The Dimensions of Brand Familiarity Michael Korchia* * Doctoral Student, ESSEC Graduate School of Economics and Management1 Work-in-progress. Track: Rethinking Consumer Decision Making. Rethinking European Marketing: Proceedings from the 30th EMAC Conference, Bergen, Norway. May 2001 This paper was downloaded from http://www.watoowatoo.net/mkgr/ 0 The Dimensions of Brand Familiarity Abstract Different conceptualizations and operationalizations have hindered the use of the familiarity construct. The goal of this study is to define and measure brand familiarity, a concept related to the many experiences a consumer had with a brand. This study demonstrates that the brand familiarity construct consists of three inter-related concepts - familiarity with brand communication, interpersonal familiarity, and familiarity of products sold under the brand umbrella. An empirical study demonstrates the predictive validity of the construct. Keywords: brand knowledge, brand familiarity, memory. Introduction Consumer knowledge is defined as "information relating to the products and to the brands which are stored in the memory of the consumer" (Engel, Blackwell and Miniard 1995). Consumer knowledge is seen as consisting of networks of associations (Anderson, 1983; Keller, 1993). It influences how consumers gather and organize information, and ultimately, what products they buy and how they use them. It is believed that consumer knowledge is made up of two complementary dimensions: familiarity (sometimes called experience) and expertise (Alba and Hutchinson 1987, Jacoby et al. 1986). Alba and Hutchinson (1987) were the first to distinguish conceptually between familiarity and expertise, the two dimensions of consumer knowledge. Familiarity is defined as the "number of product related experiences that have been accumulated by the consumer." Increased familiarity with a brand may result in a better developed knowledge structure - both in terms of what knowledge an individual has stored in memory as well as what people perceive they know about a brand (Brucks 1985). Familiarity is the major antecedent of many consumer constructs, including objective and subjective knowledge (Park et al. 1994, Cordell 1997) and brand equity (Krishnan, 1996). Perceptions about a brand are reflected by the brand associations held in consumer memory (i.e., brand image) and are created through the various interactions with a brand that are experienced by the consumer (i.e., familiarity) (Keller 1993). Brand familiarity also plays an important role in consumer information processing and decision-making. Moreover, analyses showed that brand familiarity increased ad memorability, produced greater recall of new information, and reduced the negative effects of competitive interference (Kent & Allen 1994). It can also enhance the attitude toward a brand extension (Roux and Boush, 1996) or toward a brand alliance (Simonin and Ruth, 1998). Thus, it seems important to develop a reliable measure of this relevant and significant consumer construct. This initial stage is necessary before creating a model connecting measurements of consumer knowledge to other concepts such as the brand image or brand equity (Yoo, Donthu and Lee, 2000). Surprisingly, a great number of articles published in consumer behavior relate to knowledge of products, and not of brands. However, there should not be any obstacle to adapt the concepts or definitions suggested for categories of products in the case of brands. In a variety of studies, product familiarity has been used interchangeably with other constructs including subjective knowledge and consumer expertise, or some combination of the above. As a function of product experience, familiarity has been equated most frequently with product purchase, possession, and usage. Concept of Brand Familiarity Baker et al. (1986, p.637) defined brand familiarity as "an unidimensional construct that is directly related to the amount of time that has been spent processing information about the brand, regardless of the type or content of the processing that was involved." The authors admit that this definition was "very rudimentary, context-independent and is affected in more or less the same way by the advertising exposure, purchase behavior, and the consumption or the use 1 of products of the brand." Other authors however suggest that familiarity is a multidimensional phenomenon. Alba and Hutchinson (1987, p. 438) report that "different types of experiences lead to the development of different dimensions of consumer expertise." One can take the case of a person using the same perfume everyday. This person, who has a higher score on one of the dimensions of familiarity (e.g., product usage