Is Brand Distinctiveness a Separate Facet of Brand Knowledge? Nicole Hartnett, Jenni Romaniuk, Ehrenberg Bass Institute, University of South Australia Abstract Traditionally brand knowledge is measured using image attribute associations in brand equity research. More recently, attention has moved to distinctive brand elements, which are elements other than the brand name, such as colour, logos or characters that can identify the brand. We compare consumer image knowledge of traditional brand associations (e.g., good value, high quality) to knowledge of distinctive elements to determine how they interlink in consumer memory. Findings suggest that brand distinctiveness is a separate facet of brand knowledge, requiring specific marketing strategies to develop this knowledge type. Furthermore, unlike for image attributes, usage is not a prerequisite for distinctive knowledge, in that non-users are often just as knowledgeable about brand distinctive assets as brand users. This has implications for the role that distinctive assets play in consumer choice. Introduction Consumer brand knowledge is instrumental in many purchase decisions. Brand perceptions have a sizeable impact upon the consideration and evaluation of brands in a category (Nedungadi, 1990). This paper focuses on one part of brand knowledge: distinctive assets. As competition becomes fiercer and competitor imitation increases, individual brands are finding it difficult to ‘stand out from the crowd’. To do so, the concept of brand ‘distinctiveness’ has been gaining momentum in academia, though little empirical research has been done in the area. Distinctive elements are branding execution tactics that are not the brand name, but aid consumer recognition of brands. These can include colour, logos, slogans, jingles, etc (Gaillard, et al., 2005; Keller, 2005). Distinctive elements can be inextricably linked with a brand, allowing brands to claim ‘ownership’ of them (Keller, 2003). Elements that have long been trademarked include brand names, logos and slogans, but recent changes in trademark legislation have enabled colours, shapes and smells to be registered and protected from competitor replication (Hoek and Gendall, 2006). However, declaring ownership is not easy. For instance, in 2003 Cadbury attempted to sue Australian competitor Darrell Lea for its use of the colour purple, but could not legally establish an exclusive claim to the colour (The Age, 2006). Successful colour trademarks include British Petroleum’s (BP) green and ANZ bank’s blue. The willingness to undertake the arduous trademark process highlights the importance brands place on these communication assets. There is a plethora of literature surrounding traditional brand knowledge measurement. Frameworks developed by Holden and Lutz (1992) and Keller (1993) divide these brand knowledge associations into four main categories: 1) Attributes; 2) Benefits; 3) Attitudes; and 4) Purchase and consumption situations. Yet comparatively little is known about brand distinctive associations as a contributory feature of holistic brand memory. The key purpose of this research is to determine if there is a relationship between more traditionally acknowledged brand image attributes and brand distinctive elements. Background and Research Question Traditionally brand knowledge is measured in terms of brand associations. People are asked if they consider a brand within a competitive set to pertain to an attribute (e.g., for the whole 1 family, innovative) (Winchester and Romaniuk, 2008). As per Keller (1993) brand image is the overall network of information about a brand in consumer memory (brand name and linked associations). Brand image perceptions are ideally meant to be strong, favourable and unique to a brand (Keller, 1993). Recent research uncovered that any single image attribute is rarely associated with only one brand in a category, with 50% of people not even expressing a unique association about the brands they use (Romaniuk and Gaillard, 2007). This finding held irrespective of brand size, bringing to question the assumption that large share brands are bought because those that use them consider them exceptionally unique. Marketers are now turning to the brand as a platform to ‘stand out from the crowd’. A brand is a “name, term, sign, symbol or design, or combination of them which is intended to identify [the] goods and services of one seller” (Kotler 1991, p. 442). For marketing communications, it is vital for the brand to be dominant; otherwise messages can be attributed to a competitor. Communications can contain both direct and indirect branding. Direct branding involves displaying the brand name visually or aurally. Indirect branding refers to elements that are not the brand name, but allude to a ‘distinctive’ brand image. Distinctiveness is defined as cues stored in memory that make a brand identifiable (Gaillard, et al., 2005). Distinctive cues, or ‘brand elements’ as labelled by Keller (2005), include logos, colour, graphics, taglines, typeface, packaging, celebrities and music (Gaillard, et al., 2006). Distinctiveness is separate from traditional brand assets in two dominant ways. Firstly, brand distinctive elements can be ‘meaningless’, as their purpose is for increasing the likelihood of brand recognition (Romaniuk and Gaillard, 2007). This is a substantial separation from the concept of differentiation that calls for a Unique Selling Proposition that is meaningful to customers (Reeves 1961). At its core, distinctiveness is simply a tool for reducing consumer confusion by making a brand recognisable (Romaniuk and Gaillard, 2007). Secondly, the learning process for distinctive elements is different to that of image associations. Often usage is a dominant influence in developing brand perceptions. Bird, et al., (1970) established that users are roughly three times more likely to give an image response than former or