DOCSLIB.ORG

Using Double-Distal Mediators of Brand Perception and Brand Equity

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Using Double-Distal Mediators of Brand Perception and Brand Equity The Influences of Brand Innovation on Customer Value: Using Double-Distal Mediators of Brand Perception and Brand Equity Yung-Chieh Chien, Department of Business Management, Kao-Yuan University, Taiwan ABSTRACT The purpose of this study is to verify the situation of innovative activities held by a Japanese motor corporation in Taiwan versus customer value, using brand perception and brand equity as the mediators. A questionnaire-based survey was conducted on chiefs of sections (and higher-level) at a particular Japanese motor corporation in Taiwan. Simple random sampling was used to carry out the job of sampling to yield higher sample response rates. The overall model’s goodness-of-fit effect concerning the structural and measurement models were verified using linear Structural Equation Modeling (SEM). Regarding the path coefficients for implicit/unobservable variables in the structural model, the MacKinnon PRODCLIN 2 program was employed to test how significant the model’s total effect, specific mediating effects and direct effects are. Research results showed that: (1) the overall model had a statistically significant total effect, which suggests a distal mediating effect in the model constructed by the author; (2) the brand innovation exerted a significantly direct effect on customer value; (3) both brand perception and brand equity exerted significant and almost the same specific mediating effects. Keywords: brand innovation, customer value, brand perception, brand equity, distal mediator INTRODUCTION Currently, Taiwan’s automotive sales industry has been confronted with extremely intense competition. As a result, it has been a crucial key to victory for business competitiveness in Taiwan’s automotive sales industry that brand equity must be formed to enhance customer value by continuous brand innovation created from professional knowledge, and accumulative brand perception. Therefore, any organizations will combine brand perception and accumulative brand equity on a basis of brand innovation for the purpose of creating customer value. Accordingly, the establishment of sustainability becomes a key factor for business success. Brand innovation has currently become the most important issue to brand management during the era of knowledge-based economy. Only continuity of innovation will maintain the vitality of a brand; therefore, businesses’ attention to consumer acceptance to brand innovation should give a demonstration. In addition, both Porter (1980) and Day (1990) stressed excellent customer value is a key factor to achieve business success. Only those businesses understanding customers’ requirement and expressing their concerns on customer value will have competitive advantage, which will be the key to achieve successful business operation. Furthermore, brand equity builds brand advantage in customers’ minds that lets the brand product build up its competitive advantage in the market, winning customers’ positive preference and impression on the brand product; moreover, customers will be increasingly aspired to purchase the product. However, Keller (2003) advocated it is necessary to strive a lot to build up a powerful brand; thus, applied effort will create a brand receiving consumers’ resonance and response. The Journal of Global Business Management Volume 9 * Number 2 * June 2013 issue, Special Edition 53 Apart from the above, marketing executives can strengthen the brand knowledge and image in consumers’ minds by using media advertising and others; and then, consumers’ brand perception will be enhanced to increase the brand customer value. Consequently, this author conducted a case study of a particular Japanese motor corporation in Taiwan and built a research model for analyses/verification in an attempt to understand the model’s goodness-of-fit. The specific purposes of this study were: 1. To verify and understand whether the brand innovation implementation has a distal mediating effect on customer value in a particular Japanese motor corporation in Taiwan; 2. To verify and understand whether the brand innovation implementation exerts a significant, positive and direct effect on customer value in a particular Japanese motor corporation in Taiwan; 3. To verify and understand whether the brand innovation implementation, mediated by brand perception, exerts a significant, specific and indirect mediating effect on customer value in a particular Japanese motor corporation in Taiwan; 4. To verify and understand whether the brand innovation implementation, mediated by brand equity, exerts a significant, specific and indirect mediating effect on customer value in a particular Japanese motor corporation in Taiwan; 5. To determine which of the two mediators (i.e., brand perception and brand equity) has a larger specific indirect effect. LITERATURE REVIEW The purpose of this study is to verify the effects of brand innovation implementation by a Japanese motor corporation in Taiwan on customer value, using brand perception and brand equity as the mediators. The relevant theories and studies are stated as follows: Brand Innovation Today, consumers have to deal with arrays of product items where mere brand building is not enough since the lapse of time will get consumers numb with brand perception and freshness; therefore, brand innovation aims to convey either direct or indirect experiences to consumers through every interaction of innovative concepts. This is the best promoter of the brand publicity to form the concept attitudes and ideas for the brand (Chang, 2011). Schultz and Barnes (1999) believed a brand can not only let consumers hold the ownership, but also give consumers market meaning, which represents what consumers are, and the belief in the brand to advance higher social position. A brand is not just a name, symbol, or icon; it is a relationship with consumers. Grant (2006) believed the brand innovation operational definition was: “A brand is just like a story, being a key to drive cultural logic, establishes the continuity and association to have every new concept added to a brand’s benefits and make the brand alive in the hearts of people.” Brand innovation poured innovative concept activities into an existing brand so that there are eight items of brand innovation: (1)Concept of New Tradition; (2) Faith; (3) Human Herd Instinct; (4) Connection; (5) Neo-Luxury; (6) Time; (7) Excitement; and (8) Control. From the aspect of cultural evolution, every new concept can be added to a brand’s benefits and make the brand alive in the hearts of people. To sum up, the perspectives of Grant (2006) were adopted in this study for the brand innovation operational definition and classification. 54 The Journal of Global Business Management Volume 9 * Number 2 * June 2013 issue, Special Edition Brand Perception Seringhaus (2002) agreed the concepts of fine brand perception mainly are subjective value decisions formed by the perceptions from individuals, relatively others or with regard to temperament. Tauber (1988) pointed out brand perception highly fits consumers that will easily transfer relevantly positive or negative association from parent brands to extensive products. The fit of brand perception is a decisive factor whether a brand would be successful or not. For consumers’ purchase process, the brand perception is a very important influential factor. Hoyer and Brown (1990) studied and manifested brand perception has great influence on consumers’ purchase selection; they believed brand perception is a basis for first priority while selecting a product. It shows the importance of the brand awareness. Vigneron and Johnson (2004) studied and manifested that measuring of perceived brands can be classified into: (1) Non-personal Perception (Conspicuousness, Uniqueness, Quality); and (2) Personal Perception (Pleasure, Extended Self). Brand perception is one of the connotations of brand knowledge. Keller (1993) validated that brand perception comprises brand recall and brand recognition. Brand recognition means consumer’s capability to identify a brand according to specific brand clues, and brand recall, a capability to recall specific brands according to different product categories. Therefore, consumers will recall the products with high brand perception when they recall one certain product category; and then, they will habitually purchase the products they are familiar with and famous brands. As a result, brand perception plays an extremely important role in consumers’ purchase decision making (Lu, 2008). From above, this study referred to the definition made by Seringhaus (2002), that is: the concepts of brand perception mainly are subjective value decisions formed by the perceptions from individuals, relative others, and quoted the view of Keller (1993) that (1) brand recall and (2) brand recognition are important factors in regard to the measurement perspective of brand perception. Brand Equity From the point of view finance, Simon and Sullivan (1993) believed that brand equity is financial brand value made of customer brand advantage, as well as defined by increments of corporate future cash flows; meanwhile, it represents the brand equity to own extra value beyond all tangible assets. From the point of view marketing, Tauber (1988) believed that brand equity has surmounted the added value of tangible assets owing to the market position achieved by the brand; consequently, the added value has created the corporate brand and the brand innermost value in consumers’ minds other than the functional value after consumers’
Load more

Recommended publications
  • Corruption and Integrity Programme
    Anti-Corruption and Integrity Programme A Study on the Link between Corruption and the Causes of Migration and Forced Displacement Human CorruptionSecurity Published by: A Study on the Link between Corruption and the Causes of Migration and Forced Displacement March 29, 2017 Authors: Ortrun Merkle* Julia Reinold* Melissa Siegel* *Maastricht Graduate School of Governance The publication “A Study on the Link between Corruption and the Causes of Migration and Forced Displacement” was commissioned by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Anti-Corruption and Integrity Programme, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The contents of this publication do not represent the official position of neither BMZ nor GIZ. Table of Content 3 Table of Content List of Figures ..........................................................5 List of Tables...........................................................6 List of Boxes ...........................................................7 Acknowledgments .......................................................7 Abbreviations ...........................................................7 Executive Summary ......................................................9 1. Introduction ........................................................10 2. Mapping the Conceptual Terrain: Corruption and Migration .....................13 2.1. Corruption - what do we mean? 13 2.2. The concept of human security 16 2.3. Migration – the background 18 3. Methodology
    [Show full text]
  • How Agency and Structure Shaped Value Stasis in the Automobile Ecosystem
