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Title Claps Level Year L/Y
ARE TRUSTED BRANDS IMPORTANT
Sharmila Chatterjee
This study examines whether trusted brands are important in determining brand outcomes in consumer markets. Specifically, we study whether trust facilitates obtaining superior brand outcomes in terms of market share and advertising efficiency. We pr…
This study examines whether trusted brands are important in determining brand outcomes in consumer markets. Specifically, we study whether trust facilitates obtaining superior brand outcomes in terms of market share and advertising efficiency. We propose that, in addition to a direct effect of trust on brand outcomes, trusted brands also attain superior brand outcomes by gaining differential benefits in terms of the effectiveness of certain key strategic advertising variables. Thus, we posit a moderating or interaction effect of trust on the effectiveness of the strategic advertising variables of share of voice and brand differentiation. Using brands as the unit of analysis, we find strong empirical support for the main effect of trust on both market share and advertising efficiency. Further, trust enhances the effect of share of voice on market share and the effect of brand differentiation on advertising efficiency. In fact, no effect of brand differentiation on ad efficiency was found, unless the moderating effect of brand trust was considered.
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5 2005