Warmth and competence dimensions of brands as a result of implicit perceptions

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1 Warmth and competence dimensions of brands as a result of implicit perceptions 1. Introduction The Stereotype Content Model postulates that individuals perceive other individuals primarily in terms of their warmth and competence (Fiske, Cuddy & Glick, 2007; Fiske et al., 2002). Two groups of authors found out, that this idea is translatable into corporate practice with very interesting findings for the companies. Both groups used a four quadrant matrix for illustration. Casciaro and Sousa-Lobo (2005) suggest, that people within organizations prefer to work with other people when they are warm and competent ( lovable stars ) and they avoid competent jerks (competent but not warm/likeable). Aaker, Garbinsky and Vohs (2012) demonstrated that consumers admire brands that are in the golden quadrant (highly competent and very warm). For-profit -companies are often in the quadrant high competence, low warmth and, in consequence, enjoy much less admiration and consumer s intention to purchase is lower. Consumer preferences are often shaped by unconscious and implicit beliefs and associations (Bond, Bettman & Luce, 2011). Since the above mentioned studies were both based on explicit measures, we intended to replicate the results for brands on the implicit, unconscious level. The two ideas just mentioned, stimulated two questions that we asked in this research. Do consumers prefer competent and warm companies also on the implicit level? Do the implicit and the explicit measures correlate? As a measure of implicit associations we use the Implicit Association Test (IAT) described later in this paper. The remainder of the paper is organized as follows. The next section discusses the background of implicit and explicit perceptions and associations in the context of brands. The sample and methodology adopted are then described. We subsequently present the findings from the two studies. The paper ends with a discussion of the conclusions and implications for theory and practice and lists the limitations. 2. Background In the course of human evolution it was important to determine immediately, whether the opponent intends good or bad (Fiske et al., 2002). In an encounter one must quickly establish, whether an adversary has the ability and willingness to enact those potentially bad intentions. Recent research has established that indeed perceived warmth and competence are the two universal dimensions that help human beings to recognize threats from other humans in a fast and easy way (Fiske et al., 2007). Collaboration within a group predicts perceived warmth, and status within a group predicts perceived competence (Cuddy, Fiske & Glick, 2008). In line with human evolution theory, people judge trustworthiness (warmth) most reliably, followed by competence. They make these judgments in just a fraction of a second with moral / social judgments occurring first (Fiske et al., 2007; Willis & Todorov, 2006). As an illustration, in the general population (American population) elderly people are perceived as being warm, but less competent (see Cuddy et al. (2008)). Whereas rich people are perceived the opposite way: very competent, but not really warm. Welfare recipients are perceived as neither competent nor warm. Christians, housewives and middle class Americans fall in the ideal quadrant: warm and competent. This model also applies inside companies (Casciaro & Sousa-Lobo, 2005). In their paper the authors use memorable terms for the different groups of people. Employees love to work with lovable stars, because they are highly competent and also very friendly (warm). Many co-

2 workers, however, will be competent jerks : competent but not very friendly (e.g. arrogant). Perhaps not surprisingly, the people that are most liked for collaboration are the loveable fools : they are not really competent, but very friendly and nice to work with. A company will benefit most from loveable stars, but there will also be many loveable fools around. It seems that inside companies the warmth dimension plays a bigger role than the competence dimension. In brief, warmth and competence are universal dimensions of social judgment independent of cultures and age (Fiske et al., 2007). From an evolutionary perspective it is crucial for us humans to first establish if another person or group intends good or bad (warmth dimension). Second, it is important to quickly realize if this person or group has the ability to enact those good or bad intentions (competence dimension). Brands as personalities The concept of brand personality is well established in business practice (Eisend & Stokburger- Sauer, 2013). Consumers judge brands in human terms (the personality of a brand) (Aaker, 1997). The author identified the same Big Five dimensions to characterize a brand known from psychology literature also for the case of brands. In addition, consumers develop a relationship with brands. Those relationships can develop into brand engagement, brand attachment or even brand love (MacInnis, Park & Priester, 2009). This is significant from a business perspective. Corporations want to have a face to the customer (a human term) and consumers build this face through people representing the company (examples are sales persons, the CEO, another spokesperson or a service agent). Like in real life, consumers also tend to have a diversity of relationships with brands (Keller, 2012). Kervyn, Fiske and Malone (2012) combined the ideas of brand personality and social cognition (warmth/competence) into a new framework. Building on the Stereotype Content Model they propose the Brands as Intentional Agents Framework (BIAS). According to this model brands are seen as intentional agents and their perceived intentions (warmth dimension) and ability (competence dimension) are important dimensions underlying brand perception. Aaker et al. (2012) tested in an explicit way the central idea of the BIAS framework using eight selected brands. Their results suggest that warmth and competence affect purchase intention and admiration for the brands. A high rating in both dimensions provides the brands with an extra benefit that surpasses the individual contributions of each dimension. A brand with high warm/competent ratings is positioned in the golden quadrant. This position will have positive emotional and behavioral consequences in the market place (Aaker et al., 2012). In summary, consumers feel and behave toward brands in ways that are very similar to their interactions with other people and social groups. Dual system perspective (implicit and explicit attitudes) Human mental processes can be divided into two general categories depending on whether they operate automatically or in a controlled fashion (Gawronski & Creighton, 2013). The authors list several theories that aim at explaining the underlying processes. As the attribute dual implies these theories postulate an implicit component (or system 1) and an explicit component (or system 2). System 1 processes include unconscious and automatic thinking, they are holistic, evolutionary old, associative and independent of working memory. System 2 processes include conscious and analytic thinking, they are evolutionary new, rule-based, and limited by working memory capacity (Bond et al., 2011; Evans, 2008; Gawronski & Creighton, 2013). Consumers

