Summary Marketing Management PDF

Summary Marketing Management Table of Contents Introduction........................................................................................................................ 2 Dell’Acqua et al. (2023) Navigating the Jagged Technological Frontier: Field Experimental Evidence of the Effects of AI on Knowledge Worker Productivity and Quality.................................................... 2 Tutorial 1: Consumer Needs and the Value of Brands............................................................ 3 Global Trends (2024), Ipsos......................................................................................................... 3 (Keller 2013) Strategic Brand Management................................................................................... 4 Kapferer (2008) Brand equity in question...................................................................................... 8 Tutorial 2: The Identity and Personality of Brands................................................................. 12 Aaker (1997) Dimension of Brand Personality............................................................................... 12 Kapferer (2008), Dimension of Brand Persona.............................................................................. 14 Tutorial 3: Brand Elements.................................................................................................. 17 Bajaj and Bond (2017), Beyond Beauty Design Symmetry and Brand Personality............................. 17 Luffarelli et al. (2019a), A Study of 597 Logos Shows Which Kind is Most Effective.......................... 19 Luffarelli et al. (2019b), Let the Logo Do the Talking The Influence of Logo Descriptiveness on Brand Equity....................................................................................................................................... 20 Kim and Lim (2018), A comprehensive review on logo literature research topics, findings, and future directions................................................................................................................................. 22 Tutorial 4 – Measuring the Effectiveness of Brand Elements I................................................ 23 Navarro et al. (2020), Learning Statistics with JASP (chapter 2, 13-41)............................................ 24 Kohavi and Thomke (2017), The Surprising Power of Online Experiments....................................... 29 Tutorial 5 - Measuring the Effectiveness of Brand Elements II............................................... 31 Navarro et al. (2020), Learning Statistics with JASP (chapter 7)...................................................... 31 The ultimate guide to questionnaires.......................................................................................... 34 Tutorial 6 – (Integrated) Marketing Communications............................................................ 35 Court (2009), The Consumer Decision Journey............................................................................. 35 Batra and Keller (2016), Integrating Marketing Communications New Findings, New Lessons, and New Ideas................................................................................................................................ 37 Hilken et al. (2018), Making omnichannel an augmented reality: the current and future state of the art...... 41 Tutorial 7- User-generated Content and Viral Marketing............................................................. 44 Akpinar and Berger (2017), Valuable virality..................................................................................... 44 Kaplan and Haenlein (2011), Two hearts in three-quarter time How to waltz the social media viral marketing dance........................................................................................................................................ 47 Tutorial 8: Influencer Marketing.......................................................................................... 49 Leung et al. (2022a), Does Influencer Marketing Really Pay Off?........................................................... 49 Leung et al. (2022b), Online Influencer Marketing............................................................................. 50 Tutorial 9 – Data Management............................................................................................... 55 Navarro et al. (2020), Learning Statistics with JASP (Chapter 4&5)........................................................ 55 Chapter 4: Descriptive Statistics..................................................................................................... 55 Chapter 5: Drawing Graphs............................................................................................................ 57 Goss-Sampson (2020), Statistical Analysis in JASP.............................................................................. 58 Introduction Dell’Acqua et al. (2023) Navigating the Jagged Technological Frontier: Field Experimental Evidence of the Effects of AI on Knowledge Worker Productivity and Quality (nicht gelesen) This paper examines the impact of integrating Artificial Intelligence (AI), specifically the GPT-4 model, into the workflows of highly skilled knowledge workers. The researchers conducted randomized field experiments to understand how AI can augment or disrupt the performance of these professionals. 1. Methods - Date from two randomized experiment conducted in collaboration with Boston Consulting Group. - Participants were 758 BCG consultants, which was around 7% of their individual contributor consultants globally. - The experiment had two main tasks - one designed to be within the capabilities of GPT-4 (the "inside the frontier" task), and one designed to be outside the AI's capabilities (the "outside the frontier" task). - Participants were randomly assigned to one of three conditions for each task - a control group with no AI access, a GPT-4 access group, and a GPT-4 access group with an overview on using the AI effectively. - Performance was measured through quality, productivity, and timing metrics, using both human graders and GPT-4 itself to evaluate the responses. - The study aimed to understand how highly skilled professionals navigate the "jagged frontier" of AI capabilities in their work. 2. Results 2.1 Inside the Frontier For tasks within the capabilities of GPT-4, the use of AI significantly improved performance: o Quality of responses increased by more than 40% on average o Productivity increased, with subjects completing 12.2% more tasks on average o Subjects were 25.1% faster in completing tasks The benefits of AI were most pronounced for lower-performing subjects, who saw a 43% increase in performance compared to a 17% increase for higher-performing subjects 3.2 Outside the Frontier For tasks outside the capabilities of GPT-4, the use of AI had a negative impact on performance: o Subjects using AI were 19 percentage points less likely to provide a correct solution However, even for incorrect solutions, the quality of recommendations was higher for subjects using AI 3.3 Navigating the Frontier Subjects exhibited two main strategies for using AI: 1. Centaur Behavior: Strategically dividing tasks between human and AI capabilities 2. Cyborg Behavior: Closely integrating human and AI efforts at the subtask level 3. Discussion The findings highlight the importance of understanding the "jagged frontier" of AI capabilities, as tasks that appear similar may fall on different sides of this frontier Organizations must carefully consider how to integrate AI into knowledge work workflows, as the impact can vary significantly depending on the task Developing human capabilities to effectively navigate the AI frontier will be crucial, as will maintaining a diverse AI ecosystem to counter potential homogenization of ideas Table: Comparison of Performance Metrics Inside and Outside the Frontier METRIC INSIDE THE FRONTIER OUTSIDE THE FRONTIER QUALITY INCREASE (GPT + OVERVIEW) 42.5% 25.1% PRODUCTIVITY INCREASE 12.2% N/A TIMING DECREASE 22.5% 30% CORRECTNESS DECREASE N/A 19 ercentage points Tutorial 1: Consumer Needs and the Value of Brands Global Trends (2024), Ipsos Key Take-aways - Ipsos Global Trends summarises five million data points. It includes year-round work collecting signals and identifying macro forces from a truly global team of experts and analysts. There are constants. Throughout, we see values that strong majorities have agreed with over the last decade across markets, genders, ages, incomes and languages. We’ve identified three over-arching themes and many other individual issues. There are tensions at all levels. Sociopolitical tensions about the very ideas of globalisation, tensions within markets, tensions between citizens and even tensions within households. There are also tensions within each of the trends. For example, nostalgia is a shared value, and a powerful tool for bringing us together, but taken further, that idea can cause a rift between those who yearn for what they see as traditional values and others whose sense of identity is shifting. Brands, businesses, organisations and governments have roles to play in everything from combatting global problems like climate change to helping us express ourselves as individuals. Determining what those roles are and how to demonstrate you’re playing them authentically is complicated. As the world gets more complex, people focus on what they think they can control: themselves. People think they are doing all they can to solve climate change, but most feel overwhelmed by the complexity of the world around them. Even if feeling overwhelmed is part of being human, it’s still a powerful emotion that brands should be aware of and look to alleviate. One way: help people express themselves however they and their surrounding culture can. 23 Values that underline the Trends - Asking questions about what it means to be both citizen and consumer across 50 markets - Our analysis has surfaced 23 human values - By presenting these on a map, we can start to understand how closely aligned people’s values are. - The further apart two values are — for instance, Nativism and Global Outlook — the less likely a single person might be to hold both values. - The five most intense values that unite humans globally (highlighted in bold) are in the most likely to united humans around the world. - The five least intense values are those that are less likely to unite (highlight in italics) us. While these are less intense, they may show signs of greater growth in the future and need careful attention. Six Global Marco Forces and Key themes (Keller 2013) Strategic Brand Management Preview - firms most valuable assets is the brand names associated with their products or services. - Face more choices with less time to make them → strong brand’s ability simplify decision making, reduce risk, and set expectations - This content aims to delve deep into branding, exploring: 1. Important issues in planning, implementing, and evaluating brand strategies. 