case study : benetton

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Advanced Marketing Advanced Marketing 2007/2008 2007/2008 Homework Homework Brand : Benetton Brand : Benetton DR. Christian Bluemelhuber, Professor for Marketing Student : Perez Michaël Student-number : 45 INGE4F

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Page 1: Case Study : Benetton

Advanced MarketingAdvanced Marketing2007/20082007/2008

HomeworkHomework

Brand : BenettonBrand : Benetton

DR. Christian Bluemelhuber, Professor for Marketing

Student : Perez Michaël

Student-number : 45

INGE4F

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Part 1 : Evaluation of a brand - BenettonPart 1 : Evaluation of a brand - BenettonTable of contentTable of content

• How is Benetton perceived by its customers ?

• How to increase Benetton’s customer equity ?

• What are the values of Benetton to customers ?

• What could be a positioning for the future ?

• Development of a long tail idea for Benetton : The link between cross-cultural value associations and liking (Polegato and Bjerke, 2006)

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How is Benetton perceived by its customers ?How is Benetton perceived by its customers ?

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• To better understand how Benetton is perceived by its customers, I will show the results of an experimental study conducted by A. Azevedo and M. Farhangmehr in 2005 in order to assess the brand personality profile of 30 fashion clothing brands.

• Brand personality

In this study the brand image concept is replaced by the brand personality dimension which is defined as “the set of human characteristics associated with a brand” (Aaker, 1997). To measure brand personality, the study uses the “Brand Personality Scale” developed by Aaker (1997) who identified five brand personality dimensions and 15 facets :

- sincerity (down-to-earth, honest, wholesome and cheerful) ;

- excitement (daring, spirited, imaginative and up-to-date) ;

- competence (reliable, intelligent and successful) ;

- sophistication (upper class and charming) ;

- ruggedness (outdoorsy and tough).

• Methodology Table 1. Brands selected by expected brand personality

30 active brands in the Portuguese

market were selected. As presented

in Table 1, five subsets (noted from

I to V) of six brands were defined

based on experts and researchers

evaluations.

How is Benetton perceived by its customers ?How is Benetton perceived by its customers ?

Expected personality

Sincerity Excitement Competence Sophistication Ruggedness Miscellaneous

I 1. Lanidor 6. Diesel 11. Origem 16. Guess 21. O’Neil 26. Modelo

II 2. Acetato 7. Sisley 12. MacModa

17. Calvin Klein

22. Levi’s 27. C. Tappioca

III 3. Springfield

8. Fashion Clinic

13. Massimo Dutti

18. Rosa & Teixeira

23. Salsa 28. Zara

IV 4. Benetton

9. Buzz 14. Hugo Boss

19. Trindade-classic

24. Portugal Radical

29. Nike

V 5. Nathan Road

10. Cheyenne

15. Alto Collection

20. Peter Murray

25. C111 stores

30. La Redoute

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How is Benetton perceived by its customers ?How is Benetton perceived by its customers ?

• Subjects

A convenience sample of 156 students of 16-25 years old (66% female) was selected. This sample was composed of two groups of 78 subjects :

- group A, collected from high school (16-19 years old) ;

- group B, collected from a university (20-25 years old).

The brand subsets defined in Table 1 (noted from I to V) were evaluated by the following sub-samples :

- Brand subset I : 16 respondents of group A (8 female) and 16 of group B (9 female)

- Brand subset II : 18 respondents of group A (10 female) and 16 of group B (9 female)

- Brand subset III : 15 respondents (8 female) of each group

- Brand subset IV : 14 respondents of group A (10 female) and 16 of group B (9 female)

- Brand subset V : 15 respondents of group A (10 female) and 15 of group B (9 female)

• Measures

Using a five point Likert scale (1 = not at all descriptive, 5 = extremely descriptive), subjects rated the extent to which the Brand Personality Scale traits described each brand presented.

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How is Benetton perceived by its customers ?How is Benetton perceived by its customers ?

