Psychological Implications of Customer Participation in Co-Production

This is the published version. Copyright 2003 by the American Association of Marketing.Customer participation in the production of goods and services appears to be growing. The marketing literature has largely focused on the economic implications of this trend and has not addressed customers’ potential psychological responses to participation. The authors draw on the social psychological literature on the self-serving bias and conduct two studies to examine the effects of participation on customer satisfaction. Study 1 shows that consistent with the self-serving bias, given an identical outcome, customer satisfaction with a firm differs depending on whether a customer participates in production. Study 2 shows that providing customers a choice in whether to participate mitigates the self-serving bias when the outcome is worse than expected. The authors present theoretical and practical implications and provide directions for further research

Managing Business-to-Business Customer Relationships Following Key Contact Employee Turnover in a Vendor Firm

This is the published version. Copyright 2002 by the American Marketing Association.Customers form relationships with the employees who serve them as well as with the vendor firms these employees represent. In many cases, a customer’s relationship with an employee who is closest to them, a key contact employee, may be stronger than the customer’s relationship with the vendor firm. If the key contact employee is no longer available to serve that customer, the vendor firm’s relationship with the customer may become vulnerable. In this article, the authors present the results of two studies that examine what business-to-business customers value in their relationships with key contact employees, what customers’ concerns are when a favored key contact employee is no longer available to serve them, and what vendor firms can do to alleviate these concerns and to retain employee knowledge even if they cannot retain the employee in that position. The studies are based on a discovery-oriented approach and integrate input from business-to-business customers, key contact employees, and managers from a broad cross-section of companies to develop testable propositions. The authors discuss managerial and theoretical implications and directions for further research

Chasing Brand Value: Fully Leveraging Brand Equity to Maximize Brand Value

Both researchers and practitioners seek to understand how to leverage brand equity to create value. Adopting ‘the theoretical separation of brand equity and brand value’ framework originally proposed in the Journal of Brand Management by Raggio and Leone, this conceptual paper looks more closely at the brand value construct and the implications of the proposed theoretical separation. The authors argue that firms are continually attempting to ‘chase’ the appropriable value of their brands—defined as the theoretical maximum value that a brand could achieve if all brand equity were fully leveraged. Implications for developing measures of brand value are discussed

Postscript: Preserving (and Growing) Brand Value in a Downturn

We have taken the opportunity provided by the current worldwide recession to further explore the implications of the relationship between brand equity and brand value that we proposed previously,1,2 and our analysis reveals that companies have one of two strategic options for surviving. The “Just Good Enough” strategy maximizes current value, potentially hurting brand equity and appropriable value (or potential future value) in the process, while the “Altered Amortization” strategy offers an opportunity to chase current value while maintaining brand equity with current prospects and activating latent equity with potential prospects, which may increase appropriable value. Anything between these two is a non-viable long-term strategy and companies hoping to ride it out “in the middle” may not make it. We explain both of these strategies below and offer a framework for analyzing which one is right for your brand

The Theoretical Separation of Brand Equity and Brand Value: Managerial Implications for Strategic Planning

During the past 15 years, brand equity has been a priority topic for both practitioners and academics. In this paper, the authors propose a new framework for conceptualizing brand equity that distinguishes between brand equity, conceived of as an intrapersonal construct that moderates the impact of marketing activities, and brand value, which is the sale or replacement value of a brand. Such a distinction is important because, from a managerial perspective, the ultimate goal of brand management and brand equity research should be to understand how to leverage equity to create value

Drivers of Brand Value, Estimation of Brand Value in Practice, and Use of Brand Valuation: Introduction to the Special Issue

Brands constitute the largest asset for many firms, and brand valuations are increasingly being seen as an important performance metric both for companies and managers.1 In addition, components of brand valuation models have been found to positively impact financial market performance, so it is critical that managers understand clearly what brand value is, and how they can create and appropriate (capture) as much of that value as possible.2 Due to resource constraints, firms are forced at any given time to emphasize either value creation or value appropriation based on strategic priorities. Research shows that the stock market rewards increased emphasis on value appropriation over value creation,3 but it is obvious that value must be created before it can be appropriated. This special issue on Brand Value and Valuation presents the latest research and ideas related to the diverse drivers of long-term brand value, strategies for appropriating brand value, valuation methodologies, and uses of brand valuation in practice