2. Provide concepts, theories, models, and tools for better branding decisions. - The emphasis is on understanding psychological principles behind branding, relevant for organizations of all types. What is a Brand? - Around for centuries, branding means to distinguish the goods of one producer from another's. - The term "brand" is derived from the Old Norse word brandr, which means “to burn,” as brands were and still are the means by which owners of livestock mark their animals to identify them. - According to the American Marketing Association (AMA), a brand is a “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” - In the industry, a distinction is made between "brand" (a mere name or logo) and "Brand" (a name or logo with significant market reputation and awareness). Brand Elements: - key to creating a brand, according to the AMA definition, is to be able to choose a name, logo, symbol, package design, or other characteristic that identifies a product and distinguishes it from others. - consider the variety of brand name strategies. For example - Samsung, use their names for essentially all their products. Other manufacturers assign new products individual brand names that are unrelated to the company name, like Tide or Pampers - There are brand names based on people’s names, like Estée Lauder cosmetics, Porsche automobiles, names based on places, like Sante Fe cologne, Chevrolet Tahoe SUV Brands vs. Products: - A product is anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want. - a product may be a physical good like a cereal, tennis racquet, or automobile; a service such as an airline, a retail outlet like a department store, a person such as a political figure, entertainer, an organization like a nonprofit, trade organization, or arts group; a place including a city, state, or country; or even an idea like a political or social cause. - We can define five levels of meaning for a product: (Kotler) 1. The core benefit level is the fundamental need or want that consumers satisfy by consuming the product or service. 2. The generic product level is a basic version of the product containing only those attributes or characteristics absolutely necessary for its functioning but with no distinguishing features. This is basically a stripped-down, no-frills version of the product that adequately performs the product function. 3. The expected product level is a set of attributes or characteristics that buyers normally expect and agree to when they purchase a product. 4. The augmented product level includes additional product attributes, benefits, or related ser- vices that distinguish the product from competitors. 5. The potential product level includes all the augmentations and transformations that a product might ultimately undergo in the future. - A brand is therefore more than a product, because it can have dimensions that differenti ate it in some way from other products designed to satisfy the same need. - These differences may be rational and tangible—related to product performance of the brand—or more symbolic, emotional, and intangible—related to what the brand represents. Creating Competitive Advantages with Brands: - Some brands create competitive advantage with product performance, like Gillette due to continual innovation. - Others create it through non-product-related means, like Coca-Cola's iconic brand image. - Especially strong brands carry a number of different types of associations, and marketers must account for all of them in a marketing decision. - For instance, Coca-Cola faced backlash when introducing "New Coke," overlooking the historical and emotional associations with the original product. Brands' Intangible Value: - Brands can create perceived differences among products through branding and by developing a loyal consumer franchise, marketers create value that can translate to financial profits for the firm. - most valuable assets many firms have intangible assets such as management skills, marketing, financial and operations expertise, and, most important, the brands themselves. - Brands like Quaker Oats' former CEO, John Stuart, highlighted this by stating he would prefer the brands over tangible assets if the company were split. Why do Brands Matter? Consumers: - Identification and Responsibility: Brands help consumers identify the source or maker of a product, assigning responsibility to a specific manufacturer or distributor. - Simplifying Decisions: Brands act as shortcuts, reducing the mental effort and time consumers need to make product choices. - Trust and Loyalty: Brands form a bond with consumers, who trust that the brand will consistently deliver value, quality, and satisfaction. - Symbolic Meaning: Brands can carry symbolic value, allowing consumers to express their self-image and communicate their values. - Quality Signals: Brands communicate product quality, which is especially important for goods that are challenging to evaluate, like experience and credence goods. - Risk Reduction: Well-known brands mitigate various types of risks in product decisions, including functional, physical, financial, social, psychological, and time risks. - Brands can also play a significant role in signaling certain product characteristics to consumers. o For search goods like grocery produce, consumers can evaluate product attributes like stur-diness, size, color, style, design, weight, and ingredient composition by visual inspection. o For experience goods like automobile tires, consumers cannot assess product attributes like durability, service quality, safety, and ease of handling or use so easily by inspection, and actual product trial and experience is necessary. o For credence goods like insurance coverage, consumers may rarely learn product attributes. - Brands can reduce the risks in product decisions. Consumers may perceive many different types of risks in buying and consuming a product: o Functional risk: The product does not perform up to expectations. o Physical risk: The product poses a threat to the physical well-being or health of the user or others. o Financial risk: The product is not worth the price paid. o Social risk: The product results in embarrassment from others. o Psychological risk: The product affects the mental well-being of the user. o Time risk: The failure of the product results in an opportunity cost of finding another satisfactory product. - Consumers can certainly handle these risks in a number of ways, but one way is obviously to buy well-known brands, especially those with which consumers have had favorable past experiences. Firms: o Identification and Legal Protection: Brands serve as an identification purpose, to simplify product handling or tracing. - They also offer legal protection for unique features and intellectual property rights, including trademarks, patents, copyrights, and designs. - These intellectual property rights ensure that the firm can safely invest in the brand and reap the benefits of a valuable asset. o Barriers to Entry: Brand loyalty creates barriers to entry make it difficult for other firms to enter the market. - Brands help firms retain loyal customers, ensuring demand predictability and security. Impressions created over years are not easily replicated. o Competitive Advantage: Brands are powerful assets, influencing consumer behavior and generating future revenues. - They can be bought and sold, and their value is often much higher than tangible assets. They significantly contribute to a firm's profitability and shareholder value. Can Anything Be Branded? Creating Brands: - brand is something that resides in the minds of consumers. A brand is a perceptual entity rooted in consumers' minds. - To brand a product, marketers must give consumers a label for the product, identify the product and provide meaning for the brand, why it’s special and different from other brand name products. - Branding creates mental structures and helps consumers organize their knowledge about products and services that clarifies their decision making and provides value to the firm. - The key to branding is that consumers perceive differences among brands in a product category. - These differences can be related to attributes or benefits of the product or service itself, or they may be related to more intangible image considerations. Branding Applications: - Brands play a pivotal role whenever consumers face choices. - The universality of branding is evident in diverse examples: 1. Bonnaroo Music and Arts Festival, expanding into non-festival settings. 2. "Freakfest," a rebranding effort that transformed a chaotic event into a source of pride. - Even commodities can be branded. Branding in Different Product Categories: Physical Goods: - Physical goods are what are traditionally associated with brands and include many of the best- known and highly regarded consumer products, like Mercedes-Benz and Sony. - Business-to-business (B2B) branding creates a positive image and reputation for the company. Creating such goodwill with business customers is thought to lead to greater selling opportunities and more profitable relationships. - A strong brand can provide valuable reassurance and clarity to business customers who may be putting their company’s fate and perhaps their own careers on the line. - A strong business-to-business brand can thus provide a strong competitive advantage. - Boeing implemented the “One Firm” brand strategy to unify all its different operations with a one-brand culture. - Infosys transformed from an outsourcing firm to a business process transformation partner, successfully differentiating itself. High-tech Products: - Many technology companies have struggled with branding, these firms often lack any kind of brand strategy and sometimes see branding as simply naming their products. - Marketing skills are playing an increasingly important role in the adoption and success of high-tech products. - Creative Technology introduced the HanZpad tablet with tailored Chinese content, targeting the education market in China. - Trust and company image are critical in the fast-paced, evolving world of high-tech products Branding in Services and Retail Services: - Role of Branding with Services: one challenge in marketing services is that they are less tangible than products and more likely to vary in quality, depending on the particular person or people providing them. - branding can be particularly important to service firms as a way to address intangibility and variability problems. - Brand symbols help make the abstract nature of services more concrete and differentiates them. - Brands can help identify and provide meaning to the different services provided by a firm. - Branding a service can also be an effective way to signal to consumers that the firm has designed a particular service offering that is special and deserving of its name. - Branding has clearly become a competitive weapon for services. - Professional services: branding is an interesting combination of B2B branding and traditional consumer services branding. - Corporate credibility is key in