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The Role of Brand Parity in Developing Loyal Customers

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  • IYER, RAJESH
  • MUNCY, JAMES A.

Abstract

Perceived brand parity is the belief in the consumers mind that major offerings in a product category are similar. The current article presents the results of a study indicating that high parity perceptions inhibit a company's ability to develop loyal customers. Whether that is good or bad depends on the type of competitive strategy a firm has chosen. With a differentiation strategy, advertising should be used to fight parity perceptions. However, with a low price strategy, parity perceptions should be fostered in an attempt to discourage brand loyalty. Thus, a starting point for many advertising campaigns should be a clear understanding of both the parity perceptions in the marketplace and the need to either develop or fight brand loyalty.

Suggested Citation

  • Iyer, Rajesh & Muncy, James A., 2005. "The Role of Brand Parity in Developing Loyal Customers," Journal of Advertising Research, Cambridge University Press, vol. 45(2), pages 222-228, June.
    • Handle: RePEc:cup:jadres:v:45:y:2005:i:02:p:222-228_05
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    Cited by:

    1. Turunç Ömer & Karayalçın Cem, 2024. "Bridging Brand Parity with Insights Regarding Consumer Behavior," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-10, January.
    2. Burmann, Christoph & Jost-Benz, Marc & Riley, Nicola, 2009. "Towards an identity-based brand equity model," Journal of Business Research, Elsevier, vol. 62(3), pages 390-397, March.
    3. Azeem, Muhammad Masood & Baker, Derek & Villano, Renato A. & Mounter, Stuart & Griffith, Garry, 2019. "Response to stockout in grocery stores: A small city case in a changing competitive environment," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 242-252.

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