How Important Are Brands? A Cross-Category, Cross-Country Study

This article focuses on the measurement of the overall importance of brands for consumer decision making—that is, brand relevance in category, or BRiC—across multiple categories and countries. Although brand equity measures for specific brands have attracted a large body of literature, the questions of how important brands are within an entire product category and the extent to which BRiC differs across categories and countries have been neglected. The authors introduce the concept of BRiC (a category-level measure, not a brand-level measure). They develop a conceptual framework to measure BRiC and the drivers of BRiC, test the framework empirically with a sample of more than 5700 consumers, and show how the construct varies across 20 product categories and five countries (France, Japan, Spain, the United Kingdom, and the United States). The results suggest a high validity of the proposed BRiC measure and show substantial differences between categories and countries. A replication study two-and-a-half years later confirms the psychometric properties of the suggested scale and shows remarkable stability of the findings. The findings have important implications for the management of brand investments.

[1]  C. Stein,et al.  Structural equation modeling. , 2012, Methods in molecular biology.

[2]  P. Nelson Information and Consumer Behavior , 1970, Journal of Political Economy.

[3]  Nancy J. Adler,et al.  Cross-Cultural Management Research: The Ostrich and the Trend. , 1983 .

[4]  Kevin Lane Keller Conceptualizing, Measuring, and Managing Customer-Based Brand Equity , 1993 .

[5]  R. Oliver Whence Consumer Loyalty? , 1999 .

[6]  J. Swait,et al.  Brands as Signals: A Cross-Country Validation Study: , 2006 .

[7]  Cheryl Burke Jarvis,et al.  A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research , 2003 .

[8]  Gilbert A. Churchill A Paradigm for Developing Better Measures of Marketing Constructs , 1979 .

[9]  M. Darby,et al.  Free Competition and the Optimal Amount of Fraud , 1973, The Journal of Law and Economics.

[10]  Thomas C. O'Guinn,et al.  brand community , 2022, The Fairchild Books Dictionary of Fashion.

[11]  W. Bearden,et al.  Reference Group Influence on Product and Brand Purchase Decisions , 1982 .

[12]  J. Swait,et al.  Brand Equity as a Signaling Phenomenon , 1998 .

[13]  J. P. Peter Construct Validity: A Review of Basic Issues and Marketing Practices , 1981 .

[14]  J. Steenkamp,et al.  How Country Characteristics Affect the Perceived Value of Web Sites , 2006 .

[15]  R. Bagozzi,et al.  On the evaluation of structural equation models , 1988 .

[16]  Jack Sutcliffe ‘Managing Brand Equity: Capitalizing on the Value of a Brand Name’ , 1993 .

[17]  Richard R. Klink,et al.  Threats to the External Validity of Brand Extension Research , 2001 .

[18]  John Roberts,et al.  Development and Testing of a Model of Consideration Set Composition , 1991 .

[19]  Gregory S. Carpenter,et al.  Consumer Preference Formation and Pioneering Advantage , 1989 .

[20]  R. Dorfman,et al.  Optimal Advertising and Optimal Quality , 1976 .

[21]  R. Rescorla,et al.  A theory of Pavlovian conditioning : Variations in the effectiveness of reinforcement and nonreinforcement , 1972 .

[22]  Jean-Noël Kapferer,et al.  The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term , 2004 .

[23]  R. Bhagat Culture's Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations , 2002 .

[24]  J. Alba,et al.  Consumer Learning and Brand Equity , 2000 .

[25]  J. Steenkamp,et al.  Assessing Measurement Invariance in Cross-National Consumer Research , 1998 .

[26]  V. Mitchell,et al.  Consumer's risk-reduction strategies: a review and synthesis , 1996 .

[27]  William D. Schafer,et al.  Gender differences in risk taking: A meta-analysis. , 1999 .

[28]  Robin A. Coulter,et al.  The meanings of branded products: A cross-national scale development and meaning assessment , 2008 .

[29]  S. Fournier,et al.  Consumers and Their Brands: Developing Relationship Theory in Consumer Research , 1998 .

[30]  Sanjay Sood,et al.  “Deep” and “Surface” Cues: Brand Extension Evaluations by Children and Adults , 2002 .

[31]  J. S. Shrauger,et al.  Responses to evaluation as a function of initial self-perceptions. , 1975, Psychological bulletin.

[32]  Mary W. Sullivan,et al.  The Measurement and Determinants of Brand Equity: A Financial Approach , 1993 .

[33]  Peter H. Reingen,et al.  Sociocognitive Analysis of Group Decision Making among Consumers , 1990 .

[34]  Anne-Marie Pålsson,et al.  Does the degree of relative risk aversion vary with household characteristics , 1996 .

[35]  M. F. Luce,et al.  Constructive Consumer Choice Processes , 1998 .

[36]  Scott A. Neslin,et al.  Pursuing the Value-Conscious Consumer: Store Brands versus National Brand Promotions , 2001 .

[37]  Rex B. Kline,et al.  Principles and Practice of Structural Equation Modeling , 1998 .

[38]  S. Levy Symbols for Sale , 1999 .

[39]  Chan Su Park,et al.  Surprising Robustness of the Self-Explicated Approach to Customer Preference Structure Measurement , 1997 .

[40]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[41]  A. A. Mitchell,et al.  The Effect of Verbal and Visual Components of Advertisements on Brand Attitudes and Attitude Toward the Advertisement , 1986 .

[42]  Marsha L. Richins Valuing Things: The Public and Private Meanings of Possessions , 1994 .

[43]  Katherine N. Lemon,et al.  Return on Marketing: Using Customer Equity to Focus Marketing Strategy , 2004 .

[44]  R. Belk Possessions and the Extended Self , 1988 .

[45]  Edward G. Carmines,et al.  Reliability and Validity Assessment , 1979 .

[46]  E. Grubb,et al.  Consumer Self-Concept, Symbolism and Market Behavior: A Theoretical Approach , 1967 .

[47]  M. Sirgy,et al.  Self-Concept in Consumer Behavior: A Critical Review , 1982 .

[48]  Jennifer Edson Escalas,et al.  Self‐Construal, Reference Groups, and Brand Meaning , 2005 .

[49]  Terry Clark,et al.  Book Review: Culture's Consequences: Comparing Values, Behaviors, Institutions and Organizations across Nations, 2d ed. , 2003 .

[50]  S. Sackmann,et al.  Cross-Cultural Management Research , 2009 .

[51]  S. Czellár,et al.  The Importance of a General Measure of Brand Engagement on Market Behavior: Development and Validation of a Scale , 2009 .

[52]  Rosann L. Spiro Persuasion in Family Decision-Making , 1983 .