terms of expertise, trustworthiness, and likability. - Variability is more of an issue with professional services because it is harder to standardize the services of a consulting firm than those of a typical consumer services firm - Long-term relationships are crucial too; losing one customer can be disastrous if it is a big enough account. - Emotions also play a big role in terms of sense of security and social approval. Switching costs can be significant and pose barriers to entry for competitors, Retailers and Distributors: - Brands can generate consumer interest, loyalty, and patronage. - Brands help retailers create an image and positioning. - Retailers can also create their own brand image by attaching unique associations to the quality of their service, their product assortment and merchandising, and their pricing and credit policy. - Retailers can introduce their own brands by using their store name, creating new names, or some combination of the two. - Products bearing these store brands or private label brands offer another way for retailers to increase customer loyalty and generate higher margins and profits. - Private labels have gained significant market share in grocery purchases. - The Internet has transformed and improved retailing in recent years by making customer service agents available in real time, shipping products promptly, providing tracking updates, and adopting liberal return policies. Online Products and Services: - The Strongest online brands in recent years have been born online like Google, Facebook, and Twitter - Brand building first creates unique aspects of the brand on some dimension that is important to consumers, such as convenience, price, or variety. - Successful online brands involves addressing consumer needs, offering unique features, and providing excellent customer service. - Successful online brands utilize partnerships, target specific customer groups, and maximize the benefits of interactivity and timeliness on their websites. People and Organizations: - Public figures, such as politicians, entertainers, and athletes, can be seen as brands as they compete for public approval and acceptance. - By building up a name and reputation in a business context, you are essentially creating your own brand. The right image can influence the way people treat you and interpret your words and action. - Nonprofit organizations are emphasizing marketing to spread their message and create a recognizable brand image. Sports, Arts, and Entertainment: - Branding in sports marketing is becoming more sophisticated, with teams focusing on creating loyalty, awareness, and a strong image. - many sports teams are marketing themselves through a creative combination of advertising, promotions, sponsorship, direct mail, digital, and other forms of communication. - By building awareness, image, and loyalty, sports franchises are able to meet ticket sales targets regardless of what their team’s actual performance might turn out to be. - Brand symbols and logos in particular have become an important financial contributor to professional sports through licensing agreements. - In the entertainment industry, branding is crucial as movies, music, and books are experience goods. - Successful movies rely on branding elements like title, actors, plot and directors. - Movie Franchises have established themselves as strong brands by combining all these ingredients into a formula that appeals to consumers and allows the studios to release sequels (essentially brand extensions) - A strong brand in the entertainment sector capitalizes on pleasurable past experiences. Geographic Locations: - Place marketing promotes locations (e.g., cities, states) to attract visitors or new residents. - While the brand name is typically the location's name, creating a positive image and awareness for the location is essential Ideas and Causes: - Branding can be applied to ideas and causes, making them more visible and concrete. - Nonprofit organizations use branding to make their causes more identifiable and to educate and persuade the public. - Symbols, like the AIDS ribbon, represent branded causes. Kapferer (2008) Brand equity in question - brands are now recognised as part of a company’s capital (hence the concept of brand equity), they should be exploited. - Brands are intangible assets, assets that produce added benefits for the business. - the domain of strategic brand management: how to create value with proper brand management. What is a brand? - What to use to evaluate what is commonly called brand equity? - Two approaches - Customer-based and focuses exclusively on the relationship customers have with the brand - The other aims at producing measures in dollars, euros or yen. Customer-based definitions - Financial approach measures brand value by isolating the net additional cashflows created by the brand. - These acash flows are the result of customers’ willingness to buy one brand more than its competitors’, even when another brand is cheaper. - Brands have financial value because they have created assets in the minds and hearts of customers. - These assets are brand awareness, beliefs of exclusivity and superiority of some valued benefit, and emotional bonding. - Definition of a brand: ‘a brand is a set of mental associations, held by the consumer, which add to the perceived value of a product or service’ (Keller, 1998). - Modern brand management starts with the product and service as the prime vector of perceived value, while communi cation is there to structure, to orient tangible perceptions and to add intangible ones. Brands as conditional asset - How does the financial perspective help us in defining brands and brand equity? 1. brands are intangible assets, posted eventually in the balance sheet as one of several types of intangible asset (a category that also includes patents, databases and the like). 2. Second, brands are conditional assets. In order to deliver their benefits, their financial value, they need to work in conjunction with other material assets such as production facilities. - There are no brands without products or services to carry them, brands cannot exist without a support (product or service). - This product and service becomes effectively an embodiment of the brand, that by which the brand becomes real. - Brand management starts with creating products, services and/or places that embody the brand. The legal perspective - legal definition for brands, a sign or set of signs certifying the origin of a product or service and differentiating it from the competition’. - Historically, brands were created to defend producers from theft. - a sign burned into the animal’s hide, identified the owner and made it apparent if the animal had been stolen. - ‘Brands’ or trademarks also identified the source of the olive oil or wine and created value in the eyes of the buyers by building a reputation for the producer or distributor of the oil or wine. - trademarks have a ‘birthday’ – their registration day. - a brand is not born but made. It takes time to create a brand, even though we talk about launching brands A brand is a name that influences buyers - This definition captures the essence of a brand: a name with power to influence buyers. - what really makes a name become a brand are the saliency, differentiability, intensity and trust attached to these associations. - there is so much choice and opacity that consumers cannot spend their time comparing before they make a choice. - Brands must convey certitude, trust. They are a time and risk reducer. - Brand power to influence buyers relies on representations and relationships. It comes from a system of mental associations (quality, unique benefits, target buyer) which create trust and loyalty. - Emotional Relationship: the power of a name is also due to the specific nature of the emotional relationships it develops. - A brand, it could be said, is an attitude of non-indifference knitted into consumers’ hearts. This attitude goes from emotional resonance to liking, belonging to the evoked set or consideration set, preference, attachment, advocacy, to fanaticism - What makes a name acquire the power of a brand is the product or service, together with the people at points of contact with the market, the price, the places, the communi- cation – all the sources of cumulative brand experience. - This is why one should speak of brands as living systems made up of three poles: products or services, name and concept. (See Figure 1.1.) - Brand System: system combining products, name and concepts, which work together to enhance brand experience and communicate its value. - Differentiation is summarised by the brand concept, a unique set of attributes (both tangible and intangible) that constitute the value proposition of the brand. - In summary, a brand is a shared desirable and exclusive idea embodied in products, services, places and/or experiences. The more this idea is shared by a larger number of people, the more power the brand has. Differentiating between brand assets, strength and value - Brand assets. These are the sources of influence of the brand (awareness/saliency, image, type of relationship with consumers), and patents. - Brand strength at a specific point in time as a result of these assets within a specific market and competitive environment. Brand strength is captured by behavioural competitive indicators: market share, market leadership, loyalty rates and price premium (if one follows a price premium strategy). - Brand value is the ability of brands to deliver profits. A brand has no financial value unless it can deliver profits. Lack of profit is not a brand problem but a business problem is to separate the brand from the business. - In Table 1.1, the arrows indicate not a direct but a conditional consequence. - The same brand assets may produce different brand strength over time: this is a result of the amount of competitive or distributive pressure. - Table 1.1 also shows an underlying time dimension behind these three concepts of assets, strength and value. - Brand assets are learnt mental associations and affects. They are acquired through time, from direct or vicarious, material or symbolic interactions with the brand. - Brand strength is a measure of the present status of the brand: it is mostly behavioural (market share, leadership, loyalty, price premium). - Brand value is a projection into the future. Brand financial valuation aims to measure the brand’s worth, that is to say, the profits it will create in the future. Tracking brand equity - Brand tracking should aim at measuring sources of brand power, - tracking system for brand equity, so that year after year its progress can be assessed. This system must be valid, reliable, and not too complicated or too costly - Numerous types of survey exist on the measurement of brand value (brand equity). - They usually provide a national or internationalparade based just on one component of brand equity: brand awareness, brand preference, quality image, prestige, first and second buying preferences when the favoured brand is