Brand Firm Performance and Tough Economic Times

35 Pages Posted: 2 Sep 2016

See all articles by Yuk Ying (Candie) Chang

Yuk Ying (Candie) Chang

Massey University

Martin R. Young

Massey University - School of Economics and Finance

Multiple version iconThere are 2 versions of this paper

Date Written: September 2016

Abstract

Negative income shocks may cause lower consumption and a switch in consumption from brand to non‐brand products as consumers economize on price (Larkin [Larkin, Y., 2013]). This switch can also be the result of the vigorous promotion of private label products (Lamey et al. [Lamey, L., 2012]). However, dedicated customers and conspicuous consumption (Veblen [Veblen, T., 1899]; Berger and Ward [Berger, J., 2010]) can mitigate or even neutralize these effects on brand firms. Consistent with the notion that enduring consumption by brand customers has a stronger effect, we find that compared with non‐brand firms, brand firms performed better in and recovered quicker from the difficult economic times of the late 2000s.

Suggested Citation

Chang, Yuk Ying and Young, Martin R., Brand Firm Performance and Tough Economic Times (September 2016). International Review of Finance, Vol. 16, Issue 3, pp. 357-391, 2016. Available at SSRN: https://ssrn.com/abstract=2833629 or http://dx.doi.org/10.1111/irfi.12081

Yuk Ying Chang (Contact Author)

Massey University ( email )

Palmerston North
New Zealand

Martin R. Young

Massey University - School of Economics and Finance ( email )

Private Bag 11222
Palmerston North, 4442
New Zealand

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