What is it about?
Many of the world’s top 100 brands such as Coca-Cola, Disney, Intel, Microsoft, Nike, Porsche and Toyota describe themselves as innovative and claim innovation as one of their core values. We show that the impact of innovativeness is transmitted to consumer-brand loyalty via quality-related information explicitly conveyed by the brand. We found that perceived quality fully transmitted the impact of brand innovativeness onto brand loyalty.
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Why is it important?
Many of the top brands continually generate innovations and collectively spend billions of dollars to project themselves as innovative. Given the huge investments by firms to project innovativeness to consumers, it is important to understand how consumers’ perceptions of innovativeness of a brand may affect consumers. Brand loyalty is an important brand performance metric and a key determinant of brand equity. How do the efforts aimed at projecting innovativeness affect consumers? Extant research does not explain how innovativeness affects consumer brand loyalty.
Perspectives
Perceived quality is not the actual quality of the product - it is the consumer’s subjective evaluation of the product. For instance, even though the actual quality of the android phones was considered to be superior by some technical experts, consumers perceived Apple’s iPhone to be of superior quality in the early stages of its introduction. Perceived quality is a key component of brand equity. However, the role of perceived quality has never been considered in any of the conceptual frameworks advanced in the previous innovativeness–loyalty studies.
Dr Ravi Pappu
University of Queensland
Read the Original
This page is a summary of: How does brand innovativeness affect brand loyalty?, European Journal of Marketing, February 2016, Emerald,
DOI: 10.1108/ejm-01-2014-0020.
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