• Brand personality evaluation

The analysis of brand personality dimensions scores led to a definition of groups of brands with identical profile. From the initial 30 brands listed, 12 brands belonged to the “Excitement” personality group (from the most exciting to the least exciting) :

1. Benetton 7. Portugal Radical2. Diesel 8. Springfield3. Fashion Clinic 9. Nathan Road4. Levi’s 10. Peter Murray5. Cheyenne 11. Buzz6. C111 12. Salsa

• Conclusions

According to these results, we can therefore conclude that Benetton is perceived as the most exciting brand among the 30 brands initially listed. Furthermore, if we look exclusively at the scores obtained by Benetton in Table 2, the brand in itself can be seen from the respondents’ point of view as more exciting than sincere, competent, sophisticated or rugged.

Table 2. Brand personality dimensions scores

• Limitations

Nevertheless, some methodological limitations must be considered : the use of a convenience sample, unknown bias in questionnaire application, … On the other hand, the Brand Personality Scale may be adapted to European context. This could lead to a different spectrum of brand personality dimensions.

Brand Sincerity Excitement Competence Sophistication Ruggedness Benetton 3.28 (0.78) 4.00 (0.57) 3.31 (0.78) 3.26 (0.89) 2.58 (0.92)

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How to increase Benetton’s customer equity ?How to increase Benetton’s customer equity ?

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How to increase Benetton’s customer equity ?How to increase Benetton’s customer equity ?IntroductionIntroduction

• We have just showed through the results of an experimental study that Benetton is perceived by most of the customers as a brand having a clear brand personality. Remember that on the Brand Personality Scale developed by Aaker Benetton belonged to the Excitement personality group and was even the most exciting brand among the initial 30 brands listed. The question now is to what extent brand personality can create brand equity.

• As we have previously measured the brand personality of Benetton with the Aaker Scale, we will use his theory as a starting point to answer the question above. Aaker defines brand equity as a set of intangible assets linked to the brand that add or subtract value to the product or service being delivered. According to him, brand personality can create brand equity according to three models :

- self-expression model ;- relationship basis model ;- functional benefit representation model.

• I will now thoroughly demonstrate how brand personality can increase brand equity through self-expression, relationship qualities, and functional benefits. For each of these three models, I will propose some ideas through which brand personality can lead to higher brand equity and hence higher customer equity.

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How to increase Benetton’s customer equity ?How to increase Benetton’s customer equity ?First model : self-expression modelFirst model : self-expression model

• The self-expression model suggests that certain customers buy brands because brands work as vehicles to express a part of their self-identity. This self-identity can be either their actual identity or an ideal to which they might aspire.

• In the same way, certain product categories such as cars, cosmetics, and clothes contribute to express a customer’s personality. This is made possible because the use of these products occurs in a social context where individuals evaluate and interpret other persons’ identities by observing the clothes they wear, the car they drive, ...

• Actually, feelings generated by the brand personality can be seen as how a brand helps to express a user’s personality. A brand achieves this by associating certain emotions that are congruent to those felt by the user. This makes the user most fulfilled when the brand helps him/her expressing those feelings : “A warm person will be most fulfilled when a warm feeling occurs ; similarly, an aggressive person will seek out context where aggression is accepted” (Aaker, 1996).

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How to increase Benetton’s customer equity ?How to increase Benetton’s customer equity ?First model : self-expression modelFirst model : self-expression model

• In order for brand personality to be an effective way of expressing a user’s personality, it has to fit with the needs and desires of the user. When the brand personality is in the right context and fits the consumer’s self-expression needs, any brand personality can assist in self-expression.

• According to the self-expression model, we can therefore conclude that Benetton’s brand personality can significantly increase brand equity if Benetton is in a social context which fits with the needs and desires of the users (can be the actual identity of customers or an ideal to which they might aspire) and where individuals evaluate and interpret another person’s identity. This idea is summarized on the graph presented on the next slide.

