Spillover effects of competitive rivalry on brand extensions

Pontes, Nicolas; Pontes, Vivian

doi:10.1057/s41262-021-00234-w

Cited by 11 publications

(15 citation statements)

References 39 publications

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“…Specifically, green line extensions, i.e., a dairy yogurt brand introduces a dairy-free variant (Grasby et al 2021), typically substitute for or complement the existing product by adding a green alternative. Prior research thereby included the competitive landscape, i.e., whether the extension category incumbents are already established or not (Pontes and Pontes 2021). In addition, the influence of the environmental reputation of the parent brand on its green extendibility is to be considered in combination with the parental fit of the extension (Johnson et al 2019).…”

Section: Green Marketing and Green Brand Extensionsmentioning

confidence: 99%

“…In addition, we did not consider competitive conditions in the extension market segments and consumers' rivalry associations (Grasby et al 2021;Liang and Fu 2021;Milberg et al 2010). Such conditions may lead to spillover effects when brand extensions of an FMCG giant (i.e., Red Bull fruit punch) are introduced following a prior successful extension of challenger brand (i.e., Monster Energy fruit punch) (Pontes and Pontes 2021).…”

Section: Limitations and Future Researchmentioning

confidence: 99%

“…Companies in the fast-moving consumer goods (FMCG) industry in particular are taking advantage of this phenomenon (Durif et al 2010;Olsen et al 2014). Brand extension strategy has to date been a more cost-effective and less risky alternative for modifying a product line or entering a new market, since the business capitalizes on its well-established brand name (Aaker and Keller 1990;Miniard et al 2020;Pontes and Pontes 2021;Su et al 2021;Tauber 1988). Meanwhile, the generic terminology has been broadened to green brand extensions implemented as green line extensions or green category extensions (Chatterjee 2009;Olsen et al 2014).…”

Section: Introductionmentioning

confidence: 99%

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Practices of brand extensions and how consumers respond to FMCG giants’ greening attempts

et al. 2022

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We aim for a deeper understanding of how the theory of green brand extension is effectively used in brand management practice. Therefore, we conducted three consecutive studies to unfold corporate activities as well as consumer perceptions.(1) Employing a qualitative content analysis, we explore and explicate characteristics of 37 green brand extensions. (2) We discuss green brand extensions in four focus groups and categorize facets of consumer skepticism. (3) To deepen and triangulate the findings, we conduct 50 interviews with consumers with a wide range of environmental involvement. Our theoretical sampling offers rich insights into perspectives of consumers, however, limited to personal reflections on a subset of brands in the German FMCG market. First, we unveil three characteristics of green brand extensions, based on their benefits and beneficiaries. Moreover, we emphasize that in contrast to the original brand extension theory, the main image transfer is intended to focus on reverse greening effects. Second, we note that consumer responses reflect various categories of skepticism around FMCG giants as originators of such extensions as well as their underlying intentions. In addition, we interpret different effects of ecolabeling linked to its sender. Third, we empirically demonstrate that consumers with a higher environmental involvement can be expected to scrutinize green brand extensions more critically. Moreover, we describe consumer perceptions and evaluations linked to brand loyalty and brand knowledge.

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Section: Green Marketing and Green Brand Extensionsmentioning

confidence: 99%

Section: Limitations and Future Researchmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Practices of brand extensions and how consumers respond to FMCG giants’ greening attempts

et al. 2022

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“…However, they can also arise among consumer brands. For example, marketing research finds that rivalries increase consumers’ desire to win and their willingness to pay (Häubl and Popkowski Leszczyc, 2019) and that rivalry associations can be transferred from parent brands to extension categories, affecting extension evaluations (Pontes and Pontes, 2021). Sports marketing researchers examine the role of sincerity in how schadenfreude – pleasure, joy or satisfaction that comes from the misfortune, failures, troubles or humiliation of others – affects the effectiveness of rivalry game sponsorships (Smith et al , 2009; Tyler et al , 2021), and find that emotionally engaged fans increase their purchase intention of brands that sponsor rivalry games.…”

