Regulatory focus as a determinant of brand value

Purpose – This research aims to investigate the relationship between consumer regulatory focus and brand value. Design/methodology/approach – Three studies were conducted using both student subject pools and a broader sample from the US population. The relative chronic promotion or prevention orientation of each participant was measured, as was response to brand and pricing stimuli. Findings – Promotion‐oriented individuals are more sensitive to differences in established brands than prevention‐oriented individuals (studies 1 and 2), and promotion‐oriented individuals have a greater preference for new brands than prevention‐oriented individuals (study 2). Also, an individual's degree of chronic promotion orientation is an important driver of this relationship (study 3). Research limitations/implications – Brand quality is considered as a general concept rather than a multidimensional construct. Although brand is a largely affective and emotional product attribute, brand trust is a dimension of quality that helps to satisfy prevention goals. A deeper investigation of the relationship between brand trust and prevention goals is recommended for future research. Practical implications – Firms should consider the status of their brand within their product category. A firm with a relatively high quality brand can aggressively enter new categories early in the category lifecycle. Lower quality brands may benefit more from reinforcing their position in existing categories, or creating new brands for new categories. Originality/value – This research has important implications regarding the timing and pricing of product upgrades.