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How to increase Benetton’s customer equity ?How to increase Benetton’s customer equity ?First model : self-expression modelFirst model : self-expression model

Brand personality is in a social context where individuals evaluate and interpret another person’s

identity

Brand personality fits with the customer’s self-expression needs

Brand personality becomes an effective

way of expressing consumer’s personality

Brand Equity

Customer Equity

+

The actual identity of customers

An ideal to which customers

might aspire

OR

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How to increase Benetton’s customer equity ?How to increase Benetton’s customer equity ?Second model : relationship basis modelSecond model : relationship basis model

• The relationship basis model suggests that certain brands have the ability to establish a relationship with the consumer similar to that between two people. Moreover, just as human personalities affect relationships between people, brand personality can be the basis of a relationship between the customer and the brand.

• Consumers form relationships with brands through two important elements :

- a relationship exists between the brand and the consumer and corresponds to the relationship between two people ;

- the brand personality provides the consumer strong feelings and favorable attitudes toward the relationship.

• Let us take an example to illustrate this. As we have seen before, the four facets of the excitement dimension of brand personality developed by Aaker were daring, spirited, imaginative and up-to-date. According to the relationship basis model and as Benetton was the most exciting brand among the initial 30 brands listed, this could mean that on a weekend evening it might be enjoyable to have a friend who has these four personality characteristics.

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How to increase Benetton’s customer equity ?How to increase Benetton’s customer equity ?Second model : relationship basis modelSecond model : relationship basis model

• In the context of this brand-relationship idea, a strategy is to create higher brand loyalty through a higher brand relationship quality (BRQ). In her study on brand relationships Susan Fouriner (1998) found seven dimensions of brand relationship quality. They are as follows :

- Behavioral interdependence : the brand plays an important role in the consumer’s life

- Personal commitment : the consumer is very loyal to the brand through good times and bad

- Love & passion : the consumer would be very upset if he/she couldn’t find the brand because no other brand can take the place of it

- Nostalgic connection : the brand reminds the consumer of phases in his/her life

- Intimacy : the consumer knows a lot about the brand and the company that makes the brand

- Partnership quality : the consumer knows the brand appreciates him/her like a valued customer

- Self-concept connection : the brand’s and the consumer’s self-image are similar

• According to the self-expression model, we can conclude that Benetton’s brand personality can significantly increase brand equity if Benetton increases one of the seven dimensions of brand relationship quality listed above. This idea is summarized on the graph presented on the next slide.

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How to increase Benetton’s customer equity ?How to increase Benetton’s customer equity ?Second model : relationship basis modelSecond model : relationship basis model

Behavioral interdependence

Intimacy

Partnership quality

Self-concept connection

Love & passion

Nostalgic connection

Personal commitment

Brand Loyalty

Brand Equity

Customer Equity

Dim

ensions of Brand R

elationship Quality

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How to increase Benetton’s customer equity ?How to increase Benetton’s customer equity ?Third model : functional benefit representation modelThird model : functional benefit representation model

• The previous models reveal both how brand personality adds value to a brand by directly linking a brand to a consumer. However, the role of brand personality is much less direct in the functional benefit representation model. In this model brand personality indirectly adds value by becoming a medium for representing brand’s functional benefits.

• One of the applications of the functional benefit representation model is the use of distinctive symbols that have appropriate associations with the brand. An image that visually represents a metaphor, for the brand’s functional benefits, will stimulate a customer’s perception of the brand and reinforce the brand’s personality. For example, emphasizing the country or region of origin associated with a brand builds a strong brand personality by providing an indication of quality and distinctiveness.

• This demonstrates how brands use associations to imply their functional benefits, which is easier than directly communicating that a certain benefit exists. Also, it is assumed that brand personality is intangible in nature whereas the nature of functional brand benefits is more concrete. This assumption may imply that attacking a brand’s personality is harder than attacking the brand’s functional benefits.

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How to increase Benetton’s customer equity ?How to increase Benetton’s customer equity ?Third model : functional benefit representation modelThird model : functional benefit representation model

According to the functional benefit representation model, Benetton’s brand personality which is trendy, provocative and imaginative affects customers’ perception of Benetton and its stores. This idea is summarized on the graph presented below.

