Customer-Brand Identification: A Multinational Examination ...



Customer-Brand Identification as a SUSTAINABLE competitive advantage: A Multinational and Longitudinal Examination

Son K. Lam

Doctoral Student

University of Houston

slam5@uh.edu

Dissertation Proposal

Chair:

Dr. Michael Ahearne

Committee:

Dr. Ed Blair

Dr. Ye Hu

Dr. C. B. Bhattacharya

Customer-Brand Identification as a SUSTAINABLE competitive advantage: A Multinational and Longitudinal Examination

Dissertation Proposal

Son K. Lam

Abstract

Previous marketing research has been struggling to find a deeply-rooted cognitive variable that might be more predictive of customer loyalty than customer satisfaction both in the short run and in the long run. Drawing from the customer-company identification and brand health literatures, this dissertation proposes that customer-brand identification (CBI), defined as the extent to which customers define themselves in terms of psychological oneness with a brand, should be highly predictive of important customer behavior, both in-role (e.g., loyalty) and extra-role (e.g., social promotion). The fusion of the brand and the self makes CBI a “sticky prior” that is more enduring than either perceived value or switching costs, creating a sustainable competitive advantage due to its value, rareness, inimitability, and non-substitutability. Two empirical essays in this dissertation explore this research proposition and its boundary conditions in cross-cultural and longitudinal contexts.

Introduction

Building a strong and healthy relationship with customers, the sine qua non in the era of hypercompetition, tops the Marketing Science Institute’s 2006-2008 research priorities. In the relationship marketing literature, the inter-relationships among perceived value, satisfaction, loyalty, and ultimately market share figure predominantly. However, it does not take a microscope to identify two major concerns. First, while there is consensus that satisfaction is positively related to customer loyalty, marketing researchers concur that “satisfaction is not enough” (Oliver 1999; Jones and Sasser 1995; Reichheld 1996). In this vein, researchers suggest that perceived value might represent a construct at a higher level of abstraction with broader implications for predicting customer loyalty than customer satisfaction (Sheth et al. 1991; Bolton and Drew 1991; Rust and Oliver 1994). In its most general definition, perceived value represents customers’ perception of what is received and what is given (Zeithaml 1988). However, perceived value is like a ghost that is hard to chase because it varies across situations, time, experience, types of offering, and competitive landscape (for a review, see Whittaker et al. 2007; Huber et al. 2007). Meager empirical research on perceived value has produced mixed results (Huber et al. 2007, p. 555). Second, the focus on current market share in cross-sectional research on loyalty is valid but near-sighted (Bhattacharya and Lodish 2000). Is there a deeply-rooted cognitive variable that might be more predictive of customer loyalty both in the short run and in the long run?

A review of brand health, customer loyalty, and customer-company identification literatures suggests that this variable does exist. Drawing from the epidemiological literature, Bhattacharya and Lodish (2000) propose that the health of a brand has two related yet distinct components: current well-being and resistance. Brand current well-being is generally reflected in the current market share, baseline sales (i.e., sales when there is no promotion), and customer-based brand equity (Keller 1993) under normal conditions. Brand resistance refers to the focal brand’s vulnerability to abnormal fluctuations in the market, such as competitors’ promotion or changes in regulations. This vulnerability manifests itself primarily in the form of switching behavior (c.f., Bhattacharya and Lodish 2000, p. 8-10), bringing to light the segment of “spurious loyalty” (Day 1969; Jacoby and Chesnut 1978). It remains unclear, however, as to what variables can serve as valid antecedents to brand health.

Research on loyalty suggests that “authentic” brand loyalty exists only when there is “a deeply held commitment to rebuy or repatronize a preferred product/service consistently in the future, thereby causing repetitive same-brand or same-brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior” (Oliver 1999, p. 34). It follows immediately that this deeply-rooted cognitive variable can serve as an antecedent to brand health. Drawing from the customer-company identification literature (Bhattacharya and Sen 2003; Ahearne, Bhattacharya, and Gruen 2005), we propose that customer-brand identification (CBI), defined as the extent to which customers define themselves in terms of psychological oneness with the brand, is the missing link in predicting brand health even when perceived value and switching costs are controlled for.

The brand management literature has postulated several brand concepts such as brand knowledge, brand loyalty, and brand awareness (Keller 1993). New constructs reflecting customer relationship with brands have recently been introduced (e.g., brand love, Carroll and Ahuvia 2006; self-brand connection, Escalas and Bettman 2005; brand commitment, Hess and Story 2005). However, CBI is distinct from its predecessor conceptualizations in that CBI reflects and captures the psychological oneness (Ashforth and Mael 1989) while the plethora of these constructs does not. Hogg, Terry, and White (1995) contend that the notion of identity is descriptive (e.g., using the brand to describe the self), prescriptive (e.g., behaving in a way consistent with the brand image), and evaluative (e.g., treating the identified brand more favorably than other brands, resisting negative information about the identified brand). The fusion of the brand, the self, and self-schemata makes CBI a “sticky prior” (Bolton and Reed 2004) that is more enduring than either ephemeral satisfaction or manipulable switching costs. Consequently, CBI should be highly predictive across contexts and social settings of several important customer behaviors: in role and extra role behavior, current behavior and future intentions, support for the identified brand and resistance to competitive attractions. In other words, CBI might constitute a sustainable competitive advantage due to its value, rareness, inimitability, and non-substitutability (Barney 1991; Porter 1985; Reed and DeFillipi 1990).

Previous research that is based on the conceptual framework of customer-company identification (Bhattacharya and Sen 2003) has received preliminary empirical support that customer-company identification results in higher product utilization and customer extra role behavior such as positive word of mouth (Ahearne, Bhattacharya, and Gruen 2005; Bagozzi and Dholakia 2006; Donavan, Janda, and Suh 2006). However, there has been little empirical research examining the phenomenon of customer-company identification longitudinally or outside of the U.S. More specifically, it remains unclear as to (1) How important it is in the long run, (2) How important it is compared with perceived value and switching costs, (3) How stable it is in the long run, (4) How it behaves in a competitive environment, and (5) Whether its importance is universal and generalizeable to countries outside of the U.S.

