The Effect of Introducing a New Brand on Consumer Perceptions of Current Brand Similarity: The Roles of Product Knowledge and Involvement

This study examines how the introduction of a new and differing brand may significantly impact similarity perceptions consumers have concerning existing brands. A total of 192 students participated in an experimental study in which the presence or absence and the level of desirability of focal attributes were manipulated. In addition, brand, attribute, and experience knowledge as well as involvement were included as moderating variables. Results indicate that the introduction of a new brand which shares an attribute with an existing brand or shares the same level of an attribute with an existing brand will cause that existing brand to be seen as less similar to another existing brand. This is particularly true for low knowledge and high involvement consumers.