Graduate School of Business

Permanent URI for this collectionhttps://hdl.handle.net/10679/9880

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Browsing by Subject "Brand"

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    PhD DissertationPublicationMetadata only
    The impact of brand architecture decisions on portfolio sales
    (2017-06) Sezen, Burcu; Pauwels, Koen Hendrik; Pauwels, Koen Hendrik; Ataman, M. B.; Tunalı, A. Ö.; Akşit, Mina Seraj; Canlı, Z. G.; Department of Business; Sezen, Burcu
    Decisions pertaining to the organization of products under brands within the company's portfolio are an important aspect of brand portfolio strategy with potentially serious top-and bottom-line implications. Despite the critical role brand architecture decisions play on profitability, there is little empirical evidence on how the strength of the link established among clusters of products within the company's portfolio impacts company performance. To advance our understanding in this domain, this paper scrutinizes the effect of different brand architecture strategies (master brand with sub-brands vs stand-alone brand strategy) in moderating the impact of marketing actions (price promotion and new product introduction) on total portfolio sales. Using insights from diagnosticity-accessibility theory, the authors develop hypotheses as to whether and when a certain marketing action is expected to generate greater portfolio sales and how the differentiation level of products within the portfolio may interfere. The hypotheses are tested by means of a sales decomposition model, which traces demand redistribution in response to a focal brand's marketing actions among linked (master brand with sub-brands), unlinked (stand-alone), and other brands in the category. In the empirical application, the authors use the coffee category in the IRI Academic Data Set. The results have the managerial implication that companies that use predominantly stand-alone brands benefit from price promotions more than subbrands. The reverse implication is true for line extensions.