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Brand Firm Performance and Tough Economic Times
Author(s) -
Chang Yuk Ying,
Young Martin
Publication year - 2016
Publication title -
international review of finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.489
H-Index - 18
eISSN - 1468-2443
pISSN - 1369-412X
DOI - 10.1111/irfi.12081
Subject(s) - veblen good , consumption (sociology) , conspicuous consumption , business , promotion (chess) , brand management , advertising , marketing , private label , economics , microeconomics , emerging markets , sociology , social science , finance , politics , political science , law
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.