The dirt on bikes: an illustration of CART models for brand differentiation

Date22 August 2008
DOIhttps://doi.org/10.1108/10610420810896077
Pages317-326
Published date22 August 2008
AuthorJiang Lu,Joseph B. Kadane,Peter Boatwright
Subject MatterMarketing
The dirt on bikes: an illustration of CART
models for brand differentiation
Jiang Lu
Epidemiology Data Center, University of Pittsburgh, Pittsburgh, Pennsylvania, USA
Joseph B. Kadane
Carnegie Mellon University, Pittsburgh, Pennsylvania, USA, and
Peter Boatwright
Tepper School of Business, Carnegie Mellon University, Pittsburgh, Pennsylvania, USA
Abstract
Purpose – The primary purpose of this study is to illustrate a statistical method to identify product attributes that differentiate branded products from
those of competitors.
Design/methodology/approach – The authors use classification and regression tree (CART) models in an analysis of observable characteristics of a
mature category of relatively complex products, dirt bikes.
Findings – The authors show how the CART model can be used as a tool for identifying brand differences and to summarize product categories in
terms of these key differences.
Research limitations/implications The work focuses on physical specifications of the products at one point in time. An important area for future
extensions will be to incorporate consumer utility into the analysis.
Practical implications Theapproach will offer value to brand managers and product managers who have a goal of maintaining the alignment of the
brand with the underlying observable differentiation of the branded products. Theapproach can also serve as the basis for a product/brand performance
report (similar to consumer reports) by identifying a select set of product characteristics that differ across brands.
Originality/value – Products serve as influential sources of information about a brand’s identity. To the extent that observable product characteristics
do not match brand claims, consumers may question the brand’s authenticity.Although for some products it may be a reasonably simple task to identify
the set of observable product attributes that have implications for the brand identity, the task can be challenging for many products. The authors employ
an analysis technique to reveal product characteristics that are consistent within brand product lines but that differ across brands.
Keywords Brand identity, Product design, Classification, Product differentiation
Paper type Research paper
An executive summary for managers and executive
readers can be found at the end of this article.
Introduction
A fundamental concept in the competitive marketplace is that
of brand differentiation, where the role of brands is to
differentiate products to provide value both to the brand’s
owner and to the brand’s customer. Brand differentiation is
closely related to product differentiation. Products, as
embodiments of brands, serve as influential sources of
information about a brand’s identity through observable
characteristics of the product (Kapferer, 2004, p. 61), where
here we consider observable characteristics to be either search
attributes or experience attributes (Nelson, 1970).
Consumers can use the observable characteristics of
branded products to evaluate claims about the brand. In the
early 1990s for example, consumers could visit their local
Oldsmobile dealer for a test drive and assess the “... not your
father’s Olds” claim based on observable characteristics of
product performance and design. To the extent that
observable product characteristics do not match the brand
claims, the consumers may question the authenticity of the
brand claims.
In light of the observable nature of product differentiation
and the close association of product differentiation to brand
differentiation, it is important to understand the nature of
observable product differen tiation of competing brands.
When management considers adjustments to a brand
identity, the observable (search or experience) attributes of
the brand’s products can be used to help craft the brand
identity, to allow the brand identity to be consistent with its
products’ attributes and also with intangible associations
(Kapferer, 2004, p. 61). For example, an especially absorbent
paper towel provides the authentic basis for a brand claim of
strength, like Brawny. A vehicle with superb handling gives
credibility and support to a brand identity of an ultimate
driving machine.
Before any strategic adjustment to a brand identity, one task
is to discover observable product attributes that might be used
to distinguish the brand’s products as a set from those of the
competitors. When there are multiple products under the
same brand, such attributes should be different from the
competition (so that they differentiate) and in common within
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1061-0421.htm
Journal of Product & Brand Management
17/5 (2008) 317–326
qEmerald Group Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/10610420810896077]
317

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