Influence of Advertising Variability, Brand Extension Effects, Brand Name, Variety Seeking Behavior and Customer Value on Buying Decisions: A Multi-Experiment Analysis

59 Pages Posted: 27 Jan 2006

See all articles by Dr. Rajagopal

Dr. Rajagopal

Graduate School of Administration and Management (EGADE), Monterrey Institute of Technology and Higher Education (ITESM) - Mexico City Campus

Date Written: January 2006

Abstract

The psychographic variables like emotions associated with the brand image constitute the personality of a brand. Although the experiences of the consumers with the brand cultivate such personality, advertising plays a dominant role in personality creation. Information inflow on brands and outflow through inter-personal communication may act as a device to coordinate consumer expectations of the purchasing decisions of other consumers in markets with consumption externalities. The belief that individual difference in brand preference or choice behavior are caused by personality differences has not always been supported by empirical research. The experiment on the variety seeking behavior of consumers, discussed in this paper argues that although consumers are seeking novelty and unexpectedness in a brand that they have not bought before, their purchase will be selective, in reference to the empirical investigation. The perceptions on brand name in reference to brand risk and brand differences have been the prime factors in making buying decision for new brands among the consumers. Consumers also ascertain the brand name associated with the unfamiliar brands as they feel high risk averse and entangle in decision making with perceived brand differences. The paper discusses the influence of advertising, brand name, variety seeking behavior and customer value towards making buying decisions. The study has been divided into four experiments carried out in reference to retail business environment in Mexico.

Keywords: Advertising, media communication, brand extension, customer value, cognitive behavior, decision making

JEL Classification: D12, M31, M37

Suggested Citation

Rajagopal, Dr., Influence of Advertising Variability, Brand Extension Effects, Brand Name, Variety Seeking Behavior and Customer Value on Buying Decisions: A Multi-Experiment Analysis (January 2006). Available at SSRN: https://ssrn.com/abstract=878346 or http://dx.doi.org/10.2139/ssrn.878346

Dr. Rajagopal (Contact Author)

Graduate School of Administration and Management (EGADE), Monterrey Institute of Technology and Higher Education (ITESM) - Mexico City Campus ( email )

222, Calle del Puente
Ejidos de Huipulco
Mexico City, DF 14380
Mexico

HOME PAGE: http://www.geocities.com/prof_rajagopal/homepage.html

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