The Nonlinear Effects of Brand Value on Shareholder Value
Based on the customer equity theory and firm boundary theory,we posit that two conflicting effects may occur as brand value grows.The positive effect is well known which will enhance shareholder value.The negative effect is caused by two forces: the customer heterogeneity and the customer entitlement.Furthermore,the growth of brand value may be constrained by the firm boundary.These factors make great performance differences between China”s companies and global companies ranked in the Interbrand or Fortune”s 500.This paper is designed to explore the nonlinear effects of China”s companies” brands,which is not similar to the previous studies,since the existing literature mostly focuses on firms from developed economies that have many advantages to overcome the constraining contexts.The results show that for China”s firms,the relationship between brand value and shareholder value adheres to a Cissoid function,and when a=6.8(a is a parameter of the function),brand value will not enhance shareholder value.The results has many implications for marketing practices.
Brand Value Shareholder Value Cissoid Function Nonlinear
Xiaoli Li Haizhong Wang Lianxi Zhou
Associate Professor of Business School at Guangdong University of Finance and Economcis,Guagnzhou Professor of Business School of Sun Yat-sen Universit,Guangzhou Professor of Brock Univwersity,St.Catharines,Canada
国内会议
China Marketing International Conference 2015 (2015中国市场营销国际学术年会)
西安
英文
249-269
2015-07-24（万方平台首次上网日期，不代表论文的发表时间）