Brand Prominence, the Recession of 2008 and Brand Essence

Interviene: Joseph Nunes (Marshall School of Business)

Organizzato da: Dipartimento di Marketing

Abstract: I will begin by briefly discussing research exploring brand prominence, a construct reflecting the conspicuousness of a brand’s mark or logo on a product. I will describe a taxonomy that assigns consumers to one of four groups based on wealth and need for status, and demonstrates how each group’s preference for conspicuously or inconspicuously branded luxury goods corresponds predictably with their social motives (i.e., with whom each group wishes to associate and disassociate). Contrary to reports that the 2008 recession led wealthy consumers to abandon luxury goods that prominently display their brands for more subdued designs, I will argue that conspicuous consumption in the U.S. is thriving, if not becoming even more popular. Utilizing data collected before and in the midst of the recession from designer handbag manufacturers Louis Vuitton and Gucci, products introduced during the recession actually display the brand far more prominently than those products withdrawn. Data from Hermès and luxury ads in Vogue magazine also indicate manufacturers did not tone things down. These results suggest consumers who do not exit the luxury goods market are still interested in logo-laden products. If possible, I will also present preliminary results exploring the interaction of brand prominence and celebrity. Finally, work on brand prominence and luxury has led me to begin studying the essence of a brand, and the impact of intentionality on brands. If time permits, I will present studies exploring psychological essentialism and branding. Psychological essentialism suggests objects are categorized based on some unobservable quality characterized as the essence. Bloom (1996) proposed that for artifacts, the essence is the objects history, including the intentions of the person who created it. This research documents how brands possess essences and documents how consumers consider a good more or less imbued with a brand based on the intentions of its creator. We show how deliberate changes that defy earlier intentions can damage a brand. Further, unintended changes that affect neither the function nor aesthetics of a product are shown to affect its value, both positively and negatively.