This dissertation adopts a strategic application of social identity theory (Ashforth and Mael 1996; Elsbach 1999; Fiol 1991) and builds upon the conceptual framework by Bhattacharya and colleagues (Bhattacharya and Sen 2003; Ahearne, Bhattacharya, and Gruen 2005) to achieve a deeper understanding of CBI and its correlates in four important areas. First, we compare the validity of CBI with that of perceived value and switching costs in predicting customer behavioral loyalty. Second, we explore the moderating role of cultures of the relationship between CBI and its consequences by adapting Hofstede’s (1980, 2001) cultural dimensions to the consumer behavior context. Third, we examine a broader array of CBI consequences. Some of these consequences are emergent phenomena in the booming internet era and might not be explainable by perceived value and switching costs. Fourth, we examine the longitudinal impact of CBI on behavioral loyalty in a competitive context. More specifically, we study how enduring the effect of CBI on customer loyalty is over time in markets where a new entrant tries to uproot customer’s identification with incumbent brands.

We believe this dissertation will make at least four contributions to the existing marketing literature. First, we build on and extend the emerging literature on customer-company identification (Bhattacharya and Sen 2003; Ahearne, Bhattacharya and Gruen 2005; Donavan, Janda, and Suh 2006) by zeroing in on a closer level of analysis, which is the customer-brand level. This close-up will enable an in-depth juxtaposition of the antecedents to true, attitudinal loyalty versus marketing-induced, behavioral loyalty (MSI Research Priorities 2006-2008). Second, the longitudinal examination of CBI over time and its consequences will extend the current limited understanding of the loyalty processes. Third, the explicit incorporation of competition into the customer-company identification literature by applying rigorous analytical method provides a fresh approach to research in this area. Finally, this research will be the first to examine cultures as the boundary conditions on the relationship between CBI and customer behavioral intentions. The insights gained from the studies will be of instant interests to both academics and practitioners in terms of branding strategy and building global brand communities.

In the next section, we review the relevant literatures that provide the theoretical foundation for two empirical essays. These streams of research include social identity theory, identity theory, and customer-company identification.

Literature Review

Social Identity Theory, Identity Theory and Their Marketing Applications

Social identity theory (Tajfel and Turner 1985) posits that individuals define their self-concepts by their connections with social groups or organizations. For example, individuals might identify with social entities such as well-known organizations to bask in their reflected glory (Cialdini et al. 1976). In so doing, individuals engage in a self-categorization process through which an ingroup to which one belongs is clearly demarcated against an outgroup (Turner et al. 1987). Based on social identity theory, organizational behavior researchers develop the concept of organizational identification (Albert and Whetten 1985; Ashforth and Mael 1989; Dutton, Dukerich, and Harquail 1994), defined as the extent to which organizational members define themselves in terms of oneness with the organization. Individuals who identify strongly with organizations are more likely to engage in identity-affirming and identity-enhancing behaviors such as higher performance, embracing organizational values, and extra-role behavior (Riketta 2005). Furthermore, they also interact with other individuals who are attracted by the same social identity. As an example, brand communities reflect a strong ingroup/outgroup juxtaposition, with favorable attitude toward the ingroup members. Terms such as Mac-users and Red Sox fans abound in daily life. Members of these brand communities - sometimes even brand cults - engage in rituals to celebrate their memberships and to extol their beloved brands (Bagozzi and Dholakia 2006; Muniz and O’Guinn 2001; McAlexander, Schouten and Koenig 2002).

At a more micro level, identity theory (Stryker and Serpe 1982) focuses on the social roles individuals play in various social settings. Each role constitutes an identity; identities are organized hierarchically. Marketing research based on identity theory tends to focus on how individual customers behave in agreement with the most salient (i.e., most internalized, high in the hierarchy) identity because it provides the most meaning for the self (Arnett et al. 2003). This stream of research also frames customer-product relationship in light of what is “me” and what is “not me” (Kleine et al. 1995; Reed 2002). Although social identity theory and identity theory evolve in two different streams of research (social psychology and sociology, respectively), these interrelated theories share several similar concepts that have been introduced into the marketing literature such as identity salience, identity-congruent behavior, and multiple levels and layers of identification. Most relevant to this dissertation are customer-company identification and its consequences, identity-congruent behavior.

Customer-Brand Identification

Under the overarching theme of relationship marketing (Sheth and Parvatiyar 1995; Berry 1995), previous research on customer-company relationship develops along two streams. The first stream of research focuses on almost exclusively interpretive consumers’ account about their relationship with brands (Fournier 1998; McAlexander, Schouten, and Koenig 2002). One of the tenets of this stream of research is that possessions can be viewed as the extended self (Belk 1988), or the self (Kleine et al. 1995). This way, consumer-product relationships resulting from frequent interactions are anthropomorphized. In other words, this research stream treats brands as relationship partners and view consumer-brand relationships as affect laden (Thomson, MacInnis, and Park 2005; Park and MacInnis 2006).

Taking a cognition-based approach, the second stream of research proposes that consumers identify with companies to satisfy one or more self-definitional needs (Bhattacharya and Sen 2003; Ahearne, Bhattacharya, and Gruen 2005; Einwiller et al. 2006). Most importantly, this identification is not contingent upon interaction with specific organizational members (Turner 1982), or direct experience with the object of identification (Reed 2000). At the brand level, individuals might identify with a brand that fits with their personalities without actually being able to afford it. As individuals age, identification changes from an unconscious process of merely mimicking role models to a more conscious and sophisticated one (Chaplin and John 2005; Reed 2000).

This dissertation builds primarily upon this second stream to examine customer-brand relationship. Customer-brand identification (CBI) is defined here as the extent to which customers define themselves in terms of psychological oneness with a brand. Consistent with the widely accepted perspective in organizational identification research ((Bergami and Bagozzi 2000; Dutton et al. 1994), social categorization theory (Turner et al. 1987), and research on close relationships (Aaron et al. 1991), CBI is treated here as a cognitive construct that reflects the extent to which the brand has been assimilated into the self of customers. Previous research on brand loyalty has tried to distinguish “action loyalty” from lower levels of loyalty such as conative loyalty, affective commitment, and cognitive loyalty (Oliver 1999; Day 1969). In this vein, CBI might be considered the most powerful antecedent to the highest form of loyalty because CBI reflects an on-going fusion of the brand and the self into one entity.

Table 1 details the conceptual distinction between CBI and existing brand-related constructs. To establish empirical evidence of its discriminant validity, we will include some of these measures in the data collection phase.