non-users. Exceptions are attributes that are descriptive in nature or consistently/continuously stressed throughout all brand communications (Barwise and Ehrenberg, 1985). Both show higher levels of agreement between users and non-users. In contrast, distinctive elements are often external to personal experience and are learned through any form of brand communications (e.g., advertising, sponsorship, etc). As such, it is possible that distinctive elements would act differently to traditional brand attributes, and responses would not be so user dominated. Considering the above information, two core research questions arise: RQ1: Is image knowledge highly correlated with distinctive knowledge? In this question we explore how distinctive elements interact with other image associations in consumers’ associative network of brand memory. Is a larger associative network for image attributes linked to a larger associative network of distinctive elements? RQ2: Do distinctive elements follow the same response patterns as brand image attributes when usage is considered? In this question we examine if it would be expected that users of a brand would have knowledge of a greater number of image attributes and distinctive elements than non-users, but non-users are more likely to recall distinctive knowledge than other brand attributes because they have access to distinctive elements without using the brand. Research Design The study was conducted in the Australian banking industry, selecting the seven largest banks for comparison. Each bank uses a number of different visual and verbal identities to be 2 distinctive. Across three Australian states, 319 respondents were randomly selected and interviewed via telephone. Females accounted for almost 66% of the sample. Just under half of the sample was situated in New South Wales, with remaining respondents divided evenly between Victoria and Queensland. Image Attribute Associations – Respondents were first asked a battery of 18 image attribute questions for the 7 largest banks in Australia. The image data was collected using a free choice, pick any response approach, where people were given brand lists and asked which brands they associated with an attribute (e.g., Which bank(s) do you think are community minded?) (Barnard and Ehrenberg, 1990). Attribute order was randomised across respondents. Respondents were free to give as many or as few brands as they thought appropriate. Distinctive Cues Associations – Based on the literature and scrutiny of industry practice, cues included in the research were colour, logos, slogans, font, characters or celebrity endorsers, and music. Respondents were described a distinctive cue and then asked which banking brands they associated with that specific cue. For instance: Which brands do you associate with a dragon (the logo for St George Bank)? Responses were coded into a yes/no variable for each distinctive cue, for each brand. Only correct brand/cue links were included. Brand Usage – Respondents were asked to identify the banks they were using at the time. Multiple responses were possible for this question. Results Correlation Between Measures The number of image associations and image attributes were collated for each of the seven brands, creating two variables of collective image knowledge and collective distinctive knowledge (i.e., Commonwealth Bank distinctive elements include yellow, black, white, grey, diamond logo, ‘Which Bank?’ etc). The two variables were correlated together, with results showing that the two variables are weakly correlated (Average = 0.2, see Table 1). Therefore, we cannot assume that because a person is very knowledgeable about a brand’s portrayed image, they are also familiar with the visual and aural aspects of the brand, and vice versa. These results indicate that image perceptions and distinctiveness cues are stored as separate components of holistic brand knowledge in consumer memory. Table 1: Spearman’s Correlations for Brand Image and Brand Distinctiveness Brand ANZ Bendigo Bank Commonwealth Bank National Australia Bank *p<0.05; **p<0.01 Correlation Coefficient 0.22* 0.19* 0.12** 0.27* Brand St George Suncorp Metway Westpac Average Correlation Coefficient 0.22* 0.23* 0.20* 0.21* To further examine the relationship between measures, we classified people in a 2x2 matrix as high/low image associations and high/low distinctive associations. The mean for each brand on each measure was used as the cut-off point. Table 2 shows that while there were slightly higher levels of agreement in low/low and high/high groups, respondents were quite evenly spread across all four groups. This provides evidence that the low correlation does not mask high or low knowledge segments that might have higher correspondence between measures. Table 2: Collective Image Knowledge versus Collective Distinctive Knowledge Matrix (%) High Image Attributes High Distinctive Cues 28** Low Distinctive Cues 18* 3 Low Image Attributes 23* 31* *p<0.001; **p<0.05. Note: Bendigo was removed from this analysis due to insufficient sample size. Relationship with Brand Usage Next we sought to determine the effect of usage on both measures. Respondents were classified into users or non-users for each brand. This usage variable was cross-tabulated against each image attribute and distinctive element recalled by respondents. Of the 18 image attributes, three followed descriptive patterns (as per Barwise and Ehrenberg, 1985) for all brands: ‘Offers investment products and services’, ‘Offers credit cards’ and ‘Expert in financial matters’. All other image attributes followed normal evaluative patterns (Barwise and Ehrenberg, 1985). For each brand, the vast majority of distinctive elements followed descriptive patterns, with non-users able to identify distinctive elements almost as often as users. As speculated, a person need not use a brand to learn its distinctive elements, which are frequently