Peter and Ponzi

MANAGEMENT SLANT

  • Customers judge brands, as they do other people, on two fundamental dimensions: warmth and competence.
  • Brand types relate differently to these two dimensions: Hedonic brands score high on the warmth dimension, whereas utilitarian brands primarily stand for competence.
  • Marketers often are limited in space or time for stating their message about a brand and thus stress only one of the two dimensions—warmth for hedonic brands or competence for utilitarian brands.
  • Addressing only one dimension in advertising can lead to negative evaluation of the omitted dimension for both brand types, making one-sided advertising ineffective.