Use of distinctive symbols that have appropriate associations

with the brand

Use of an image that visually represents a metaphor for the brand’s functional benefits

Customers’ perception of the

brand

Brand Equity

Customer Equity

OR Brand

Personality

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How to increase Benetton’s customer equity ?How to increase Benetton’s customer equity ?ConclusionsConclusions

We have demonstrated that it is of great importance to create a personality for a brand. The benefits of a personality, as stated before, are that it can be used to help consumers to express something about themselves, to provide a relationship and to indicate the brand’s functional benefits. These three factors together make the personality a powerful tool to use in order to

increase brand equity and then to affect and influence the purchase decision.

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What are the values of Benetton to customers ?What are the values of Benetton to customers ?

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What are the values of Benetton to customers ?What are the values of Benetton to customers ?

• Most studies show that utilitarian and hedonic motivations have different levels of impact on consumer behaviors. Let us take a look at some of them.

• Babin and al. (1994) commented that value, such as the amount of money consumed and satisfaction procured, influences consumer behavior. They also stated that hedonic value can influence unplanned shopping behavior while utilitarian value does not.

• Dhar and Wertenbroch (2000) concluded that products purchased for pleasure have a different level of impact than products purchased for functional purposes. In the situation where a decision must be made to give up certain products, products for pleasure are usually the ones to be given up first.

• Park and al. (1986) indicated that the benefit of advertising campaigns could be calculated through the categorization of utilitarian and hedonic products. They showed that hedonic products or brands have higher premiums than utilitarian ones.

• As different values of products/brands have different impacts on consumer behaviors, I will now describe the utilitarian, hedonic, link and ethical values of Benetton to customers.

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Hedonic valuesHedonic values

• Definition Pleasure, fun, emotions associated with the product.

• Hedonic values of BenettonThe hedonic values of Benetton can be seen through its ability to transform “sweaters into messages, shirts into signs, and jeans into signifiers”. But we can also mention :

- the idea of color ; - a strong Italian character whose style, quality and passion are clearly seen in the brand ; - the Benetton's commercial network, characterised by prestigious locations in historic and commercial centres.

Utilitarian valuesUtilitarian values

• DefinitionThe functional benefits of the product.

• Utilitarian values of BenettonThe womenswear, menswear, childrenswear and underwear collections offer a total look for everyday, for work and for leisure, in the city and outdoors.

What are the values of Benetton to customers ?What are the values of Benetton to customers ?

Link valuesLink values

• DefinitionThe product is more or less a platform to meet other people.

• Link values of BenettonBenetton is established in 120 countries around the world, the brand works in a social context where people identify themselves by looking at what others wear.

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Other directed values (or Ethical values)Other directed values (or Ethical values)

• DefinitionThey are received by someone when there is a benefit for another person that is not me, they can be seen as indirect advantages the customer ‘receives’ from the benefit of another person.

• Other directed values of BenettonBenetton has proven a tangible action to the company's commitment to ethical values, with a multi-ethnic approach, respect for the environment and support of human rights. This action has been growing throughout the years thanks to a strong collaboration with numerous renown international non profit organizations such as the World Food Program and the United Nations agency to face the theme of world hunger (2003), the United Nations Volunteers in occasion of the International Volunteers Year (2001), the UNHCR (United Nations High Commission for Refugees) to generate solidarity toward refugees of the war in Kosovo (1998), ...

What are the values of Benetton to customers ?What are the values of Benetton to customers ?

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What could be a positioning for the future ?What could be a positioning for the future ?

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What could be a positioning for the future ?What could be a positioning for the future ?Yesterday vs. TomorrowYesterday vs. Tomorrow

• Yesterday

Up to now, Benetton’s distinctive positioning was essentially based on ads featuring disturbing images. Benetton’s advertising used to convey the idea that buying one of its garments would contribute to racial understanding and the welfare of humanity. Its overall advertising strategy was composed of two types of campaigns : product-specific and corporate. Product-specific campaigns highlighted Benetton’s collections and were hence seasonal. Corporate campaigns were undertaken once in 12-18 months and showcased larger issues affecting the world.