3 prefer and use brands based on system 1- or implicit - processes (Kahnemann, 2012). A popular test to measure such implicit processes is the Implicit Association Test (IAT) described in the following paragraphs. The Implicit association test (IAT) Since the 1980s, much effort has been devoted to reaction time as an indication of automatic processes and activation of attitudes as well as associations. These processes have been mostly studied in the context of attitudes, stereotypes and prejudices (Greenwald et al., 2009). Thus, the IAT is an ideal instrument to measure attitudes towards brands. The development of such implicit measures is considered the most important contribution in social cognition research in recent time (Hofmann, et al.2005). In their meta-analysis Greenwald et al. (Greenwald et al., 2009) identified 184 independent samples with a total of subjects for the Implicit Association Test (IAT). Perkins et al. (2008) reviewed applications in consumer psychology. They concluded that some studies find an adequate predictive validity, while some others did not. The authors concluded, that the implicit methods were superior in predicting behaviors when issues of stereotyping and prejudice are of concern. For the present study this is clearly the case. Respondents may use social stereotypes towards brands and may, in consequence, also be prejudiced. Perkins et al. (2008) also found that the IAT is a useful measure, when consumers are under time constraints (see also (Friese, Hofmann & Wänke, 2008; Friese, Wänke & Plessner, 2006). This may again apply when exposed to social signals such as brands. Expensive brands such as cars (or jewelry) trigger non-conscious and automatic processes in consumers. Many of those consumers will display some level of envy and will also tend to give socially appropriate answers. The IAT seems to be the method of choice in our setting (Gawronski & Creighton, 2013). We expect that warm&competent brands are associated with the word positive. In the IAT the reaction time to the warm&competent/positive combination is therefore expected to be shorter than the time for the warm&competent/negative combination (operationalized as D-measure; generally called IAT effect) (Greenwald, Nosek & Banaji, 2003). We test for a general IAT effect (D-measure different from zero), a weak correlation between explicit and implicit measures and finally we expect that warmth and competence predicts admiration and purchase intention (linear regression analysis). 3. Methodology We took the view that the IAT procedure would be the best procedure to address our questions. It enables an unequivocal test of whether semantic conditioning can occur. Since the IAT measures just one concept per test, we used two IAT tests in sequence. The first test measured the warmth dimension and the second test measured the competence dimension. In a first step, we needed to find brands that fit well into the four quadrants (high / low vs. competent / warm). The original golden quadrant study does not indicate how the authors arrived at the brands used during the study. Our team brainstormed 16 potential candidate brands (profit and not-for profit) that were subsequently pre-tested with 16 participants. The pre-testers first assigned each brand to one of the four quadrants and second rated each brand on its warmth and its competence dimensions. Thus, we arrived at a reduced set of 8 brands: AXA, BP, Coca- Cola, Kodak, Nivea, Nokia, Novartis and Pro Juventute. All are internationally well-known brands except Pro Juventute, which is a Swiss welfare foundation helping young kids.