dimension), will have a knowledge level different from another person not using products of this brand, but who is interested in this brand. Thus, one may think that the latter person has a better level of knowledge than does the former person. The fact that different experiences (in this example, repetitive use versus information search) may lead to different types of expertise is a good argument in favor of a multidimensional concept of familiarity (Mitchell 1981). Krishnan (1996) also distinguishes between direct experiences (trial, usage) and indirect experiences, which can be non-marketer controlled (word of mouth) and marketer controlled (advertising). Although there is conceptual evidence for brand familiarity as a multidimensional construct, the operationalisation of brand familiarity always seems to have been unidimensional. Traditionally, familiarity has been operationalized as accumulated purchases, or as search, ownership, or experience (Bettman and Park 1980; Park et al., 1994). Model of Brand Familiarity Familiarity with a brand is a multidimensional construct connected to the various experiences relating to a brand accumulated by a consumer. These dimensions include advertising exposures (the media in general), information search, interactions with salespeople, choice and decision-making, purchasing, and product usage in various situations (Alba and Hutchinson, 1987). From a conceptual point of view, choice and decision-making should be more similar to the concept of expertise than of familiarity. In agreement with Krishnan (1996), we argue that there are three dimensions of brand familiarity, which tap all the relationships suggested by Alba and Hutchinson. These dimensions are: familiarity with brand communication, interpersonal familiarity, familiarity with the products (Figure 1). INSERT FIGURE 1 HERE Choice of Brands Studied The variables making it possible to measure the dimensions of brand familiarity may vary considerably according to the studied brand. The measurement of purchase will be different according to whether the brand is H&M or Renault! Thus, it seems necessary to justify the choice of the brands for the study before clarifying the model. Ready-to-wear clothing is a product class which includes several strong brands and for which exists a wide variance of knowledge and familiarity. The two selected brands were Kookaï and Celio, very popular French brands. These two brands belong to the same product categories (mostly clothing, but also perfume and accessories for Kookaï). However, their image is very different. Kookaï's target market is primarily young women between the ages of 15 and 25. Their prices are low, and advertisements show attractive young women who are supposed to be typical consumers. On the other hand, Celio’s target market is men between 15 and 30. Celio is often seen as a more functional brand. Sample 494 women completed a self-administered questionnaire measuring the various types of knowledge of Kookaï. 302 men completed the Celio questionnaire. Approximately 75% of respondents were students in second university cycle or commercial school. The remaining respondents were employed. The ages of respondents varied from 16 to approximately 40. It took about 10 minutes to complete the questionnaire. 2 Model of Brand Familiarity for a Ready-to-Wear Brand After a qualitative study, review of the literature and discussions with experts regarding the experiences with a brand, the following model was postulated (Figure 2). The correlations between the different dimensions and the errors terms are not represented to simplify the model. To achieve identification2 and to assess predictive validity, we included a link from familiarity to a construct called “number of brand associations” (Chin, 1998). This construct represents the number of brand associations held in the consumer’s long-term memory (Korchia, 1999; Park et al., 1994). The more experiences a consumer encounters with a brand, the more associations he/she will keep in memory (Anderson, 1983; Melton, 1970). Six open-ended questions were used to tap the knowledge of the brand. We summed the number of elicited statements as an estimate of the construct. INSERT FIGURE 2 HERE Presentation of the variables selected: - Xbefore: dichotomous variable indicating if respondent was consuming brand X two years ago or more. - Xbt: approximate number of products of brand X bought or offered during the past 2 years. - Xdifbt: number of products different from brand X bought or offered during the last two years. For example, a consumer having bought 4 perfumes, 3 sweaters, and a pair of shoes will obtain a score of Xdifbt 3 and 8 for Xbt. This variable makes it possible to