utilised in television, newspaper and radio advertising in the banking industry. As an example, results for St George bank are displayed in Table 3. Table 3: Usage Analysis for Image Attributes and Distinctiveness Cues for St George Users Non-Users (%) (%) Image Attribute Is progressive 57 22 Bank you would trust 55 16 Friendly and helpful 55 15 Continuously improves service 49 19 Good partner to increase wealth 47 9 Bank for everyone 43 18 Average (All attributes) 54 25 *Only 6 of the 18 image attributes are displayed. Distinctive Element Logo Colour Red Celebrity/Character Colour Green Font Slogan Average Users (%) 98 83 51 34 9 4 39 Non-Users (%) 89 52 41 35 4 4 31 Table 4 shows overall average response levels for each brand on image attributes and distinctive elements. For the category, users were generally twice as likely as non-users to give an image attribute response for any one bank. Users were still more likely than non-users to recall distinctive associations, but at a smaller average ratio of 1.4:1 respectively. These results were largely consistent across brands, although Commonwealth Bank shows almost equal agreement between users/non-users on distinctive elements. This is the largest Australian bank, possibly reflecting the extensive advertising this institution undertakes or the strength of its distinctive assets. St George is equal highest amongst users in identifying distinctive elements. Table 4: Averages for Image Attributes and Distinctiveness Cues Across Category Bendigo St George Suncorp ANZ Commonwealth National Westpac Average Image Attributes Users (%) Non-Users (%) 73 31 54 25 52 21 50 24 46 29 45 23 43 24 52 25 Distinctive Elements Users (%) Non-Users (%) 14 8 39 31 30 13 36 26 39 36 31 17 21 15 30 21 We also examined the distribution of high and low knowledge for users and non-users separately. Here we find that while non-users followed the same pattern as the earlier matrix using all respondents, users had much greater correspondence between those with high attribute knowledge and high distinctive knowledge (57%). However, this correspondence 4 was not evident at the lower knowledge end, with the vast majority of people low in one dimension but high in the other. Table 5: User/Non-User Split for Knowledge Matrix (%) Averages Across 6 Brands Users Non-Users High Distinctive Low Distinctive High Distinctive Low Distinctive High Image 57* 18* 21* 18 Low Image 15* 9* 25* 36* *Differences between cells are statistically significant at p<0.05, except for non-user high image/low distinctive knowledge. Note: Bendigo was removed from this analysis due to insufficient sample size. Conclusion and Implications In this research we have drawn comparisons between image associations that help consumers to make brand choices, and distinctive elements that predominantly assist consumers to identify brands. The first key finding was that image knowledge and distinctive knowledge are not highly correlated. That is, a brand that has a strongly established image in consumers’ minds does not necessarily have a strong range of distinctive elements that it can claim ‘ownership of’. This could be because of how these two separate pieces of information are derived or learned. As such, integration of brand distinctiveness into brand equity measures is important, as current categories of brand knowledge are not indicative of the strength of distinctive elements. The second phase of analysis sought to establish the effect of usage on responses to questions about brand distinctive elements. Previous research identified that brand users are more likely to assign image attributes to it, most likely because experiential learning enables firmer judgments than those that have not interacted with the brand (Bird, et al., 1970). However, the same ‘usage effect’ is not evident for distinctive elements. Non-users are almost as likely as users to assign a distinctive element to a brand. We suspect this is because non-users have multiple opportunities each day to encounter the colours, logos, slogans and celebrities that signify any one brand. If a brand does not gain descriptive patterns for distinctive elements when undertaking usage/image analysis, they are most likely under-utilising these assets in marketing campaigns, but further research is needed to explore this. The results suggest that these are two separate components of brand knowledge and so need separate consideration. Marketers cannot assume that consumers (largely users) who have strong image attribute networks in memory will also strongly identify with the distinctive elements associated with the brand. Therefore, care is needed when using distinctive elements to supplement or replace the brand name in communications, as it may negatively affect correct brand identification by customers. There is limited evidence attesting that ‘standing out’ contributes to brand choice; Chandon and Wansink (2002) found visual distinctiveness could increase product consumption related to stockpiling. Ultimately, further research in understanding how consumers use distinctive elements is needed, as the results suggest that different consumers may rely on each type of knowledge in different ways. Understanding this further will allow marketers to better leverage their distinctive assets. Limitations and Future Research This research was conducted via telephone and dependent on respondent recall of brand distinctive attributes. No visual stimulus was provided, which would be recommended for future studies to find if this has an impact on results. Further replication and extension into other markets is encouraged, particularly FMCG categories where the marketplace is very cluttered with SKUs and the importance of distinctive elements for brand identification increases. Further research should examine the antecedents of the formation of distinctive brand elements. 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