not available, or liking. - We recommend four indicators of brand assets (equity): o Aided brand awareness. This measures whether the brand has a minimal resonance. o Spontaneous brand awareness. This is a measure of saliency, of share of mind when cued by the product. o Evoked set, also called consideration set. Does the brand belong to the shortlist of two or three brands one would surely consider buying? o Has the brand been already consumed or not? - Some companies add other items like most preferred brand. Aided awareness Unaided awareness Evoked set Consumed Goodwill: the convergence of finance and marketing - The 1980s brand valuation underwent a major shift, with acquisition price-to-earnings ratios skyrocketing as brands became central to acquisitions. - Companies began buying brands (like KitKat) instead of simply buying production capacities, reflecting a shift in focus to brand reputation and consumer perception. - Intangible Assets: The vision has changed from one where only tangible assets had value to one where companies now believe that their most important asset is their brands, which are intangible - Intangible assets, particularly brands, gained prominence, representing a majority of value in companies like Kellogg’s and General Mills. - Brands can have high value even if a company faces financial struggles, as poor financial performance doesn’t negate a brand's consumer appeal and long-term potential. - psychological goodwill of consumers, distributors and all the actors in the channels: that is to say, favourable attitudes and predisposition. - This goodwill enhances customer loyalty and distributor preference, keeping the brand visible and desirable in stores. - Impact of Customer and Distributor Goodwill: Distributors favor well-known brands to retain customers, as not carrying popular brands may drive customers to competitors. - The favourable attitude of distributors that list some products of the brand because of their rotation system. - wholesalers and resellers support slow-moving or industrial goods. This is especially true when they are seen as being an exclusive brand with which they are able to associate themselves in the eyes of their customers. - Consumer attachment to a brand supports future sales, with brand loyalty enduring even as competitors offer cheaper alternatives - Brands are stored in clients’ memories, so they exert a lasting influence. Because of this, they are seen as an asset from an accounting point of view: their economic effects extend far beyond the mere consumption of the product. How brands create value for the customer - Brands reduce perceived risk, and exist as soon as there is perceived risk. - Once the risk perceived by the buyer disappears, the brand no longer has any benefit. It is only a name on a product, and it ceases to be a choice cue, a guide or a source of added value. - The perceived risk is greater if the unit price is higher or the repercussions of a bad choice are more severe. Thus the purchase of durable goods is a long-term commitment. - all consumers do not have the same level of involvement. → Those who have high involvement are those that worry about small differences between products or who wish to optimise their choice → Those who are less involved are satisfied with a basic product which isn’t too expensive, which may be unknown but seems to be good value for money and is sold in their local shop. How brand awareness means value - brand awareness is not a just cognitive measure. It is correlated with many valuable image dimensions such as high quality, trust, reliability, closeness to people, a good quality/ price ratio, accessibility and traditional styling. - It has a zero correlation with innovativeness, superior class, style, these require independent efforts. - These authors make the distinction between three types of product characteristics: 1. the qualities which are noticed by contact, before buying; (e.g socks) 2. the qualities which are noticed uniquely by experience, thus after buying; (e.g cars) 3. credence qualities which cannot be verified even after consumption and which you have to take on trust. (e.g luxury cars, cigarettes) Transparent and opaque products - The brand is a sign (therefore external) reveals the hidden qualities of the product which are inaccessible to contact (sight, touch, hearing, smell) but accessible through experience → the consumer does not want to take the risk of trying the product. - A brand provides not only a source of information (thus revealing its values) but performs certain other functions which justify its attractiveness and its higher price when they are valued by buyers. - There is less need for reference points or risk reducers when the product is transparent, its inner qualities are accessible through contact (e.g kitchen paper), brands are less necessary, low-cost options may dominate.. - rise of distributors’ own brands, they can fulfil these functions as well and at a cheaper price. How brands create value for the company - the brand removes the risk: financial analysts view strong brandsas less risky, offering loyalty and stability of future sales. - A dominant brand is an entry barrier to competitors, it acts as a reference in its category. - A strong brand’s reputation increases demand, may command a premium price in addition to providing an added margin due to economies of scale and market domination. - Calculating Brand Financial Value: includes extra revenue from reputation, market leverage, and premium pricing minus brand management: the costs involved in quality control and in investing in R&D, advertising costs, and the cost of a legal registration - Figure 1.2 shows the three generators of profit of the brand: the price premium, more attraction and loyalty, and higher margin. - These effects work on the original market for the brand but they can be offered subse- quently on other markets and in other product categories, either through direct brand extension or through licensing, from which the manufacturer benefits from - three types of investment: 1. Investment in production, productivity and R&D. - the company can acquire specific know-how (cannot be imitated) or registering a patent. 2. Investment in research and marketing studies → new insights of consumers’ tastes and life-styles - Nowadays a key element of brand success is understanding and adapting to the logic of distributors, and developing good relations with the channels 3. Investment in listing allowances, in the sales force and merchandising, in trade marketing and, naturally, in communicating to consumers to promote the uniqueness of the brand - The hidden intrinsic qualities or intangible values would be unknown without brand advertising. How brand reputation affects the impact of advertising - Brands are a form of capital that can slowly be built, while in the meantime one is growing business. - it is possible to grow a business without creating such brand capital: a push strategy or a price strategy can deliver high sales and market share without building any brand equity. - build both business and brand value. → sales and reputation. - advertising and marketing are the key levers of sales, their effects on market share and the ability to charge a premium price (two indicators of brand strength) are not direct but are mediated by brand reputation - brand reputation is created by familiarity and by brand uniqueness Corporate reputation and the corporate brand - Companies like Velux (number one brand for roof windows in the world), realised it needed to create a corporate brand, competing through its product brand was not enough to protect it against the growing number of brands - many companies decided to create a corporate brand in order to make company actions, values and missions more salient and to diffuse specific added values. → defence of reputation. - Changes in reputation affect all stakeholders, companies monitor and manage their reputation closely. - global reputation is based on six factors or ‘pillars’ (Fombrun, Gardberg and Sever, 2000): 1. emotional appeal (trust, admiration and respect); 2. products and services (quality, innovativeness, value for money and so on); 3. vision and leadership; 4. workplace quality (well-managed, appealing workplace; employee talent); 5. financial performance; 6. social responsibility. - Since companies cannot grow without advocates and the support of their many stakeholders, they need to build a reputational capital among all of them; plus a global reputation, because even specialised stakeholders wish the company to be responsive to all stakeholders. - Goodwill as Reputation’s Finacial Value: The corporate brand will be more present and visible through art sponsorship, foundations, charities, advertising - the corporation does impacts consumer evaluation of its brands, especially if they share the same name as the corporation or are visibly endorsed by the former. - Brand Strategy: issue of branding architectures with the four structural types of relationship Independence: Separate identities for each productn (e.g LVMH) Umbrella: company and brand share the same name Endorsement: a strong corporate brand endorses sub-brands Branded house: All products under a single brand name (e.g Nike) Tutorial 2: The Identity and Personality of Brands Aaker (1997) Dimension of Brand Personality Introduction Jennifer L. Aaker’s study addresses the lack of a structured framework for understanding brand personality in consumer behavior literature. Aims to identify five core dimensions of brand personality: Sincerity, Excitement, Competence, Sophistication, and Ruggedness. Introduces a reliable, valid, and generalizable measurement scale to evaluate these dimensions. Discusses theoretical and practical implications of understanding brand personality. The Brand Personality Construct Defines brand personality as "the set of human characteristics associated with a brand." Differentiates brand personality from “product-related attributes”, which are utilitarian; brand personality serves symbolic and self-expressive function. Concept of animism: Consumers often attribute human-like traits to brands (e.g., treating brands as celebrities or historical figures). Advertising techniques like anthropomorphization (e.g., California Raisins) can imbue brands with distinct personality traits, making them enduring and recognizable. Antecedents of Brand Personality human and brand personality, differ in terms of how they are formed. Perceptions of human personality traits are inferred on the basis of an individual behaviour, physical characteristics, attitudes and beliefs, and demographic characteristics. perceptions of brand personality traits can be formed and influenced by any direct or indirect contact that the consumer has with the brand Direct influences include the brand’s user imagery (typical users’ traits), company employees, and endorsers. Indirect influences include product attributes, brand name, logo, advertising style, price, and distribution channel. Demographic characteristics (e.g., gender, age, class) also