Brand Firm Performance and Tough Economic Times

Chang, Y. & Young, M. (2016). Brand Firm Performance and Tough Economic Times. International Review of Finance, 16(3), 357-391.

43 Pages Posted: 20 Sep 2017

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: November 2015

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 2013). This switch can also be the result of the vigorous promotion of private label products (Lamey et al. 2012). However, dedicated customers and conspicuous consumption (Veblen 1899; Berger and Ward 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.

Keywords: brand firms, firm performance, difficult economic times, conspicuous consumption

JEL Classification: G39, L25, M30

Suggested Citation

Chang, Yuk Ying and Young, Martin R., Brand Firm Performance and Tough Economic Times (November 2015). Chang, Y. & Young, M. (2016). Brand Firm Performance and Tough Economic Times. International Review of Finance, 16(3), 357-391.. Available at SSRN: https://ssrn.com/abstract=3039217

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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