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The effects of uncertainty avoidance on brand performance: Marketing creativity, product innovation and the brand duration

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  • Marco S. Giarratana
  • Anna Torres

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Abstract

This paper investigates the link between brand performance and cultural primes in high-risk, innovation-based sectors. In theory section, we propose that the level of cultural uncertainty avoidance embedded in a firm determine its marketing creativity by increasing the complexity and the broadness of a brand. It determines also the rate of firm product innovations. Marketing creativity and product innovation influence finally the firm marketing performance. Empirically, we study trademarked promotion in the Software Security Industry (SSI). Our sample consists of 87 firms that are active in SSI from 11 countries in the period 1993-2000. We use the data coming from SSI-related trademarks registered by these firms, ending up with 2,911 SSI-related trademarks and a panel of 18,213 observations. We estimate a two stage model in which first we predict the complexity and the broadness of a trademark as a measure of marketing creativity and the rate of product innovations. Among several control variables, our variable of theoretical interest is the Hofstede’s uncertainty avoidance cultural index. Then, we estimate the trademark duration with a hazard model using the predicted complexity and broadness as well as the rate of product innovations, along with the same control variables. Our evidence confirms that the cultural avoidance affects the duration of the trademarks through the firm marketing creativity and product innovation.

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Bibliographic Info

Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 1015.

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Date of creation: Feb 2007
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Handle: RePEc:upf:upfgen:1015

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Web page: http://www.econ.upf.edu/

Related research

Keywords: Trademark duration; creativity; uncertainty avoidance cultural index;

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References

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  1. Mendonca, Sandro & Pereira, Tiago Santos & Godinho, Manuel Mira, 2004. "Trademarks as an indicator of innovation and industrial change," Research Policy, Elsevier, vol. 33(9), pages 1385-1404, November.
  2. Rebecca Henderson, 1993. "Underinvestment and Incompetence as Responses to Radical Innovation: Evidence from the Photolithographic Alignment Equipment Industry," RAND Journal of Economics, The RAND Corporation, vol. 24(2), pages 248-270, Summer.
  3. Pennings, J.M. & Harianto, F., 1992. "The diffusion of technological innovation in the commercial banking industry," Open Access publications from Tilburg University urn:nbn:nl:ui:12-382782, Tilburg University.
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Cited by:
  1. Melnyk, Valentyna & Giarratana, Marco & Torres, Anna, 2014. "Marking your trade: Cultural factors in the prolongation of trademarks," Journal of Business Research, Elsevier, vol. 67(4), pages 478-485.

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