Context Effects in Diverse-Category Brand Environments: The Influence of Target Product Positioning and Consumers' Processing Mind-Set

Abstract

We investigate the apparent rarity of contrast effects in diverse-category contextual and target product settings. Three studies show that the direction of context effects depends on (a) whether target product positioning is abstract or concrete, (b) consumers' adoption of an item-specific, similarity-focused relational or dissimilarity-focused relational processing mind-set, and (c) the magnitude of resources allocated to processing. We find that contrast effects emerge when an ambiguous target product is positioned concretely, not abstractly, and consumers employ relational, not item-specific, processing. A framework clarifies how and when each of the aforementioned factors shapes context effects, often in ways never before seen.