Vlerick Brand Community Info

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Is it always best to target your loyal customers?

Posted March 22th

Companies are increasingly embracing WOM marketing as part of their marketing strategy. They have to decide whether to target their loyal or non-loyal customers. A first article by Godes and Mayzlin (2009) discovered that marketing campaigns for products with low or moderate levels of awareness are best targeted at the non-loyal customers. This is because non-loyal customers have social networks that aren’t yet aware of the product. Samson (2010) showed that this underlying influence of the social network can also be applied to fast moving consumer goods. We can conclude that word-of-mouth marketing campaigns for low-involvement products or products that aren’t widely known, should best target their non-loyal customers because they can have a bigger impact on their social networks.

For members of the Vlerick Brand Community, a three page summary is available on the Vlerick Brand Community Platform

Do Consumer love Consumer-Generated Advertising?

Posted March 5^th

In this Vlerick Brand Community Info we look at . Two articles by Steyn et al. (2011) and Thompson and Malaviya (2011) examined the effect of consumer-generated advertising (i.e.: publicly distributed, advertising messages about a brand that are (co-)created by consumers) on the ad recipient. Findings indicate that consumers are more critical towards advertisements if they know they are created by a consumer. However, if viewers of the ad know the ad is very popular of if they feel related to the ad creator, consumer-generated advertisements will enhance the persuasion of the ad. We can conclude that companies should select consumer-generated ads created by someone typical for their target group and ads that have the potential to become popular.

A three page summary of the results, conclusions and implications of this study is available for Vlerick Brand Community Members.

The Right Brand Architecture: Failures & Successes

Posted January 10^th

Many companies have experimented with their brand architecture throughout their history. Not all these shifts in brand architecture have been successes. In the case of Unilever, for example, evolving a House of Brands strategy (where the purchase decision and use experience is driven by the product brands) towards an Endorsed Brands strategy (where the product brands are endorsed by a master brand) resulted in some problems because of the inconsistency in communications about their different brands that consumers now suddenly perceived as linked. In another case, Virgin made the mistake to launch products under the same brand name that were not faithful to the brand’s promise of being irreverent, fun and a value fighter. These and other company cases demonstrate the importance of carefully choosing the right brand architecture for your company, and the importance of being consistent in the message that you bring with your brand.

Members of the Vlerick Brand Community will hear about this on the 9th Brand Café on Brand Architecture or read more on our Platform.

Subliminal Advertising: When does it work?

Posted November 28^th

Subliminal advertising has lately been a highly controversial topic. The question is: Does it work? Two articles by Verwijmeren et al. (2011) and Veltkamp et al. (2011) indicate that it works, but only under certain conditions. The findings suggest that the subliminal advertising of, for example a soda, will only increases the choice for that soda if people are thirsty and if the advertised soda isn’t habitually chosen. However, if drinking the soda is linked to positive affect in the subliminal advertisement, consumers should become motivated to drink the soda even when they aren’t thirsty. Consequently, even more consumers (the ones who are thirsty and the ones who aren’t) are expected to choose the beverage. So, if you want to try out subliminal advertising, link the behaviour you want your consumers to execute to positive experiences.

Vlerick Brand Community Members can log in to read more about this article on the Vlerick Brand Community Platform

Online Shopping & Multi-Sensorial Marketing: What brings the future.

Posted October 17^th

Recent research points to the fact that the internet presents some retailing challenges due to its limited capacity to allow the consumer full multisensory input. Phillips et al. (1997) found that one deterrence to consumers’ use of the Internet for product purchase was the lack of a range of sensory experiences linked to this medium. Intuitively, it has been suggested that goods requiring multisensory input in reaching product choice decisions will be less likely to be purchased over the Internet. Because of these disadvantages, online retailers are turning to sensory experience enabling technologies to enhance consumers’ online shopping experiences.

The two mayor categories of sensory enabling technologies are visual technologies (visual support) and haptic interfaces (tactile support). New sensory enabling devices - such as a mouse through which you can feel and the Scent Dome, a device that can release aromas through the internet - are increasingly introduced in the market.

A Brand Community Info that offers managerial implications is available for Vlerick Brand Community Members.

Store Atmosphere and Consumers: Benefits of fit

Posted September 26^th

Two articles by Vaccaro et al. (2009) and by Morrison et al. (2011) provide us with interesting academic insights on the influence of scent and music on consumers. As to music, the first article (2009) shows that musicretail consistency (i.e. perceived fit between the store image and the music) leads to more productinvolvement, positive behavioural intentions, more intended time spent in the store and better store image. In the 2011 study a positive effect of smell on customer satisfaction was observed. When a smell, associated with warmth and comfort (attractive to females) was used, buying behaviour increased. The smell fitted with the store’s target consumers, 14 to 25 year old females, and with the store itself. They were even more satisfied with their shopping experience.