How Consumers’ Use of Brand vs. Attribute Information

Prior research has identified that brands have a differential impact on consumer evaluations across various brand benefits. But no work has considered whether these effects are stable over time, or evolve in a consistent way. We address this question by decomposing consumer evaluations of brand benefits into overall brand and detailed attribute-specific sources in order to understand whether brand effects remain stable or evolve over time. With two unique datasets, the first containing cross-sectional data from Kodak across four different consumer goods categories, and another longitudinal dataset from the U.S. and Canada in the surface-cleaning category, covering seven brands over five years, we demonstrate a systematic evolution in brand effects: A general trend is that over time and with experience consumers rely more heavily on overall brand information to develop their evaluations. However, early in a brand’s life, or later when circumstances compel consumers to actively consider the attributes, ingredients or features of a brand, consumers may rely more heavily on detailed attribute-specific information to evaluate brand-benefits. Implications for brand management are discussed

Beyond “Halo”: The Identification and Implications of Differential Brand Effects across Global Markets

Purpose – The purpose of this paper is to investigate whether brands impact consumer evaluations in ways other than a consistent halo and the degree to which consumers use both overall brand information along with detailed attribute-specific information to construct their evaluations. Design/methodology/approach – The authors decompose consumer evaluations of brand benefits into overall brand and detailed attribute-specific sources through a standard CFA approach. Data cover 55 brands in four product categories sold in nine global markets. Findings – Halo effects are rare in global CPG markets. The authors identify the presence of differential brand effects in eight of nine global markets tested. Application of an extended model to a market where several competing family brands are present demonstrates the ability of the model to identify relationships among brand offerings within a family brand and to differentiate between family brand sets. Research limitations/implications – The finding of differential effects calls into question the assumption of a consistent brand effect assumed in past research; future models should accommodate differential effects. Practical implications – The ability to decompose consumer brand-benefit beliefs into overall brand and detailed attribute-specific sources provides managers with insights into which latent mental sources consumers use to construct their brand beliefs. As such, the methodology provides useful descriptive and diagnostic measures concerning the sources of suspicious, interesting, or worrisome consumer brand beliefs as well as a means to determine if their branding, positioning and/or messaging is having the desired impact on consumer evaluations so that they can make and evaluate required changes. Originality/value – A significant contribution of this research is the finding that many times the brand source differentially impacts consumers\u27 evaluations of brand-benefits, a finding that is contrary to a consistent halo effect that is assumed in prior models

Skeletal Muscle PGC-1β Signaling is Sufficient to Drive an Endurance Exercise Phenotype and to Counteract Components of Detraining in Mice

Peroxisome proliferator-activated receptor-γ coactivator (PGC)-1α and -1β serve as master transcriptional regulators of muscle mitochondrial functional capacity and are capable of enhancing muscle endurance when overexpressed in mice. We sought to determine whether muscle-specific transgenic overexpression of PGC-1β affects the detraining response following endurance training. First, we established and validated a mouse exercise-training-detraining protocol. Second, using multiple physiological and gene expression end points, we found that PGC-1β overexpression in skeletal muscle of sedentary mice fully recapitulated the training response. Lastly, PGC-1β overexpression during the detraining period resulted in partial prevention of the detraining response. Specifically, an increase in the plateau at which O2 uptake (V̇o2) did not change from baseline with increasing treadmill speed [peak V̇o2 (ΔV̇o2max)] was maintained in trained mice with PGC-1β overexpression in muscle 6 wk after cessation of training. However, other detraining responses, including changes in running performance and in situ half relaxation time (a measure of contractility), were not affected by PGC-1β overexpression. We conclude that while activation of muscle PGC-1β is sufficient to drive the complete endurance phenotype in sedentary mice, it only partially prevents the detraining response following exercise training, suggesting that the process of endurance detraining involves mechanisms beyond the reversal of muscle autonomous mechanisms involved in endurance fitness. In addition, the protocol described here should be useful for assessing early-stage proof-of-concept interventions in preclinical models of muscle disuse atrophy