differentiate the consumers always buying the same product from those trying to vary for pleasure. - Xmnth: average number of products of the brand used each month. A consumer using perfume 9 times per month, a sweater 3 times, and trousers 8 times will obtain a score of 20. - Xdifmnth: types of products used each month. The preceding consumer would obtain a score of 3. - Xadmag and Xadbill are likert scales questions measuring exposure to the brand’s billboards and magazines ads (both mediums are heavily used by both brands). - Xpeople represents the number of individuals interested in the brand the respondent knows. where X = Kookaï or Celio As both Xdifbt and Xdifmnth are being calculated respectively starting from Xbt and of Xmnth, it is natural to think that there is a correlation between the errors of measurement of these variables (not shown on figure 2 to make the model more readable). Also, based on the theoretical justification for a composite construct model, it is important to note that the relations between under-dimensions of familiarity are causal, or formative (Bollen & Lennox 1991; Edwards and Bagozzi, 2000). The concept of familiarity is regarded as an index or composite construct, starting from causal under-dimensions. These dimensions are often called first-order factors, while familiarity is a second-order factor. It is a linear function of the causal first-order factors which determines the level of familiarity of an individual, and not the opposite. The fact that a person uses products of the brand does not mean however that she has seen more of the brand’s ads. An increase in the general level of familiarity does not imply an increase in the level of each dimension, which is consistent with the conceptualization of Alba and Hutchinson (1987). For the same reasons, interpersonal familiarity and familiarity with the brand communication are formative: for example, a consumer can be exposed to a billboard, but not to an ad by the same brand in a magazine. Formative constructs make it impossible to use factorial analysis as the first step of a study (Bollen and Lennox 1991; Edwards and Bagozzi, 2000). 2 This model is undetermined (it can’t be assessed) if we don’t add a path from familiarity to another construct. Another way to achieve identification would have been to suppose that the three paths from the dimensions of familiarity to familiarity are equal, which is unrealistic (Bollen and Davis, 1994; Edward and Bagozzi, 2000). 3 Empirical Test Of The Proposed Model The distribution of the responses deviated significantly from the normal for the majority of the variables. Logarithmic transformation was used to normalize the distribution. The use of the logarithm values has a benefit. It is possible "to chop" certain distributions of data, so that there are more differences between two individuals for example wearing a jacket respectively 0 and 10 times than between other consumers wearing a jacket 10 and 20 times. The suggested model was estimated by AMOS (table 1). The results are quite satisfactory for both brands. Paths are significant and s.m.c. (R2) most often high. INSERT TABLE 1 HERE Conclusions and Limitations This paper demonstrated that brand familiarity construct consist of three inter-related concepts - familiarity with brand communication, interpersonal familiarity, and familiarity of products. By focusing on theoretical rationale and empirical testing, we make a case for considering brand familiarity as multidimensional. The conceptualization of brand familiarity construct adopted in this paper allows, at least within the framework of the studied brands, to explain the various experiences a consumer can have with a brand. This study was an attempt to better comprehend consumer brand familiarity, which influences consumer subjective and objective knowledge and several other constructs (brand image, brand equity, etc.). However, some limitations of this study remain: the dimension "familiarity with brand communication" is difficult to measure, because consumers seem to assess poorly their level of familiarity on this dimension, maybe because ads are usually processed at a low level of involvement. Also, the majority of the sample was comprised of students; this can pose a problem. However, their responses do not seem to differ from those of the employed who responded to the questionnaire. Moreover, they constitute the target for the two studied brands. Last, there is an external validity problem. Would other brands for other types of products demonstrate the same three dimensions of brand familiarity? Future research might focus on whether the findings reported here can be replicated for other brands. However, it should be