The Effects of Advertising and Brand Value on Future Operating and Market Performance

Eng, Li Li; Keh, Hean Tat

doi:10.2753/joa0091-3367360407

Cited by 74 publications

(64 citation statements)

References 30 publications

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“…Such lags are supported by Bender et al (1996), who reported a study that found "a change in level of measured communication was followed in the next year by a change in reputation and in the year following by a change in financial performance" (p. 12); by Boulding and Staelin (1995), who empirically justified the use of one-year lags when investigating the relationship between R&D activities and firm performance; by Eng and Keh (2007), who allowed their analysis model to have lags of up to 4 years; and by Sougiannis (1994) and Ho et al (2005), who found differential lag effects for advertising expenditures and R&D expenditures. Consequently, the present research investigated five lag-based path analysis models in addition to a base (contemporaneous) path analysis model, in part to avoid the causal ambiguity present in specifications of contemporaneous relationships among the focal variables (e.g., Lovett and MacDonald 2005).…”

Section: The Influence Of Timementioning

confidence: 75%

“…Using lagged data from Financial World and Adweek, Eng and Keh (2007) analyzed the joint effects of brand value and advertising expenditures on a firm's financial performance (future stock returns) and future operating performance (future accounting returns). They reported that neither brand value nor advertising expenditures had a significant effect on firm-level financial performance.…”

Section: Brand Value and Firm Financial Performancementioning

confidence: 99%

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Exploring the impact of advertising and R&D expenditures on corporate brand value and firm-level financial performance

Peterson

Jeong

2010

J. of the Acad. Mark. Sci.

103

113

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A parsimonious framework linking advertising expenditures and research and development expenditures to brand value, and brand value in turn to firm-level financial performance, was proposed and empirically investigated under four data conditions: data form, brand type, financial performance metric, and lag structure. Using pooled data from 125 firms (848 firm-year observations) over the period 1991-2007, 108 path analyses were conducted to compute five path model output metrics. Data on these metrics were then compared for each of the data conditions by means of analysis of variance. Although significant relationships were generally observed among framework variables, study results differed considerably across three of the four data conditions. The principal take-away from the study is that the impact of marketing activities on firm-level financial performance is likely to be in large part a function of the specific research purpose and methodology employed. As such, the take-away has implications when interpreting value-relevance findings, when constructing theories involving market-based assets, and when designing studies to investigate relationships between marketing and financial performance.

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Section: The Influence Of Timementioning

confidence: 75%

Section: Brand Value and Firm Financial Performancementioning

confidence: 99%

Exploring the impact of advertising and R&D expenditures on corporate brand value and firm-level financial performance

Peterson

Jeong

2010

J. of the Acad. Mark. Sci.

103

113

View full text Add to dashboard Cite

show abstract

“…The value creation process is closely linked to a firm's R&D activities, whereas the value appropriation process is basically related to a firm's advertising activities. Mizik and Jacobson (2003) found that the stock market reacts favourably when a firm increases its emphasis on value appropriation relative to value creation (Eng & Keh, 2007). This suggests that advertising has more capabilities than R&D to enhance brand equity and, in turn, shareholder value.…”

Section: H2b: There Is a Positive Relationship Between Changes In Randdmentioning

confidence: 97%

“…Advertising can play a key role in achieving superior brand equity by communicating with potential customers (Ailawadi, et al, 2003;Srivastava, 1998;Buil, de Chernatony & Martínez, 2013;Eng & Keh 2007;Sriram, et al, 2007;Wang, et al, 2009). R&D can also contribute to brand equity by helping a firm to be equipped with knowledge and information about customers and competitors to survive in the market.…”

Section: The Impact Of Advertising and Randd On Marketbased Assetsmentioning

confidence: 99%

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

Jeong

2015

SAJBM

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This study examines whether advertising can contribute directly to brand equity and, if it can, determines how much value advertising can deliver to brands and firms using the secondary data from various sources. The findings show that advertising can not only work to improve market performance measures but also to develop and maintain brand equity. R&D is also found to positively affect brand equity. With regard to the relative effectiveness of advertising and R&D, R&D is more effective than advertising in contributing to brand equity when measuring absolute effects of expenditures. When measuring simple changes in brand equity, however, changes in advertising are more effective than changes in R&D.

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“…Keller (2010) described that advertising as type of marketing communication, induces various effects on brand equity. In addition, Eng and Keh (2007) investigated that investments in advertising are crucial for brand equity. Undoubtedly, advertising plays a serious role in influencing consumers.…”

Section: Theoretical Approach and Hypothesis Developmentmentioning

confidence: 99%

Influence of advertising on consumer-based brand loyalty

Bakator¹,

Boric²,

Paunović³

2017

JEMC

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This paper examines the relationship between advertising and brand loyalty. Further, mediating dimensions are included in the research: brand trust and perceived quality. The data was collected via online survey. The data processing included a t-test analysis, regression analysis, and correlation analysis. Next, the findings have shown moderate influence of advertising on brand loyalty. Overall, satisfactory results are achieved. Certain limitations with online surveys didn't affect the results of the research. Furthermore, the findings in this paper contribute to future research, offering a solid basis for a more complex investigation of the marketing environment.

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The Effects of Advertising and Brand Value on Future Operating and Market Performance

Cited by 74 publications

References 30 publications

Exploring the impact of advertising and R&D expenditures on corporate brand value and firm-level financial performance

Exploring the impact of advertising and R&D expenditures on corporate brand value and firm-level financial performance

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

Influence of advertising on consumer-based brand loyalty

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