4 For the explicit part of this research a questionnaire was designed. First, the participants had to assign each brand to one of the four quadrants and second, rated each brand on its warmth / friendliness and its competence / ability dimensions (7 point Likert scale). Participants also indicated their admiration and purchase intention for each brand. They also indicated their gender age and profession. This explicit part included at the end a standardized instruction for the Implicit Association Test (IAT). For this double IAT study we used a picture / word format, since the visuals (logos) in human cognition are normally a central element. The first run included competence combined with positive and negative stimuli. The second included warmth combined with positive and negative stimuli (in brackets). The IAT measure of implicit preferences for the four attribute concepts included the following pleasant and unpleasant stimuli (German translations of words was used in the IAT runs). positive words: competent, reliable, intelligent, successful, diligent, selfassured, qualified, (friendly, helpful, honest, trustable, modest, sympathetic, hearty); negative words: incompetent, irrelevant, irresponsible, reckless, clumsy, uninspired, lavish (unfriendly, egoistic, shallow, arrogant, immoral, cocky). These stimuli were mostly used previously in other published reports on the IAT. Also the pre-testers confirmed that the words represent the target concept nicely (in German language). Stimuli representing the two target categories warmth and competence were the logos of the brands mentioned above. Participants were informed that they were taking part in a consumer study about status consumption. First, participants were asked to complete the questionnaire that measured explicit preferences. Immediately after completing the questionnaire, respondents completed the IAT task twice (using available software; Meade, 2009). They went through this procedure individually. The IAT task included five classification tasks: 1) single categorization for the two target concepts: competence versus incompetence; 20 trials; 2) single categorization for the attributes: positive versus negative; 20 trials; 3) combined categorization task and data collection trials: competent -logo combined with good, versus incompetent -logo combined with bad; 40 trials; 4) single categorization for the attributes (as in task 1) but with reversal of the side of the screen on which the two attribute labels appeared; 40 trials; 5) combined categorization task and data collection trials (as task 3) but reversed categorization of target categories. 4. Results Participants were recruited from the university of the authors in Switzerland (78 volunteers; age: 33.8 ± 12.2; 48 males, 30 females). The allocation of brands to the four quadrants seemed to be complicated for the participants. A majority of companies were allocated into the competent half (competent and warm/cold). The well-known consumer brands were allocated more towards the golden quadrant (Nivea and Coca-Cola) and more technical brands to the competent/cold quadrant (Novartis, Axa). The oil company BP was seen as incompetent/cold and the youth foundation Pro Juventute as incompetent/warm. The competence D-measure score is 0.41 milliseconds and the warmth D-measure score is milliseconds. Both values are significantly different from zero (t-test, p 5%) implying that participants associated the brand logos according to the quadrant determined from the pre-test. As an example: The brands Nivea and Coca-Cola are seen as warm brands on the explicit level and are implicitly strongly associated with warm. In contrast, the brands Axa and Novartis are cold brands, both, on the implicit as well as the explicit levels. The same holds true for the

5 competence dimension. The implicit and the explicit measures did not correlate on both dimensions, supporting the dual-system perspective. However, the explicit warmth and the explicit competence correlated (r=0.655; p 1%), suggesting a halo effect or a survivorship bias (see discussion below). We also ran several regressions (statistical significance set at 5%). Implicit warmth and implicit competence predicted explicit admiration. The implicit warmth dimension was not significant for the purchase intention (only implicit competence). On the explicit measures, warmth predicted purchase intention (but not competence) and competence predicted admiration (but not warmth). 5. Discussion and Limitations The results of this study fully confirm the findings from Aaker et al. (2012), both on the implicit as well as on the explicit level. It is noteworthy, that the results from the explicit part of the study are much less conclusive than the ones from the implicit part. We observed a much greater variance in the explicit answers. This may be due to a survivorship bias. Companies in the cold/incompetent quadrant will not prosper and eventually disappear. We also observed a regression towards the middle point (4 on the 7-point scale). Obviously, when in doubt participants tended towards a neutral point. This would clearly not be possible for our participants on the implicit test. The results confirm the presence of an IAT-effect. The participants in our study associated competent brands with positive and less competent brands with negative. The same holds true for the warmth dimension. Our study using the IAT has an added advantage, since it divides the warmth and the competence dimension in just two parts: warm/cold and competent/incompetent, respectively. As an illustration: the brands Coca-Cola and Nivea fall into the golden quadrant ; the pharmaceutical company Novartis falls into the competent/cold quadrant and as a final example the oil company BP falls into the incompetent/cold quadrant. Compared to results from other IAT-studies our D-measure is rather strong (see the meta-analysis of Greenwald et al. (2009)). This suggests that the IAT is a better measure than the explicit measures for testing if companies fall into the golden quadrant. It is noteworthy that the implicit effect was much stronger than the explicit effect. This means that people unconsciously love or hate brands much more than they explicitly acknowledge. Coca-Cola and Nivea fall into the golden quadrant (Aaker et al., 2012) or are loveable stars (Casciaro & Sousa-Lobo, 2005). BP in contrast is clearly disliked on the implicit level. Fiske, Malone and Kervyn (2012) believe that social perception models are useful and predict consumer behavior. Our results confirm this view. Since brands are an extension of the employees that produce them, consumers will develop perceptions, emotions, and relationships with brands similar to those with humans. The expression love brands (Albert, Merunka & Valette-Florence, 2008) seems appropriate. Three limitations of this study need to be mentioned. First, we purposely pre-selected the brands and thus made the mistake of selecting on the dependent variable (similar to the study of Aaker et al. (2012)). This holds true for the explicit part of this research and applies much less to the implicit part. Second, the study is correlational. In consequence, we are not able to indicate managerial actions, that need to be initiated to land in the golden quadrant. Future studies will need to address these two limitations. And third, the student sample may be adequate for this experimental setup, but does not allow for generalization to general consumers.

