage contact) and different dimensions of brand experience on customer equity. Further we investigate the possible moderating effects of different brand positioning and strategies-hedonic and utilitarian, on this relationship. The data which are collected via online survey includes 410 observations with brand experience and 83 without brand experience, 493 valid samples in total. We found that positive and strong brand experience is the key factor for building strong customer equity. Although the impacts of all four contact points\u27 brand experiences are significant, product usage contact has the most powerful influence on customer equity and its individual drivers. The results also indicate that the different brand positioning strategies do have moderating effects. For utilitarian brand, only brand experience at product usage contact point has significant impact on customer equity and its three drivers. For hedonic brand, all four contact points\u27 experiences have significant relationships with customer equity. Finally, the four experience dimensions (sensory, affective, intellectual, and behavioral) have different impacts on customer equity and its three drivers at different experience contact points