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The Brand Anchoring Effect: a Judgment Bias Resulting From Brand Awareness and Temporary Accessibility
Franz-Rudolf Esch, Justus Liebig University Giessen, Germany
Bernd H. Schmitt, Columbia Business School New York, USA
Joern Redler, Madeleine Mode, Germany
Tobias Langner, Justus Liebig University Giessen, Germany

Following the Selective Activation, Reconstruction, and Anchoring (SARA) and consumer-based brand equity models, we predict a
brand anchoring effect in which high awareness brands are used as anchors in forming impressions of co-branded entities. Comparing
the brand personality profiles of fictitious brand alliances with high and low awareness brands, we find a brand anchoring effect in
studies 1 and 2. Moreover, in study 3 we show that the effect generalizes to specific brand characteristics; we also demonstrate that the
effect is driven by making brand-related information more available. Future research on brand awareness and on anchoring effects is
discussed.

[to cite]:
Franz-Rudolf Esch, Bernd H. Schmitt, Joern Redler, and Tobias Langner (2007) ,"The Brand Anchoring Effect: a Judgment Bias
Resulting From Brand Awareness and Temporary Accessibility", in NA - Advances in Consumer Research Volume 34, eds.
Gavan Fitzsimons and Vicki Morwitz, Duluth, MN : Association for Consumer Research, Pages: 498-499.

[url]:
http://www.acrwebsite.org/volumes/12660/volumes/v34/NA-34

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The Brand Anchoring Effect: A Judgment Bias Resulting from Brand Awareness and
Temporary Accessibility
Franz-Rudolf Esch, Justus Liebig University Giessen, Germany
Bernd H. Schmitt, Columbia Business School, USA
Joern Redler, Madeleine Mode, Germany
Tobias Langner, Justus Liebig University Giessen, Germany

EXTENDED ABSTRACT of awareness in a co-branded identity are more likely to be anchors