noted that the results proved very similar for the two brands. In conclusion, brand familiarity such as it was defined and measured in this study, seems to be able to be integrated into other research aiming to understand and analyze consumer behavior. Familiarity is an antecedent for other concepts, including objective and subjective knowledge and brand image. Thus, to better understand the perceptions and decisions of the consumers, a model linking the different concepts should be developed and estimated. References Aaker, D.A., 1991. Managing Brand Equity, New York: The Free Press. Alba, J.W. and J.W. Hutchinson, 1987. Dimensions of Consumer Expertise. Journal of Consumer Research, 13, 411-454. Anderson J.R. (1983), The Architecture of Cognition, Cambridge MA., Harvard Univ. Press. Baker, W., J.W. Hutchinson, D. Moore, and P. Nedungadi, 1986. Brand Familiarity and Advertising: Effects on the Evoked Set and Brand Preference. Advances In Consumer Research, 13, 637-642. Bettman, J. R. and C.W. Park, 1980. Effects of Prior Knowledge and Experience and Phase of the Choice Process on Consumer Decision Processes: A Protocol Analysis. Journal of Consumer Research, 7, 234-248. Bollen, K. 1989. Structural Equations with Latent Variables, New York: John Wiley and Sons. Bollen, K. and R. Lennox, 1991. Conventional Wisdom on Measurement: A Structural Equation Perspective. Psychological Bulletin, 110, 2, 305-314. 4 Brucks, M., 1985. The Effects of Product Class Knowledge on Information Search Behavior. Journal of Consumer Research, 12, 1-15. Chin, W. W., 1998. Issues and Opinion on Structural Equation Modeling. 22 (1). Conover, J.N., 1981. Familiarity and the Structure of Consumer Knowledge. Advances In Consumer Research, 9, 494-98. Cordell, V.V., 1997. Consumer Knowledge Measures as Predictors in Product Evaluation. Psychology and Marketing, 14, 241-260. Edwards, J. R. & Bagozzi, R. P., 2000. On the Nature and Direction of Relationships Between Constructs and Measure, 5 (2), 155-174. Engel, Blackwell, & Miniard. 1995. Consumer Behavior. The Dryden Press, Harcourt Brace College Publishers. Jacoby, J., T. Troutman, A. Kuss and D. Mazursky, 1986. Experience and Expertise in Complex Decision Making. Advances In Consumer Research, 13, 469-475. Johnson, E.J., and J.E. Russo. 1984. Product Familiarity and Learning New Information. Journal of Consumer Research, 11, 542-550. Keller, K.L., 1993. Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal of Marketing Research, 29, 1-22. Kent, R.J. and C.T. Allen, 1994. Competitive Interference Effects in Consumer Memory for Advertising: The Role of Brand Familiarity. Journal of Marketing, 58, 97-105. Korchia, M., 1999. A New Typology of Brand Image. European Advances In Consumer Research, 4, 147-154. Krishnan H.S., 1996. Characteristics of memory associations: a consumer-based brand equity perspective, International Journal of Research in Marketing, 13 (4), 389-405. MacCallum R.C. and M.W. Browne, 1993. The Use of Causal Indicators in Covariance Structure Models: Some Practical Issues. Psychological Bulletin, 114, 3, 533-541. Melton, A. W., 1970. The Situation with Respect to the Spacing of Repetitions and Memory. Journal of Verbal Learning and Verbal Behavior, 9, 596-606. Mitchell, A. A., 1981. Models of Memory: Implications for Measuring Knowledge Structures. Advances In Consumer Research, 9, 45-51. Park, C. W., D.L. Mothersbaugh and L. Feick, 1994. Consumer Knowledge Assessment. Journal of Consumer Research, 21, 71-82. Raju, P. S., S.C. Lonial, and W.G. Mangold, 1996. Differential Effects of Subjective Knowledge, Objective Knowledge and Usage Experience on Decision-Making: An Exploratory Investigation. Journal of Consumer Psychology, 4, 153-180. Simonin, B. L., Ruth, J. A., 1998. Is a Company Known by the Company It Keeps? Assessing the Spillover Effects of Brand Alliances on Consumer Brand Attitude. Journal of Marketing Research, 35, 30-42 Yoo, B., Donthu, N., Lee S., 2000. An Examination of Selected Marketing Mix Elements and Brand Equity. Journal of the Academy of Marketing Science, 28, 197-213. TABLES Chi2 p value Df GFI AGFI RMSEA CFI NFI Table 1: Model Estimates for Brand Familiarity Construct Kookaï Celio 48.787 44.195 <.01 <.01 19 19 0.979 .967 0.950 .921 0.056 .066 .990 .986 .983 .975 5 FIGURES Figure 1: Dimensions of brand familiarity Familiarity with brand communication Interpersonal familiarity Brand Familiarity Familiarity with the products Figure 2: Assessment of the brand familiarity construct Xadmag Familiarity with brand communication Xadbill Xpeople Interpersonal familiarity Brand Familiarity # of elicited Number of brand associations statements Xbt Xdifbt Xmnth Familiarity with the products Xdifmnth Xbefore 6