Perceptions of consumption value in brand alliances : the impact of fit and regulatory focus

Protopapa, Ilia (2020) Perceptions of consumption value in brand alliances : the impact of fit and regulatory focus. (PhD thesis), Kingston University, .

Abstract

Within the strategic branding domain, a managerial response to growing competition, globalisation, market saturation and economic and political uncertainty is integration. Integration, also known as brand alliances, refers to leveraging the respective reputations, competencies and skills, of two or more brands to create new products and/or services. Extant research confirms the importance of brand alliances, demonstrating that it positively affects consumers’ evaluations, attitudes and intentions to buy. An examination of consumers’ attitudes towards brand alliances offers a one-dimensional assessment of the brand alliance. A logical question that arises is whether consumers’ reactions are affected at one general level, the general consumers’ attitudes. A theory that enables the researcher to classify consumers’ reactions towards products or services into affective and cognitive is the theory of consumption value. Consequently, the aim of this research is to examine the consumption value in the context of brand alliances. In addressing the research aim, this study incorporates the situational (specific to the context) characteristics of consumption value as outlined by Holbrook (1991). This research investigates the external (situational) factors that trigger customers to assign more of the one type of value (e.g., cognitive) compared to the other (e.g., affective). This research examines the impact of the brand and product fit (external factor) on the different dimensions of consumption value in the context of brand alliances. Holbrook (1991) suggests that perceptions of consumption value vary across people and personalities (personal factors). This research incorporates personal motivational factors to investigate why some consumers place higher importance on affective dimensions of value and others on the cognitive ones (internal motivational factors). This research also considers the impact of the chronic and induced regulatory orientation (internal factor) on the assignment of different types of consumption value. The research consists of four studies. Studies 1 and 2 examine the effects of different types of fit and regulatory orientations individually. The combined effects of fit and regulatory focus orientation are examined in Study 3. In the final study, Study 4, chronic is replaced with induced regulatory focus. The research uses an experimental design. Data were collected through electronic self-completion surveys from random samples of adult consumers in the UK and analysed through a PLS-SEM. Findings of Study 1 suggest that the brand fit creates different in terms of strength relationships for the cognitive and emotional assignment of value when brand fit dominates the alliance. The product fit creates different in terms of strength relationship for the cognitive and affective assignment of value. Study 2 demonstrates the impact of the regulatory focus on consumption value towards brand alliances. Study 2 shows that the relationships between prevention orientation and the cognitive dimensions of value (functional and epistemic) are greater compared to the relationships between prevention orientation and the affective dimensions of value (e.g., emotional and social). Studies 3 and 4 examine whether there are interaction effects between these two factors when consumer assign value to brand alliances. The results for the chronic regulatory focus show that the relationships between the promotion-oriented (prevention) customers and the affective (cognitive) value are greater compared to the relationships between the promotion-oriented (prevention) customer and the cognitive (affective) dimension of value for the brand alliances with prominent brand (product) fit. Findings of Study 4 show significance for the induced promotion focus on the emotional type of affective consumption value and not for the social type of consumption as in the chronic regulatory focus. The differential pattern of the cognitive and affective dimensions of value found in Study 1 demonstrate the need for research to move away from a single outcome value of brand alliances, the general consumers’ attitudes. In response to this gap, Study 1 contributes to the existing literature on brand alliances by using a new construct to examine consumers’ reactions, the consumption value. Study 2 is the first study to explain customers’ reactions towards brand alliances from a social psychology perspective. Study 3 advances knowledge to the existing effects of antecedents of brand alliances by establishing chronic regulatory focus as a determinant of brand alliances. Study 4 shows significance for the induced prevention focus on the functional type of cognitive consumption value and not for the epistemic type of consumption as in the chronic regulatory focus. To practitioners, the study provides guidance onhow firms should build brand alliances by leveraging existing skills and competencies. This researchalso provides a guidance on the selection of the appropriate communication framing to promote brand alliance strategies based on the personal motivations of the customers (regulatory focus).

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