than those with low awareness.
Introduction
Anchoring refers to a biased judgment on a stimulus based on Method
the initial assessment of another stimulus and the insufficient To test our hypothesis about the brand anchoring effect, we
adjustment away from that initial assessment. Previous research conducted three studies (each n=80) with fictitious brand alliances
indicates that anchoring seems to be a general phenomenon, under- of existing brands from three different product categories. In
lying a wide variety of processing strategies (Epley and Gilovich studies 1 and 2, respondents evaluated the alliances and the con-
2001; Johnson and Puto 1987; Tversky and Kahnemann 1974). stituent brands on Aaker’s (1997) brand personality scale. We
Every time when individuals form an impression or an image about conclude that an anchoring effect was present or not, based on
a stimulus while another stimulus is present, these impressions may standard similarity measures (D, X, and q correlation) that compare
be subject to anchoring effects. the profiles of constituent brands with the brand alliance.
Consumers regularly form images about brands and compare
brands to other brands. We therefore propose that there will be an Study 1
anchoring effect in image impressions about brands–a phenom- In study 1, we tested two brand alliances that either consisted
enon that we will refer as “the brand anchoring effect.” The brand of two toothpaste brands with different levels of unaided awareness
anchoring effect can be investigated, for example, in the context of (high/low) or similar levels of awareness. The results support our
co-branded identities (e.g., cellular phones offered by the brand assumption: The judgment of the brand alliance was based on the
alliance Sony Ericsson). We propose that in these co-branding brands with the higher level of brand awareness. In contrast, in the
cases, one constituent stimulus (Sony or Ericsson) may serve as an similar-brand-awareness condition, none of the brands served as an
anchor and affect the image structure of the co-branded identity anchor.
(Sony Ericsson) as a whole. We test the brand anchoring effect in
three studies, identifying characteristics of the co-branded entities Study 2
that lead to one of the constituent entities to become the anchor. We Study 2 was designed to replicate the brand anchoring effect
derive our hypotheses on the basis of the Selective Activation, of high vs. low awareness for a new product category (chocolate).
Reconstruction, and Anchoring (SARA) model (Pohl, Eisenhauer, In addition, we tested whether or not we would observe anchoring
and Hardt 2003), which is specifically designed to explain anchor- effects for strong image brands (relative to weak image brands)
ing effects, and the customer-based brand equity model (Keller when the awareness levels of both brands in the alliance are at
1993, 2003). comparable high levels.
Our results provided a replication of the brand anchoring
Theoretical Background effect of high (vs. low) awareness brands. However, when both
The SARA model assumes that when individuals are asked a alliance constituents have high awareness, independent of brand
question that requires a judgment (e.g., what is the brand personal- strength, none of the brands served as an anchor.
ity of the co-branded identity?), they utilize available images about
the “information units” in long term memory (such as an image of Study 3
the brand associations of a constituent brand). Each judgment is In study 3, we addressed the key question of how brand
associated with a number of images of the brands and the SARA awareness creates a brand anchoring effect. Following the SARA
model specifies which “information units” are chosen as an anchor. model, it is available information that provides retrieval cues, and
Specifically, the selection of the anchor and the direction of the therefore for awareness to produce anchoring effects, brand aware-
judgment bias depend on distinct characteristics of internally rep- ness should make information more available. Thus, we manipu-
resented brand knowledge. Once a brand has been selected as an lated brand awareness and the availability resulting from it, rather
anchor, it will bias the co-branded identity in such a way that its than just measuring it (as in the previous two studies). Respondents
knowledge structure will be closer to the anchor brand than the were exposed to two different packaging designs for the brand
other constituent brand. alliance Milka Uncle Ben’s, offering a crispy rice chocolate cereal.
Consistently with the SARA model, it has been shown in a The package design either provided predominantly Milka related
wide range of domains, such as information integration theory (e.g., brand elements (e.g., color) or predominantly Uncle Ben’s related
Fazio and Williams 1986), the accessibility-diagnosticity frame- design elements.
work (e.g., Feldman and Lynch 1988), brand alliances (e.g., Simonin As expected, the profile in the Milka focused design was closer
and Ruth 1998), and in research on priming, that the accessibility of to Milka than Uncle Ben’s whereas the profile of the Uncle Ben’s
information has a strong influence on judgments. In the context of focused design was closer to Uncle Ben’s. These results confirmed
branding, Keller (1993) identifies brand awareness as one of the that the packaging design made Milka brand-related information
most important factors for retrieval of information about the brand. more available when the design first brought to mind Milka. In
Thus, following the SARA model and the brand alliance study by contrast, it made Uncle Ben’s brand-related information more
Simonin and Ruth (1998), we predict that brands with a high level available when the design first brought to mind Uncle Ben’s.

498 Advances in Consumer Research


Volume 34, © 2007
Advances in Consumer Research (Volume 34) / 499
Conclusion Tetlock, Philip E. (1979), “Accountability: The Neglected Social
Taken together, the results of the three studies confirm our Context of Judgment and Choice,” Research in Organiza-
overall prediction: brand-related information, once made available, tional Behavior, 7, 297-332.
can result in a brand anchoring effect in the judgment of a co- Tversky, Amos and Daniel Kahnemann (1974), “Judgment under
branded entity. Brand-related information may be permanently Uncertainty–Heuristics and Biases,” Science, 185, 1124-30.
more available in high awareness brands; alternatively, it can be Wyer, Robert S. (2002), “Language and Advertising Effective-
made more available temporarily by presenting the co-branded ness: Mediating Influences of Comprehension and Cognitive
entity in a particular way. Future research should examine possible Elaboration”, Psychology & Marketing, 19 (July/August),
moderators of the brand anchoring effect, such as brand name order 693-712.
in the alliance or product category fit, and how these factors Yadav, Manjit, S. (1994), “How Buyers Evaluate Product
influence the selection of the brand anchor. Bundles: A Model of Anchoring and Adjustment,” Journal of
Consumer Research, 21 (September), 342-53.
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