The effects of brand popularity as an advertising cue on perceived quality in the context of internet shopping

Abstract

Brand popularity as a descriptive norm has been used as an advertising cue by internet malls. It is based on the assumption that consumers prefer brands with popularity claims because they perceive the popularity claim results from superior quality. However, little research has been done on how popularity cues affect perceived quality in internet shopping contexts. Particularly, the interaction effect between brand popularity and price on the quality perception has never been investigated. This research presents the results of two experiments showing that brand popularity and price have an interaction effect on the estimation of sales, which in turn influences perceived quality. Only when consumers believe that the sales volume is high would the perceived quality increase. This research also analyzes the manner in which brand popularity reduces consumers' perceived risk in purchase decision-making.

Consumers’ Response to an Advertisement Using Brand Popularity in a Foreign Market

“…First, to our knowledge, this is the first reported study to investigate the characteristics of BPFM to determine consumer responses to an advertisement. Although retailers often use brand popularity as an advertising cue, little research has been conducted to examine its effects on consumer behavior (Kim & Min, ). Furthermore, the brand popularity effect was mostly examined in a domestic context (Dean, ).…”

“…Recently, some psychologists emphasized the role of a descriptive norm in persuasion (Goldstein, Cialdini, & Griskevicius, ). Kim and Min () mentioned that a popularity claim can be a type of descriptive norm to affect brand evaluation. However, they did not examine the effect of brand popularity on purchase intention.…”

“…For example, “Hit product” can be a good alternative in that a brand does not have to be best‐selling in the market. According to Kim and Min (), both the “No. 1 in sales” and “Hit product” cues have an impact on the reduction of risk perception.…”

“…Individuals tend to take advantage of descriptive norms as a shortcut in a decision‐making process because it is perceived to be less risky and more sensible (Cialdini, Reno, & Kallgren, ). Brand popularity is related to a descriptive norm, and thus it can positively affect brand attitude and purchase intention (Kim & Min, ).…”

“…Although BPFM has received more attention by practitioners, little is known about its effect on domestic consumer behavior. Previous studies have shown that brand popularity is an important factor positively affecting brand evaluation (Kim & Min, ). Most of these studies, however, have been conducted in a domestic context.…”