TABLE 1

Customer-Brand Identification and Similar Brand-Related Concepts

|Concept |Definition and Distinction |

|Customer-Brand Identification |The degree to which a customer defines himself in terms of psychological oneness with a brand. |

|Self-brand connection |Self-brand connection is used to describe situations when brand associations are used to |

|(Escalas and Bettman 2005) |construct the self or to communicate the self-concept to others. CBI reflects this notion from a|

| |social identity theory (Tajfel and Turner 1985) perspective. |

|Brand affect |A brand’s potential to elicit a positive emotional response in the average consumer as a result |

|(Chaudhuri and Holbrook 2001) |of its use. CBI is not contingent on previous use. |

|Brand love |The degree of passionate emotional attachment a satisfied consumer has for a particular trade |

|(Carroll and Ahuvia 2006) |name. Brand love is affect-based, whereas CBI is a cognitive construct. |

|Brand trust |The willingness of the average consumer to rely on the ability of the brand to perform its |

|(Chaudhuri and Holbrook 2001) |stated function. This might be one of the antecedents of CBI. Consumers might trust a number of |

| |brands, but not identify with all of them. |

|Brand loyalty |A deeply held commitment to rebuy or repatronize a preferred product/service consistently in the|

|(Oliver 1999) |future, thereby causing repetitive same-brand or same-brand-set purchasing, despite situational |

| |influences and marketing efforts having the potential to cause switching behavior. The new |

| |construct CBI is an antecedent to brand loyalty. |

Antecedents to CBI. It is important to note that customer-brand emotional attachment has recently received some academic attention (Thomson, MacInnis, and Park 2005). Instead of viewing the cognition- and emotion-based streams of research as separate, we believe the interplay of cognition and affect in forming CBI is inherent in the conceptual frameworks of organizational identification in the forms of “perceived attractiveness of the organization” (Bhattacharya and Sen 2003) and “emotional significance attached to that membership” (Tajfel 1981, p. 255). It should be emphasized, however, that the antecedents to CBI are heavily leaned toward cognitive processes for at least two reasons: (1) Identification involves an effortful comparison to detect the fit between the self and the brand along dimensions such as personality and values (c.f., Sirgy 1982; Aaker 1997), and (2) Identification requires perceived distinctiveness of the brand in the consideration set. There exists mounting empirical evidence that cognitive variables such as construed external image of the organization, perceived organizational prestige, and organizational stereotypes serve as strong predictors of members’ organizational identification (e.g., Ahearne, Bhattacharya, and Gruen 2005; Bhattacharya, Rao, and Glynn 1995; Kreiner and Ashforth 2004; Dukerich, Golden, and Shortell 2002; Bergami and Bagozzi 2000).

Consequences of CBI. Previous research on organizational identification suggests that organizational identification has important implications for organizations. Organizational identification has been found to be predictive of organizational members’ in-role behavior such as performance as well as extra-role behavior like organizational citizenship behavior (Riketta 2005). Recent marketing research on customer-company identification also supports this claim (Ahearne, Bhattacharya and Gruen 2005; Donavan, Janda, and Suh 2006). In terms of affective consequences, organizational identification researchers suggests that organizational identification can result in “hot affects” such as passion, strong bonding, captivation, or even addiction, a viewpoint that is consistent with the emotion-based research stream reviewed above. In the terminology of switching costs, organizational identification can lead to high emotional switching costs (Burnham, Frels, and Mahajan 2003).

In the next section, we present two essays. The organization of each essay is as follows. We first identify important gaps in the existing literature on customer-company identification and related streams of research. Then, we propose our research questions along with the conceptual framework and hypotheses. This is followed by research methodology and sampling plans. The proposal ends with a detailed work plan.

ESSAY 1

Consequences of Customer-Brand Identification:

A Cross-National Examination

There has been a rekindled interest in studying the link between perceived value and customer loyalty (Johnson, Herrmann, and Huber 2006). Researchers seem to concur that perceived value might be more predictive of customer future intentions than satisfaction (Cronin et al. 1997; Whittaker et al. 2007). Research on perceived value, however, pays little attention to customer intentions other than repurchase (Johnson, Herrmann, and Huber 2006). Meanwhile, research on customer-company identification suggests that customer-company identification can result in not only customer in-role but also extra-role behavior such as positive word of mouth (Ahearne, Bhattacharya, and Gruen 2005), collecting company-related collectibles (Bagozzi et al. 2008), and symbol passing (Donavan et al. 2006). Furthermore, less attention has been paid to identity-preserving behavior such as customer forgiveness (Chung and Beverland 2006), resistance to negative information (Ahluwalia et al. 2000), brand defense, or stronger claims (Bhattacharya and Sen 2003). These behaviors might be uniquely related to CBI and not customers’ perceived value. Another important gap in the literature is that the boundary conditions of the relationship between customer-company identification and its consequences have not been empirically examined.

In this essay, we seek the answers to three important questions: (1) What are the important in-role and extra-role consequences of CBI? (2) How strong is the predictive validity of CBI relative to that of perceived value in explaining customer behavior? and (3) What is the nature of the moderating effects of cultural orientations on the relationships between CBI and perceived value and these customer behavioral intentions?

We focus on cultural dimensions as moderators for a number of reasons. First, cultural values program personalities which in turn might influence relational behavior, such as developing and maintaining relationship with brands. Second, previous marketing research has also found these dimensions to be important moderators of phenomena such as consumer information processing, expectations, relationship proneness, attitude toward advertising, and brand trust (for a complete review, see Soares et al. 2007; Arnold and Bianchi 2001; Mooij 2005). Third, this emphasis is helpful in understanding cross-cultural consumer psychology in the era of globalization.

Conceptual Framework and Hypotheses

Figure 1.1 depicts the conceptual framework of the first essay. We first focus on the baseline model of the main effects of CBI and perceived value on customer behavioral intentions. We then lay out the rationale for the moderating effects of cultural orientations on these simple effects.

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Insert Figure 1.1 about here

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The Baseline Model: Consequences of CBI and Customer Perceived Value

CBI can induce two groups of identity-congruent behaviors: in-role behavior to maintain the identity (repurchase intention, willingness to pay more), and extra-role behavior to promote the identity (e.g., positive word of mouth, social promotion of brands). Extra-role behavior can be targeted at the focal brand (e.g., recommending friends to buy the focal brand, resilience to negative publicity, higher tolerance for product/service failure, defending the brand in web blogs and social groups) as well as competitors’ brands (e.g., badmouthing competitors’ brands, looking for negative information about competitors’ brands). Consistent with previous research, we posit that there will be a positive relationship between CBI and these consequences. These behaviors can be organized into a continuum, with stronger claims being the most intense extra-role behavior.