    HOW AGENCY AND STRUCTURE SHAPED VALUE STASIS IN THE AUTOMOBILE ECOSYSTEM Michael G. Jacobides , London Business School Regent’s Park, Sussex Place, London NW1 4SA; +44 20 7000 8716 [email protected] John Paul MacDuffie , The Wharton School , U. Pennsylvania 3105 SH-DH, 3620 Locust Walk, Philadelphia PA, +1 215 898 2588 [email protected] C. Jennifer Tae , London Business School Regent’s Park, Sussex Place, London NW1 4SA; +44 20 7000 7000 August 2013 Under review at Strategic Management Journal Abstract We ask why value has not migrated in the automobile sector, despite expectations that it would follow the example of computers. We explain the factors underpinning stability in terms of value distribution in this ecosystem. Automobiles underwent vertical disintegration yet, unlike computers, the sector remained hierarchically controlled. Due to greater market scale and slower growth, plus persistence of integral product architecture, industry standards failed to emerge. Slow clockspeed, user requirement stability, and downstream access lock-in, as well as legal liability and certification, all acted as forces of stasis. We illustrate how these structural features interact with strategic agency of OEMs, intent on maintaining their central role as system integrators: retaining dominant influence over the locus of differentiability along the value chain and managing relative replaceability. (125 words) 1 Over the last decade, applied strategy research has increasingly focused on co-dependent systems of complementors, through concepts such as “ecosystems” (Iansiti & Levien, 2004; Adner, 2012), “industry architectures” (Jacobides, Knudsen & Augier, 2006; Pisano & Teece, 2007), and “platforms” (Gawer & Cusumano, 2002; Cusumano, 2010). Interestingly, this has highlighted a shortcoming of our analytical arsenal.
    [Show full text]
  • Value Gap Marketing: Customer Value Optimisation Using Database
    John Groman graduated from Harvard Value gap marketing: Business School where he also spent two years in the faculty prior to founding Customer value optimisation Epsilon, a full-service advertising and database using database marketing marketing agency specialising in customer John Groman acquisition, retention and Date received: 10 May 1999 loyalty programmes. Abstract Your organisation’s marketing database is a goldmine of customer information that helps you separate your most valuable customers from the rest. But are you getting as much value from your best customers as you can? Do you know that some of your low-value customers are worth even more than you currently think? Or which customers will be your best ones three years from now? Value gap marketing, an innovative methodology that heralds the next generation of database marketing, can help you determine which customers represent the greatest potential value over time. Keywords Value gap marketing, Value gap marketing is an eight-step process for getting the most customer value, customer out of your database marketing effort. Case examples are given potential, database marketing, potential value from the fundraising, retail bank and credit card industries. Introduction For years, database marketers have worked from the premise that not all customers are created equal. They have succeeded by focusing marketing efforts and budgets on the top customer deciles. Value gap marketing (VGM) takes this a step further by examining existing customers and prospects to determine their current and potential category spending. If customer valuation focuses solely on historic activity, the bigger picture of category spending is missed. By DBM looks comparing their current share of category and examining the customer backward, VGM demographics and psychographics of top category spenders, it is looks forward possible to identify current and future customer potential irrespective of their history of spending.
    [Show full text]
  • Creating Value in Fast-Moving Markets
    Creating Value in Fast-Moving Markets An overview of Oliver Wyman helps firms operating in fast-moving mar- Oliver Wyman’s kets create sustained value, capitalize on deep customer high-tech strategy understanding, and drive organizational change that and operations will bring strategy to life. In hundreds of engagements capabilities around the globe, we've helped high-tech clients generate superior operating results–– including building billion- dollar businesses, quadrupling operating margins, and doubling growth rates. Oliver Wyman publishes its strategic insights in regular contributions to the Harvard Business Review, the Wall Street Journal, the Financial Times, and other leading periodicals, as well as in our agenda-setting books. As part of a $3.6 billion global consultancy, we are able to offer unparalleled breadth of scope and depth of industry and topical expertise. Oliver Wyman serves clients worldwide with strategy advisors based in the Americas, Europe, Asia, and the Middle East. Oliver Wyman’s Edge Oliver Wyman has consistently led the industry’s thinking and execution around the areas of customer priorities, business model innovation, and organizational design––three areas which continue to experience dramatic changes. In fact, we’ve built our firm around them. Oliver Wyman is a roll-up of boutique strategy and organizational consultancies with unique intellectual capital and capabilities in customer understanding and business design. Over the past 30 years, we have completed hundreds of engagements for high-tech clients around the globe. We have assisted 90% of the Fortune 100 technology companies over the past five years alone. Our clients also include mid-cap firms and even startups, as well as private equity firms focused on technology markets.
