KOREASCHOLAR

This article addresses the potential of reputable brands to overcome the lack of tangibility that characterizes the process of e-commerce. In a sequential argument, the authors propose that (1) the brand becomes more important in online than in offline channels, as a consequence of the intangibility or lack of physical contact in online purchasing processes; (2) the limitations associated with the need for touch and the lack of access to the physical product during the buying process does not have equal importance across all product categories; and (3) the role of the brand in online channels thus is more relevant if the product category is associated with a higher need for touch. To provide empirical evidence regarding the hypotheses, we performed an experiment that combined three treatments: (1) leader versus non-leader brand, (2) online versus offline channel, and (3) product category with higher versus lower need for touch. We show that the most recognized brands exert a positive effect on product evaluations, regardless of the technical characteristics and other objective product attributes. This advantage may be greater in online channels, though only for product categories for which the lack of physical contact with the product during the purchase process is an important limitation. In such cases, brand associations can compensate for intangibility during purchase.We also confirm that the product categories differ in their level of need for touch and the extent to which consumers desire physical contact with the product during the buying process. These results demonstrate that building strong brands is a key competitive advantage for manufacturers. Brand reputation becomes even more crucial when selling products in electronic channels, at least if the product itself entails a greater need for touch prior to purchase. For such products, strong brands can make up for the intangibility of e-commerce, so this effort represents a key competitive strategy in such channels. Moreover, leading brands can leverage their competitive advantage to enhance their performance in the increasingly prominent realm of e-commerce. E-retailers need to make careful decisions regarding the configuration of the assortment, taking into account the nature of the product category. They should strengthen their focus on developing highly recognizable brands, because the lack of physical contact is an important purchase inhibitor in this shopping channel. However, the brand criterion may be less important if the choice between online and offline shopping is not particularly affected by the opportunity to touch or feel the products.

• Óscar González-Benito(University of Salamanca)
• Mercedes Martos-Partal(University of Salamanca)
• Sonia San Martín(University of Burgos)