The Effects of Nostalgia-based Advertising on a Toy Company’s Brand Equity: The Example of the LEGO Group

Abstract

Objective: The paper aims to demonstrate whether or not nostalgia can be regarded as an antecedent of brand loyalty and, more importantly, how nostalgia might affect overall brand equity. Research Design & Methods: A total of 255 Polish consumers (172 males and 83 females) participated in the study. The sample was obtained using computer-assisted web interviewing (CAWI) technique in the period between June and September 2020, and the research procedure was designed so the subjects would engage online. The author chose a correlational approach (Spearman’s rho), given its frequent use in the literature on nostalgia. Findings: It was found that previous experience with a brand, particularly during childhood, does influence a nostalgia-oriented purchase intention, t253 = 2.634, p = 0.009. In addition, the intensity of consumer nostalgia towards a brand positively affected the strength of LEGO® brand equity, which is conceptualised in the paper as consisting of four dimensions. Implications / Recommendations: This paper offers insight to both managers and marketers looking for differential marketing techniques in building consumer loyalty whilst improving the effectiveness of the marketing message. Contribution: The findings expand the literature by examining the influence of nostalgia-based advertising endeavours on consumer-based brand equity in an international context.

Keywords

• LEGO
• nostalgia
• brand equity
• brand management
• toys