The Antecedents and Consequences of Effective Brand Positioning

Abstract

This study investigates which variables most effectively influence the positioning strategy of a brand. In addition, we test the connection between the positioning strategy of the brand and loyalty. Finally, we explore how brand experience effects the relationship between brand position and brand loyalty. To this end, this study employs the street-intercept method to collect data on consumers’ perception of home appliances in Japan and conducts structural equation modeling analysis to test our hypotheses. Specifically, we find that assessments of product, service, and image have a significant impact on a brand’s position which, in turn, drives brand loyalty. In addition, brand experience seems to moderate the relationship between service and brand positioning effectiveness. We also find that price promotions negatively affect brand loyalty. The research provides a consumer-centered, experiential view of how firms can develop strategies to more effectively position brands and increase loyalty among their customers. These results help both academics and practitioners to better understand how consumers assess a brand’s position in the marketplace.

Keywords

• brand positioning effectiveness
• service
• brand loyalty
• differentiation