Strategies for building consumer brand preferencePamela L. Alreck; Robert B. Settle
1999 Journal of Product & Brand Management
doi: 10.1108/10610429910266986
The marketer's principal objective is typically to build a relationship with buyers, rather than merely to make a single sale. Ideally, the essence of that relationship consists of a strong bond between the buyer and the brand. Outlines six strategies for building that relationship: linking the brand to a particular need; associating it with a pleasant mood; appealing to subconscious motives; conditioning buyers to prefer the brand through reward; penetrating perceptual and cognitive barriers to create preference; and providing attractive models for buyers to emulate. The choice of an individual strategy or combination depends mainly on the nature of the branded product or service. The success of the strategy depends heavily on the marketer's understanding of the preference building and bonding process.
PRICING STRATEGY & PRACTICE“Why did you do that?” The important role of inferred motive in perceptions of price fairnessMargaret C. Campbell
1999 Journal of Product & Brand Management
doi: 10.1108/10610429910266995
There is research evidence that suggests that perceptions of price unfairness give rise to consumer resistance to prices and result in decreased profit to the firm. However, it is as yet unclear what factors influence perceptions of unfairness. Answers the question, "What is fair?" by proposing that consumers sometimes infer a firm's motive for a price and that the inferred motive influences perceived price fairness. A study provides evidence that consumers use contextual information to infer a firm's motive. When consumers infer a negative motive, the price is perceived to be unfair and when consumers do not infer a negative motive, the same price is perceived to be fair. Suggests that marketers should: provide reasons for prices; consider consumers' likely inferences of motive and either avoid taking actions that are likely to give rise to inferences of negative motive or manage the motive inferred; and consider the inferences that consumers may make for other marketing actions in addition to price.
Pricing peculiarities of the UK petrol marketMarcel Cohen
1999 Journal of Product & Brand Management
doi: 10.1108/10610429910267002
The UK petrol market has experienced, over the last two decades, intense price competition and as such provides a rich source of information on some of the real-world issues in pricing. Examines the practical mechanisms that have been used in managing price competition and also some of the peculiarities of this market. The petrol retailing market is found to adhere broadly to classical theory of price competition but its special characteristics cause interesting deviations. Of particular note, a "leverage effect" operates whereby price changes affect margins much more than volumes, which leads to behaviour by oil competitors which seems counter-intuitive. In addition, real-world issues - such as the price adjustment process and the local nature of competition - present practical difficulties which can have a material impact on the profitability that a textbook exposition of pricing might lead us to expect.