influence brand personality (e.g., Marlboro as masculine, Apple as young). Measuring Brand Personality examine how the relationship between brand and human personality may drive consumer preference Two types of brand personality scales are used 1. ad hoc scales, which typically are composed of a set of traits ranging from 20 to 300 2. based on human personality scales that have not been validated in the context of brand → , the validity of such brand personality scales often is questionable, leading researchers to argue that researcher must develop their own definitions and design their own instruments to measure the personality variables The study aims to create a comprehensive, generalizable scale across product categories to capture the symbolic nature of brands. A valid, consistent scale allows for comparisons across brands, helping researchers and marketers understand brand personality on a broader level. What is Brand Personality? Trait generation involved a two-stage process: - Stage 1: Compiled 309 traits from psychological research, marketing scales, and original studies, then reduced to more manageable number (114 traits). - Considerable research in psychology has converged on a stable, robust, and reliable factorial composition - of human personality, the "Big Five. - Stage 2: Selected a representative set of brands with varied personality types and product categories. Brands were selected based on salience and personality type, ensuring broad applicability of the resulting scale. Stage 3: Identifying the Brand Personality Dimensions Used principal components analysis to identify five brand personality dimensions. A five-factor solution resulted on the basis of the following criteria: 1. All five factors had eigenvalues greater than one. 2. A significant dip in the Scree plot followed the fifth factor 3. The first five factors were the most meaningful, rich, a interpretable. 4. The five-factor solution explained a high level of variance brand personality (92%). 5. The five-factor solution was the most stable and robust, as illustrated by subsample factor analyses described subsequently (e.g., males versus females, younger versus older subjects 6. Five identified dimensions: ▪ Sincerity (e.g., Hallmark cards, Dove) ▪ Excitement (e.g., Red Bull) ▪ Competence (e.g., The Wall Street Journal) ▪ Sophistication (e.g., Mercedes) ▪ Ruggedness (e.g., Nike, Land Rover) Assessing the Stability of the Brand Personality Dimensions To ensure generalizability, separate analyses were conducted for various demographic groups (e.g., male vs. female, younger vs. older). Results showed consistency across groups, with high factor congruence correlations, confirming stability and reliability of the five dimensions. Representing the Five Brand Personality Dimensions: The Final Set of Personality Traits The goal of the next phase was to identify the traits that most reliably, accurately, and comprehensively represent five dimensions. a facet identification phase was conducted focus on different "facets" subsumed by each factor to select representative traits that provide both breadth and depth and to serve as a framework for establishing the similarities and differences among alternative conceptions of the"Big Five." To identify the facets, the set of items in each factor is analyzed individually, a process that results in an unconstrained set of facets The result of the five individual factor analyses was a total of 15 facets: Sincerity and Excitement each had four facets, Competence three, and Sophistication and Ruggedness each had two next stage was to select the best traits represented in each of the 15 facets to be included in the scale. To add to the scale's reliability and comprehensiveness while minimizing trait redundancy. selected 45 traits to represent the five dimensions, ensuring both reliability and comprehensiveness. Dimensions are defined with multiple facets for better depth and breadth. Are the Five Brand Personality Dimensions Reliable? Reliability confirmed through: test-retest correlations and Cronbach’s alpha: - High internal consistency and stability were demonstrated for each dimension, with alphas ranging from 0.90 to 0.95. Confirming the Brand Personality Dimensions Conducted a confirmatory factor analysis with a new sample of brands and subjects to validate the five- factor structure. Results confirmed the five dimensions, suggesting a stable and generalizable structure for brand personality. General Discussion Summary of the Research: Developed a framework of brand personality Brand Scale dimensions and a reliable, valid, generalizable scale. Confirmed five distinct dimensions: Sincerity, Excitement, Competence, Sophistication, Ruggedness. The Symbolic Use of Brands: Brand Personality vs. Human Personality: Brand personality dimensions align with some human personality traits but include unique elements (e.g., Sophistication and Ruggedness). Practical Applications: The scale provides an alternative to ad hoc measures and enables comparisons across brands, establishing benchmark personality brands. The Antecedents, Consequences, and Processing of Brand Personality Antecedents: Brand personality is shaped by user imagery, advertising, and packaging. Consequences: Increases consumer preference, evokes emotions, and builds trust and loyalty. Brand personality information could function as a heuristic in low-motivation settings, influencing brand attitudes. The Symbolic Use of Brands Across Cultures Implications for cross-cultural research: Examines whether the five dimensions are generalizable across cultures. Cultural differences in brand symbolism; for instance, in individualistic vs. collectivist societies, brand use may differ. Further research suggested on how brand personality operates across cultural contexts, focusing on brand consistency and consumer values. Kapferer (2008), Dimension of Brand Persona Brand Identity and Positioning A Brand’s Essence A brand is not the name of a product; It is the vision that drives the creation of products and services under that name. That vision, the key belief of the brands and its core values is called identity. It drives vibrant brands able to create advocates, a real cult and loyalty. Effective brand management requires brand identity (unique attributes and values) and brand positioning(competitive differentiation). Identity drives positioning for existing brands, while positioning is how the brand’s products uniquely capture market share. Brand Identity: A Necessary Concept What is Identity? Brand identity, a newer concept in marketing, addresses what a brand truly stands for and differentiates it from competitors. It answers critical questions like: What is the brand’s aim? What are its values? What makes it differentt? Identity combines elements like identity cards (unique identifying features) and cultural identity(inherent differences and social belonging). Brand identity ensures coherence across various products and marketing actions, especially as a brand expands and diversifies. Identity also implies permanence and continuity. As brands evolve, they must stay recognizable, maintaining the unique “fingerprint” of the brand. Brand Identity and Graphic Identity Charters Many firms use graphic identity charters (logos, colors, visual guidelines) either for corporate or specific brand purposes , but these only define surface-level brand recognition. True brand identity includes a deeper, substantive message that reflects the brand’s core values. The brand’s deepest values must be reflected in the external signs of recognition, and these must be apparent at first glance. For instance, BMW’s design features convey a unified appearance across models, yet BMW’s identity includes precision, performance, and heritage that go beyond mere looks. Identity: a contemporary concept identity – has emerged in the field of management, already well versed in brand image and positioning currently living in a society saturated in communications. communication means two things: sending out messages and making sure that they are received. Urgent need to understand brand identity - When a brand innovates, it creates a new standard. The other brands must then catch up if they want to stay in the race, Why Speak of Identity Rather Than Image? Identity vs. Image Brand image is shaped by consumer perception, while brand identity is the essence of what the brand seeks to project. Brand image is on the receiver’s side. Image research focuses on the way in which certain groups perceive a product, a brand, a politician, a company or a country. Image is created through consumer interpretation of signals like brand name, visuals, advertisements, and product qualities. Identity, on the other hand, is on the sender’s side: it clarifies what the brand intends to be before public perception. The importance of intentional messaging is emphasized, as it ensures that external influences (“noise”) don’t distort the brand’s true meaning. Identity and Positioning Positioning specifies the brand’s distinctive characteristics and what makes it appealing compared to competitors. It is shaped by answers four following questions : ▪ What benefit does the brand offer? (e.g., Orangina has real orange pulp) ▪ Who is it for? (Schweppes for refined adults, Snapple for adults) ▪ Reason? What support the claimed benefit? ▪ Against whom does it compete? Positioning is a cruciak concept, t reminds us that all consumer choices are made on the basis of comparison. Positioning is a two-stage process: 1. indicate to what ‘competitive set’ the brand should be associated and compared. 2. indicate what the brand’s essential difference and raison d’être is in comparison to the other products and brands of that set. evolves as market conditions change, but identity remains stable since it is tied to the brand’s roots and core values. For example, Coca-Cola’s identity as “the symbol of America” remains constant, even as its positioning adapts to the global soft drink market. Why Brands Need Identity and Positioning A brand’s positioning is a key concept in its management. It is based on one fundamental principle: all choices are comparative. dentity draws upon the brand’s roots and heritage – everything that gives it its unique authority and legitimacy within a realm of precise values and benefits. Positioning is competitive: when it comes to brands, customers make a choice, but with products, they make a comparison. This raises two questions. 