Brand positioning in financial services: Theoretical basis for brand positioning

Comments 0

The theory behind positioning a brand, namely attaching the brand to a specific piece of information in consumer memory, is drawn from Associative Network Theories of Memory. Here, memory is thought to consist of nodes of information that are interlinked with each other. These positioning attributes are the specific ‘bits’ of information that marketing managers aim to have linked to the brand name. The network of brand- related linked information in consumer memory makes up a brand’s image. There have been numerous suggestions for types of potential positions. Examples include the product category, benefits, price, perceived quality, use/application situations, country of origin, and/or customer service delivery.

Brand positioning and customer preference/choice

Earliest research focused on product category attributes for positioning. A relationship between the brand, product category attributes and brand choice/ preference has been found by multiple researchers since the 1960s. An additional benefit of strong linkage with the product category is the inhibiting effect it has been shown to have on the recall of other brands in the category. In more recent times, however, the call has been to develop a position distinct from other brands, resulting in the exploration of a wider range of attributes. Research into the broader range of attributes (eg pricing, service and/or quality perceptions) has shown a positive relationship between brand mention and usage/claimed choice and that for each brand, a different set of attributes was the best predictor of main brand used.

Most comparative research, however, has focused on comparisons of brand image/positioning measurement techniques rather than an assessment of the positions established.


Representative APR 391%

Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

Implications of Non-payment: Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

Calculate APR

Happily Served Customers

Get pre-approved for a large personal loan today!