The Role of Brand Parity in Developing Loyal Customers
AbstractPerceived brand parity is the belief in the consumers mind that major offerings in a product category are similar. The current article presents the results of a study indicating that high parity perceptions inhibit a company s ability to develop loyal customers. Whether that is good or bad depends on the type of competitive strategy a firm has chosen. With a differentiation strategy, advertising should be used to fight parity perceptions. However, with a low price strategy, parity perceptions should be fostered in an attempt to discourage brand loyalty. Thus, a starting point for many advertising campaigns should be a clear understanding of both the parity perceptions in the marketplace and the need to either develop or fight brand loyalty.
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Bibliographic InfoArticle provided by Cambridge University Press in its journal Journal of Advertising Research.
Volume (Year): 45 (2005)
Issue (Month): 02 (June)
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- Burmann, Christoph & Jost-Benz, Marc & Riley, Nicola, 2009. "Towards an identity-based brand equity model," Journal of Business Research, Elsevier, Elsevier, vol. 62(3), pages 390-397, March.
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