Members of the Vlerick Brand Community can read more on Multi-Sensory Atmosphere on the Vlerick Brand Community Platform.

Greenwashing: Is looking ‘green’ sufficient to be successful in eco-sensitive times?

Posted August 23^th

The practice of deceptively inflating a company's or its product's environmental benefits by using green PR or green marketing is known as greenwashing  (a portmanteau of "green" and "whitewash"). The term is generally used when significantly more money or time is spent on advertising “being green” (that is, operating with consideration for the environment), rather than spending resources on environmentally sound practices. Several cases (e.g. Chevron) illustrate that greenwashing can be an effective marketing tactic.  However, as the years go by, research has repeatedly documented skepticism among consumers towards environmental and ecological advertising. Nevertheless, in several cases the use of subtle green cues in advertisements (rather than explicit claims) might fall below this threshold of disbelief and thereby avoid negative attitude effects. Most of the limited prior research has examined the effectiveness of explicit claims (Montoro, Luque, Fuentes and Cañadas, 2006). Virtually nothing has been done on more subtle use of green cues. Understanding if and how automatic effects of green background cues might have similar effects as explicit statements, while leading to less scepticism, may help advertisers create more effective communication strategies. 

Vlerick Brand Community members can read the three page summary on this topic on the Vlerick Brand Community Platform

Observing consumers to generate brand extension ideas – the Solero Shots & Smoover case

Posted August 22^th

In his book “Brand stretch – why 1 in 2 extensions fail and how to beat the odds” (2004), David Taylor describes the case of two extensions from the past of the ice-lollies brand Solero of Unilever: Solero Shots (small balls of ice) and Solero Smoover (a pouch of flavoured crushed ice). The case describes how observing your customers (an a bit out-of-the-box thinking) can generate interesting brand extension ideas. Prior to the extensions, the Solero team invested in observation research that focused on how young people consume ice cream and soft drinks. This research revealed interesting findings: (1) a bottle or soft drink has the advantage over ice lollies that it can be put down on the floor or a nearby surface while you chat with your friends. (2) the swigging motion of a soft drink mimics grown-up drinking codes. In contrast , ice lollies are sucked, a regressive gesture that reminds you of childhood, which is perceived as much less ‘cool’ by youngsters, (3) soft drinks are clean whereas ice lollies are messy, another unwanted reminder of being a baby. Based on these findings Solero decided to extend into more softdrink-like ice-creams. For Shots, a cone-shaped pack with a flat bottom and a resellable top meant that the product could be put down like a can or a bottle. The product was swigged not sucked, just like a soft drink. For Smoover, the pack mimicked the pouch codes of sports drinks. Although, the Solero range now just focuses on its most popular flavours – Exotic and Berry Berry, and went back to offering traditional ice-creams.

A more elaborated review of the book is available for our members on the Vlerick Brand Community Platform

Online Word-of-Mouth: The Commercial- Communal Tension

Posted July 28^th

A large-scale study of Kozinets et. al. focuses on how bloggers handle the commercial – communal tension when they are sharing brand or product oriented messages with their peers (after receiving incentives from the brand). The data result in four main social media communication strategies. Depending on the narrative style, the type of forum used, the dominant norms of the target community and the promotional elements of the product or service you’re in, one of the four strategies is commonly used by the bloggers. The authors advice companies to pinpoint their position on these four dimensions to discover the right expectations and thus the right strategy.

Vlerick Brand Community Members can log in to read more about this article on the Vlerick Brand Community Platform

Brand Alliances: Advantages, Relationships & Management Strategies

Posted May 11^th

Business practitioners and academics increasingly suggest that the future of competition may be in value-creating networks rather than individual firms or brands. Jevons, Gabbott and De Chernatony (2005) define four different management strategies for the different types of business-brand relationships and how they shift from supervisory communication and extensive documentation to co-operative interaction and joint management. To which area of brand relationships your brand alliance belongs, depends on both the strength of the business network and the perceived distance in the eyes of the consumer.

Read the three page summary on this topic on the Vlerick Brand Community Platform, available for memebers

Extending Luxury Brands

Posted March 24^th

A recent large-scale study (Reddy, Terblanche, Pitt & Parent, 2009) focusing on luxury goods finds that luxury brands should carefully choose their extension categories as they have potentially a lot of ‘luxury-equity’ to lose. Luxury brands that are primarily valued for their functional aspects should especially be careful. The authors state for example that people who buy a Porsche car, for instance, in part because of the vehicles' world-class performance and engineering. Other luxury brands, like Louis Vuitton, are valued more for the lifestyle they project than for the particular expertise or functionality they embody. The latter type of more ‘symbolic’ brands can be more easily extended into nonadjacent categories with less risk to lose ‘luxury-equity’ as long as the quality of the extension item is up-to-standards.