• Tomorrow

The world has evolved since the creation of the brand more than 40 years ago. The consumer today travels more often and is also more aware of international fashion trends. Therefore, there is a need for more specialised products. In order to target a niche audience, a new strategy (which has already been implemented in India) of having concept stores along with Benetton’s existing chain, Colors of Benetton stores, is needed. This makes sense because of an opportunity to grow certain segments of the assortment. This new strategy would be based on retail segmentation meaning operating multiple formats for different segments :

- ‘Baby-on-Board’ stores (targeting mothers-to-be and kids) ;

- ‘Accessories’ stores (selling luggage, bags, sunglasses and vanity cases) ;

- ‘Adults-Only’ stores (showcasing Benetton’s apparel collection for men and women).

This will enable Benetton to offer a complete fashion and lifestyle range through its mega stores along with the concept stores that have a unique product line. Furthermore, this will lead to reemphasise its worldwide positioning and envision itself as a wardrobe brand that does extensive fashion options and combines excellent styling and quality.

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What could be a positioning for the future ?What could be a positioning for the future ?The challengesThe challenges

• A return to the use of shock advertising seems unlikely. Since 9/11, the public has become less inclined to tolerate shocking images. On the other hand, shock tactics are no longer so unusual, with other brands such as FCUK having taken up the mantle. Rather than using disturbing images like it did in the past, Benetton has to find new ways to keep its rebellious attitude alive, or else the consumer will look for something new. A simple question will help to understand this idea : do you see evidence of Benetton as a company taking risks in the rest of its business as it did in its advertising ?

• The slip into the mainstream is always the long-term danger of relying on shocking and provocative advertising. Therefore, Benetton has now to look at radically doing its business, not just its advertising because its publicity campaigns were no protection against European rivals who began revolutionizing the apparel business in the 1990’s. As Silvano Cassano – Benetton Group’s chief executive from 2003 to 2006 – said, “we didn’t take advantage of the quick transformation of the industry”.

• Benetton’s competitors – notably Spain’s Zara and Sweden’s H&M – can offer new styles from the catwalk to the shop floor in less than a month and at bargain prices. Both deploy sophisticated technology to track which items are selling and which are not. The problem with Benetton is that it has missed trends, relies on an outdated business model and lacks a distinctive positioning and future brand identity in an ever-crowded mass market for clothes. That is why Benetton has now to refocus on the apparel business. “The world was different. It was much simpler. Our collections were much smaller. We saw great results for many, many years, just as we played with different colors. Later on, competition increased, and now you always have to be looking for new spaces to attract the attention and interest of the customer”, told the Group’s chairman.

• Nevertheless, it is on the sales floor that Benetton’s real weakness becomes clear. The problem is that 93% of Benetton’s sales come from franchise operations. Zara and H&M, in contrast, own their shops, which makes it easier to install unified systems that track global sales electronically. As Cassano said, “we don’t have to control the shops, we have to control the information”.

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The biggest problem we are confronted with is that Luciano Benetton’s original vision of his brand is not the same as the vision proposed by external critics to be adopted by the brand for the future. I therefore recommend two extreme options to be followed :

Several arguments support favourably the second option, that is to stay focussed on basics :

- As Benetton said, “the concept of fast fashion is that it is something that changes constantly and should cost very little because it doesn’t have a long life span”. If the second option is chosen, Benetton could justify higher prices than other mass traders because customers are willing to pay more for clothes that last many seasons. This would mean that Benetton could charge higher prices because the mix product/image would justify it. On the other hand, if the first option is chosen, Benetton would have to either enhance the mix product/image (that is to be more fashion than its competitors !) or to slash prices under those of its comptitors (maybe to increase them later on by building very high entry barriers, by creating stronger demands, …).