We pay particular attention to the higher level of behavioral intentions as these might be unique consequences of CBI. Customers who strongly identify with brands develop a deeply-rooted preference for those brands. Therefore, when faced with preference-inconsistent information such as negative publicity, they are more likely to process the information systematically and tend to refute or counterargue such information to maintain cognitive consistency (Heider 1946; Johnson and Eagly 1990; Kruglanski 1990; Jain and Maheswaran 2000). Stronger forms of customer extra-role behaviors such as customer forgiveness and brand defense require a high level of internalization of the brand into the self such that customers make generous attributions when transgressions occur, and take attacks on the brand personally. This phenomenon has also been documented in the literature on interpersonal close relationship (Fournier 1998; Thomson et al. 2005). Furthermore, customers are more likely to express stronger claims to the brand only when they think they deserve to receive preferential treatment by the brand as a relationship partner, which is the case for customers who identify strongly with brands (Bhattacharya and Sen 2003; Mitchell et al. 1997). Hence:

H1: There is a positive relationship between CBI and (a) repurchase intention, (b) willingness to pay more, (c) social promotion, (d) consumer forgiveness, (e) brand defense, and (f) stronger claims.

Perceived value provides customers with a rational reason to continue their relationships with the brands. Furthermore, perceived value elevates customer satisfaction (Patterson and Spreng 1997), which in turn results in higher intention to repurchase and disseminate positive word of mouth, and higher willingness to pay more (Oliver 1980; Bolton and Lemon 1999; Zeithaml et al. 1996). By definition, perceived value forms the foundation of relationships characterized by reciprocity and calculation. Inasmuch as higher-level customer behaviors such as forgiveness and brand defense are costly to the customers and perceived value does not necessarily lead to higher levels of brand internalization to ignite stronger claims, we do not expect perceived value to be related to these behaviors. This suggests,

H2: There is a positive relationship between perceived value and (a) repurchase intention, (b) willingness to pay more, and (c) social promotion.

H3: Perceived value is not related to (a) customer forgiveness, (b) brand defense, and (c) stronger claims.

Cultural Dimensions

Among various conceptualizations of cultural orientations (e.g., Schwartz 1992; Rokeach 1973; Peabody 1985; Hofstede 1980, 2001), Hofstede’s five cultural dimensions remain the most widely-accepted perspective (Steenkamp et al. 1999). These dimensions include individualism /collectivism, uncertainty avoidance, power distance, masculinity/femininity, and long-term orientation. While Hofstede analyzes these dimensions at the national level, the fact that cultures exert an impact on how individuals embedded in those cultures behave makes it possible to extend these national dimensions to individual cultural orientations (Triandis and Suh 2002). Previous marketing research has found mixed support for the role of masculinity/femininity and power distance dimensions (c.f., Erdem, Swait, and Valenzuela 2006; Roth 1995; Blodgett et al. 2001) and largely ignored the long-term orientation dimension possibly due to limited availability of national scores for this dimension in the Hofstede’s reports. Therefore, we focus on three cultural dimensions: individualism /collectivism, uncertainty avoidance, and long-term orientation.

Cultural Dimensions as Moderators of the Relationship between CBI, Perceived Value and Customer Behavioral Intentions

Cultural dimensions can moderate the relationships between CBI, perceived value and their consequences because certain cultural orientations drive individuals to develop different propensities in maintaining and nurturing existing relationships and to assign perceived value different weights in forming their behavioral intentions. In the next section, we first define each cultural dimension, then present the rationale for the hypotheses.

Individualism/Collectivism. This cultural orientation is defined as the degree to which individuals are supposed to look after themselves or remain integrated into groups (Hofstede 2001). This dimension has received the most attention in marketing research. While researchers disagree as to whether they are two ends of a continuum or are independent, most research treats these two as opposites (Van den Bulte and Stremersch 2004). Related constructs include independence/interdependence self-construal (Markus and Kitayama 1991) and idiocentrism-allocentrism (Triandis 1989). Collectivistic individuals believe that group decisions are better. They place much emphasis on belonging (vs. variety seeking), survival (vs. hedonism), and rely more on social networks to acquire information (vs. media). Because collectivistic individuals value consensus rather than dispute, conformity to group norms rather than uniqueness, and relationship rather than novelty (Roth 1995), they should be less likely to switch to other brands from the brands they identify with. They should also have a higher willingness to pay more to maintain the relationship with the brands as well as to receive the acceptance of the social groups to which they belong. Moreover, since collectivistic customers enjoy interacting with other customers, they will be more likely to pass along word of mouth about brands they identify with or they perceive as having high value.

Perceived value, a computation of cost/benefits, is of the highest importance for customers with individualistic orientation (Triandis et al. 1993). They only maintain relationships that give something valuable in return. Paying more will tip the balance of equity that is high on the mind of these individualistic customers. Collectivistic customers, on the contrary, are more concerned about being harmonious with social groups, and might trade off personal benefits such as value for money for brands that readily receive social acceptance. Collectivistic customers are also more likely to attribute failure of products to external forces such as fate and luck rather than holding the company responsible (Schutte and Ciarlante 1998), and are therefore more forgiving. These customers also view equal treatment as more important than equity (McFarlin and Sweeney 2001), and as a result do not put forth stronger claims to be treated differently. Therefore,

H4: The relationship between CBI and (a) repurchase intention, (b) willingness to pay more, and (c) brand social promotion will be stronger (weaker) when the customer is collectivistic (individualistic).

H5: The relationship between perceived value and (a) repurchase intention will be stronger (weaker) when the customer is individualistic (collectivistic). However, the relationship between perceived value and (b) willingness to pay more, and (c) brand social promotion will be weaker (stronger) when the customer is individualistic ( collectivistic).

H6: The relationship between CBI and (a) forgiveness, and (b) brand defense will be stronger (weaker) when customers have collectivistic (individualistic) orientation. However, the relationship between CBI and (c) stronger claims will be weaker (stronger) for collectivistic (individualistic) customers.

Uncertainty avoidance. Uncertainty avoidance refers to the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations (Hofstede 2001). High uncertainty-avoidance individuals prefer stability, loyalty, simplicity in consumption. They possess strong resistance to changes and a high need for clarity and structure (“what is different is dangerous”). Hence, they will be less likely to go through the hassle of brand experimentation (Broderick 2007). Because giving out word of mouth might reduce the uncertainty that goes along with consumption and reduce post-purchase cognitive dissonance (Liu et al. 2001; Festinger 1957), customers who are high in uncertainty avoidance will also be more likely to engage in this extra-role behavior.