    [Show full text]
  • Marketing Strategy to Jane
    Marketing Strategy To Jane The wind beneath my wings Marketing Strategy The Difference Between Marketing and Markets Third edition Paul Fifield AMSTERDAM BOSTON HEIDELBERG LONDON NEW YORK OXFORD PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO Butterworth-Heinemann is an imprint of Elsevier Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP, UK 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA First edition 1992 Paperback edition 1993 Second edition 1998 Third edition 2007 Copyright # 1992, 1998, 2007, Paul Fifield. Published by Elsevier Ltd. All rights reserved The right of Paul Fifield to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988 No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone ( þ 44) (0) 1865 843830; fax ( þ 44) (0) 1865 853333; email: [email protected]. Alternatively you can submit your request online by visiting the Elsevier web site at http://elsevier.com/locate/permissions, and selecting Obtaining permission to use Elsevier material Notice No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise,
    [Show full text]
  • Value Migration
    IndiaThematic Strategy | Get| January on track please 2017 ! Value Migration PickingPicking winnerswinners inin disruptivedisruptive timestimes Gautam Duggad ([email protected]) Value Migration | Thematic Contents | Value Migration: Picking winners in disruptive times Summary .............................................................................................................................. 7 Value Migration .................................................................................................................. 11 What causes value migration? ............................................................................................ 14 Value migration case studies .............................................................................................. 15 Types of value migration .................................................................................................... 16 Inter-company value migration in the same industry ......................................................... 17 How do you measure value migration?............................................................................... 30 How do you detect value migration? .................................................................................. 33 Duration of Value Migration ............................................................................................... 35 Value Migration in Cement ................................................................................................. 36 Value outflow led by
    [Show full text]
  • Predictive Marketing
    Predictive Marketing Predictive Marketing Easy Ways Every Marketer Can Use Customer Analytics and Big Data Ömer Artun, PhD Dominique Levin This book is printed on acid-free paper. ♾ Copyright © 2015 by AgilOne. All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at www.wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with the respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate.
    [Show full text]
  • When Handsets Became Smart
    School of Economics and Management Department of Business Administration FEKN90 Business Administration- Degree Project Master of Science in Business and Economics Spring term of 2013 When Handsets Became Smart A case study on value migration in the handset OEM industry Author: Erik Lundin Viktor Lundqvist Supervisor: Fredrik Häglund Magnus Johansson Abstract Title When handsets became smart - A case study on value migration in the handset OEM industry Authors Erik Lundin, Viktor Lundqvist Supervisors Ph. D Candidate Fredrik Häglund, Ph. D Magnus Johansson Purpose The purpose of this thesis is to describe the value migration that has taken place inside the handset OEM industry between 2007 and 2011. Our second purpose is to see if we can create a framework that deepen the understanding on how to control the flow of value. Method A qualitative case study has been made with four different cases, representing four types of value flow. Interviews with expert analysts in the mobile industry have been conducted and secondary data has been collected and analyzed with an abductive point of view. Conclusions The main cause of the intra industry value migration is that the base of competition has shifted from product performance to flexibility, differentiation and speed which in this industry means ecosystem, brand and time-to-market. The asymmetric business models and the two-sided platforms have proven to be a cause of inter industry value migration. This is a natural cause of their nature, since resources is spent in one end and value is absorbed in the other, and if these parts operate in different industries, inter industry value migration has to happen.
    [Show full text]
  • Internet-Based Customer Value Management
    Management for Professionals Tymoteusz Doligalski Internet-Based Customer Value Management Developing Customer Relationships Online Management for Professionals More information about this series at http://www.springer.com/series/10101 Tymoteusz Doligalski Internet-Based Customer Value Management Developing Customer Relationships Online Tymoteusz Doligalski Warsaw School of Economics Warsaw Poland Translation by Maria Wańkowicz and Weronika Mincer ISSN 2192-8096 ISSN 2192-810X (electronic) ISBN 978-3-319-09854-8 ISBN 978-3-319-09855-5 (eBook) DOI 10.1007/978-3-319-09855-5 Springer Cham Heidelberg New York Dordrecht London Library of Congress Control Number: 2014952034 # Springer International Publishing Switzerland 2015 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Duplication of this publication or parts thereof is permitted only under the provisions of the Copyright Law of the Publisher’s location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the Copyright Clearance Center. Violations are liable to prosecution under the respective Copyright Law.
