The effects of brand name dilution on memory retrieval and the formation of consideration sets.

摘要

This dissertation explores, in a series of three experiments, the effects of brand name dilution on consumers' cognitive processing of brand-related information. Dilution generally refers to the negative effects that brand extensions (e.g., Ivory shampoo) can have on consumers' perceptions of core or parent brands (e.g., Ivory soap). The present approach differs from prior research both in terms of theoretical conceptualization and application. The impact of dilution on the structure of information stored in memory and the effects this has, in turn, on retrieval processes, is examined. In Study One (a within-subjects design; n = 29) it is shown that exposing consumers to information about brand extensions slows down the speed with which core brand information can be retrieved from memory. In Study Two (a mixed model design; n = 64), a related public policy issue is examined. It is shown that "external" dilution, or dilution resulting from the unauthorized use of a brand name by another company in a non-competing product category, results in dilution effects in a manner similar to that of "internal" dilution, or dilution resulting from brand extensions. In Study Three (a mixed model design; n = 36), a managerial application of dilution is explored, specifically, the effects of brand extension advertising on the formation of stimulus-based consideration sets. A computer simulation of in-store shopping behavior is used to demonstrate how brands which have been extended into other product categories tend to be more slowly recognized on shelf than unextended brands. The moderating effects of category crowdedness are also demonstrated. The implications and limitations of the studies are discussed, as are areas for future research.