How advertising strategy affects brand and USP recall for new brands and extensions

We investigate possible interaction effects between new product branding strategies (new brands versus extensions) and advertising strategies (informational, positive emotional and negative emotional) for two products differing in product category involvement (laptop computers and candy bars) on brand recall and recall of the unique selling proposition (USP).

How advertising strategy affects brand and USP recall for new brands and extensions

Nathalie Dens

University of Antwerp

Patrick De Pelsmacker

University of Antwerp, Ghent University

Introduction

Numerous frameworks, like the product life cycle and the growth-share matrix, affirm the necessity of new products for a company’s sustained profitability and prevention of product line obsolescence (e.g. Chaney et al. 1991; Kotler 2000). New product introductions have been shown to increase long-term financial performance and firm value (Pauwels et al. 2004). At the same time, new products suffer from high failure rates, ranging from 35% up to 90%...

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