Fischer, M., Völckner, F., & Sattler, H. (2010). How important are brands? A cross-
category, crosscountry study. Journal of Marketing Research, 47(5), 823-839.
This article focuses on the measurement of the overall importance of brands for consumer decision
making—that is, brand relevance in category, or BRiC (a category level measure)—across multiple
categories and countries. They develop a conceptual framework to measure BRiC and the drivers of
BRiC.
Introduction
Brands are important, but question: how relevant are brand-building activities for a company’s
success compared with other investment alternatives? The conditions for successful brand building
are not equally favorable across categories. Customers’ ability to assess product quality in advance
differs greatly across categories. Brands may serve as an important signal to reduce perceived risk,
which explains the formation of brand equity from an information economics perspective.
In this article, we introduce a construct called “brand relevance in category” (BRiC), which measures
the overall role of brands in customers’ decision making in a specific category. this is not brand-
specific, only category-specific, thus can be used before a brand is even launched.
Managerial relevance of BRiC: how managers think about the concept
Explorative survey among 11 members of an international top management consulting firm in
December 2008. We confronted managers with a typical allocation decision of brand investment in
the face of a limited budget. We then asked for the importance of BRiC as a potential decision
criterion relative to other criteria. Finally, we constructed a case of a brand that is marketed in three
countries with different levels of BRiC. Respondents were asked whether they would prefer an
uneven budget allocation. The results strongly suggest that managers consider BRiC highly relevant
information that affects their brand investment decisions.
Conceptual framework of BRiC
Brands serve as a cue, but the use of cues in product evaluation differs across categories (cue
utilization theory).
For a given category, we define BRiC as the extent to which the brand influences customer decision
making relative to other decision criteria (e.g., purchase convenience, price).
BRiC is already included in brand equity measures. The concept of BRiC can be connected to several
other constructs in the extant brand literature:
• Antecedents of BRiC: brand functions.
When customers believe that brands are important in their buying decision, they expect the
brand to provide (intangible) benefits, two brand functions:
o Risk reduction function: consumers can form reasonable expectations about the
benefits of brands they know. For example needed for experience and credence
goods (less for search goods). More risk → higher BRiC.
o Social demonstrance function: brands can serve as symbolic devices that allow
consumers to project their self-image. For this, there must be personalization
options in the product. This importance differs among cultures.
• Consequences of BRiC: brand loyalty and WTP
When brands are more relevant to customers, they should be more willing to pay a higher
price for a brand name product and should be more loyal to their preferred brand.
BRiC is also likely to affect resource allocation at the firm level.
• Concepts of self-brand connection, brand engagement in self, brand possession, and brand
relationship.
category, crosscountry study. Journal of Marketing Research, 47(5), 823-839.
This article focuses on the measurement of the overall importance of brands for consumer decision
making—that is, brand relevance in category, or BRiC (a category level measure)—across multiple
categories and countries. They develop a conceptual framework to measure BRiC and the drivers of
BRiC.
Introduction
Brands are important, but question: how relevant are brand-building activities for a company’s
success compared with other investment alternatives? The conditions for successful brand building
are not equally favorable across categories. Customers’ ability to assess product quality in advance
differs greatly across categories. Brands may serve as an important signal to reduce perceived risk,
which explains the formation of brand equity from an information economics perspective.
In this article, we introduce a construct called “brand relevance in category” (BRiC), which measures
the overall role of brands in customers’ decision making in a specific category. this is not brand-
specific, only category-specific, thus can be used before a brand is even launched.
Managerial relevance of BRiC: how managers think about the concept
Explorative survey among 11 members of an international top management consulting firm in
December 2008. We confronted managers with a typical allocation decision of brand investment in
the face of a limited budget. We then asked for the importance of BRiC as a potential decision
criterion relative to other criteria. Finally, we constructed a case of a brand that is marketed in three
countries with different levels of BRiC. Respondents were asked whether they would prefer an
uneven budget allocation. The results strongly suggest that managers consider BRiC highly relevant
information that affects their brand investment decisions.
Conceptual framework of BRiC
Brands serve as a cue, but the use of cues in product evaluation differs across categories (cue
utilization theory).
For a given category, we define BRiC as the extent to which the brand influences customer decision
making relative to other decision criteria (e.g., purchase convenience, price).
BRiC is already included in brand equity measures. The concept of BRiC can be connected to several
other constructs in the extant brand literature:
• Antecedents of BRiC: brand functions.
When customers believe that brands are important in their buying decision, they expect the
brand to provide (intangible) benefits, two brand functions:
o Risk reduction function: consumers can form reasonable expectations about the
benefits of brands they know. For example needed for experience and credence
goods (less for search goods). More risk → higher BRiC.
o Social demonstrance function: brands can serve as symbolic devices that allow
consumers to project their self-image. For this, there must be personalization
options in the product. This importance differs among cultures.
• Consequences of BRiC: brand loyalty and WTP
When brands are more relevant to customers, they should be more willing to pay a higher
price for a brand name product and should be more loyal to their preferred brand.
BRiC is also likely to affect resource allocation at the firm level.
• Concepts of self-brand connection, brand engagement in self, brand possession, and brand
relationship.