Members of the Vlerick Brand Community can read more on this topic on the Vlerick Brand Community Platform

Branding through Digital Signage. How to promote a brand effectively via digital point of sales?

Posted February 11^th

Recent research results provide hands-on advice that can be used to increase the effectiveness of digital signage (i.e. promoting products through visual digital content on screens positioned in the stores). Research shows, for example, that digital signs in shops are more effective (i.e. have a bigger effect on sales) at the end of the day or during the weekends. The impact on sales of digital signage is also demonstrated to be stronger for hedonic products than planned purchase items. Since 30 to 40% of product and brand decisions are made in the retail store, in-store communication is an attractive means to communicate about a brand in a retailer context. A trend in point of sales digital signage is that it doesn’t escape from the huge digital revolution that changes customers’ relationship with brands enormously in terms of interactivity. A trend that cannot be ignored or controlled, only embraced since it creates extra opportunities to increase the impact of a campaign and the resultant brand strength.

A three page summary of the results, conclusions and implications of this study is available for Vlerick Brand Community Members. 

The Payday Effect! Framing brands in an exciting way works better at the beginning of the month

Posted January 31^th

We often forget how seemingly irrelevant things can nevertheless significantly influence consumers’ behaviors. This research shows that receiving your paycheck (an important moment each month in everyone’s lives) brings you in an emotional state of promotion. At that time you are more open to try new things, to buy impulsively, and to focus on gains. As the month passes by, your emotional state gradually changes into one of prevention. At the end of the month, you are therefore more likely to focus on avoiding losses and staying with the status-quo. Brand marketers should keep this in mind when planning their promotions and launches: at the beginning of the month, brands should focus their communication on excitement, cheerfulness, novelty, and gaining positive outcomes (e.g., getting a ‘white smile’). Brand communication that stresses confidence, security and avoiding bad outcomes (e.g., protection against cavities) should be done at the end of the month, when people are the longest away since their last paycheck. 

Members of the Vlerick Brand Community can read more on this effect on the Vlerick Brand Community Platform.

Insights from neuromarketing on which messages to send with which media

Posted January 27^th

Fascinating research by Dr A.K. Pradeep studies consumers’ precognitive responses (i.e. the reactions that take place in people’s minds before they engage in conscious thinking). His findings reveal among others that different communication channels each have there specific strength when you consider their impact on consumers' brain processes. Specifically research indicates that  (1) TV is superior to communicate emotion and action, (2) Computer online is better suited for communicating dynamic content and personal or private communications, and (3) Mobile devices are a medium that makes people remember messages very well.  One explanation for the strength of TV and computer screens is that their larger size faciliates consumers  to easily process “human elements and fine details” (e.g. face expressions). Mobile screens are much smaller, which means that  consumers have to process the visual content displayed with a much larger intensity of focus. Research shows that this more intense way of processing can result in a significant boost in memory retention. Source: The Buying Brain. Secrets for Selling to the Subconcious Mind (2010).

More info on the book on the book available for Vlerick Brand Community members.

How to use the ownership effect in brand marketing to increase sales

Posted January 25th

A psychological mechanism that was highlighted in the presentation of Dr. Frank Goedertier's presentation for our fifth Vlerick Brand Café is the ‘Ownership effect’. Academic research has demonstrated that the more work and effort people put into something, the more they start to feel that this is their property. Research has also demonstrated that people can already develop the pride of owning something even before they actually own it. Frank illustrated in his presentation that smart marketers try to exploit this effect. Among others, he cited the example of Telenet Yelo. By offering its (future) customers a free 6 months trial period, Telenet is counting on the ownership effect to kick in. After 6 months people are very likely to feel that they ‘own’ the Yelo service and chances are high that they will be unwilling to give it up (if they have been using the service), and will be prepared to pay for further ‘ownership’.

More related topics are available for our members in the fifth Branding Inspiration report on Branding & Psychology.

