- Title:
- The effects of uncertainty avoidance on brand performance: Marketing creativity, product innovation and the brand duration
- Authors:
- Marco S. Giarratana and Anna Torres
- Date:
- 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 codes:
- M31
- Area of Research:
- Management and Organization Studies / Statistics, Econometrics and Quantitative Methods