It is risk and structure that customers with high uncertainty avoidance are after, not perceived value. We therefore do not expect to see any difference among customers with different levels of uncertainty avoidance when it comes to evaluating the importance of perceived value. On the contrary, customers who are high in uncertainty avoidance should value the existing relationships they have built with old brands. The cumulative trust resulting from identification process gives them more commitment to engaging in the behaviors just described.

As non risk-takers, customers with high uncertainty avoidance orientation tend to overemphasize the negative aspects of information, and are less likely to forgive brands during transgressions or when negative information exists. With the propensity to be risk-averse and preference for a stable status quo, they should also be less likely to engage in behavior to defend the brands or asking the companies which own those brands to do extra things for them even when they identify with those brands. Hence,

H7: The relationship between CBI and (a) repurchase intention, (b) willingness to pay more, and (c) brand social promotion will be stronger (weaker) when the customer is high (low) in uncertainty avoidance.

H8: The relationship between perceived value and (a) repurchase intention, (b) willingness to pay more, and (c) brand social promotion is not moderated by the customer’s uncertainty avoidance orientation.

H9: The relationship between CBI and (a) forgiveness, (e) brand defense, and (f) stronger claims will be weaker (stronger) when customers have high (low) uncertainty avoidance orientation.

Long-term orientation. This cultural dimension refers to the extent to which a culture programs its members to accept delayed gratification of their material, social and emotional needs (Hofstede 2001). Individuals with long-term orientation possess persistence, thrift, synthetic thinking (vs. analytic), and structured problem solving. They also tend to build long-term relationship. Long-term oriented customers should assign particular importance to perceived value as this value will be instrumental in relationship maintenance in the long-run. Consequently, the relationship between perceived value and its consequences will be elevated among these customers.

With this long-term orientation in mind, these customers are also more likely to request brands to do more to enrich the existing relationship. This should be particularly true for brands that they have had a relationship with, or identify with, as they want to invest (and expect the same from the brand) in existing relationships rather than building too many loosely-knit brand relationships. This suggests the following:

H10: The relationship between CBI and (a) repurchase intention, (b) willingness to pay more, and (c) brand social promotion will be stronger (weaker) when the customer is high (low) in long-term orientation.

H11: The relationship between perceived value and (a) repurchase intention, (b) willingness to pay more, and (c) brand social promotion will be stronger (weaker) when the customer is high (low) in long-term orientation.

H12: The relationship between CBI and (a) forgiveness, (e) brand defense, and (f) stronger claims will be stronger (weaker) when customers have high (low) long-term orientation.

Cultural Dimensions as Antecedents of CBI

The above discussion on the characteristics of cultural orientations also suggests that cultural dimensions might motivate individuals to build relationships beside maintaining and fostering existing ones. By definition, CBI is a form of close relationship between the brand and the self. Thus, the three cultural orientations can also function as antecedents to CBI. We do not expect these cultural dimensions to impact perceived value. Therefore,

H13: There is a positive relationship between collectivism and CBI.

H14: There is a positive relationship between uncertainty avoidance and CBI.

H15: There is a positive relationship between long-term orientation and CBI.

Methodology

Sample

To pretest the baseline model, data were collected from high-prescribing physicians in a B2B setting. To test the full conceptual framework, data will be collected from approximately 3000 actual consumers in 12 countries in Europe and Asia. These consumers will be asked about their relationships with brands in highly hedonic or symbolic categories (see Roth 1995; Park, Jaworski, and MacInnis 1986).

We choose products that are at least in the growing phase in their product life cycle. This is to ensure that consumers have had enough time to develop their preference and identification with a number of brands. To ensure that we have the same brands across a number of countries and to control for category effect, we focus on corporate brands only (i.e., the name of the company is also the brand) and reserve specific product-brands for future research.

Key Measures

CBI will be measured using the 2-item scale (Bergami and Bagozzi 2000), of which one item is a Venn diagram, and the other in words. Cultural orientation scales will be adapted from marketing research in a multinational setting (Erdem, Swait, and Valenzuela 2006; Roth 1995) and social psychological research on self construal (Markus and Kitayama 1991; Singelis 1994). A pretest in a B2C context was conducted in July 2007. Other scales include perceived value (Dodds et al. 1991; Sheth et al. 1991), and behavioral intentions (Zeithaml et al. 1996). New scales measuring intense extra-role behavior are adapted from Bhattacharya and Sen (2003), Bagozzi et al. (2008). We will also include socio-demographic, consumer reciprocity as control variables.

Level of Analysis

It should be noted that although the formal hypotheses are stated at the individual consumer level, the conceptual framework depicted in Figure 2 can be tested at two levels of analysis: national and individual. The individual level of analysis is attractive and appropriate because (1) There might exist within-culture variations; This is particularly important for countries with high mobility as in the European Union, (2) It allows for testing interactions with statistical power. However, it is also possible to test the model using national scores and applying Hierarchical Linear Modeling (HLM, Raudenbush and Bryk 2002). In this regard, there are two possibilities: (1) Using Hofstede’s raw score, and (2) Using the average scores reported by subjects within each country. The former approach has been adopted in previous research. This approach has the disadvantage that Hofstede’s raw scores were published a long time ago, and was measured using IBM employees almost exclusively. These scores might not be representative of the general consumers. The latter approach runs the risk of ignoring high within-country variations. When HLM is used, the Level-1 variables consist of CBI and its consequences. Level-2 variables are the national cultural orientations. In other words, the moderating effects will be modeled as cross-level interactions. The following equations express this idea.

DVij = β0j + β1j(CBI) + β2j(VALUE) + rij . (1.1)

β0j = γ00 + γ01(COL) + γ02(UAI)+ γ03(LTO)+ u0j. (1.2)

β1j = γ10 + γ11(COL) + γ12(UAI)+ γ13(LTO)+ u1j. (1.3)

β2j = γ20 + γ21(COL) + γ22(UAI)+ γ23(LTO)+ u2j. (1.4)

where DV = dependent variables, CBI = Customer-Brand Identification, VALUE = Perceived value, COL = Collectivism/Individualism, UAI = Uncerntainty avoidance, LTO = Long-term orientation, rij ~ N(0,σ2).

