The Effects of Uncertainty Avoidance on Brand Performance: Marketing Creativity, Product Innovation and the Brand Duration

19 Pages Posted: 25 Jul 2007  

Marco S. Giarratana

Department of Management & Technology

Anna Torres

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Date Written: February 2007

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.

Keywords: Trademark duration, creativity, uncertainty avoidance cultural index

JEL Classification: M31

Suggested Citation

Giarratana, Marco S. and Torres, Anna, The Effects of Uncertainty Avoidance on Brand Performance: Marketing Creativity, Product Innovation and the Brand Duration (February 2007). Available at SSRN: https://ssrn.com/abstract=1002874 or http://dx.doi.org/10.2139/ssrn.1002874

Marco S. Giarratana

Department of Management & Technology ( email )

Via Sarfatti, 25
Milan, MI 20136
Italy

HOME PAGE: http://www.mgiarra.eu

Anna Torres-Lacomba (Contact Author)

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain

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