Section: Brand Rivalriesmentioning

confidence: 99%

The anatomy of a rivalry: the role of resentment in the development of brand attitudes

Alvarado-Karste

Kidwell

2021

JPBM

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Purpose This study aims to demonstrate that feelings of resentment, fueled by perceptions of injustice, underlie the formation of rivalries. Further, this study analyzes how consumers evaluate the two brands that participate in a rivalry relationship. Design/methodology/approach The research uses four experiments. Study 1 uses two conditions to test whether injustice predicts inter-personal rivalries through resentment. Study 2 uses a one-factor design with three levels (resentment vs contempt vs control) to examine the underlying mechanism of resentment on the formation of a rivalry. Study 3 analyzes the effect of brand rivalries on consumers’ brand attitudes. Study 4 uses a 2 (Temporal-focus: past vs future) × 2 (competitive relationship: resentment vs control) between-subjects experimental design, to test the moderating effects of temporal-focus on consumer brand rivalry perceptions. This experiment replicates the effects of brand rivalries on consumer brand attitudes. Findings Rivalries have an essential emotional component – resentment – that is fueled by injustice and leads consumers to form more favorable attitudes toward the brand that consumers perceive is treated unfairly (target brand) and more unfavorable attitudes toward the brand that is perceived to treat the other brand unfairly (the rival brand). A future-focused mindset attenuates consumer perceptions of brand rivalries, whereas a past-focused mindset enhances these effects. Originality/value Prior research has failed to identify the emotional components of rivalries and their effects on consumer choices. To the best of the authors’ knowledge, this is the first study that reveals how attitudes change when consumers are exposed to a brand rivalry.

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“…Brand revitalisation focusses on bringing defunct brands back to life using consumer-related attributes as cornerstones and points of reference (Gul Gilal et al, 2021;Lu et al, 2019;Närvänen and Goulding, 2016). Brand reinforcement, on the other hand, aims to potentiate brands using different drivers to enhance brand equity performance (Pina and Dias, 2021;Pontes and Pontes, 2021;Yuen et al, 2021). Within this framework, retrobranding and brand rejuvenation emerge as two opposing options that can be explored with the intent of empowering or reversing ageing or Analysis from a Latin American perspective obsolescence and that seek to make old and mature brands energetic and powerful again (Lu et al, 2019;Wilner and Ghassan, 2017).…”

Section: Brand Ageingmentioning

confidence: 99%

Brand ageing: an analysis from a Latin American perspective

Villegas

Guevara

Escalante

2021

QMR

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Purpose Acknowledging that brands age over time, this paper aims to investigate the exogenous and endogenous factors that influence this phenomenon. Design/methodology/approach The literature on brand ageing is scarce. Through a study of several Colombian organisations that have an international presence, the paper uses a grounded-theory qualitative methodology, including in-depth interviews and documentary brand reviews over a longitudinal time dimension, to perform an analysis of specific aspects that affect brand ageing processes. Findings The results revealed that the factors that determine brand ageing can be classified into the following two subgroups: exogenous (conditions of the economic environment, category conditions, entrance of new competitors, ageing current consumers and entry of new consumers) and endogenous (organisational growth, upper management convictions, marketing structure, brand architecture, inappropriate naming and obsolete brand image) factors. Originality/value This research provides substantial academic value and insights that allow a better understanding of specific aspects that influence the brand ageing process.

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Spillover effects of competitive rivalry on brand extensions

Cited by 11 publications

References 39 publications

Practices of brand extensions and how consumers respond to FMCG giants’ greening attempts

Practices of brand extensions and how consumers respond to FMCG giants’ greening attempts

The anatomy of a rivalry: the role of resentment in the development of brand attitudes

Brand ageing: an analysis from a Latin American perspective

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