Brooke Kesky

MAR 3023- Case 4

When identifying the link between a brand image and pricing strategy, the concepts of

product knowledge, perception, and purchase intention play a role. A brand is a name or symbol

that defines a business to stand out from competitors and brand image is an association

consumers make with that brand (1). Brand image is also “something brought out by promotions,

advertisements, or users” (1). Brand image plays a vital role in marketing as it allows the

consumer to connect to the brand and create feelings of loyalty and connection. It also uses the

media and reference groups to make consumers feel as though they are a part of a certain group

(2). In relation to product knowledge, there is a connection between research effort and purchase

decision. Brands provide a degree of product guarantee and for consumers under time

constraints, they will “usually go by well-known brands, which may result in higher costs but

require less research efforts” (1). This shows that a positive brand image, especially with little

product knowledge, can lower consumer purchase risks.

For example, in the given Armani scenario, Armani is known as a luxury brand and

therefore consumers can quickly identify the brand to be one of prestige and quality without

actually knowing product details. Further, when consumers consider purchasing from a brand,

their purchase intention is based on perceived value (1). The “better a brand is, the more

recognition consumers give to its product quality” and a higher opinion of quality leads to a

higher perception of value (1). Therefore, if a brand has a positive brand image, consumers can

associate the brand with a high quality and value which can be reflected in the brand’s pricing

strategy. In a study of 285 respondents, researchers found that price positively affects brand

image and purchase decision (2). Therefore brands can have a high price strategy if consumers
associate the brand with quality and value and can lead other consumers to purchase from the

brand even if they are not very familiar with it.

To gain familiarity, a brand can implement a promotional campaign and use social

networks to further that campaign. Social media is a form of digital technology that allows users

to interact with each other by sharing content. In the world of marketing, businesses are able to

target their audience and communicate with consumers. Social media can also be looked at in a

more broad sense and be less about the actual technology and more about what users do in this

environment (6). In 2022 it was reported that there are 2.99 billion global Facebook users and

2.35 billion global Instagram users (3). Looking at these numbers, one can easily identify the

significance and role that social media plays in the lives of consumers.

There are many advantages of using social networks as part of a promotional campaign.

Businesses that use social networks can target their audience by demographic factors such as age

or gender. As Facebook is more common among millennials and older generations and TikTok is

more used by younger generations, brands can pick what social networks they feel is most

effective for their audience. They can also target smaller segments and ages through the use of

hashtags that can direct followers of that hashtag to the brand’s social media. After users are

directed to the brand’s social media, the option to include links in social media can also drive

traffic to their website. Another advantage of social networks is the amount of users. In 2023 it

was reported that 77% of Americans have a social media profile (4). This means that social

media can be used for mass distribution of content to consumers. While mailing physical content

can be expensive and challenging, social media is low cost and readily available to users. Finally,

another advantage of social networks in a promotional campaign is the creation of consumer

engagement. With social media, consumers are able to interact with brands by following profiles,
liking or disliking content, saving images, and leaving comments. Consumers are able to

instantly communicate directly to the brand and the brand directly to the consumer. Social media

is also important in a promotional campaign as marketers can gauge the success of the campaign

based on the likes and comments and what people are saying about it. Research also shows that

social media marketing activities “have a significant impact on the intentions of users” (5). In the

Armani scenario, as a luxury brand, their promotional campaign would consist of “factors such

as customization, reputation, and trendiness” which would affect purchases (5).

In addition to advantages, there are also disadvantages of social media in a promotional

campaign. As brands push content, consumers are faced with a flood of content from many

brands. This leads to content getting missed and overlooked or can cause consumers to feel

overwhelmed. Additionally, although consumer engagement can be an advantage, negative

feedback and slandering can also affect a brand. Consumers can write negative comments or

create “trends” about a brand or product that can go “viral” and create negative publicity. Social

media in a promotional campaign can also have drawbacks as you have to wait to see results

from social media. It requires a consistent post schedule with creative content as one post will

not immediately create success. Finally, another disadvantage is that social media is always

constantly changing and evolving. New social networks are constantly created which spreads

users to other media and forces brands to quickly adapt to the new networks.

Social media in a promotional campaign can also involve celebrities which brings forth

advantages and disadvantages. In the Armani example, the fashion company endorsed the

celebrity Rafael Nadal to represent their underwear brand. Nadal was an emerging athlete

gaining success and the brand wanted his image to help sell their underwear. Celebrity

endorsement can be used as a way to increase brand attractiveness through using public figures
who are well liked. Research also shows that celebrity endorsement becomes more effective

when the celebrity is credible and attractive (7). However, fit between celebrity and brand must

be a strong pairing or else the match fails to influence the public. For example, in the given

scenario Armani endorses fit, attractive, athletic males to represent their brand. Nadal fits that

criteria, but is also known for taking time to readjust the fit of his underwear which is not a good

look for an underwear brand. Therefore a potential disadvantage of celebrity endorsement in the

fashion industry is a lack of sales due to celebrities who don’t like the product they are

endorsing. Further disadvantages include celebrity endorsement’s ability to lower a brand’s

perceived uniqueness and the celebrity themselves overpowering the brand (7).

Since the fashion industry “as a whole allocates a large amount of its marketing dollars to

social media promotions” (8), there is a large opportunity for influence on consumers and many

advantages. Consumers who purchase an item from a clothing brand that was endorsed by a

celebrity can exhibit feelings of celebrity status. Owning items that a celebrity owns can make

the consumer feel like part of a special group and create a “I need to have it too” mentality.

Additionally, the massive platform held by celebrities is an excellent way for brands to target

new audiences that they may not have reached otherwise. Research shows that in the United

States, 14-19% of advertisements utilized celebrity endorsements for a brand (9). This shows that

celebrity endorsement is often used and reaches a large number of people. Additionally, research

shows that sales can increase as much as 4% (8), and that there is a direct relationship between

celebrity endorsements and profit (9). Overall, celebrity endorsement can be very successful in

promoting fashion brands if the celebrity and fashion brand are a good fit. This can bring

increased sales and greater publicity. However, if it is not a good fit or the celebrity faces a

scandal, it can directly impact the brand.

1. https://core.ac.uk/download/pdf/234694064.pdf
2. https://www.singaporeanjbem.com/pdfs/SG_VOL_6_(1)/3.pdf
3. https://www.syntacticsinc.com/news-articles-cat/social-media-advertising/
4. https://www.webfx.com/social-media/learn/social-media-marketing-advantages-and-disa
dvantages/
5. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8803150/
6. https://link.springer.com/article/10.1007/s11747-019-00695-1
7. https://www.redalyc.org/pdf/6923/692374307012.pdf
8. https://scholarcommons.sc.edu/cgi/viewcontent.cgi?article=6848&context=etd
9. https://fashionandtextiles.springeropen.com/articles/10.1186/s40691-018-0159-8