- Benetton’s original vision is that he does not monitor what the competition is doing but rather listens to his own customers about their needs. As he said, “our logic is to try and cater to people who work or go to school and don’t necessarily try to keep up with fashion”. This idea contradicts the first option where monitoring competitors would be the key success factor !

Second OptionSecond OptionCloser to Luciano Benetton’s original

vision of his brand, this option recommends that Benetton stays

focussed on what it has always done best : basics. Nevertheless, if this option is chosen, Benetton has to

become the market leader of basics but also to be more creative and innovative because basics do not necessarily mean

out of date !

First OptionFirst OptionCloser to the vision recommended by

external critics, this option proposes that Benetton becomes a fashion brand – which is about innovation. This option is inherent

in the risk to compete against Zara and H&M and maybe to loose. Benetton has been seen as a brand for basics : T-shirts

and pants. It would have to reposition itself as a high-fashion brand and create stronger, more interesting clothes.

What could be a positioning for the future ?What could be a positioning for the future ?The options for the futureThe options for the future

Benetton’ s Benetton’ s future future

positioningpositioning

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Development of a long tail idea for BenettonDevelopment of a long tail idea for Benetton

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Development of a long tail idea for BenettonDevelopment of a long tail idea for BenettonThe link between cross-cultural value associations and liking (Polegato and Bjerke, 2006)The link between cross-cultural value associations and liking (Polegato and Bjerke, 2006)Theories and modelTheories and model

• We know that values associated with brands are driving consumer behavior. Moreover, because of the role of values in creating brand equity, the increasing value sensitivity of consumers in general, … there is a need for marketers to reinforce their understanding of value-driven advertising.

• Theories centred on the role of values in the consumer decision process

McCracken (2005) situates the consumer within a cultural context while engaged in the buying process. As he pointed out, “meaning moves from culture to us through goods”. Advertising can therefore be seen as the conduit for transferring meanings from the cultural context to goods so that meanings are accessible to consumers. Value systems play thus an important role in the consumer decision process.

Schwartz (1992) developed a universal value system consisting of 56 values, such as freedom and respect for tradition, with each value belonging to 1 of 10 motivational types, such as self-direction or power. Each value has an order (ranking) that places it in relation to other values. Schwartz’s values framework has been applied successfully to various areas of human activity, but there are no known applications to consumer behavior. This study will remedy this.

• Theories centred on the role of likeability as a measure of advertising effectiveness

Several studies showed that : - advertising likeability systematically predicted sales (Haley and Baldinger, 1991) ;

- advertising likeability is the most effective single measure (Rossiter and Eagleson, 1992) ;

- more likeable advertisements imply greater persuasive impact (Walker and Dubitsky, 1994).

• Conceptual model

The purpose of this cross-cultural study is to examine the link between the level of value congruence (or match) between consumers’ values and values associated with Benetton and its advertising, and liking of Benetton and its advertising. The conceptual model, shown in Appendix 1 (slide 31), illustrates the proposed link between consumers’ values, value associations with the company and its advertising, and liking of the company and its advertising.

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Development of a long tail idea for BenettonDevelopment of a long tail idea for BenettonThe link between cross-cultural value associations and liking (Polegato and Bjerke, 2006)The link between cross-cultural value associations and liking (Polegato and Bjerke, 2006)MethodologyMethodology

• Benetton print advertisements

Consumer responses to Benetton’s advertising in general and three standardized color print advertisements of Benetton were collected. The titles of these three advertisements were :

- “Angel and Devil” (advertisement 1), depicting a blond child and a black child embracing ;

- “HIV Positive” (advertisement 2), depicting those words tattooed on a human posterior ;

- “Sunflower” (advertisement 3), depicting a young person with Down’s Syndrome.

