Hostname: page-component-84b7d79bbc-4hvwz Total loading time: 0 Render date: 2024-07-29T11:06:09.168Z Has data issue: false hasContentIssue false
  • English
  • Français

The Role of Brand Parity in Developing Loyal Customers

Published online by Cambridge University Press:  29 December 2005

RAJESH IYER  and
JAMES A. MUNCY
RAJESH IYER
Affiliation:
Harley Langdale, Jr., College of Business Administration, Valdosta State University, riyer@valdosta.edu
JAMES A. MUNCY
Affiliation:
Harley Langdale, Jr. College of Business Administration, Valdosta State University, muncyj@valdosta.edu
Get access

Abstract

Perceived 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.

Type
Research Article
Information
Journal of Advertising Research , Volume 45 , Issue 2 , June 2005 , pp. 222 - 228
Copyright
© Copyright © 1960-2005, The ARF

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Arnold, H. J. “Moderator Variables: A Classification of Conceptual, Analytical, and Psychometric Issues.” Organizational Behavior and Human Performance 29, 2 (1982): 143–74.Google Scholar
Beath, John, and Yannis Katsoulacos. The Economic Theory of Product Differentiation. Cambridge, U.K.: Cambridge University Press, 1991.
Chow, G. C. “Test of Equality between Sets of Coefficients in Two Linear Regressions.” Econometrika 28, 3 (1960): 591–605.Google Scholar
Economist. “Shoot Out at the Check-Out,” June 5, 1993.
Giges, Nancy. “World's Product Parity Perception High.” Advertising Age, June 20, 1988.Google Scholar
Goldfeld, S. M., and R. E. Quandt. “Some Tests for Homoscedasticity.” Journal of American Statistical Association 60, (September 1965): 539–47.Google Scholar
Handelsman, Moshe. “Varied Purchase Behavior as a Result of Purchase History and Perceived Brand Similarity.” Journal of the Marketing Research Society 29 (1987): 293–315.Google Scholar
Jacoby, Jacob. “A Model of Multi-Brand Loyalty.” Journal of Advertising Research 11, 2 (1971): 25–31.Google Scholar
Jacoby, Jacob, and Robert W. Chestnut. Brand Loyalty: Measurement and Management. New York: Wiley, 1978.
Johnston, J. Econometric Methods. New York: McGraw Hill Book Company, 1972.
Kanter, Donald L. “It Could Be: Ad Trends Flowing from Europe to U.S.” Advertising Age, February 9, 1981.Google Scholar
Kellner, Larry. Personal Communication, 2005.
Kohli, A. K. “Effects of Supervisory Behavior: The Role of Individual Differences among Salespeople.” Journal of Marketing 53, 4 (1989): 40–50.Google Scholar
Kottman, E. John. “Promoting the Parity Product.” Journal of Consumer Affairs 11, 1 (1977): 145–150.Google Scholar
Lamons, Bob. “Maybe It's Time to Sell the Ranch.” Marketing News, February 28, 1994.Google Scholar
Lichtenstein, D. R., R. D. Netemeyer, and S. Burton. “Distinguishing Coupon Proneness from Value Consciousness: An Acquisition-Transaction Utility Theory Perspective.” Journal of Marketing 54, 3 (1990): 54–67.Google Scholar
Malburg, Chris. “Differentiation Pays Off.” Industry Week, July 17, 2000.Google Scholar
Muncy, James A. “Measuring Perceived Brand Parity.” Advances in Consumer Research 23 (1996): 411–17.Google Scholar
Obermiller, Carl, and John J. Wheatley. “Price Effects on Choice and Perception under Varying Conditions of Experience, Information, and Belief in Quality Differences.” Advances in Consumer Research 11 (1984): 453–58.Google Scholar
Oliver, R. L. “Cognitive, Affective, and Attribute Bases of the Satisfaction Response.” Journal of Consumer Research 20, 3 (1993): 418–30.Google Scholar
Parasuraman, A., V. A. Zeithaml, and L. L. Berry. “SERVQUAL: A Multiple-Item Scale for Measuring Customer Perceptions of Service Quality.” Journal of Retailing 64, 1 (1988): 12–40.Google Scholar
Porter, Michael E. Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press, 1998.
Pucket, Gregory M., Stephen J. Grove, and David N. Laband. “The Impact of Product Type and Parity on the Informational Content of Advertising.” Journal of Marketing Theory and Practice 9, 3 (2001): 32–41.Google Scholar
Reeves, Rosser. Reality in Advertising. New York: Random House, 1961.
Sloan, Pat. “Battling Product, Ad Parity: Frons Urges Daring in Creative, Agency Structure.” Advertising Age, August 28, 1989.Google Scholar
Stambaugh, David M. “Services, Not Products, Are Competitive Edge.” National Underwriter, November 19, 1990.Google Scholar
Tait, Bruce. “The Failure of Marketing ‘Science.’” Brandweek, April 8, 2002.Google Scholar
Trout, Jack. Differentiate or Die: Survival in Our Era of Killer Competition. New York: John Wiley, 1999.