The impact of product innovation attributes on brand equity

Abstract

Purpose – This paper aims to examine the impact of product innovation attributes (complexity, relative advantage, compatibility, trialability and observability) on brand equity, and whether these attributes exert a different effect on low- versus high-equity brands. The moderating role of consumer innovativeness in this relationship is investigated further. Design/methodology/approach – The study is based on survey data from users of two brands of digital audio players of different brand equity levels. Findings – Overall, it was found that innovation attributes have an effect on brand equity, and this effect differs between low- and high-equity brands, with a low-equity brand being benefited more than a high-equity brand from perceptions towards a product’s innovation attributes. Additionally, it was found that the impact of complexity and relative advantage on brand equity increases when consumer innovativeness increases in the case of a high-equity brand. However, no significant difference was found between low- and high-equity brands regarding the proposed moderating effect of innovativeness. Research limitations/implications – The study only examines two brands belonging to one particular industry, which limits the findings’ generalizability. Thus, the use of more test brands from different industries should be the goal for future research. Practical implications – Managers should consider the firm’s current brand equity level and its competitive position to maximize the effect of product innovation attributes. Originality/value – The study makes an original contribution to the research on the relationship between product innovation and brand equity and provides theoretical and managerial implications in the field of innovation and brand management.

Innovation Capability and Export Performance of Turkish Export Firms

“…The findings show that CSR contributed to the enhancement of the impact of exploratory innovation on export performance. Nørskov, Chrysochou, and Milenkova (2015) examined the effects on product innovation characteristics as complexity, relative advantage, compatibility, trial ability, and observability on brand equity. These characteristics have different levels of effect on brand equity.…”

Motion to innovation: Brand value sources have (not) changed over time

“…Additionally, it was found that the impact of complexity and relative advantage on brand equity increases when consumer innovativeness increases in the case of a high-equity brand. However, no significant difference was found between low-and highequity brands regarding the proposed moderating effect of innovativeness [8].…”

The Impact of Business Innovations on Brand Value

“…They find, that all attributes, except for trialability, have a significant effect on the low-equity brand. On the other hand, only observability has a significant positive effect on the high-equity brand (Norskov et al, 2015).…”

“…Innovation and brand equity are two important dimensions that drive businesses today; innovation in particular is a primary determinant of brand equity (Staake et al, 2009 in Liao & Cheng, 2014). Product innovation and brand equity are recognized as key stratetgic assets that play a fundamental role in firm growth and success (Slotegraaf &Pauwels, 2008in Norskov et al, 2015. Innovation is a cornerstone of value creation (Mizik & Jacobson, 2003 in Slotegraaf &Pauwels, 2008).…”