    [Show full text]
  • Supply Chain Transformation
    Supply Chain Management COURSE NUMBER: 22:799:623 COURSE TITLE: Supply Chain Transformation Course Description A convergence of global trends over the last 25 years, comprising a global data traffic boom, growth of online users, increase in connected objects, and cloud computing has laid the foundation for the digital era. This era is predicted to bring tremendous value to business and society globally. Commercialization and rapid deployment of new technologies such as artificial intelligence (AI), blockchain, internet of things (IoT), robotics process automation (RPA), and big data analytics, have enabled traditional firms across industries to pursue digital transformation and reimagine solutions to existing business challenges to create tremendous value for their customers and partners. Digital transformation is a set of initiatives businesses pursue to create exponential value for their customers and partners. It is driven by a thorough assessment of a corporation’s business objectives and strategy, and usually enabled by innovating with a combination of people, data, processes, and new and existing technologies. Businesses worldwide are optimistic regarding the potential of business growth driven by digital capabilities1. A World Economic Forum report states that the combined value of the digitalization already occurring industrywide has the potential to generate upwards of $100 trillion over the next six years2. That is a massive predicted increase, representing more than a doubling of the entire global gross domestic product (GDP) today. While one should be very wary of such projections when making corporate decisions, one should also be aware of such information. Traditional firms, regardless of size, are recognizing the disruptive potential of technology generated by industry giants and digital startups, and the resulting threat of value migration.
    [Show full text]
  • The Conceptual Model of Enterprises' Value Migration Model Koncepcyjny
    9 (58) 2013 Dariusz Siudak Lodz University of Technology The Conceptual Model of Enterprises’ Value Migration Model koncepcyjny migracji wartości przedsiębiorstw The goal of this article is to conceptualize the process of value migration between companies. It takes advantage of A. Slywotzky’s three stages of value migration model, which specifies the inflow, stability and outflow stages of value migration. The key issue is the discrimination of frames of the stability stage in terms of the volume of value migration as well as its timing. key words: value migration, three stages of value migration model, value inflow, value stability, value outflow. 1. Introduction Value based management combines strategic management with financial management directed at maximizing corporate value in the long term. The goal of increasing corporate value may be realised by generating a return on invested capital above the weighed average cost of capital (ROI>WACC). In consequence, this leads to an inflow of value into a company due to a respective increase in market value of capital equity in relation to book value. From the financial viewpoint, the general premise of value management concept results from the belief that all capital invested in the current business activity has its cost. Traditional measures used for evaluating company profitability, based on net profit, only take into account the cost of debt capital. In the theory of value management, value creation comes as a result of gaining returns on investment higher than the capital invested, so that the claims of the creditors and shareholders can be satisfied, and the cost of debt and equity capitals covered.
    [Show full text]
  • Global Capital Markets 2016
    Global Capital Markets 2016 The Value Migration The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for- profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep in sight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable compet itive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 85 offices in 48 countries. For more information, please visit bcg.com. Founded in 2001, Expand Research is transforming the way the world’s financial markets make business and technology decisions by providing timely decision support and research services on business and technology strategies to leading financial institutions globally. In July 2011, Expand became an independent subsidiary of The Boston Consulting Group. It has offices in London, New York, and Singapore. Global Capital Markets 2016 THE VALUE MIGRATION PHILIPPE MOREL CHARLES TESCHNER WILL RHODE SHUBH SAUMYA ANDRE VEISSID CARSTEN GUBELT MICHAEL STRAUSS GWENHAËL LE BOULAY LAILA WORRELL May 2016 | The Boston Consulting Group CONTENTS 3 INTRODUCTION 5 OVERVIEW: KEY MARKET DEVELOPMENTS Revenues Balance Sheets Costs 10 VALUE SHIFTS IN THE ECOSYSTEM Secular Trends Industry Convergence 15 BUSINESS MODEL TRANSFORMATION The Six Pillars The Journey 19 APPENDIX 21 FOR FURTHER READING 22 NOTE TO THE READER 2 | The Value Migration INTRODUCTION nfavorable economic conditions, escalating capital Urequirements, and stubbornly high costs continue to depress the performance of many investment banks.
    [Show full text]