6 6. Literature Aaker, J. L. (1997). Dimensions of brand personality. Journal of Marketing Research, Aaker, J. L., Garbinsky, E. N., & Vohs, K. D. (2012). Cultivating admiration in brands: Warmth, competence, and landing in the golden quadrant. Journal of Consumer Psychology, 22(2), 191. Albert, N., Merunka, D., & Valette-Florence, P. (2008). When consumers love their brands: Exploring the concept and its dimensions. Journal of Business Research, 61(10), Bond, S. D., Bettman, J. R., & Luce, M. F. (2011). Consumer Judgment from a Dual-Systems Perspective: Recent Evidence and Emerging Issues. Review of Marketing Research, 5, Casciaro, T., & Sousa-Lobo, M. (2005). Competent jerks, lovable fools, and the formation of social networks. Harvard Business Review, 83, Cuddy, A. J., Fiske, S. T., & Glick, P. (2008). Warmth and competence as universal dimensions of social perception: The stereotype content model and the BIAS map. Advances in Experimental Social Psychology, 40, Eisend, M., & Stokburger-Sauer, N. E. (2013). Brand personality: A meta-analytic review of antecedents and consequences. Marketing Letters, 24(3), Evans, J. S. B. (2008). Dual-processing accounts of reasoning, judgment, and social cognition. Annu. Rev. Psychol., 59, Fiske, S. T., Cuddy, A. J., & Glick, P. (2007). Universal dimensions of social cognition: Warmth and competence. Trends in cognitive sciences, 11(2), Fiske, S. T., Cuddy, A. J., Glick, P., & Xu, J. (2002). A model of (often mixed) stereotype content: competence and warmth respectively follow from perceived status and competition. Journal of Personality and Social Psychology, 82(6), Fiske, S. T., Malone, C., & Kervyn, N. (2012). Brands as intentional agents: Our response to commentaries. Journal of Consumer Psychology, 22(2), Friese, M., Hofmann, W., & Wänke, M. (2008). When impulses take over: Moderated predictive validity of explicit and implicit attitude measures in predicting food choice and consumption behaviour. British Journal of Social Psychology, 47, Friese, M., Wänke, M., & Plessner, H. (2006). Implicit consumer preferences and their influence on product choice. Psychology & Marketing, 23, Gawronski, B., & Creighton, L. A. (2013). Dual-process theories. In D. E. Carlston (Ed.), The Oxford Handbook of Social Cognition. (pp ). New York: Oxford University Press. Greenwald, A. G., Nosek, B. A., & Banaji, M. R. (2003). Understanding and Using the Implicit Association Test: I. An Improved Scoring Algorithm. Journal of Personality and Social Psychology, 85, Greenwald, A. G., Poehlman, T. A., Uhlmann, E. L., & Banaji, M. R. (2009). Understanding and Using the Implicit Association Test: III. Meta-Analysis of Predictive Validity. Journal of Personality and Social Psychology, 97, Kahnemann, D. (2012). Thinking, Fast and Slow. London: Penguin Books. Keller, K. L. (2012). Understanding the richness of brand relationships: Research dialogue on brands as intentional agents. Journal of Consumer Psychology, 22(2),

7 Kervyn, N., Fiske, S. T., & Malone, C. (2012). Brands as intentional agents framework: How perceived intentions and ability can map brand perception. Journal of Consumer Psychology, 22(2), MacInnis, D. J., Park, C. W., & Priester, J. R. (2009). Handbook of brand relationships: ME Sharpe. Perkins, A., Forehand, M., Greenwald, A. G., & Maison, D. (2008). Measuring the Nonconscious: Implicit Social Cognition on Consumer Behavior. In C. P. Haugtvedt, P. M. Herr & F. R. Kardes (Eds.), Handbook of Consumer Psychology (pp ). New York: Lawrence Erlbaum Assoc Inc. Willis, J., & Todorov, A. (2006). First Impressions: Making Up Your Mind After a 100-Ms Exposure to a Face. Psychological science, 17,

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