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The Influence of Warmth & Competence on Brand Relationships

This international colloquium discusses the Warmth & Competence model and its impact on brand relationships. The study explores the importance of warmth and competence in brand perception, loyalty, and purchase intent. The findings reveal how brand perceptions are influenced by honesty, trustworthiness, and selflessness. The study also highlights the impact of warmth and competence on brand loyalty and purchase intent. The presentation includes perception maps and predictive analytics.

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The Influence of Warmth & Competence on Brand Relationships

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  1. International Colloquium on Consumer-Brand Relationships The Influence of Warmth & Competenceon Brand Relationships Chris Malone, Chief Advisory Officer Dr. Susan FiskeProfessor of Psychology Dr. Nicolas KervynPost-Doctoral Fellow

  2. The Warmth & Competence Model A Universal Model of Human Social Perception Basic Survival Questions: • Your intentions toward me? (i.e. friend or foe, WARMTH) • Ability to carry out intentions? (strong or weak, COMPETENCE)

  3. Warmth & Competence Stereotypes, S. Fiske (2002) Sympathy Admiration Contempt Envy Universal Dimensions of Group Stereotype Perceptions Source: TRENDS in Cognitive Sciences

  4. Initial Brands Evaluated For Warmth & Competence • In collaboration with Drs. Susan T. Fiske and Nicolas O. Kervyn, leading social psychologists at Princeton University, a demographically balanced sample of 1,042 U.S. adults was surveyed by an independent research firm July 1-7, 2010.

  5. Warmth & Competence Are Important for Brands • While both are considered important to purchase decisions, Competence was rated to be more so than Warmth across all categories. Please rate on a scale from 1 to 10 how important each ofthe following characteristics is to you when considering a purchase of that kind? Mean responses 8.0 8.5 7.0 8.2 7.5 8.5 7.2 9.0

  6. Brand Warmth & Competence Perception Map • Nearly all brands, except BP, are perceived to be more competent than warm. • Despite it’s recall troubles, Tylenol is still perceived slightly more favorably than Advil. • BP is held in contempt, but Shell was also rated poorly relative to all other brands.

  7. Strong Impact on Brand Loyalty & Purchase Intent • Statistical analysis suggests a strong impact on both loyalty and purchase intent. • Overall, these measures have a .47 correlation to purchase intent and explain 46% of variance. • Warmth measures showed greater impact than competence on loyalty and purchase intent. Brand Loyalty Impact & Predictive Analytics

  8. Two Dimensions Stand Out From All Others Deeper analysis revealed that two variables have a disproportionate impact. “Is honest and trustworthy” and “Acts in My Best Interest” have major influence on loyalty. These are at the heart of all instinctive human trust and commitment, to brands or people. Brand Loyalty Impact & Predictive Analytics

  9. All Brands Fell Short On Honesty & Intentions • However, all brands fell short of expectations on critical warmth drivers of brand purchase and loyalty, like honesty and selfless intentions. • This may be why even successful national brands struggle to develop lasting brand loyalty. • A steady stream of corporate and brand scandals has only intensified consumer cynicism.

  10. Another 20 Brands Evaluated in Follow-up Study Popular Mainstream Brands Non-Profit Brands Luxury Brands Troubled Brands • To further test our hypotheses, we studied another twenty brands in October 2010, examining four expected warmth & competence profile groupings with an additional 1,000 U.S. adult consumers. Source: TRENDS in Cognitive Sciences, 2007

  11. Brand Warmth & Competence Perception Map • When combined with the warmth and competence data collected in our Phase 1 study, a enlightening picture of brand warmth & competence emerges.

  12. Stereotype Content Model Emotion Index Map • If we plot these indexes as opposing variables on a two dimensional map, the following relative positions emerge, shedding new light on brand emotions. • While somewhat different than hypothesized, these findings clearly show that brands generate a very similar pattern of emotions to those predicted by SCM.

  13. Honest & Selflessness As Loyalty Threshold • We also found that honesty and selflessness play a dominant role in brand loyalty when they are poorly delivered, with a -.84 negative relationship. • This suggests that consumers first judge brands on honesty and selflessness as a minimum threshold that must be met before other benefits can be considered. Honest & Trustworthy vs Total Brand Loyalty Variance Explained Total Variance in Brand Loyalty Explained Mean Brand Loyalty Rating

  14. People the First Brands; Faces the First Logos? Perhaps brand perceptions and behavior have been instinctively adapted from social constructs.

  15. Brand to Company to People Linkage

  16. Potential Funnel of Brand Purchase & Loyalty Competence Perceptions & Behavior Abilities: Competent / Capable Warmth Perceptions & Behavior Intentions: Warm / Friendly • Delivers on Promises • High Quality Assistance • Has Specialized Expertise • Communicates Effectively • Attractive Appearance • Consistent Experience • Worth My Investment • Helps Me Achieve Goals • Reflects Well On Me • Shared Interests & Values • Makes Me Feel Better • Is Popular With Others • Honest & Trustworthy • Acts in My Best Interests • Listens & Understands Me Price of Entry Expectations Physical & Social Survival Food, Clothing, Shelter, Protection, Membership Service Features & Benefits Product Features & Benefits Price of Entry Expectations Blockage • Friendly • Responsive • Efficient • Knowledgeable • Effectiveness • Credibility • Identity • Safety • Quality • Value • Appearance • Consistency • Helpful • Thorough • Accurate • Accessible Deeper Level Benefits Physical Comfort & Social Control Wealth, Power, Fame, Legacy Emotional Fulfillment Comfort, Companionship, Identity, Hope, Accomplishment, Stimulation Brand Purchase & Loyalty Behavior

  17. Implications & Future Direction • Implications • These insights expand our knowledge of brand relationships and behavior • Perhaps other human relationship insights can be applied to the study, management and marketing of brands. • Features and benefits potentially a subset of warmth and competence • Potential application to social media, customer service, brand recall management, consumer affairs policies, brand equity tracking, etc. • Future Direction • Adapt and refine methodology specifically for use with brands • Expand the range of brands evaluated using this approach • Increase the portion of brand behavior explained by adding other variables • Seek other collaborators to build on our study of brand relationships

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