Advertising vs. R&amp;D: Relative effectiveness on brand equity

Jeong, Jaeseok

doi:10.4102/sajbm.v46i3.99

Cited by 4 publications

(5 citation statements)

References 90 publications

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“…In terms of the positive effect of MSD, this study supports the findings of Chu and Keh (2006), Peterson and Jeong (2010), Jeong (2015), and Koçan (2017), but not in relation to the negative effect of R&D on brand value.…”

Section: Discussion and Concluding Remarkssupporting

confidence: 80%

“…In financial terms, some studies exploring brand value have focused on its relationship with R&D and advertising expenditures: Chu and Keh (2006), Peterson and Jeong (2010), Jeong (2015), and Koçan (2017) all found that expenditure on R&D, promotion, and advertising, including administration, exert a significant and positive affect on brand value; Eng and Keh (2007) found that advertising and brand value improved future accounting returns.…”

Section: Brand Valuementioning

confidence: 99%

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The Effect of Firm Growth on Brand Value: Evidence from Brand Finance Turkey-100

Gerekan¹,

Pehlivan²,

Koçan³

2019

Asian Economic and Financial Review

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A variety of groups are increasingly using brand value for different purposes; thus, a range of consultancy firms calculate, by different methods, and publish brand values annually. The effect of many variables on brand value has been examined previously, but few studies have explored the relationship between brand value and firm growth. This study aims to bridge this gap in the literature, since this relationship is important to maximizing brand value. The research was based on the companies listed in Brand Finance Turkey-100 between 2012 and 2018. Sales, operating income, R&D, and marketing, selling, and distribution (MSD) expenditures were adopted as firm growth indicators, which revealed that: increasing operating income and MSD caused a significant increase in brand value, whereas increasing R&D reduced brand value; and there was no significant relationship between increased sales and brand value. Contribution/Originality: While most studies have examined the many variables that affect brand value, few have explored the relationship between brand value and firm growth. This study contributes to the existing literature by bridging this gap, therefore. Furthermore, the results from this study provide guidance on which growth indicators companies should use to increase their brand value.

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Section: Discussion and Concluding Remarkssupporting

confidence: 80%

Section: Brand Valuementioning

confidence: 99%

The Effect of Firm Growth on Brand Value: Evidence from Brand Finance Turkey-100

Gerekan¹,

Pehlivan²,

Koçan³

2019

Asian Economic and Financial Review

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“…Compared with established firms in a market, potential entrants may also advertise more to convince prospective buyers that their products are as good, if not better, than the products of established sellers [50]. Second, it can establish brand loyalty in the minds of consumers [51].…”

Section: Hypotheses Developmentmentioning

confidence: 99%

R&D, Advertising and Firms’ Financial Performance in South Korea: Does Firm Size Matter?

Feng

Chen

2019

Sustainability

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Advertising and research and development (R&D) are two engines for firms to obtain competitiveness and improve profits. This study develops a system of equations to investigate the overall relationships among R&D, advertising and financial performance across firm sizes. Data from Korean listed firms have been used during 2012–2016. First, our results show that R&D and advertising are complementary in South Korea. Second, for large firms, advertising is positively and significantly associated with financial performance, and the R&D expenditure has no significant influence. Finally, R&D and advertising expenditures have a negative impact on the financial performance of small firms. An additional analysis is conducted to examine the duration of R&D and advertising. Our results from Korean listed firms contain important implications for academia as well as practitioners.

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“…These activities influence consumers' brand perceptions, thus achieving the goal of enhancing brand value (Cobb-Walgren et al, 1995;Keller, 2003). Prior research has demonstrated the impact of investments in brand activities such as advertising, research and development, and promotion on brand value (Chaudhuri, 2002;Chu & Keh, 2006;Jeong, 2015). Firms that invest in ESG to gain a good reputation, thereby increasing brand value, exhibit a 'reputation spillover effect'.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

The impact of environmental, social and governance performance on brand value: The role of the digitalisation level

Wang,

Cao,

Cai

2024

South African Journal of Business Management

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Purpose: Studying the role of environmental, social and governance (ESG) performance in enhancing brand value is strategically important for promoting sustainable development.Design/methodology/approach: Using panel data for 126 different brands over 10 years, we empirically analyse the impact of ESG performance on brand value, considering the moderating role of the digitalisation level.Findings/results: Firstly, the impact of ESG performance on brand value exhibits a U-shaped relationship. Secondly, the digitalisation level negatively moderates the U-shaped relationship. Thirdly, the effect of ESG performance on brand value is mainly on the sub-items of environment and social responsibility, while the effect of governance is not significant.Practical implications: Firstly, firms should recognise the complex relationship between ESG performance and brand value, and strive to find a balance between economic benefits and sustainable development. Secondly, firms can utilise digital technology and platforms to communicate and interact with consumers, integrating ESG principles into their daily brand activities. Thirdly, investments in environmental and social responsibility are more meaningful for improving brand value.Originality/value: Firstly, our study adds value to corporate social responsibility (CSR) and ESG literature by investigating the non-linear impact of ESG performance on brand value. Secondly, we replenish the mechanistic study about how ESG performance affects brand value. Thirdly, we open the black box of the effect of single indicators (E/S/G) on brand value, including the specific direction and strength.

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Advertising vs. R&D: Relative effectiveness on brand equity

Cited by 4 publications

References 90 publications

The Effect of Firm Growth on Brand Value: Evidence from Brand Finance Turkey-100

The Effect of Firm Growth on Brand Value: Evidence from Brand Finance Turkey-100

R&D, Advertising and Firms’ Financial Performance in South Korea: Does Firm Size Matter?

The impact of environmental, social and governance performance on brand value: The role of the digitalisation level

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