1. What do they compare it with? What area do we want to be considered as part of? 2. What are we offering the customer as a key decision-making factor? Brands need to communicate their unique authority and values to stand out among similar products and help simplify consumer choice. A brand without clear identity and positioning risks becoming undefined and losing relevance in the crowded marketplace. The Six Facets of Brand Identity to become ‘passion brands’, or ‘love marks’, brands must not be hollow, but have a deep inner inspiration. They must also have character, their own beliefs, and as a result help consumers in their life, and also in discovering their own identity. The Identity Prism Kapferer introduces the brand identity prism, a framework identifying six facets that collectively shape a brand’s identity: ▪ Physique: The brand’s tangible attributes, like physical appearance and prototype products. For example, the small round Orangina bottle is crucial for its identity. ▪ Personality: The brand’s character, shaped by how it communicates. Brands like Pepsi and Coca-Cola use spokespeople and symbols to convey personality. ▪ Culture: The brand’s foundational values, which serve as a source of inspiration (e.g., Apple’s roots in California’s culture of innovation). The cultural facet is the key to understanding the difference between brands. ▪ Relationship: The type of interaction a brand fosters with customers, like the friendly tone of Apple or the prestige associated with Dior. ▪ Reflection: The brand’s portrayal of its typical user, providing a model for consumers to identify with, such as Coca-Cola’s youthful, fun-loving image. ▪ Self-image: How consumers see themselves when they use the brand, like Porsche buyers viewing themselves as successful risk-takers. Together, these facets provide a well-rounded representation of brand identity, showing both internal (personality, culture) and external (physique, reflection) characteristics. Clues for Strong Identity Prisms Identity reflects the different facets of brand long-term singularity and attractiveness. A strong identity prism is clear, distinct, and sharply defined: ▪ Each facet should contain unique, meaningful words without redundancy. ▪ Traits included in the identity should distinguish the brand distinctly rather than blending it with competitors. The prism serves as a management tool to help all brand stakeholders maintain a cohesive brand experience and ensure actions align with the brand’s core values. Sources of Identity: Brand DNA Brand identity evolves over time as brands gain distinct meaning and autonomy. Researching a brand’s “DNA” reveals its inherent values, identity boundaries, and consistent themes across its products and communication. Tests confirm this progression: certain product or communi- cation concepts now seem foreign to the brand. Consumers play a limited role in defining brand identity; the true identity emerges from the brand’s vision, goals, and unique history. The Brand’s Typical Products A brand’s identity is often crystallized in its most iconic products, like Danone’s natural yogurt symbolizing health. Key products are prototypes that reflect and reinforce the brand’s core message and identity. Benetton’s use of color reflects its values of diversity and inclusiveness, reinforcing its identity across product lines. These prototypical products are more than mere offerings; they are symbols of the brand’s values and culture, which resonate with consumers and reinforce brand loyalty. The Power of Brand Names Brand names often reveal intentions and values, even when chosen for subjective reasons. Examples: ▪ Steelcase and Pampers: Names chosen to reflect product qualities. ▪ Apple: Chosen by Steve Jobs and Steve Wozniak to reflect unconventionality nature of this new brand, The name Apple symbolized a new approach to technology: friendly, approachable, and human-centered. Similarly, Orange (telecom) and Amazon (strength, richness) reflect their brands' intentions and values. Identity and the Brand Name A brand name is a powerful anchor for identity; examining its origins can clarify a brand’s purpose. The Latin saying “nomen est omen” (a name is an omen) suggests that names contain clues to a brand's program and competence. Names and Autonomy Some brands ignore the literal meaning of their names, using them symbolically (e.g., Nike, Mercedes). Strong brands redefine their names, infusing them with unique meanings over time. Managing Ambiguity in Names Brands sometimes face double meanings in their names (e.g., Shell with “seashell” vs. “bombshell”). Communication emphasizes the positive interpretation to align with brand identity. Brand Characters Emblems serve as visual symbols of brand identity, beyond the brand name. Emblems: ▪ Aid recognition and brand consistency. ▪ Provide durability across time (e.g., Hermès’ horse emblem). ▪ Enhance differentiation by transferring personality traits to the brand. Animal emblems convey brand personality traits that resonate with target audiences, like Wild Turkeyfor independence. Characters as Brand Representatives Characters represent brand qualities: ▪ Endorsers (e.g., Richard Branson for Virgin, Tiger Woods for Nike). ▪ Symbolic characters (e.g., Mr. Clean, the Michelin Man). Characters help build emotional relationships and serve as brand ambassadors, reflecting key aspects of brand identity. Visual Symbols and Logotypes Logos and symbols reflect a brand’s culture and personality (e.g., Nike’s swoosh, Adidas’ three stripes). When companies change logos, it often signals a shift in brand identity. Logos go beyond identification; they embody what the brand stands for. A logo change can signify either a departure from past values or a reaffirmation of brand identity. Geographical and Historical Roots Many brands leverage their geographical roots for identity (e.g., Swissair for Swiss values, IBM for East Coast order). Brands like Apple draw on California’s values of innovation and alternative culture. Brands rooted in specific places, like Evian with the Alps, derive symbolic value and authenticity from these associations. The Brand’s Creator: Early Visions Brand identity often reflects the personality and vision of the founder (e.g., Richard Branson with Virgin, Yves Saint Laurent’s celebration of femininity). After a founder’s death, brands often maintain their essence but adapt to contemporary times (e.g., Chanel under Karl Lagerfeld). A brand carries the founder’s legacy as part of its identity, but this identity can’t simply be transferred to others. Advertising: Content and Form Advertising shapes a brand’s history and personality (e.g., Volkswagen’s campaigns). Through cumulative ads, brands develop a distinct personality, culture, and consumer reflection. Volkswagen’s humorous and self-aware ads highlight its core values: reliability, quality, and durability. Bill Bernbach’s advertising style defined Volkswagen’s identity, showing how creative advertising can reinforce a brand’s essence. Brand Essence The brand essence captures a brand’s core promise or value in a simple phrase. Examples: ▪ Volvo: Security and social responsibility. ▪ Nivea: Pure love and care, represented by the iconic blue container and white cream. Brand essence often derives from the brand’s early prototype or symbolic product (e.g., Nivea cream, Mars for energy). Brand essence, while simple, can vary in meaning across cultures; a single word like “natural” might hold different connotations globally. The brand identity prism ensures a nuanced view of brand essence in relation to culture, values, and product attributes. Tutorial 3: Brand Elements Bajaj and Bond (2017), Beyond Beauty Design Symmetry and Brand Personality. Abstract Research: Examines how symmetry in visual design impacts brand personality, specifically in conveying brand excitement. Results: o Asymmetric in visual brand elements is associated with brand excitement. o findings contribute to growing interest in visual design and consumer processing, while extending current understanding regarding the communication of brand personality. Introduction visual brand elements (logos, packaging, promotional material, etc.) play a critical role in effective branding. many successful brands are instantly recognizable by their distinct visual elements (e.g., Nike’s “swoosh”) Most studies focus on aesthetic beauty; this research explores how visual design affects brand personality, emphasizing symmetry. Symmetry in Visual Design Definition of Symmetry: Symmetry is how much an image can be reflected along an axis Mirror (reflective) symmetry involves the action of “flipping” a figure to produce two halves that are identical across a central axis Translational symmetry involves the action of “sliding” a figure in any direction Rotational symmetry involves the action of “turning” a figure around a vertex Preference for Symmetry: People detect and prefer symmetry easily; it is associated with positive responses, such as aesthetic appeal and ease of processing. Symmetry in Consumer Perception Consumer researchers investigating antecedents to esthetic beauty and liking have identified various stimulus factors, including physical size, prototypicality, unity, complexity, and repetition a consistent positive relationship between visual harmony (comprised of symmetry and balance), and recognition. Visually harmonious were perceived as more “pleasing” and “reassuring” Symmetry is generally liked, linked to perceptions of quality, and enhances brand recall and recognition. Conveying Excitement Through Symmetry Brand Personality Framework: Based on Aaker’s model of brand personality (sincerity, competence, excitement, ruggedness, sophistication), this study focuses on excitement, associated with adjectives such as “daring,” “fun,” “youthful” and “imaginative” Firms often target exciting brand personalities to attract younger consumers, appear more culturally relevant, or stand out from competitors (e.g like Red Bull and GoPro) Role of Arousal: Arousal is traditionally defined as a measurable increment to a physiological or behavioral response (e.g., galvanic skin response or locomotor activity) resulting from a change in sensory input Subjective arousal measures ask respondents to rate an experience using anchors such as “calm,” “relaxed,” “agitated,” or “stimulated” More relevant to our framework, arousal is also influenced by “collative” stimulus properties, which involve the comparison of different informational characteristics Linking Asymmetry to Arousal Asymmetric designs, with their irregular elements, create more complexity and arousal than symmetric designs, which has been shown through studies where asymmetric images led to higher arousal and greater visual exploration. Attributing Arousal to the Brand When asymmetry in design evokes arousal, consumers often attribute this heightened energy to the brand itself, leading them to perceive the brand as more exciting ( “fun” and “daring”). This "spillover effect" occurs when sensory impressions, like arousal from visual elements, transfer to brand evaluations, especially if consumers are engaged in processing the imagery and no other information contradicts these impressions. Hypotheses H1: Symmetry in visual brand elements is nega- tively associated with consumer perceptions of brand excitement. H2: The effect of symmetry described in H1 is driven in part by subjective arousal. H3: Consumers will respond more favorably to the use of asymmetric brand imagery when a brand is positioned as exciting. Study 1: Logo Evaluation Objective: to measure the impact of logo design elements (including symmetry) on perceptions of brand personality (including excitement) Method: Participants rated a range of logos on eight design characteristics (organic, parallel, golden ratio, round, symmetric, elaborate, representative, and repetitive. ) Results: brands were perceived to be more sincere when their logos were more representative and parallel, brands were perceived to be more sophisticated when their logos were more symmetric and round Asymmetric logos were perceived as more exciting. Study 2: Subjective Arousal Objective to investi- gate the link between symmetry and perceived brand excitement through arousal. Method: Participants rated excitement and subjective arousal for symmetric and asymmetric logos. Results: asymmetry in the design of visual brand elements can evoke perceptions of brand excitement. - Asymmetry was linked to higher arousal, supporting H2. Study 3: Artwork Objective: 1. to demonstrate the robustness of our main finding, brand imagery was manipulated using artwork rather than logos. 