The “Achilles Heel” of Established Brands: The Effect of Brand Age on Consumers’ Brand Choice

Abstract

Unlike previous research that suggests a predominant preference for older brands, this research takes a contingent perspective to examine how consumers’ preference for older brands is affected by their expectations of category innovativeness. Results from the analysis of sales data from Amazon and seven experimental studies demonstrate that consumers’ preference for older brands decreases with their expectations of category innovativeness. The rationale is that with expectations of category innovativeness, consumers place less importance on consistency-related brand traits (e.g., stability, reliability) and more on excitement-related brand traits (e.g., dynamic, adventurous). Because older brands are associated with consistency, preference for older brands diminishes with expectations of category innovativeness. Further, this research identifies two factors that moderate the effects of category innovativeness on preference for older (vs. younger) brands. First, familiarity with the older brand moderates the effect of category innovativeness on brand preferences such that category innovativeness increases preferences for younger brands only when consumers are choosing between unfamiliar brands. Second, consumers’ need for uniqueness reduces the effect of category innovativeness on preferences for younger brands. Together, the findings suggest that the dominance of older brands reduces with expectations of category innovativeness. The findings are important from both theoretical and managerial perspectives.