Influencing Factors in High vs. Low Share Brand Choice

  • Kang, Yong-Soon (School of Management, Binghamton University-State University of New York) ;
  • Moon, Sang-Kil (College of Management, North Carolina State University) ;
  • Suh, Jae-Beom (College of Business Administration, Ajou University)
  • 발행 : 2007.05.31

초록

We investigate factors that influence the choice of high-share brands(HSBs) vs. low-share brands(LSBs) among various product and consumer characteristics related to brand-share perceptions. Specifically, using 8 product categories varying in terms of purchase decision involvement, we show how the influencing factors vary across the categories. At the general level that cover all the 8 categories, our hierarchical Bayesian regressions analysis shows that factors that favor high-share brands are purchase decision involvement, search goods, experience goods, price-quality relationship, positive network externalities, and price-prestige beliefs. Conversely, consumers who value variety seeking and need for uniqueness favor low-share brands. The effects of these factors, however, vary across product categories. The identification of these characteristics can help brand managers establish a more effective brand-share strategy in such areas as setting an optimal market share goal, extending a brand, and developing ad copy. Furthermore, our consumer segmentation analysis demonstrates the general market has two distinct segments - (1) a segment composed of HSB buyers(86%) and (2) a segment composed of LSB buyers(14%). The two segments are also shown to have different significant factors that explain their brand choice. Our segmentation analysis can help marketers establish a marketing strategy that targets a specific segment of interest.

