Essays on Brand Architecture and Individual Brand Performance Public
Viswanathan, Vijaymahadev (2010)
Published
Abstract
ABSTRACT
Essays on Brand Architecture and Individual Brand
Performance
By Vijaymahadev Viswanathan
The objective of this dissertation is to understand the
relationship between brand architecture design and the performance
of individual product brands. Brand architecture is the logical,
strategic and relational structure for all the brands in an
organization's brand portfolio. A commonly used architecture is a
brand hierarchy (Corporate Brand ⇒ Family Brand ⇒
Individual Brand). Two aspects succinctly characterize a brand
hierarchy: 1) its breadth, which describes the number and/or
heterogeneity vis-à-vis those categories where brands in the
hierarchy compete; and, 2) its depth, which describes the levels in
the hierarchy.
Essay #1 develops and tests theory for how and why brand hierarchy and the marketing effects aimed at different levels of the hierarchy impact the performance of an individual (product) brand. The theory is based on the notion that marketing efforts aimed at higher levels in a brand hierarchy are moderated by the breadth and depth of the hierarchy. Results using data from the U.S. automobile category are broadly in line with the theoretical framework. Policy simulations on brand pruning and reallocation of advertising effort reveal interesting and useful insights for academics and managers.
Essay #2 examines how the performance of an individual product brand is affected by two forms of congruence/incongruence: 1) within-category incongruence, or the extent to which an individual product brand differs from its competitors in its focal category; and, 2) across-category incongruence, or the extent to which an individual brand differs from products outside the focal category which share its brand name. Results from the analysis of four product categories in the consumer packaged goods category suggest that the marginal value from increasing within category incongruence and the typicality of an extension with its parent brand play an important role in influencing the performance of the individual brand. More importantly, results reveal consumers' preferences for within and across-category incongruence change over time.
Table of Contents
Table of Contents: Chapters
1 Introduction 1
2 ESSAY 1: Brand Hierarchies and Individual Brand Performance 4
2.1 Introduction 4
2.2 Background 5
2.3 Theoretical Development 9
2.3.1 Depth of Brand Hierarchy 10
2.3.2 Breadth of a Brand Hierarchy 11
2.4 Research Design 13
2.4.1 Model Specification 13
2.4.2 Accounting for Brand Hierarchy 17
2.4.3 Measures for Depth and Breadth of a Brand Hierarchy 19
2.4.4 Data 21
2.4.5 Content Analysis 25
2.5 Empirical Analysis and Results 27
2.5.1 Results 31
2.5.2 Policy Simulations 36
2.5.3 Discussion 39
3 ESSAY 2: The Impact of Category Incongruity and Extension Typicality on Individual Brand Performance 41
3.1 Introduction 41
3.2 Background 43
3.2.1 Within-Category Competition 43
3.2.2 Across-Category Brand Extensions 44
3.3 Theoretical Development 46
3.3.1 Within-Category: Category Incongruity
46
3.3.2 Across Category: Brand Breadth and Extension Typicality
49
3.3.3 Incongruity-Typicality Matrix 50
3.4 Research Design 53
3.4.1 Model Specification 53
3.4.2 Data 56
3.5 Empirical Analysis and Results 59
3.5.1 Robustness Checks 59
3.5.2 Results 61
3.5.3 Discussion 64
4 Conclusion 91
5 References 92
Table of Contents: Tables
Table 1: Observations with Different Depth of a Brand Hierarchy
67
Table 2: Example Data Records from the Raw Advertising Data (Q1
2003) 68
Table 3: Parent Brands in the Dataset 69
Table 4: Selective Descriptive Statistics for the Dataset 70
Table 5: Pair-wise Correlations 71
Table 6: Variable Definitions and Summary Statistics 72
Table 7: Results of Random Coefficient Logit 74
Table 8: Cross Price Elasticity Matrix 75
Table 9: Family Brand Advertising and Breadth Elasticities 76
Table 10: Corporate Brand Advertising and Breadth Elasticities
77
Table 11: Results of Policy Simulations 78
Table 12: Brand Breadth, Extension Similarity and Attitude Rating
79
Table 13: Characteristics of Categories for Final Analysis 80
Table 14: Categories Dropped from Consideration for Final Analysis
81
Table 15: Example of Advertising Data Classification 82
Table 16: Characteristics of Market Leaders in Household Cleaner
Category 83
Table 17: Summary Statistics 84
Table 18: Results from Random Coefficient Logit 85
Table of Contents: Figures
Figure 1: An Example of a Brand Hierarchy: General Motors
87
Figure 2: Trends in Corporate Brand Advertising Effort 88
Figure 2: Within-Category Position and Across-Category Extensions:
Crest Toothpaste 89
Figure 3: Incongruity-Typicality Matrix 90
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