Analytical approach

This large-scale study needs to address important methodological challenges. First, the study has multiple dependent variables. With several interaction terms, multiple regression analysis appears to be the most viable solution. Second, it is generally believed that subjects in varied cultures might respond differently to a battery of questions. For example, extreme response sets are popular (Hui and Triandis 1989; De Jong, Steenkamp, Fox and Baumgartner 2008). To address this issue, cross-cultural researchers have proposed two possible solutions. First, tests of measurement invariance should be conducted prior to testing the structural model (Steenkamp and Baumgartner 1998). This is to ensure that the scales behave somewhat uniformly across countries. The advantage of this approach is that standard SEM softwares have incorporated multiple-group analysis and mean-variance modules. However, when there are many countries, as in the case of this study, pair-wise comparisons across some 12 countries will be impractical (12 x 11/2 = 66 possible comparisons). Second, item scores can be standardized twice (within-subject, then between-subject) before formal analysis (Leung and Bond 1989).

FIGURE 1.1

Essay 1 - Conceptual Framework

[pic]

ESSAY 2

Customer-Brand Identification as an Antecedent to Brand Health

Previous marketing research has struggled with finding a strong predictor of customers’ long-term behavioral loyalty in the presence of competitive moves. This second essay complements the first essay by investigating why it is important to build CBI in a competitive setting using a longitudinal study design. We propose and test a conceptual framework in which customer-brand identification serves as a predictor of switching behavior, an important indicator of customer behavioral loyalty that underlies both the current well-being of a brand and all measures of brand resistance proposed in the brand health literature (Bhattacharya and Lodish 2000).

Our research departs from previous research in several ways. First, previous research on customer-company identification has been cross-sectional. Hence, the dynamic nature of CBI in competitive markets is largely ignored. This is surprising because research in the non-profit marketing literature suggests that participation in activities other than those organized by the focal organization impairs the identification with the focal organization (Bhattacharya, Rao and Glynn 1995). There has also been a call for the incorporation of competition into customer relationship models (Rust, Lemon, and Zeithaml 2004). Furthermore, it should also be noted that previous research has not examined the dynamic of switching costs and how they will influence customer behavior. We believe a longitudinal examination of CBI, its consequences, and other loyalty predictors is critical, especially in highly competitive markets. Second, previous research on loyalty relies heavily on satisfaction and disconfirmation/confirmation of expectations. While these are important, marketing researchers concur that “satisfaction is not enough” (Oliver 1999; Jones and Sasser 1995; Reichheld 1996) and speculate that a deeply-rooted cognitive variable might be more predictive of customers’ action loyalty. Surprisingly, empirical marketing research has not thoroughly investigated this research proposition. Recent research that does compare the predictive validity of satisfaction and commitment either tests it cross-sectionally (Garbarino and Johnson 1999), uses lagged-variable analysis (Johnson, Herrmann, and Huber 2006; Mittal, Kumar, and Tsiros 1999), or largely ignores competition. There has also been little research on customer’s perceived value of brands, much less on its longitudinal effects on brand loyalty. More importantly, previous research on perceived value has shown mixed findings, ranging from very strong effects (Sweeney et al. 1999) to marginal ones (Sirohi et al. 1998). These equivocal results might be an artifact of important missing predictors such as CBI or switching costs. By simultaneously considering CBI, customer’s perceived value, switching costs, and competition, we are able to put the above critical research propositions to the most stringent test.

More specifically, we study the dynamic of CBI when there is a new entrant and its impact on behavioral loyalty at the individual level by seeking the answers to two research questions: (1) How predictive is CBI with a focal brand compared with its perceived value and customers’ switching costs in predicting switching behavior from the focal brand to the new entrant?, and (2) How does this pattern change over time?

Conceptual Framework and Hypotheses

As defined above, CBI represents the extent to which customers perceive themselves and the brand as sharing self-definitional attributes. While cognitive in nature, CBI has important affective and conative consequences. We propose that three groups of variables will predict customer loyalty behavior. These include customer dispositions and characteristics and customer perceptions of both the focal, incumbent brands and the new competitor. In this essay, we focus our attention on the latter two groups while controlling for the first. Furthermore, to keep the scope of the study manageable while attending to the longitudinal effects of the focal constructs, we confine ourselves to investigating only switching behavior from the incumbent brands to the new brand. The conceptual framework is depicted in Figure 2.1.

----------------------------------------------

Insert Figure 2.1 about here

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At the aggregate market level, the product diffusion literature focuses on word of mouth and consumer innovativeness as two important drivers of new product diffusion, largely ignoring psychological variables (e.g., Bass 1969; Krishnan, Bass, and Kumar 2000). Shifting the focus to a subgroup of the market, we extend this diffusion literature by incorporating CBI and other psychological variables into the model while simultaneously controlling for perceived value and switching costs.

The relationship between perceived value, defined as the difference between benefits and costs, and repurchase intention has been found to be partially mediated by customer satisfaction (Patterson and Spreng 1997; Whittaker et al. 2007). Satisfaction is the response to pleasurable fulfillment of needs, desires, and expectations (Oliver 1993). Most researchers treat satisfaction as transaction-specific (e.g., Oliver 1980), while others consider satisfaction customers’ overall evaluation of the total purchase and consumption experience with a good or service over time (Anderson, Fornell, and Lehmann 1994; Bolton and Lemon 1999). In either conceptualization, satisfaction appears to be an affective outcome of a highly rational evaluation of the discrepancy between expectations and performance, as posited in the disconfirmation paradigm (Oliver 1980; Oliver, Rust, and Varki 1997) or perceived value in the value research stream (Sheth et al. 1991; Zeithaml 1988). Furthermore, both the accumulation of satisfaction and perceived value are not enough to reach “ultimate loyalty” (Oliver 1999, p. 34) because they are subject to deterioration and competitive promotions. It should also be noted that transaction-specific satisfaction is highly correlated with positive affect (Oliver, Rust, and Varki 1997) but not enduring “hot affects.” In the aggregate, the direct and indirect effects of perceived value on customer behavioral loyalty, while cognitive and affective in nature, do not reflect a high level of internalization of brand values into the self.