키워드

참고문헌

  1. Aaker, D. A., Strategic Market Management, 6th ed. New York: John Wiley & Sons, 2001
  2. Allenby, G. M. and P. E. Rossi, 'Marketing Models of Consumer Heterogeneity,' Journal of Econometrics 89 (1999), 57-78 https://doi.org/10.1016/S0304-4076(98)00055-4
  3. Bartlett, K., 'Rise and Fall of a Doughnut,' New Statesman 133, 4718/4719 (2004), 51
  4. Bronnenberg, B. J., V. Mahajan, and W. R. Vanhonacker, 'The Emergence of Market Structure in New Repeat-Purchase Categories: The Interplay of Market Share and Retailer Distribution,' Journal of Marketing Research 37 (2000), 16-31 https://doi.org/10.1509/jmkr.37.1.16.18723
  5. Brown, T. J., T. E. Barry, P. A. Dacin, and R. F. Gunst, 'Spreading the Word: Investigating Antecedents of Consumers' Positive Word-of-Mouth Intentions and Behaviors in a Retailing Context,' Journal of the Academy of Marketing Science 33, 2 (2005), 123-138 https://doi.org/10.1177/0092070304268417
  6. Caminal, R. and X. Vives, 'Why Market Shares Matter: An Information-Based Theory,' Rand Journal of Economics 27, 2 (1996), 221-239 https://doi.org/10.2307/2555924
  7. Cialdini, R. B., Influence: Science and Practice, 3rd ed. New York: HaperCollins, 1993
  8. Darby, M. R. and E. Karni, 'Free Consumption and Optimal Amount of Fraud,' Journal of Law and Economics 16 (1973), 67-86 https://doi.org/10.1086/466756
  9. Ehrenberg, A. S. C, G. J. Goodhardt, and T. P. Barwise, 'Double Jeopardy Revisited,' Journal of Marketing 54 (1990), 82-91 https://doi.org/10.2307/1251818
  10. Feick, L. and R. A. Higie, 'The Effects of Preference Heterogeneity and Source Characteristics on Ad Processing and Judgments about Endorsers,' Journal of Advertising 21 (1992), 9-24 https://doi.org/10.1080/00913367.1992.10673364
  11. Gelman, A., J. B. Carlin, H. S. Stern, and D. B. Rubin, Bayesian Data Analysis. Chapman & Hall, 1995
  12. Ghosh A. K., G. Chakraborty, and D. B. Ghosh, 'Improving Brand Performance by Altering Consumers' Brand Uncertainty,' Journal of Product & Brand Management 4, 5 (1995), 14-20 https://doi.org/10.1108/10610429510103809
  13. Hellofs, L. and R. Jacobson, 'Market Share and Customers' Perceptions of Quality: When Can Firms Grow Their Way to Higher Versus Lower Quality?' Journal of Marketing 63 (1999), 16-25 https://doi.org/10.2307/1251998
  14. Jacobson, R. and D. A. Aaker, 'Is Market Share All that It's Cracked Up to Be?' Journal of Marketing 49 (1985), 11-22
  15. Kamakura, W. A. and G. J. Russell, 'A Probabilistic Choice Model for Market Segmentation and Elasticity Structure,' Journal of Marketing Research 26 (1989), 379-390 https://doi.org/10.2307/3172759
  16. Katz, M. L. and C. Shapiro, 'Technology Adoption in the Presence of Network Externalities,' Journal of Political Economy 94, 4 (1986), 822-841 https://doi.org/10.1086/261409
  17. Kent, R. J. and C. T. Allen, 'Competitive Interference Effects in Consumer Memory for Advertising,' Journal of Marketing 58, 3 (1994), 97-105 https://doi.org/10.2307/1252313
  18. Kirmani, A., S. Sood, and S. Bridges, 'The Ownership Effect in Consumer Responses to Brand Line Stretches,' Journal of Marketing 63,1 (1999), 88-101
  19. Laverty, K. J., 'Market Share, Profits and Business Strategy,' Management Decision 39, 8 (2001), 607-617 https://doi.org/10.1108/EUM0000000005860
  20. Liebowitz, S. J. and S. E. Margolis, 'Network Externality: An Uncommon Tragedy,' Journal of Economic Perspectives 8, 2 (1994), 133-150
  21. Malhotra, N. K., M. Peterson, and S. B. Kleiser, 'Marketing Research: A State-of-the-Art Review and Directions for the Twenty-First Century,' Journal of the Academy of Marketing Science 27(1999), 160-183 https://doi.org/10.1177/0092070399272004
  22. Merrick, A. and S. Ellison, 'Too Much of a Good Thing? Gap Faces Same Dilemma as Other Big Retailers That Grew Beyond Demand,' The Wall Street Journal 24 (2002), B1 & B3
  23. Nelson, P., 'Information and Consumer Behavior,' Journal of Political Economy 78, 2 (1970), 311-329 https://doi.org/10.1086/259630
  24. Nijssen, E. J. and C. Agustin, 'Brand Extensions: A Manager's Perspective,' Journal of Brand Management 13,1 (2005), 33-49 https://doi.org/10.1057/palgrave.bm.2540244
  25. Phillips, L. W., D. R. Chang, and R. D. Buzzell, 'Product Quality, Cost Position, and Business Performance: A Test of Some Key Hypotheses,' Journal of Marketing 47 (1983), 26-43 https://doi.org/10.2307/1251491
  26. Rossi, P. E. and G. M. Allenby, 'Bayesian Statistics and Marketing,' Marketing Science 22, 3 (2003), 304-328 https://doi.org/10.1287/mksc.22.3.304.17739
  27. Seetharaman, P. B., S. Chib, A. Ainslie, P. Boatwright, T. Chan, S. Gupta, N. Mehta, V. Rao, and A. Strijnev, 'Models of Multi-Category Choice Behavior, Marketing Letters 16, 3/4 (2005), 239-254 https://doi.org/10.1007/s11002-005-5888-y
  28. Szymanski, D. M., S. G. Bharadwaj, and P. R. Varadarajan, 'An Analysis of Market Share-Profitability Relationship,' Journal of Marketing 57 (1993), 1-18
  29. Tian, K. T., W. O. Bearden, and G. L. Hunter, 'Consumers' Need for Uniqueness: Scale Development and Validation,' Journal of Consumer Research 28 (2001), 50-66 https://doi.org/10.1086/321947
  30. Varadarajan, P. R. and S. Jayachandran, 'Marketing Strategy: An Assessment of the State of the Field and Outlook,' Journal of the Academy of Marketing Science 27 (1999), 120-143 https://doi.org/10.1177/0092070399272002
  31. Veblen, T., The Theory of the Leisure Class. New York: Modern Library, 1899/1931
  32. Vishwanath, V. and J. Mark, 'Your Brand's Best Strategy,' Harvard Business Review 75 (1997), 123-129
  33. Woo, C. Y. and A. C. Cooper, 'The Surprising Case for Low Market Share,' Harvard Business Review 60 (1982), 106-113