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How Innovation Types Drive Consumers’ Brand Perception—The Innovation-Brand-Interplay of Tech Giants

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Forum Markenforschung 2021

Abstract

Studies indicate that brand and innovation management can benefit from each other. Still, there is little empirical evidence that integrates these two streams. This paper examines the innovation-brand-interplay of Google, Amazon, and Apple by considering five innovation types (product, service, process, market, and business model innovation). Structural equation modeling (SEM) was carried out for data analysis. Our research is the first to empirically measure varying degrees of influence of specific innovation types on brand equity. As can be shown, especially product innovations, process innovations, and partly business model innovations can be important determinants for driving brand success. Moreover, strong brand equity is a prerequisite for a desired innovation adoption behavior and thus a key factor for innovation success.

There is only one valid definition of business purpose: to create a customer. […] It is the customer who determines what the business is. […] Because it is its purpose to create a [satisfied] customer, any business enterprise has two—and only these two—basic functions: marketing and innovation.

Peter Drucker (1954, pp. 37 ff.)

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  1. Bauhaus-Universität Weimar, Weimar, Germany

    Jonas Steffl, Jonas Steffl & Jutta Emes

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  1. Jonas Steffl
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  1. Fachbereich Wirtschaft, Hochschule Mainz, Mainz, Deutschland

    Jörn Redler

  2. Fachbereich Wirtschaftswissenschaften, Hochschule Koblenz, Koblenz, Deutschland

    Holger J. Schmidt

  3. Fachbereich Wirtschaftswissenschaften, Hochschule für Wirtschaft und Recht Berlin, Berlin, Deutschland

    Carsten Baumgarth

Appendix

Appendix

Scenario-based Company Cases

Case 1 Apple: Description of the VOI

Through the expansion into a new market, Apple hopes to win new customer groups over. Therefore, Apple is moving forward into the e-mobility market with self-driving car technology and is targeting 2024 to produce a passenger vehicle that could include its own breakthrough battery technology.

Case 2 Apple: Description of the VAI

Apple is planning a targeted development of new competences and resources to create a new battery design and an autonomous driving system in the future. In this way, Apple hopes to improve the value-added process by utilizing partnerships with an existing manufacturer and building a global manufacturing network.

Case 3 Apple: Description of the RMI

Apple is planning to not only sell the vehicles, but also lease them in the future. Instead of a single payment at a specific time point and further payments for maintenance and repair, the customer can pay a monthly rate and gets a carefree package, which already includes maintenance and repair. In this way, the car manufacturer hopes to get more regular revenue streams.

Case 1 Google: Description of the VOI

Through the expansion into a new market, Google hopes to win new customer groups over. Therefore, Google is moving forward into the automotive market with self-driving car technology. To realize a self-driving car, Google is working on the corresponding technology and software.

Case 2 Google: Description of the VAI

Google is planning a targeted development of new competences and resources to develop an autonomous driving system in the future. In 2016, Google’s self-driving car project became Waymo. Waymo has partnerships with several vehicle manufacturers to integrate its technology.

Case 3 Google: Description of the RMI

Google plans to offer the self-driving cars as part of a car-sharing service. Thus, Google offers access to its self-driving cars as a transportation service. Customers pay either a monthly subscription or as part of a pay as you go model.

Case 1 Amazon: Description of the VOI

Through the expansion into a new market, Amazon hopes to win new customer groups over. Amazon plans to expand its business to stationary retail and, in the course of this, to launch the cashierless supermarket Amazon Go in Germany. With the help of the Amazon Go app and an automatically generated QR code, queuing at checkouts will be a thing of the past. Customers are automatically charged when they leave the store with their purchases.

Case 2 Amazon: Description of the VAI

Amazon is planning a targeted development of new competences and resources to develop the cashierless supermarket Amazon Go. In this way, Amazon hopes to improve the value creation process by leveraging partnerships with local stores or key brands in the industry—such as Starbucks.

Case 3 Amazon: Description of the RMI

Amazon Go is aimed at customers who value fast shopping without checkouts. This convenience should not be expensive. Amazon Go tends to be located at the lower end of the supermarket price spectrum. Compared to other Amazon services, customers do not have to pay for a Prime membership to use Amazon Go.

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Steffl, J., Emes, J. (2023). How Innovation Types Drive Consumers’ Brand Perception—The Innovation-Brand-Interplay of Tech Giants. In: Redler, J., Schmidt, H.J., Baumgarth, C. (eds) Forum Markenforschung 2021. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-39568-1_9

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