In addition to customer perceived value, switching costs might be another reason why customers keep buying a brand. We consider two types of non-relational switching costs: procedural costs and financial costs. Procedural switching costs have been defined as consisting of economic risk, evaluation, learning, and setup costs. Financial switching costs refer to benefits loss and financial-loss costs (Burnham, Frels, and Mahajan 2003). We do not consider relational switching costs because it is embedded as a consequence of CBI. This distinction of relational vs. non-relational switching costs is consistent with recent theorization by Bendapudi and Berry (1997) that customers may be motivated to maintain relationships with brands because of either constraints such as time and money or dedication such as expected emotional distress if they switch to another brand. Customers with high non-relational switching costs feel trapped as hostage in the relationship with brands (Jones and Sasser 1995). With such a calculative commitment in mind, these customers are likely to defect when competitors offer incentives to unlock them from their marriage with the incumbent brands, or when they themselves feel they are able to afford termination of the relationship (Jones et al. 2007).

Customers with high CBI consider the brand to be part of their “self.” One of the consequences of this cognitive assimilation is customers’ deep emotional attachment to the brand such that parting with the brand amounts to great “psychological distress” (Ashforth and Johnson 2001). However, this emotional switching cost is not the only route through which CBI exerts its impact on loyalty behavior. Customers with high CBI enter the phase of “determined self-isolation” wherein they have “generated the focused desire to rebuy the brand and only that brand” and “acquired the skills necessary to overcome threats and obstacles to this quest” (Oliver 1999, p.37-38). Social identity theory and identity theory refer to these behaviors as identity-congruent behavior (Tajfel and Turner 1985; Stryker and Serpe 1982). In its ultimate form, customers entered the phase of “immersed self-identity” when they participate in brand communities. In other words, CBI carries with it the notion of personal determination and social support that are not reflected in either switching costs or satisfaction (Oliver 1999, p. 42).

While the impact of perceived value, switching costs, and CBI are all subject to deterioration due to competitive attractions, the first two are likely to be eroded faster as they are not linked closely to the self. On the contrary, the impact of CBI on loyalty is more likely to be enduring over time as changing self-related schema does not easily take place, and if it does, it takes time (Bolton and Reed 2004). Consequently, we predict that:

H1: At the time of the introduction of the new brand, (a) the higher the CBI with the focal brand, (b) the higher the customer’s perceived value of the focal brand, and (c) the higher the customer’s non-relational switching costs, the lower the probability that the customer will switch to the new brand.

H2: At the time of the introduction of the new brand, the effect of (a) the customer’s perceived value of the focal brand, and (b) the customer’s non-relational switching costs on the probability that the customer will switch to the new brand is weaker than that of the customer’s CBI with the focal brand.

H3: Over time, the effect of (a) the customer’s perceived value of the focal brand, and (b) the customer’s non-relational switching costs on the probability that the customer will switch to the new brand is less enduring (i.e., decays faster) than that of the customer’s CBI with the focal brand.

Methodology

Sample

The conceptual framework will be tested using longitudinal survey(s). To capture the change, we choose research settings such that the imminent entrance of a new, innovative competitor can trigger observable fluctuations in the market. At this point, we are confident that the introduction of a high-tech product in a number of countries in Europe will take place in 2008. The advantage of this research sample is that it is possible to measure all of the independent variables over 4-6 periods. Furthermore, while the switching behavior is self-reported, it is fairly objective.

Measures

Depending on the expected launch of the brand, we will conduct a series of surveys and ask subjects to record customer diaries. CBI will be measured using the 2-item scale (Bergami and Bagozzi 2000), of which one item is a Venn diagram, and the other in words. Other measures are adapted from existing scales.

Control Variables

Because this study will be tested in the context of a new brand introduction into existing markets, we believe it is necessary to control for customer characteristics. Consistent with the product diffusion literature (Bass 1969) and customer innovativeness (Lynn and Gelb 1996; Steenkamp et al. 1999), we predict that customer innate innovativeness and susceptibility to social influence (Bearden, Netemeyer, and Teel 1989) will influence their probability of adopting new brands that are innovative, and/or symbolic and/or publicly consumed.

In a competitive market, consumers might develop multiple identifications with brands. Furthermore, the brand extension literature suggests that positively evaluated symbolic associations between a company’s existing brands and its new brand enhance the extendibility of a corporate brand (Park, Milberg, and Lawson 1991). Therefore, we control for the CBI with the company that owns the new brand, and the customer’s perceived brand concept consistency of the new brand. Finally, we also control for socio-demographic variables.

Analytical approach

For this study, since the dependent variable is an event (switch/not switch), we adopt survival analysis as the analytical methodology. Because the underlying metric for time in this particular study is truly continuous but we only measure discretized values, we specify the clog-log link (Allison 1995; Hosmer and Lemeshow 2000; Singer and Willett 2003). It should also be noted that when the probability of the event is low, the clog-log link produces results that are similar to that by the logit link (Singer and Willett 2003).

Modeling Switching Behavior

Let T be a non-negative continuous random variable with probability density function f(t) and cumulative distribution function F(T) = Pr {T ≤ t}, giving the probability that the event has occurred by duration t. In this study, the event is “switching to the new brand”. The survival function S(t) reflects the probability of not experiencing the event or “surviving” through time period j.

[pic]. (2.1)

The hazard function represents the instantaneous rate of occurrence of the event and is defined as

[pic]. (2.2)

It can easily be shown that

[pic]. (2.3)

Discrete-time hazards assume an underlying continuous time model, but with survival times grouped into intervals. Specifically, the durations or failure times between aj-1 and aj are recorded as a single value. Assume that the underlying continuous time model is of proportional hazard form:

[pic], (2.4)

where z represents a vector of covariates.

Rewrite the hazard specification [pic] as

[pic]. (2.5)

We have

[pic]. (2.6)

which is equivalent to

[pic]. (2.7)

By definition, [pic]. Integrating both sides of Equation 2.7 over time (0, t) leads to

[pic] (2.8)

Let

[pic]. (2.9)

We then can calculate the conditional probability of surviving through the jth interval given that a subject has survived the previous j-1 intervals as

[pic]. (2.10)

The corresponding hazard rate in the jth interval [aj-1, aj) is

[pic]. (2.11)

The total survivor function until the start of the jth interval is expressed as

[pic]. (2.12)

Define

[pic], (2.13)

the likelihood of an event in interval [aj-1, aj) given survival until then can be written as

[pic]. (2.14)

Let wj = 1 for an event in the jth interval and wj = 0 otherwise. Via a complementary log-log (clog-log) link, the likelihood for an individual i observed for ri intervals until either an event or censoring is:

wij ~ Bernoulli([pic]) i = 1,…, n, j = 1,…, ri

[pic]. (2.15)

where βj denotes a regression effect that is fixed within intervals but may vary between intervals, and z[aj] represents potentially time-varying predictors. Further detailed discussion of discrete-time survival analysis is available in Singer and Willett (2003), Muthén and Masyn (2005), and Congdon (2007).