• Measurement of values and liking

Seven marketing academics, interviewed individually, identified 10 of Schwartz’s (1992) values that could be associated with Benetton and its advertising : equality, social power, social justice, freedom, independent, broad-minded, daring, honest, responsible and protecting the environment. These values were used in a self-completion questionnaire which asked how important each value was as a guiding principle in the respondents’ lives. The 7-point Likert scale ranged from 1 = to a very little extent to 7 = to a very great extent. The same scale was used to measure the respondents’ degree of association of each value with Benetton as a company, its advertising in general, and with each of the three specific advertisements listed above. The extent of liking overall (of Benetton as a company, its advertising in general, and each of the three advertisements) was measured with the same Likert scale.

• Sample characteristics

A total of 328 questionnaires were collected from university-level business administration and economics students : 136 from Oslo, 110 from Kiel, and 82 from Bologna, three cities representing a Northern, Central, and Southern European culture. The typical respondent in each city was a female or male student between 20 and 29 years old. According to Schwartz’s theory (1999), the collective individual responses to the values represent cultural values.

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Development of a long tail idea for BenettonDevelopment of a long tail idea for BenettonThe link between cross-cultural value associations and liking (Polegato and Bjerke, 2006)The link between cross-cultural value associations and liking (Polegato and Bjerke, 2006)ResultsResults

• A “match” evaluation scheme was developed to determine the degree of congruence between consumers' values and value associations with Benetton and its advertising. Only values that received aggregate means of 5 or higher on the 7-point Likert scales across the three nationalities and were also among the top value associations for respondents in each of the three cities were included in the analysis. These five values were freedom, social justice, honest, broad-minded and equality.

• Table 1 (see Appendix 2 on slide 32) demonstrates how the “match” evaluation scores were calculated.

• Based on the calculations in Table 1, we can observe in Table 2 (see Appendix 3 on slide 33) the ranking of Benetton as a company, Benetton's advertising in general, and the three advertisements in terms of the strength of the value association match with the values of the whole sample. Advertisement 1 has the strongest value match, followed by advertisement 3, Benetton's advertising in general, Benetton as a company, and finally advertisement 2 with the weakest value match. Looking back at Table 1, it is also apparent that the liking scores match in the same direction.

• Table 3 (see Appendix 4 on slide 34) goes further in the search for the explanation underlying the match between the ranking of the value match (presented in Table 1) and the degree to which Benetton and its advertising is liked. This analysis is based on a split-sample approach :

- one group represents high importance placed on the top six values (freedom, social justice, responsible, honest, broad-minded and equality) ;

- the second group represents relatively low importance placed on these values.

There are just three significant differences identified with this analysis (in bold), but still they are revealing.

• The ranking of Benetton as a company, Benetton's advertising in general, and the three advertisements in terms of the strength of the value association match with the values of the total sample, and liking of Benetton and its advertising, are shown in Table 4 (see Appendix 5 on slide 35).

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Development of a long tail idea for BenettonDevelopment of a long tail idea for BenettonThe link between cross-cultural value associations and liking (Polegato and Bjerke, 2006)The link between cross-cultural value associations and liking (Polegato and Bjerke, 2006)ConclusionsConclusions

The results of this study suggest that when there is a disconnection between values expressed by advertising, liking of the advertising diminishes.

It is also interesting to note that consumers respond not only to values in advertising that match or do not match theirs, but also to the absence of the expression of values.

Overall, if we assume that liking of advertisements is transferred to the brand and buying intentions, we can conclude from this study that there is potential for advertising to be

effective when directed at consumers' value systems.

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Appendix 1Appendix 1

Perceived company and advertising values

Consumer values

Liking of company and advertisements

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Appendix 2Appendix 2

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Appendix 3Appendix 3

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Appendix 4Appendix 4

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Appendix 5Appendix 5

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ReferencesReferences

• Azevedo, A. and Farhangmehr, M. (2005), “Clothing Branding Strategies : Influence of Brand Personality on Advertising Response”, Journal of Textile and Apparel, Technology and Management, Vol. 4, Issue 3.

