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Don’t Call Me “Brand Loyal”: The Role of Market Metacognition on Market-Related Labeling Effectiveness

  • Bourjot-Deparis, Julien
  • Caffier de Kerviler, Gwarlann
  • Cadario, Romain
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    Labeling a customer as being “brand loyal” is a common marketing practice. Building on the literature on social labeling, marketplace metacognition and skepticism, we investigate the effects of such a practice. We find that skepticism, conceptualized as an expression of marketplace metacognition activation, mitigates labeling effectiveness. More precisely, the label is effective only when it does not trigger skepticism, i.e. when the label is congruent with self-perceptions. However, when the label is not congruent with self-perceptions, it arouses skepticism and has a negative impact on future loyalty intentions. We discuss the implications for customer relationship management.

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    Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/13069.

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    Date of creation: Jun 2013
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    Handle: RePEc:dau:papers:123456789/13069
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    1. Fournier, Susan, 1998. " Consumers and Their Brands: Developing Relationship Theory in Consumer Research," Journal of Consumer Research, University of Chicago Press, vol. 24(4), pages 343-73, March.
    2. Tybout, Alice M & Yalch, Richard F, 1980. " The Effect of Experience: A Matter of Salience?," Journal of Consumer Research, University of Chicago Press, vol. 6(4), pages 406-13, March.
    3. Folkes, Valerie S, 1988. " Recent Attribution Research in Consumer Behavior: A Review and New Directions," Journal of Consumer Research, University of Chicago Press, vol. 14(4), pages 548-65, March.
    4. J.J. Brakus & B.H. Schmitt & L. Zarantonello, 2009. "Brand Experience: What Is It? How Do We Measure It? And Does It Affect Loyalty?," Post-Print hal-00799102, HAL.
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