2. Test if asymmetric imagery fits better with an “exciting” brand positioning (H3) Method: Used artistic images for brands positioned as exciting or calming. Results: symmetry was negatively associated with brand excitement, and this association was driven in part by subjective arousal. - Asymmetric images were seen as more fitting for exciting brands, supporting H3. Study 4: Product Choice Objective: examined whether consumers prefer brands whose visual design (asymmetric or symmetric) matches its positioning when selecting products. Method: Participants chose between products with symmetric vs. asymmetric imagery for brands positioned as exciting. Results: Participants chose symmetric brands more often when no text or no positioning was provided. Consumers preferred asymmetric designs for exciting brands, especially when no additional descriptive text was provided. General Discussion Role of Visual Design: Visual elements like logos shape both aesthetics and brand personality, with asymmetry enhancing excitement through subjective arousal. Key Findings: Asymmetric designs were associated with brand excitement, and when design “fit” matched brand personality, it influenced consumer choices. Balance of Symmetry: Symmetry supports aesthetic appeal, but asymmetry may be better suited for brands positioned as exciting. Spillover Effects: Visual design influences specific brand perceptions beyond quality, though its impact lessens when explanatory text is present. Guidance for Designers: Brand personality should guide design choices, with asymmetry adding excitement when appropriate; more research is needed to establish best practices. Future Research: - Study other design features and their interaction with symmetry on brand traits. - Explore symmetry’s effect on sincerity and competence, especially for luxury brands. - Examine individual differences (e.g., abstract vs. concrete mindsets) in consumer responses to design elements. Market Relevance: As differentiation declines, understanding design’s influence on brand perception becomes vital for brand development. Luffarelli et al. (2019a), A Study of 597 Logos Shows Which Kind is Most Effective Do Logos Really Matter? Logos help differentiate brands from competitors, facilitate brand recognition, and influence brand perception. Impact areas include: - Consumer behavior - Brand performance - Investor decisions - Brand equity (what a brand is all about) Design factors like simplicity or complexity can influence the funding decisions investors make and that symmetry and asymmetry can boost brand equity. What Is a Descriptive Logo? Descriptive logos includes textual or visual design elements that indicate the product or service (e.g., Burger King’s burger elements). Nondescriptive logos lack indicators of the type of product or service these brands are selling (e.g., McDonald’s golden arches). Study findings: - 40% of companies use descriptive logos, while 60% use nondescriptive. What Power Does a Descriptive Logo Have? Descriptive logos reveal that it is easier for consumers to visually process and understand what a brand markets as a result. Benefits of descriptive logos: - Make brands appear more authentic. - More favorably impact consumers evaluations of brands. - More strongly increase consumers willingness to buy. - Boost brands net sales more Supporting studies: - Sushi restaurant logo study showed descriptive logos made the brand seem more authentic. - B2C brand analysis showed descriptive logos positively impacted net sales. Is the Power of a Descriptive Logo Absolute? Benefits vary by brand familiarity: - Smaller positive effect for familiar brands since consumers already know them. - When consumers are familiar with a brand, they know more about it and are less likely to be influenced by the logo design. Potential downsides: - Descriptive logos have negative effect on brands that market products or services associated with sad or unpleasant things (e.g., funeral homes). What Can Companies Learn? Recommendations for logo design: - Include design elements that indicate the product/service if relevant. Use nondescriptive logos if: - The brand has negative associations. - The company operates across diverse sectors (e.g., Uber, Procter & Gamble, Disney). Caution: Descriptive logos are not guaranteed to ensure brand success but are significant for perception. Luffarelli et al. (2019b), Let the Logo Do the Talking The Influence of Logo Descriptiveness on Brand Equity Abstract Logo descriptiveness: Logos with descriptive elements (textual/visual) about the product/service can boost brand evaluations, purchase intentions, and brand performance. Key findings: Descriptive logos are easier to process, evoking stronger impressions of authenticity, which consumers value Two important Moderators are identified: o Positive effects: Descriptive logos have a stronger positive impact on unfamiliar brands, as they help consumers quickly understand what the brand offers. o Negative effects: For brands linked to negative associations (like products or services with unpleasant connotations), descriptive logos can backfire by reinforcing those negative perceptions. Many companies may not fully take advantage of the potential benefits of logo descriptiveness. Introduction Importance of logos: Logos serve as essential identifiers for brands, and design decisions here can significantly impact consumer behavior. Descriptiveness effect: Study examines how descriptive logos impact brand equity across six studies, including experiments, a large-scale survey, and an analysis of real logos. Theoretical Background Well-designed logos can offer substantial benefits to brands and, in particular, boost brand equity Extant work shows that the fonts, colors, designs and forms of stimuli such as logos can affect brand equity causing specific brand impressions. For example, logo dynamism, incompleteness and asymmetry can influence consumer behavior by evoking impressions of modernity, innovativeness, and excitement, respectively. Hypotheses Consumers might thus judge brands that have more descriptive logos to be more trustworthy and credible, as more (vs. less) descriptive logos are easier to process. Brand authenticity is a “subjective evaluation of genuineness ascribed to a brand”. Prior research shows that consumers view a brand as authentic when they believe that it stays true to its promises, makes credible claims, and is honest and transparent Brands that are judged to be trustworthy and credible are often perceived as authentic o H1: More Descriptive logos create stronger authenticity impressions due to ease of processing. o H2: More Descriptive logos positively influence brand evaluations and purchase intentions through authenticity impressions. o H3: Familiar brands grom more (vs. less) descriptive logos have a less positive effect on brand evaluations and purchase intentions. o H4: For negatively associated products, more (vs. less) descriptive logos have a negative effect on brand evaluations and purchase intentions. o H5: Descriptive logos positively influence financial performance. Study 1: Examining Authenticity Impressions Method: Used fabricated logos for a basketball equipment brand vs. running shoes to test descriptiveness on authenticity. Result: Descriptive logos led to stronger impressions of authenticity, than the less descriptive logos the more (vs. less) descriptive logo had a more positive indirect effect on impressions of authenticity through ease of processing for both Study 2: Descriptive Logos and Brand Evaluations Method: Tested with logos of an outdoor gear brand vs. sushi restaurant. Result: more descriptive logos resulted in more favorable brand evaluations than the less descriptive logos the more (vs. less) descriptive logo had a more positive indirect effect on brand evaluations through logo- elicited impressions of authenticity for both Study 3: Real Logos and Purchase Intentions Method: Used sample of 174 logos from crowdfunding platforms to measure descriptiveness and purchase intentions. Result: Logo descriptiveness had a significant and positive indirect effect on purchase intentions through logo- elicited impressions of authenticity, indirectly raising purchase intentions. Study 4: Brand Familiarity Moderation Method: Assessed if descriptive logos affect familiar vs. unfamiliar brands differently. Result: The more descriptive logo also led to significantly less favorable brand evaluations when participants were familiar with the brand than when they were unfamiliar with it (weaker) indicates that more descrip- tive logos have a less positive effect on impressions of authen- ticity and, in turn, brand evaluations for brands that are familiar (vs. unfamiliar) to consumers. Study 5: Product Valence Moderation Method: Tested if descriptive logos impact brands with negative associations (e.g., palm oil) differently. Result: Descriptive logos harmed evaluations and purchase intentions for negatively perceived products. Study 6: Financial Performance Analysis Method: Examined 423 B2C brands and their sales data to assess descriptiveness impact. Result: Descriptive logos showed a positive association with brand performance such as sales and other financial metrics. General Discussion Theoretical Contribution: document the positive influence of logo descriptiveness on several measures can enhance brand equity by making brands seem authentic. Implications: Our work suggests that practitioners should consider using more descriptive logos for three reasons. 1. consumers can view and process more descriptive logos more easily, which can be an advantage in cluttered and competitive markets where consumers are exposed to a plethora of marketing stimuli. 2. more descriptive logos can elicit stronger impressions of authenticity, which consumers often value. 