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Brand portfolio coherence: Scale development and empirical demonstration

Author

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  • Nguyen, Hang T.
  • Zhang, Yufei
  • Calantone, Roger J.

Abstract

Pressure to manage complex and dynamic brand portfolios has posed a serious challenge for firms in protecting their brand identity and retaining loyal customers. To help firms overcome this challenge, the authors propose the new construct of brand portfolio coherence (BPC) to describe consumers' perceptions that (sub-)brands in a brand portfolio share a common underlying logic of features reflected in design, personality, and status. Through three comprehensive studies, the research develops and validates a multi-dimensional measure of BPC and differentiates it from relevant constructs, such as brand fit, connection, positioning, trust, and loyalty. Nomological examination shows that perceived BPC improves (re)purchase decisions with regard to brands in the portfolio. Furthermore, the research uncovers the mechanisms through which BPC exerts its impact and identifies customer-, product-, and brand strategy–related boundaries of the effect. Overall, the BPC construct and measure offer useful tools and managerial implications for firms to effectively manage brand portfolios to retain and grow customer base.

Suggested Citation

  • Nguyen, Hang T. & Zhang, Yufei & Calantone, Roger J., 2018. "Brand portfolio coherence: Scale development and empirical demonstration," International Journal of Research in Marketing, Elsevier, vol. 35(1), pages 60-80.
    • Handle: RePEc:eee:ijrema:v:35:y:2018:i:1:p:60-80
    DOI: 10.1016/j.ijresmar.2017.11.003
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    3. Kirca, Ahmet H. & Randhawa, Praneet & Talay, M. Berk & Akdeniz, M. Billur, 2020. "The interactive effects of product and brand portfolio strategies on brand performance: Longitudinal evidence from the U.S. automotive industry," International Journal of Research in Marketing, Elsevier, vol. 37(2), pages 421-439.
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