For this study, time-invariant variables will include customer characteristics, namely innate innovativeness (INNOV), socio-demographic variables such as gender (GEN), age (AGE), income (INC), and susceptibility to social influence (SUS). We also control for the brand concept consistency of the new brand (NB_CON). Time-varying variables include two groups. These variables are summarized in Table 2.1.

(1) For the incumbent focal brands: customer identification with the brand (IB_CBI), perceived value of using the focal brand (IB_VAL), switching costs (IB_SC), overall satisfaction (IB_SAT), and peer brand use (PEER), and

(2) For the new entrant: customer identification with the new brand (NB_CBI), perceived value of the new brand (NB_VAL), interbrand similarity (SIM), promotion (if any) during the period observed (PRO), and word of mouth about the new brand (NB_WOM).

TABLE 2.1

Summary of Constructs

| |Measures |

|Endogenous variable | |

|SWITCH |What brand of (product type) do you currently use? |

|Predictor variables | |

|Customer characteristics | |

|INNOV |Consumer innate innovativeness (Gielens and Steenkamp 2007). |

|SUS |Consumer susceptibility to social influence (Bearden et al. 1989). |

|GENDER |Self-reported. |

|AGE |Self-reported. |

|INCOME |Self-reported. |

|Focal brand predictors | |

|IB_CBI |Consumer-Brand Identification with the focal incumbent brand |

| |(Bergami and Bagozzi 2000). |

|IB_VAL |Perceived value of the focal brand (Dodds et al. 1991; Netemeyer et al. 2004). |

|IB_SC |Switching costs (Jones et al. 2007; Burnham et al. 2003). |

|IB_SAT |Overall satisfaction. |

|IB_QUA |Perceived product quality of the focal brand |

|IB_SER |Perceived services of the cell phone carrier of the focal brand |

|PEER |Peer brand use. |

|IB_PRO |Promotion during the time interval |

|IB_LEN |Length of previous use |

|New brand predictors | |

|NB_CBI |Consumer-Brand Identification with the company that owns the new brand |

| |(Bergami and Bagozzi 2000). |

|NB_VAL |Perceived value of the new brand (Dodds et al. 1991; Netemeyer et al. 2004). |

|SIM |Interbrand similarity, using product attribute-level comparisons. |

|NB_PRO |Promotion during the time interval (yes/no). |

|NB_CON |Brand concept consistency with the other brands under the same umbrella brand. |

|NB_QUA |Perceived product quality of the new brand |

|NB_SER |Perceived services of the cell phone carrier of the new brand |

|NB_WOM |Word of mouth within the social group about the new brand. |

Analytical Strategy

To test hypotheses 1 and 2, there are two options. The first is to run a logistic regression:

SWITCH = f (control variables, IB_CBI, IB_VAL, IB_SC) (2.16)

H1 is supported if all of the slopes of the three focal independent variables (CBI with the focal brand, perceived value of the focal brand, switching costs from the focal brand to the new brand) are negative. To test H2, we compare the slopes of these three focal independent variables. Alternatively, these hypotheses can be tested directly by looking at the coefficients at time t1, using the clog-log link described next.

To test H3, estimation will be conducted on the clog-log transformation of the hazard function. More specifically, dummies will be used to denote each time period (D1, D2, ..,DJ). The hazard function, with clog-log transformation, is specified as

[pic], (2.17)

where

(1-[pic]) is the probability of surviving (not switch) a given interval conditioned on survival of previous intervals.

Dj are time-period dummies, j = {0,1,2,3,4} if data were collected over 5 time periods.

Vector X consists of time-invariant predictors.

Vector Z consists of time-varying predictors. We only focus on IB_CBI, IB_VAL, and IB_SC. The other time-varying variables are assumed to have stable effects on the hazard rate.

We specify an AR-1 process for each of the coefficients of these three time-varying predictors as follows

[pic]. (2.18)

[pic]. (2.19)

[pic]. (2.20)

where [pic] ~ iid N(0,1). We predict that [pic] and [pic].

Alternatively, the non-proportional model (i.e., with time-varying effects) can be specified by creating interaction terms between the time-invariant (vector X) and time-varying (vector Z) predictors and the time-period dummies (Dj). The model can also be specified as a split hazard model (Hess and Mayhew 1997).

FIGURE 2.1

Essay 2 - Conceptual Framework

[pic]

Work Plan

|Major steps in the development of the dissertation |Target date |

|Finalize sources of data |February 2008 |

|Refine study measures |January 2008-March 2008 |

|Pretest |January 2008-March 2008 |

|Collect data |April 2008 – December 2008 |

|Analyze data |August 2008 – January 2008 |

|Write up analysis results and prepare for defense |February 2009 |

|Defend dissertation |May 2009 |

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-----------------------

Perceived Value

Low- to Medium-level Behavior

Brand social promotion

Willingness to pay more

Repurchase intention

Cultural Orientations

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hÙ[îh¸:¸hIndividualism/Collectivism

* Uncertainty avoidance

* Long-term orientation

Control

Socio-demographic variables

Reciprocity

Switching costs (if applicable)

Time-varying antecedents (t0-tj)

Consumer-Brand Identification

Focal brand(s)

CBI with the focal brand (-)

Perceived value (-)

Switching costs to the new brand (procedural, financial costs) (-)

Control variables: Overall satisfaction (-), Peer brand use, Promotion (-), Length of use (-), Product quality (-), Service quality of the carrier (-)

Control variables

Consumer characteristics

Innate innovativeness (+)

Susceptibility to social influence (+/-)

Socio-demographic variables

Switching to the new brand (SW)

SW (tj)

SW (…)

SW (t1)

New entrant

CBI with the new brand and the brand owner (+)

Perceived value (+)

Control variables: Interbrand similarity, Brand concept consistency (+), Word of mouth (+), Promotion (+), Product quality (-), Service quality of the carrier (-).

Time-invariant antecedents

SW (t0)

Behavioral Intentions

High-level Behavior

Stronger claims

Brand defense

Consumer forgiveness

Intensity of Behavioral Intentions

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