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Presenter: Laura Chen10122617
Instructor: Dr. Teresa Hsu
Oct. 12, 2012

                            1
Lam, S. K., Ahearne, M., Hu, Y., &
Schillewaert, N. (2010). Resistance to
brand switching when a radically new
brand is introduced: A social identity
theory perspective. Journal of
Marketing, 74, 126-146.




                                         2
 PV = Perceived Value


 CBI = Customer-Brand Identification


 RPV = Relative Perceived Value


 RCBI = Relative Customer –Brand
         Identification
                                        3
 Introduction
 Literature Review
 Methodology
 Result
 Discussion
 Conclusion
 Reflection

                      4
Switching or not?

      Brand
      loyalty




                Perceived
CBI               value



                            5
 The business environment grows more
  complex and globalized, market disruptions
  become more prevalent.

 Market disruptions can influence the relative
  standing of brands in the eyes of customers.




                                                  6
Build on social identity theory and the
customer –company identification
framework to formally propose the concept
of customer-brand identification (CBI).


Combine social identity theory and the
brand loyalty literature to purpose a
conceptual framework of switching behavior.


Test the framework in the contest of a
specific kind of market
disruption, namely, the introduction of a
radically new brand in a competitive market.
                                               7
8
9
Literature Review

• When Customer experience difficulty in
  generating positive information about their
  choice, they may infer that the amount of
  positive information is rather limited and
  may reverse their attitude toward the
  chosen brand.

     ( Wanke, Bohner, & Jukowitsch, 1997)

                                            10
Social Identity Theory
People define their self-concepts by their
connections with social groups or
organizations.




                     ( Tajfel & Turner, 1979)


                                                11
Brand switching as functional
utility maximization(McFadden,
              1986)
                                 Brand switching as social mobility
                                    (Rao, Davis, & Ward, 2000)




                                                                      12
Research Question

     Will customers switch
     brands only to maximize
     functional utility?



     Is there any customer-
     brand relationship that
     drives brand loyalty in the
     face of market
     disruptions?

                                   13
14
Procedure

Participants
• 708 cell phone users

Time
• 10 months during the launch of iphone

Place
• Spain

Focus
• Switching behavior
                                          15
Conduct the first   Other four waves
  wave survey        was carried out
before the actual     at 2 months
     launch             intervals



 Using discrete
                      Final data set
hazard models to
                      including 679
capture switching
                    usable responses
    behavior


                                       16
17
18
19
20
21
22
23
Implication

    Social
   identity     Switching
 perspective     drivers




          Different
         predictors




Marketing strategy

                            24
Conclusion

Companies can not be successfully disrupt the
markets if their products only have attractive
functional benefits but not win the identity war.




                                                    25
Reflection
• The authors only focused on the disruptions of
  smart phone market. Other types of market
  disruptions can be explored in future studies.

• Because of cost concerns, this study could only
  tracked customers one year.




                                                    26
27

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10122617 v5

  • 1. Presenter: Laura Chen10122617 Instructor: Dr. Teresa Hsu Oct. 12, 2012 1
  • 2. Lam, S. K., Ahearne, M., Hu, Y., & Schillewaert, N. (2010). Resistance to brand switching when a radically new brand is introduced: A social identity theory perspective. Journal of Marketing, 74, 126-146. 2
  • 3.  PV = Perceived Value  CBI = Customer-Brand Identification  RPV = Relative Perceived Value  RCBI = Relative Customer –Brand Identification 3
  • 4.  Introduction  Literature Review  Methodology  Result  Discussion  Conclusion  Reflection 4
  • 5. Switching or not? Brand loyalty Perceived CBI value 5
  • 6.  The business environment grows more complex and globalized, market disruptions become more prevalent.  Market disruptions can influence the relative standing of brands in the eyes of customers. 6
  • 7. Build on social identity theory and the customer –company identification framework to formally propose the concept of customer-brand identification (CBI). Combine social identity theory and the brand loyalty literature to purpose a conceptual framework of switching behavior. Test the framework in the contest of a specific kind of market disruption, namely, the introduction of a radically new brand in a competitive market. 7
  • 8. 8
  • 9. 9
  • 10. Literature Review • When Customer experience difficulty in generating positive information about their choice, they may infer that the amount of positive information is rather limited and may reverse their attitude toward the chosen brand. ( Wanke, Bohner, & Jukowitsch, 1997) 10
  • 11. Social Identity Theory People define their self-concepts by their connections with social groups or organizations. ( Tajfel & Turner, 1979) 11
  • 12. Brand switching as functional utility maximization(McFadden, 1986) Brand switching as social mobility (Rao, Davis, & Ward, 2000) 12
  • 13. Research Question Will customers switch brands only to maximize functional utility? Is there any customer- brand relationship that drives brand loyalty in the face of market disruptions? 13
  • 14. 14
  • 15. Procedure Participants • 708 cell phone users Time • 10 months during the launch of iphone Place • Spain Focus • Switching behavior 15
  • 16. Conduct the first Other four waves wave survey was carried out before the actual at 2 months launch intervals Using discrete Final data set hazard models to including 679 capture switching usable responses behavior 16
  • 17. 17
  • 18. 18
  • 19. 19
  • 20. 20
  • 21. 21
  • 22. 22
  • 23. 23
  • 24. Implication Social identity Switching perspective drivers Different predictors Marketing strategy 24
  • 25. Conclusion Companies can not be successfully disrupt the markets if their products only have attractive functional benefits but not win the identity war. 25
  • 26. Reflection • The authors only focused on the disruptions of smart phone market. Other types of market disruptions can be explored in future studies. • Because of cost concerns, this study could only tracked customers one year. 26
  • 27. 27