The effect of macroeconomic threats on brand value and ranking: Insights from 10 years of fluctuations
- 53 Downloads
This empirical study analyzes the evolution of international brands over a decade, in a quest to understand which type of macroeconomic event changes overall brand value and performance. The article extends earlier IB literature (Suder et al; Johansson and Dimofte, inter alia), and literature that links brand performance to macroeconomic phenomena, including financial crises, terrorism and warfare; it aims to provide a complementary means for formulating long-term corporate strategy in this field. The largest 100 brands are classified as one particular measure of international corporations’ global reach. Earlier studies employing this methodology found that ranking and value alterations in these brands raised crucial questions for US/non-US brand strategy. Today, more than a decade after 09/11 and in the midst of global financial turmoil, a longitudinal sample allows for extended analyses: these reveal the role of major geopolitical events and present crucial indications of an even greater impact on brands than those of financial crises.
Keywordsinternational brands ranking macroeconomy geopolitics uncertainty crisis
- Aaker, D.A. (2004) Brand Portfolio Strategy. New York: The Free Press.Google Scholar
- Anuwichanont, J. and Rajabhat, S. (2010) Examining the relationship between commitment and airline loyalty and the moderating effect of uncertainty avoidance. Journal of Business & Economics Research 8 (9): 127–137.Google Scholar
- Atkinson, D. and Claude, R.P. (2008) Human rights and multinational corporations: The Global Compact and continuing evolution. In: G. Suder (ed.) International Business under Adversity: A Role in Corporate Responsibility. Cheltenham, UK: Conflict Prevention and Peace, Edward Elgar Publication, pp. 8–24.Google Scholar
- Bakhtin, M. (1981) The Dialogic Imagination: Four Essays. Austin, TX: University of Texas Press.Google Scholar
- Bonabeau, E. (2007) Understanding and managing complexity risk. MIT Sloan Management Review 48 (4): 62–68.Google Scholar
- Bouchet, M. (2007) Intelligence économique et globalisation: risque de rumeur et rumeur de risqué. In: M. Bouchet and A. Guilhon le Fraper du Hellen (eds.) Intelligence économique et gestion des risques. Paris, France: Pearson Education France, pp. 109–128.Google Scholar
- Choi, J., Kyoung- Nan, K. and Lee, M. (2007) Understanding materialistic consumption: A Terror Management Perspective. Journal of Research for Consumers (13): 1–7.Google Scholar
- Chung, K. and Shin, T. (2009) Conceptualising brand trust in E-tertiary education: A tri-nation study. Journal of Internet Business 7: 60–71.Google Scholar
- Czinkota, M. and Suder, G.G. (forthcoming) Terror and Return on Equity: Evidence of the Impact of Global Terrorism on Corporate Profitability. Working paper. Georgetown University and Skema Business School.Google Scholar
- Douglas, S.P. and Craig, C.S. (2008) Reassessing global marketing strategy. In: A. Rugman (ed.) International Business Scholarship: AIB Fellows on the First 50 Years and Beyond (Research in Global Strategic Management, Volume 14). Bingley: Emerald Group Publishing Limited, pp. 139–153.CrossRefGoogle Scholar
- Garvey, J. and Mullins, M. (2009) An Examination of ‘New’ and ‘Old’ Terrorism Using High-Frequency Data. Berlin, Economics of Security Working Paper 18.Google Scholar
- Ghose, A. and Yan, S. (2008) Analyzing Search Engine Advertising: Firm Behavior and Cross-Selling in Electronic Markets. Proceeding of the 17th international conference on World Wide Web archive, Beijing, China. Session: Internet monetization: Sponsored Search; pp. 219–226.Google Scholar
- Heidner, E.P. (2008) Collateral Damage (Part 2): The Subprime Crisis and the Terrorist Attacks on September 11, 2001, http://www.contramotion.com/dossier/20010911/Collateral_Damage_911_Part_II.pdf, accessed 1 September 2011.
- Interbrand. (2001–2010) Best Global Brands, http://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2010.aspx, accessed 1 September 2011.
- Johansson, J.K. and Dimofte, C.V. (2010) The performance of global brands in the 2008 financial crisis. Academy of International Business Annual Conference, Rio de Janeiro, http://home.ku.edu.tr/~globalbrand/files/Johansson_and_Dimofte.pdf, accessed 1 September 2011.
- Mandel, N. and Heine, S.J. (1999) Terror management and marketing: He who dies with the most toys wins. In: E. Arnould and L.M. Scott (eds.) Advances in Consumer Research, Vol. 26. Provo, UT: Association for Consumer Research, pp. 527–532.Google Scholar
- Park, D. and Park, S. (2008) The multiple source effect of online consumer reviews on brand evaluations: Test of the risk diversion hypothesis. Advances in Consumer Research 35: 745–758.Google Scholar
- Prahalad, C.K. (2006) The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits. Philadelphia, PA: Wharton School Publishing.Google Scholar
- World Economic Forum. (yearly, 2001–2002 to 2009–2010) The Global Competitiveness Report. K. Schwab (ed.) Geneva, http://www.weforum.org/reports.