Brand Equity Dilution: Retailer Display and Context Brand Effects

Consistency among the various elements of a marketing program is believed essential in building and maintaining brand image and equity. And yet, a brand's ultimate presentation to customers is controlled more often by the retailer than by the manufacturer. In this research, the authors demonstrate that the retailer's display decisions can negate the equity of an established brand. The authors suggest that this occurs because consumers have expectations about retail displays and the relationship among displayed brands. Display conditions that disconfirm these expectations can lead consumers to reevaluate the brand. Specifically, the results demonstrate that high-equity brand valuations are influenced by an unfamiliar context brand when (1) a mixed display structure leads consumers to believe that the context brand is diagnostic for judging the high-equity brand, (2) the precedence given to one brand over another in the display makes expectations about brand differences or similarities accessible, and (3) the unfamiliar context brand disconfirms these expectations.

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