Making meaningful brands through meaningless attributes

Posted January 18^th

Fascinating experiments demonstrate that irrelevant attributes can increase brand preference, even if the irrelevance is revealed. More specifically research demonstrates that companies that want to use trivial attributes in their brand marketing, can expect the best results if they apply this strategy for high-priced products. When consumers are not informed about the irrelevancy of the attribute, they reason ‘why would a company invest in it, if it doesn’t add value’ and positively evaluate the attribute which increases brand preference. Very fascinating is the observation that when consumers are informed about the irrelevancy (e.g. by means of a Test Aankoop report), they keep on evaluating the trivial attribute in a positive way because it helps to differentiate a brand. To enable this positive evaluation they are also (unconsciously) prepared to adapt their interpretation (!) and now reason ‘it doesn’t help performance, but doesn’t hurt it either… it is a nice gimmick, that makes the brand unique, distinct from others’.

However, research results indicate that these positive effects of trivial attributes disappear when the product is low-or premium priced because the price level is also used as a proxy for quality of the brand attributes, or can serve as a unique element to differentiate the product form others.

Members of the Vlerick Brand Community can read more on this topic on the Vlerick Brand Community Platform (Summary Brand Café V).

Neurobranding: Buzzword or Breakthrough Development

Posted January 10^th

Evolutions in neuro-based marketing research offer new insights in how marketing efforts impact consumer’s minds. It enables marketers to pretestor posttest the efficacy of their campaigns, moment per moment (e.g. frame per frame), and offers new views on the relevancy of brand attributes. Where traditional research builds its conclusions on self-reports, Neurobranding research analyzes brain processes that consumers often aren’t aware of themselves. Business insights generated through neurobranding  by companies such as Apple (that discovered the brand power of the icon interface of the Iphone) or Daimler (that developed a campaign featuring car headlights suggesting human faces which trigger the reward center of the brain) illustrate that insights from neurobranding research can add value to those from traditional brand research techniques.  

To read the three page-report on the Neurobranding topic Vlerick Brand Community members can click through for the community platform

Does Digital Television Influence Sales?

Posted December 21^st

A 2006 survey by the Association of National Advertisers found that 60% of advertisers intended to decrease TV advertising budgets in response to the rise of DVRs and video on demand. They also believe the success of digital TV would destroy the effectiveness of the 30-second TV spot.

Curiously, other than surveys and self-reports, there is absolutely no hard evidence to support the claim that DVRs and digital TV have generated a decline in 1) actual advertising viewing, or in 2) actual sales performance of heavily advertised consumer brands. As first-in-its-kind, this study compared household panel shopping data of DVR users with their ad-skipping behavior. Data arises from a multimillion dollar field study conducted in conjunction with IRI, TiVo, and a consortium of major FMCG manufacturers.

A three page summary of the results, conclusions and implications of this study is available for Vlerick Brand Community Members. 

Prototypical brands and Innovation Success

Posted December 21^st

In the Brand Café about ‘Branding & Innovation’ organized  on 18 January 2010 Dr. Frank Goedertier highlighted his recent research results developed within the Vlerick Brand Management Center. Traditional brand extension literature has argued that perceived fit (i.e. the extent that consumers perceive a match (in terms of image or category coherence) between a brand and an extension product) is crucial for extension success.

Frank Goedertier demonstrates that this notion of perceived category or image fit might be significantly less important when brands want to extend to truly innovative products, i.e. products that are radically new to consumers. During a presentation Frank showed examples of a new carrot ketchup or an innovative self-heating soup bar that could be launched under the Heinz brand. Recent research results illustrate that when extension products are truly new-to-the-market the ‘risk-reduction or trust –inspiring’ characteristic of brands can have a tremendous impact on the success of the extension.

A branding-inspiration report that details these findings and offers managerial implications is available for Vlerick Brand Community Members.

Re-thinking the Brand Communication Model

Posted December 21^st

The traditional perspective of communication models such as AIDA or DAGMAR starts from a funnel approach: first target a large group of unaware consumers and increase brand awareness & brand knowledge. Next try to get as much prospects as possible to like & or even better to prefer the brand, and finally make sure a subset of those really buy the brand. New thinkers like Seth Godin or Joseph Jaffe (Flip The Funnel, 2010) write in their books that you should flip this funnel. Instead of first targetting the masses and hope that you will end up with some loyal brand ambassadors, why not do it the other way around? Start with your loyal customers, treat them well, and new media will enable them to spread the brand message. To accomplish this you should do four things according to Jaffe: acknowledgement, dialogue, incentives and activation.

Members of the Vlerick Brand Community can read more on 'the flipping the funnel topic' or the need of a new model on the Vlerick Brand Community Platform.

The two mayor categories of sensory enabling technologies are visual technologies (visual support) and haptic interfaces (tactile support). New sensory enabling devices - such as a mouse through which you can feel and the Scent Dome, a device that can release aromas through the internet - are increasingly introduced in the market.