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.