Evaluating the Financial Impact of Branding Using Trademarks: A Framework and Empirical Evidence

Красников, А.В.; Mishra, Saurabh; Orozco, David

doi:10.1509/jmkg.73.6.154

Cited by 185 publications

(173 citation statements)

References 49 publications

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“…In terms of trademark literature, our study confirms earlier findings that trademark data are useful to explain firms' focus on exploitative innovation activities (Mendonca et al, 2004;Srinivasan et al, 2008) and that the use of trademarks can improve financial outcomes (Krasnikov et al, 2009). By focusing on the trademark life of individual trademarks rather than focusing on firms' portfolios of trademarks (cf.…”

Section: Discussionsupporting

confidence: 88%

“…By focusing on the trademark life of individual trademarks rather than focusing on firms' portfolios of trademarks (cf. Krasnikov et al, 2009;Srinivasan et al, 2008), we demonstrate the mechanism of how a firm's national culture may indirectly, via a firm's explorative and exploitative activities, influence a firm's ability or desire to prolong or dismiss single trademarks, and, in turn, influence long-term brand performance. Our results…”

Section: Discussionsupporting

confidence: 50%

“…As control variables, we include several firm characteristics, such as firm fixed assets and age as proxies for size and experience; the firm solvency ratio (shareholder funds/total assets) as a proxy for firm risk; firm marketing intensity (marketing expenditures/sales); and the trademark age in years (year of running observation -year of trademark filing) (see Krasnikov et al, 2009 Table 2 provides the simple descriptive statistics. Table 3 provides t-tests of sample mean differences when using a median split to classify the observations according to high and low value of UAI.…”

Section: Control Variablesmentioning

confidence: 99%

See 2 more Smart Citations

Uncertainty avoidance and the exploration-exploitation trade-off

Broekhuizen

Giarratana

Torres

2017

EJM

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Uncertainty Avoidance and the Exploration-Exploitation Trade-off AbstractPurpose -This study investigates how a firm's uncertainty avoidance -as indicated by the headquarters' national culture -impacts firm performance by affecting exploratory (product innovation) and exploitative (brand trademark protection) activities. It aims to show that firms characterized by high levels of uncertainty avoidance may be less competitive in the exploratory product development stage, but may be more competitive in the exploitative commercialization stage by producing more durable brands. Findings -Results show that uncertainty avoidance lowers the rate of product innovation, but helps firms to appropriate more value by greater protection of their brands. Uncertainty avoidance thus creates an exploration-exploitation trade-off.Practical Implications -This study provides useful insights for managers regarding where to locate a firm's front-end development (product innovation) activities and commercialization (brand trademarking protection) activities.Originality/value -This is the first study to demonstrate the influence of a cultural trait on both explorative and exploitative stages simultaneously. As a methodological contribution, it shows how objective, longitudinal brand trademark data can be used to analyze the long-term impact of marketing activities on firm performance.

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Section: Discussionsupporting

confidence: 88%

Section: Discussionsupporting

confidence: 50%

Section: Control Variablesmentioning

confidence: 99%

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Uncertainty avoidance and the exploration-exploitation trade-off

Broekhuizen

Giarratana

Torres

2017

EJM

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“…The question of how trademarked terms in search ads affects advertising outcomes is a new one for the marketing literature. Earlier research such as Cohen (1986Cohen ( , 1991Krasnikov et al (2009) have pointed out that trademarks present a crucial part of firm's branding efforts.…”

Section: Policy Changementioning

confidence: 99%

How Does the Use of Trademarks by Third-Party Sellers Affect Online Search?

Chiou

Tucker

2011

SSRN Journal

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Firms that sell via a direct channel and via indirect channels have to decide whether to allow third-party sellers to use the trademarked brand name of the product in their advertising. This question has been particularly controversial for advertising on search engines. In June 2009, Google started allowing any third-party reseller for a product to use a trademark, such as 'Doubletree,' in the text of its ad, even if the reseller did not have the trademark holder's permission. We study the effects of this change empirically within the hotel industry. We find some evidence that allowing third-party sellers to use a trademark in their online search advertising weakly reduced the likelihood of a consumer clicking on a trademark holder's paid search ads. However, the decrease in paid clicks was outweighed by a large increase in consumers clicking on the unpaid links to the hotelier's website within the main search results. Our evidence shows that when third-party sellers focus on the trademarked brand in their ads, their ads become less distinct, and customers are more likely to ignore the advertised offers and buy from the direct channel.

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“…Trademark stocks have been shown to contribute to firm performance and firm value (Griffiths et al, 2005;Krasnikov et al, 2009;Sandner and Block, 2011). This might seem surprising in view of comparably low costs to invent and protect a new sign.…”

Section: Introductionmentioning

confidence: 99%

Do Trademarks Diminish the Substitutability of Products in Innovative Knowledge-Intensive Services?

Crass

Schwiebacher²

2013

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Non-technical summaryTrademarks are treated negligent in the scholarly innovation discourse. In contrast to other intellectual property rights, trademarks are not intended traditionally to protect immediately valuable information. Trademarks protect distinctive commercial signs which stand for something else.Trademark protection encompasses two dimensions: signifier protection and dilution protection. The protection of distinctive signifiers facilitates customers to identify product source. Identifiable producers may compete on delivering reliably satisfying products.Traditional trademark law protects customer. In contrast, anti-dilution regulation protects the capacity of famous mark to identify and distinguish. Both dimensions of trademark protection might differentiate the signed products; either on quality characteristics or on product meaning.Diminishing product substitutability should foster product innovation incentives. Trademarks are therefore supposed to supplement the appropriation of innovation rents. This should be particularly the case for knowledge-intensive services in which other intellectual property rights are considered as little effective due to the intangible and interactive service production.Trademarks are often supposed to reduce substitutability and imitability of product innovations. Using German CIS data for 2010, we provide empirical evidence that trademarking firms assess easy product substitutability as less characteristic for their competitive environment. This correlation between the ease of product substitutability and trademark protection is present for product innovators, for firms in knowledge-intensive services and for firms which consider trademarks as important intellectual property rights.The correlation does not appear to reflect superior functional product characteristics from the application of new technological knowledge. This suggests trademarks as important complementary asset for the commercialization of innovative products in knowledgeintensive services. Das Wichtigste in Kürze AbstractTrademarks are often supposed to reduce substitutability and imitability of product innovations.Using data of the German innovation survey, we provide empirical evidence that trademarking firms in manufacturing and services assess easy product substitutability as less characteristic for their competitive environment. This is particularly the case for service firms which are knowledge-intensive, product innovators and which consider...

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Evaluating the Financial Impact of Branding Using Trademarks: A Framework and Empirical Evidence

Cited by 185 publications

References 49 publications

Uncertainty avoidance and the exploration-exploitation trade-off

Uncertainty avoidance and the exploration-exploitation trade-off

How Does the Use of Trademarks by Third-Party Sellers Affect Online Search?

Do Trademarks Diminish the Substitutability of Products in Innovative Knowledge-Intensive Services?

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