THE ROLE OF BRANDS IN ONLINE VS. OFFLINE CHANNELS

Óscar González-Benito,Mercedes Martos-Partal,Sonia San Martín 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.7

This article addresses the potential of reputable brands to overcome the lack of tangibility that characterizes the process of e-commerce. In a sequential argument, the authors propose that (1) the brand becomes more important in online than in offline channels, as a consequence of the intangibility or lack of physical contact in online purchasing processes; (2) the limitations associated with the need for touch and the lack of access to the physical product during the buying process does not have equal importance across all product categories; and (3) the role of the brand in online channels thus is more relevant if the product category is associated with a higher need for touch. To provide empirical evidence regarding the hypotheses, we performed an experiment that combined three treatments: (1) leader versus non-leader brand, (2) online versus offline channel, and (3) product category with higher versus lower need for touch. We show that the most recognized brands exert a positive effect on product evaluations, regardless of the technical characteristics and other objective product attributes. This advantage may be greater in online channels, though only for product categories for which the lack of physical contact with the product during the purchase process is an important limitation. In such cases, brand associations can compensate for intangibility during purchase.We also confirm that the product categories differ in their level of need for touch and the extent to which consumers desire physical contact with the product during the buying process. These results demonstrate that building strong brands is a key competitive advantage for manufacturers. Brand reputation becomes even more crucial when selling products in electronic channels, at least if the product itself entails a greater need for touch prior to purchase. For such products, strong brands can make up for the intangibility of e-commerce, so this effort represents a key competitive strategy in such channels. Moreover, leading brands can leverage their competitive advantage to enhance their performance in the increasingly prominent realm of e-commerce. E-retailers need to make careful decisions regarding the configuration of the assortment, taking into account the nature of the product category. They should strengthen their focus on developing highly recognizable brands, because the lack of physical contact is an important purchase inhibitor in this shopping channel. However, the brand criterion may be less important if the choice between online and offline shopping is not particularly affected by the opportunity to touch or feel the products.

THE ROLE OF BRANDS IN ONLINE VS. OFFLINE CHANNELS

?scar Gonz?lez-Benito,Mercedes Martos-Partal,Sonia San Mart?n 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.7

This article addresses the potential of reputable brands to overcome the lack of tangibility that characterizes the process of e-commerce. In a sequential argument, the authors propose that (1) the brand becomes more important in online than in offline channels, as a consequence of the intangibility or lack of physical contact in online purchasing processes; (2) the limitations associated with the need for touch and the lack of access to the physical product during the buying process does not have equal importance across all product categories; and (3) the role of the brand in online channels thus is more relevant if the product category is associated with a higher need for touch. To provide empirical evidence regarding the hypotheses, we performed an experiment that combined three treatments: (1) leader versus non-leader brand, (2) online versus offline channel, and (3) product category with higher versus lower need for touch. We show that the most recognized brands exert a positive effect on product evaluations, regardless of the technical characteristics and other objective product attributes. This advantage may be greater in online channels, though only for product categories for which the lack of physical contact with the product during the purchase process is an important limitation. In such cases, brand associations can compensate for intangibility during purchase.We also confirm that the product categories differ in their level of need for touch and the extent to which consumers desire physical contact with the product during the buying process. These results demonstrate that building strong brands is a key competitive advantage for manufacturers. Brand reputation becomes even more crucial when selling products in electronic channels, at least if the product itself entails a greater need for touch prior to purchase. For such products, strong brands can make up for the intangibility of e-commerce, so this effort represents a key competitive strategy in such channels. Moreover, leading brands can leverage their competitive advantage to enhance their performance in the increasingly prominent realm of e-commerce. E-retailers need to make careful decisions regarding the configuration of the assortment, taking into account the nature of the product category. They should strengthen their focus on developing highly recognizable brands, because the lack of physical contact is an important purchase inhibitor in this shopping channel. However, the brand criterion may be less important if the choice between online and offline shopping is not particularly affected by the opportunity to touch or feel the products.

QUALITY PERCEPTION INFLUENCES ON THE EFFECTIVENESS OF COMMERCIAL STIMULI

Alvaro Garrido-Morgado,Oscar Gonzalez-Benito,Mercedes Martos-Partal 글로벌지식마케팅경영학회 2016 Global Marketing Conference Vol.2016 No.7

This study focuses on the effectiveness of two commercial stimuli: displays and advertising flyers. While displays work within the point of sale and trigger a more immediate and impulsive purchase decision, advertising flyers work out of the point of sale and, therefore, favor a more reasoned purchase decision. It is used the cue utilization theory that distinguish two dimensions for perceived quality, extrinsic quality (linked to the brand) and intrinsic quality (related with internal product characteristics), in order to analyze the role of quality perception in determining the effectiveness of both commercial incentives for selling products that induce high purchase involvement and perceived risk. The empirical analysis focuses on computer products sold by one of Europe’s largest computer retailers and, combines scanner, observational and survey data. The results show that both dimensions of quality perceptions moderate the influence of displays and advertising flyers on sales, but their impact differ on each commercial stimuli. Extrinsic quality perception increases to a greater extent the effect of displays which is linked to unplanned purchases. However, intrinsic quality perceptions improves to a greater extent the effect of advertising flyers, which encourage are related more closely to planned purchases.

“TO BE OR NOT TO BE" IS NOT THE ONLY QUESTION IN ADVERTISING FLYERS: HOW AND WHERE BEING ALSO MATTERS

Álvaro Garrido Morgado,Óscar González Benito,Mercedes Martos Partal 글로벌지식마케팅경영학회 2018 Global Marketing Conference Vol.2018 No.07

This study focuses on analyzing the variables that moderate the effectiveness of the advertising flyers, one of the most used tools in retailing, to improve product sales. In previous literature, studies analyzed and confirmed the effectiveness of flyers to increase the traffic store, the general store sales or the synergistic effect of them to highlight and improve the effectiveness of promotions. Despite their confirmed effectiveness on these issues and their large use by retailers and manufacturers, it is missed studies that analyze the variables that may moderate their effectiveness on the sales of the products displayed on it. In fact, only Zhang et al. (2009) tried to analyze if the location in which the product is displayed have an influence on its effectiveness. According to them, they obtained inconclusive results due to their sample size. This study, considering the consumer’s cognitive process, analyzes how the presentation and the position of the product in flyers have an effect on their effectiveness to increase the displayed product’s sales. The results show that (i) the special signage on a displayed product in flyers increases their effectiveness to increase displayed product’s sales, and (ii) not only being highlighted increases the effect of the flyer, but that the product positioning affects decisively. For example, some locations -such as the cover, the top of the pages and areas on the left-, increase the visibility of the product and are more effective than other positions to increase displayed product’s sales. These results are in line with previous studies that indicate the importance of the directionality of reading to capture the customer’s attention in other environments. In sum, as happens inside the store or in the shelf, depending on if the product is displayed with a special signage or in an area where the customers pay more attention due to the standard cognitive process, the effectiveness of the flyers increase. Thus, retailers and manufacturers must consider how and where to be in the flyer, not just being.