Branding of post‐purchase ancillary products and services An application in the mobile communications industry

Branding of post‐purchase ancillary products and services An application in the mobile... Purpose – After the sale of a primary product, firms often have the opportunity to sell ancillary products or services in support of the primary brand. These add‐ons or services may be offered in a generic or in a branded form. The aim of the this paper is to study the demand for add‐on services in the mobile communications industry and to detail a methodology that can be employed to make this assessment. Design/methodology/approach – A field experimental design approach using two‐brand manipulations, four‐price points and six content applications was employed. The study was fielded at a mall intercept facility in a major urban center. Interviews with 389 mobile phone users between the ages 18‐31 were conducted. Findings – Results extend brand equity theory into the context of ancillary product sales and demonstrate that branded ancillary services can command a price premium and are less sensitive to price increases than unbranded alternatives. Practical implications – Given the growth of demand for non‐voice mobile services, proliferation of such services and the global competition in the industry, marketing managers are under constant pressure to differentiate while achieving revenue goals. This study provides a methodology for managers to calculate the price premium that branded ancillary services may provide over unbranded alternatives and, hence, estimates the worth of potential brand partnerships. Originality/value – This study extends brand equity theory by recognizing an overlooked scenario: offering branded versus generic ancillary services after the sales of the primary products, through which firms can leverage brand equity benefits. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Journal of Marketing Emerald Publishing

Branding of post‐purchase ancillary products and services An application in the mobile communications industry

Loading next page...
 
/lp/emerald-publishing/branding-of-post-purchase-ancillary-products-and-services-an-QYq6LAUI8a
Publisher
Emerald Publishing
Copyright
Copyright © 2010 Emerald Group Publishing Limited. All rights reserved.
ISSN
0309-0566
DOI
10.1108/03090561011032261
Publisher site
See Article on Publisher Site

Abstract

Purpose – After the sale of a primary product, firms often have the opportunity to sell ancillary products or services in support of the primary brand. These add‐ons or services may be offered in a generic or in a branded form. The aim of the this paper is to study the demand for add‐on services in the mobile communications industry and to detail a methodology that can be employed to make this assessment. Design/methodology/approach – A field experimental design approach using two‐brand manipulations, four‐price points and six content applications was employed. The study was fielded at a mall intercept facility in a major urban center. Interviews with 389 mobile phone users between the ages 18‐31 were conducted. Findings – Results extend brand equity theory into the context of ancillary product sales and demonstrate that branded ancillary services can command a price premium and are less sensitive to price increases than unbranded alternatives. Practical implications – Given the growth of demand for non‐voice mobile services, proliferation of such services and the global competition in the industry, marketing managers are under constant pressure to differentiate while achieving revenue goals. This study provides a methodology for managers to calculate the price premium that branded ancillary services may provide over unbranded alternatives and, hence, estimates the worth of potential brand partnerships. Originality/value – This study extends brand equity theory by recognizing an overlooked scenario: offering branded versus generic ancillary services after the sales of the primary products, through which firms can leverage brand equity benefits.

Journal

European Journal of MarketingEmerald Publishing

Published: Jun 1, 2010

Keywords: Mobile communication systems; Brands; Pricing; Brand equity

References

  • The effects of brand association on consumer response
    Del Rio, B.; Vazquez, R.; Iglesias, V.
  • Consumer evaluations of extensions and their effects on the core brand: key issues and research
    Grime, I.; Diamantopoulos, A.; Smith, G.

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off