• Barela, Mark J. (2003), “Executive Insights : United Colors of Benetton - From Sweaters to Success : An Examination of the Triumphs and Controversies of a Multinational Clothing Company”, Journal of International Marketing, Vol. 11, Issue 4, pp. 113-128.

• Colyer, E. (2002), “Offensive but effective ?”, brandchannel.com, March 18, 2002.

• Edmondson, G. (2003), “Has Benetton Stopped Unraveling ?”, Business Week Online, June 23, 2003.

• Hargrave-Silk, A. (2003), “Benetton moves brief to Burnett after India pitch”, Media Asia, October 1, 2003, p. 5.

• Kaiser, A. (2005), “Benetton at 40 : Challenges and Change”, WWD : Women’s Wear Daily, Vol. 189, Issue 103, p. 12.

• Lemon, Katherine N., Rust, Roland T. and Zeithaml, Valarie A. (2001), “What Drives Customer Equity”, Marketing Management, Vol. 10, No. 1, pp. 20-25.

• Polegato, R. and Bjerke, R. (2006), “The Link between Cross-Cultural Value Associations and Liking : The Case of Benetton and Its Advertising”, Journal of Advertising Research, Vol. 46, Issue 3, pp. 263-273.

• Shashidhar, A. (2003), “The Benetton makeover : After repositioning itself as a wardrobe option from a casualwear brand last year, DCM Benetton India is now looking at targeting a niche audience through its concept stores”, Businessline, August 7, 2003, p. 1.

• Solley, S. (2005), “Benetton”, Marketing (00253650), p. 20.

• To, P.-L., Liao, C. and Lin, T.-H. (2007), “Shopping motivations on Internet : A study based on utilitarian and hedonic value”, Technovation, No. 27, pp. 774-787.

• Benetton’s website : http://www.benetton.com

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Part 2 : What do consumers do to receive a Part 2 : What do consumers do to receive a better service ? better service ? Table of contentTable of content

• Transcript of the first interview

• Transcript of the second interview

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• What the respondent did to receive a better service ?

Recently, my husband and I were to make a birth list to Babydream. The saleswoman took her time (3hs) to explain the various product lines, the pros and cons in line with prices, … As soon as we notified our choice, the saleswoman had to copy by hand the data corresponding to the items we had selected (names of the articles, bar codes, quantities of each product, …) and then she had to retype everything in her PC. So it seemed obvious to us to suggest the use of a portable reader Scanner to scan the articles and possibly add comments and quantities.

• Why the respondent did what he/she did ?

In this era of computerization and as most large stores have adopted this system the reflection came spontaneously to save time and to reduce potential errors when retyping the data in the PC. In addition, it seemed a nonsense that the chain of stores Babydream offers diversified on-line services but no facilities for scanning in its own internal structure.

• How he/she succeeded and what he/she learned about that ?

Nothing changed in the service received but the saleswoman found our idea relevant ! Now we do not know if she told it to her superiors.

• Age : 32 ; Sex : Female ; Education : University degree ; Length of the interview : 15’

Transcript of the first interviewTranscript of the first interview

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• What the respondent did to receive a better service ?

I often participate to any process of co-production of services at various levels, be it at a restaurant, for example in clearing the table, at the store using the self-scanning system or when I appeal to independents to work for me and I give them a hand.

• Why the respondent did what he/she did ?

The motivations are either the respect to the person and his/her profession or the time saving for me and the staff who can make the general atmosphere more relaxed and therefore more efficient.

• How he/she succeeded and what he/she learned about that ?

I learnt that apart from a sense of personal satisfaction (helping others) these ideas of co-production of services are ultimately more a decoy, a social phenomenon whose purpose is to convince customers that they participate in the upstream market while the only involvement is in the benefits of the operation. By preparing the ground for a tiler I avoid additional billings but I do not benefit from any reduction for having made his job easier.

• Age : 44 ; Sex : Male ; Education : University degree ; Length of the interview : 20’

Transcript of the second interviewTranscript of the second interview

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Date : January 25, 2008

Name : Perez Michaël

Signature :