›› 2018, Vol. 30 ›› Issue (12): 142-153.

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The Effect of Display Format on Consumer New Product Evaluation:The Moderating Role of Brand Quality

Zheng Xiaoying1, Sun Luping2   

  1. 1. Business School, Nankai University, Tianjin 300071;
    2. Business School, Central University of Finance and Economics, Beijing 100081
  • Received:2016-09-05 Online:2018-12-28 Published:2018-12-21

Abstract:

This paper examines the effect of display format on consumers' evaluations of two different types of new products (i.e., new products of a typical category versus those of an atypical category), and the moderating role of brand quality. We conduct three experiments to test the hypotheses. Experiment 1 finds that consumers evaluate new products of a typical category more favorably in the "display by brand" (versus "display by category") format, where products of the same brands are displayed together. However, for new products of an atypical category, consumers have higher evaluations in the "display by category" (versus "display by brand") format in which the new products are displayed alongside with similar products from different brands. Experiment 2 examines the psychological mechanism and finds that perceived brand capability underlies the interaction effect between display format and new product type. Experiment 3 further investigates the moderating role of brand quality in the above display format effect. The findings in Experiment 1 are replicated when brand quality is high. However, when brand quality is ordinary, consumers evaluate new products more favorably in the "display by brand" format than in the "display by category" format, no matter whether the new products belong to a typical or an atypical category. This paper provides important theoretical and managerial implications for firms' new product development and promotion from a consumer behavior perspective.

Key words: display by brand, display by category, typical category, atypical category, new product evaluation, brand quality