3. more descriptive logos can positively affect consumer behavior and brand performance. - Our findings also show that practitioners might favor using mixed logos over icon-only logos and wordmarks to create more descriptive logos. - mixed logos are found more effective at generating descriptiveness (probably because of synergies between textual and visual design elements). Limitations and Considerations: Familiarity and negative product associations limit effectiveness, and descriptive logos may not be suitable for every brand. Kim and Lim (2018), A comprehensive review on logo literature research topics, findings, and future directions (nicht gelesen) Abstract Role of Logos: Logos help firms communicate their unique identities and capture consumers’ attention. Research Gaps: Logo literature is fragmented, and this article aims to provide an overarching framework by reviewing 124 studies over the past 30 years. Key Topics Identified: - Theoretical foundations, logo design/redesign, basic and additional logo elements, outcomes of logo use, and practical applications. Purpose: This comprehensive review aims to guide both academics and practitioners in managing logos effectively. Introduction Significance of Logos: Logos serve as vital visual cues that differentiate firms and enhance consumer engagement. Need for a Comprehensive Review: The literature on logos remains fragmented, with few studies covering all theoretical and practical aspects. Research Goals: To fill these gaps by systematically categorizing logo literature into six major research topics. Methodology and Framework Systematic Search and Selection: Used major academic databases and selected 124 articles from business journals. Six Research Topics Developed: These topics provide a structured overview of existing literature and research questions. Framework Benefits: Offers both theoretical and practical insights for academics and practitioners in understanding logo literature. Theoretical Foundations of Logo Literature Corporate Visual Identity (CVI): Logos are a key element in communicating corporate values and identity. Processing Fluency: Repeated exposure to logos enhances familiarity, leading to positive brand evaluations. Logo Design/Redesign Strategic Decisions: Logo design involves selecting visual representation types to align with business strategy. Guidelines for Redesign: Companies may choose evolutionary or revolutionary redesigns depending on strategic goals. Challenges in Redesign: New logos can reduce processing fluency, potentially leading to negative consumer responses. Basic Logo Elements Typeface: Typeface in logos influences brand perceptions and readability. Shape: Logo shape characteristics like angularity and symmetry affect consumer perceptions of brand personality. Color: Colors in logos create brand associations and affect consumer perceptions across different cultures. Additional Logo Elements Logo Placement: Placement in ads or packaging can impact brand memory and consumer preference. Animated and Sonic Logos: Animated logos and sonic branding elements (sogos) are effective in digital environments. Outcomes of Logo Use in Business Consumer Responses: Logos can influence consumer brand awareness, personality perceptions, and commitment. Business Performance: Effective logos contribute to brand equity, market share, and financial performance. Practical Applications of Logo Use Context-Specific Usage: The impact of logos varies across industries, including luxury branding, children’s marketing, and green marketing. Channel Adaptation: Logos should be optimized for various channels like mobile apps and online platforms. Cross-Cultural Differences: Global firms must consider cultural variations in logo perception when entering international markets. Future Research and Conclusion Future Directions: Areas for further research include logo exposure effectiveness, the role of consumers in logo perception, and integrating logo elements. Concluding Remarks: This review advances knowledge on logos, providing a structured framework for academics and practitioners to explore logos strategically. Tutorial 4 – Measuring the Effectiveness of Brand Elements I Web Lecture Reliability and Validity Reliability refers to the degree to which a measurement or assessment tool produces stable and consistent results over time. - If you use your kitchen scale to weigh a bag of oranges several times, and it gives you the same reading every time, that scale is reliable. Validity refers to the extent to which a tool or method accurately measures the construct it is intended to assess. - If the kitchen scale shows the correct weight according to a standard measure (like another trusted scale), then it's valid because it's giving you the true weight of the bag of oranges. Navarro et al. (2020), Learning Statistics with JASP (chapter 2, 13-41) 2.1 Psychological Measurement - Data collection is essentially a form of measurement, where numbers or labels are assigned to capture aspects of human behavior or mental attributes. - Measurement: finding some way of assigning numbers, or labels, or some other kind of well-defined descriptions, to “stuff”. - Psychological measurement examples include age, preferences (e.g., not liking anchovies), and gender identity. → the way in which you specify the allowable measurement values is important. (e.g age in years or months) Operationalisation: defining your measurement Operationalisation: process by which we take a meaningful but somewhat vague concept and turn it into a precise measurement. o Being precise about what you are trying to measure (e.g. age – time since birth or since conception) o Determining what method you will use to measure it. o Defining the set of allowable values that the measurement can take - Do not always need to be numerical (e.g gender) - operationalisation needs to be thought through on a case by case basis. Theoretical construct: This is the thing that you’re trying to take a measurement of, like “age”, “gender” or an “opinion”. A theoretical construct can’t be directly observed, and often they’re actually a bit vague. Measure: The measure refers to the method or the tool that you use to make your observations. A question in a survey, a behavioural observation or a brain scan could all count as a measure. Operationalisation: The term “operationalisation” refers to the logical connection between the measure and the theoretical construct, or to the process by which we try to derive a measure from a theoretical construct. Variable: what we end up with when we apply our measure to something in the world. That is, variables are the actual “data” that we end up with in our data sets. 2.2 Scales of Measurement Scales of Measurement: A very useful concept for distinguishing between different types of variables is what’s known as - Different types of measurement scales categorize data in specific ways: ▪ Nominal scale: - Categorizes data without a quantitative value (e.g., gender, political party). - A nominal scale variable (also referred to as categorical variable) is one in which there is no particular relationship between the different possibilities. - doesn’t make any sense to average them. (e.g. eye colour) ▪ Ordinal scale: - Adds a sense of order without fixed intervals (e.g., finishing position in a race). - An ordinal scale variable is one in which there is a natural, meaningful way to order the different possibilities, but you can’t do anything else. - while we can use the natural ordering of these items to construct sensible groupings, what we can’t do is average them (e.g average response is 1.97) ▪ Interval scale: Has meaningful distances between values but no true zero (e.g., temperature in Celsius). - numerical value is meaningful. - interval scale variables the differences between the numbers are interpretable, but the variable doesn’t have a “natural” zero value. - addition and subtraction are meaningful for interval scale variables. ▪ Ratio scale: Has both meaningful distances and a true zero (e.g., weight, height). - ratio scale variable, in which zero really means zero, and it’s okay to multiply and divide. Continuous versus discrete variables - Variables are further distinguished. This is the distinction between continuous variables and discrete variables. continuous variable is one in which, for any two values that you can think of, it’s always logically possible to have another value in between. (e.g temperature in celcius, height) discrete variable it’s sometimes the case that there’s nothing in the middle. (e.g number of children, colours) Some complexities - Very few variables in real life actually fall into these nice neat categories, so you need to be careful not to treat the scales of measurement as if they were hard and fast rules. - They’re guidelines, intended to help you think about the situations in which you should treat different variables differently. Nothing more. - Likert scale: a psychological measurement, which is commonly used in surveys. - Quasi-interval scale: an unofficial type of scaling that falls between ordinal and interval scale. 2.3 Assessing the reliability of a measurement - Is the measurement any good? We’ll do this in terms of two related ideas: reliability and validity. Reliability: of a measure tells you how precisely you are measuring something - It refers to the consistency of a measurement. If the "same" thing is measured twice, a reliable measure should yield the same result each time., Validity: of a measure tells you how accurate the measure is. - Types of reliability measures: Test-retest reliability: This relates to consistency over time. If we repeat the measurement at a later date do we get a the same answer? Inter-rater reliability: This relates to consistency across people. If someone else repeats the measurement (e.g., someone else rates my intelligence) will they produce the same answer? Parallel forms reliability: This relates to consistency across theoretically-equivalent measure- ments. If I use a different set of bathroom scales to measure my weight does it give the same answer? Internal consistency reliability: If a measurement is constructed from lots of different parts that perform similar functions (e.g., a personality questionnaire result is added up across several questions) do the individual parts tend to give similar answers. 2.3 The “role” of variables: predictors and outcomes - Variables play roles such as predictors (independent variables) or outcomes (dependent variables). - When we are doing an analysis we have different names for X and Y , since they play different roles in the analysis. Independent variable (IV): is the variable that you use to do the explaining (i.e., X) Dependent variable (DV): is the variable being explained (i.e., Y ). - if there really is a relationship between X and Y then we can say that Y depends on X, and if we have designed our study “properly” then X isn’t dependent on anything else. - Navarro et al. said: They’re hard to remember and they’re highly misleading because a) the IV is never actually “independent of everything else”, b) if there’s no relationship then the DV doesn’t actually depend on the IV. - Alternatives: - The terms that I’ll use in this book are predictors and outcomes. - you’re trying to do is use X (the predictors) to make guesses ab

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