Legitimacy association of an aged brand: Shelter for a brand suffering from consumers’ perceptions of incompetence

This study examines how aged brands can develop consumer preferences, even when they are less competent than younger brands. We conceptualize brand age as a characteristic that facilitates a brand’s institutionalization, thus departing from the view of brand age as a cue signaling predictability or quality. We suggest that consumers associate legitimacy with aged brands, and that legitimacy reduces the harmful impact of perceived incompetence on consumer preference. Study 1 revealed that the legitimacy associated with an aged brand increased the willingness to pay the premium charged by an incompetent brand. Studies 2a, 2b, and 2c showed that brand age increased purchase intention for a brand described as incompetent, and that its legitimacy accounted for the age effect. Study 3 showed that an aged brand’s positioning to legitimacy through advertising enhanced attitudes toward the incompetent brand.