nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2018‒04‒16
six papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. The Benefit of Collective Reputation By Zvika Neemam; Aniko Ory; Jungju Yu
  2. R&D, IP, and firm profits in the North American automotive supplier industry By Lutz, Stefan Heinz Hermann
  3. Relationship between dimensions of Brand Equity and 4Ps of Marketing Mix - Place, Product, Promotion, & Price: Coca Cola - Consumer Based Qualitative Survey By Arab, Nazanin
  4. When the arts inspire businesses: Museums as a heritage redefinition tool of brands By Damien Chaney; Mathilde Pulh; Rémi Mencarelli
  5. The impact of stereotyped and non-stereotyped brand genders on cross-gender extension evaluations By Nathalie Veg-Sala
  6. Growth Facts with Intellectual Property Products: An Exploration of 31 OECD New National Accounts By Sangmin Aum; Dongya Koh; Raül Santaeulàlia-Llopis

  1. By: Zvika Neemam (Tel Aviv University); Aniko Ory (Cowles Foundation, Yale University); Jungju Yu (Yale School of Management)
    Abstract: We study a model of reputation with two long-lived ?rms that sell their products under a collective brand or under two di?erent individual brands. Firms face a moral hazard problem because their quality investments are not observed. Investments can only be sustained due to reputational concerns. In a collective brand, consumers cannot distinguish between the two ?rms. We show that in the long run, this makes it harder to establish a good reputation because of the incentives to free-ride on the other ?rm’s investments. But in the short run it mitigates the temptation to milk good reputation. Consequently, a collective brand can provide stronger incentives to invest in quality if ?rms are su?iciently impatient. We explain the connection between incentives and the type of industry in which the ?rms operate as captured by the underlying signal structure and consumers’ prior beliefs. We discuss the relation to country-of-origin labelling, agricultural cooperatives, and other collective brands.
    Keywords: Branding, Collective reputation, Commitment, Country of origin
    JEL: C70 D21 D40 D70 L10 L50
    Date: 2016–12
  2. By: Lutz, Stefan Heinz Hermann
    Abstract: Economic theory implies that research and development (R&D) efforts increase firm productivity and ultimately profits. In particular, R&D expenses lead to the development of intellectual property (IP) and IP commands a return that increases overall profits of the firm. This hypothesis is investigated for the North American automotive supplier industry by analyzing a panel of 5000 firms for the years 1950 to 2011. Results indicate that R&D expenses in fact increase profitability at the firm level. In particular, increases in the R&D expense to sales ratio lead to increases in the profit contribution of intangible assets relative to sales. This indicates that more R&D intensive IP should command higher royalty rates per sales when licensed to third parties and within multinational enterprises alike.
    Keywords: productivity,intellectual property,royalties,MNE,transfer pricing
    JEL: D24 L20 L62 M21
    Date: 2018
  3. By: Arab, Nazanin
    Abstract: The relationship between dimensions of brand equity (brand association, brand awareness, perceived quality, and customer's loyalty) and 4Ps of marketing mix (product, place, price, and promotion) are examined in this paper. Cross sectional research design while following inductive approach I have explore the relationship between research variables from consumer's perspective. Total 129 participants took part in this survey. Respondents were identified and approached through convenience sampling technique. Survey questionnaire contained 16 total questions (4 demographic and 12 attitudinal and behavioural) questions with matrix based 5-Points LIKERT SCALE. Questionnaire was self designed and administered personally. Findings showed that there is significant relationship between dimensions of brand equity and 4Ps of marketing mix. The most significant dimension in terms of Coca Cola is brand association and least effective dimension has been customer's loyalty. Furthermore, most effective marketing mix tools for Coca Cola has been its product and pricing strategies while least effective has been promotional strategies. It is also found that despite being brand image with high dependability and reliability image, there is low customer's loyalty towards Coca Cola. The paper is significant because it explores the relationship from consumer's perspective. Further, it examines the association between all dimensions of brand equity and considered marketing mix feature from qualitative perspective. The limitations of research are discussed at the end of research paper.
    Keywords: Brand Awareness, Brand Equity, Customer Loyalty, Marketing Mix, Perceived Quality
    JEL: D19 L11 L19 L21 L66 Y1
    Date: 2018–01–15
  4. By: Damien Chaney (Département de marketing [ESC Troyes] - Groupe ESC Troyes en Champagne); Mathilde Pulh (CReGO - Centre de Recherche en Gestion des Organisations - UFC - Université de Franche-Comté - UB - Université de Bourgogne); Rémi Mencarelli (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)
    Abstract: While the literature has mainly considered brand museums as communication tools or complex retail environments, this article analyses them through a heritage framework and suggests that brands can use heritage technologies of the arts for their own purposes. The case study of the brand museum of the Laughing Cow highlights the heritage technologies the brand uses to endorse two heritage roles: an inter-generational memory role based on the transmission of the brand's history and a community representation role through spaces and objects. As a consequence, this research sheds light on how brands can come to be accepted as heritage objects. By using heritage technologies within a museum, brands can capture heritage functions, and thus no longer fully rests in a market logic: the brand becomes a sacred and inalienable common good.
    Keywords: brand museum,heritage,brands,memory,transmission,flagship stores
    Date: 2018
  5. By: Nathalie Veg-Sala (Institut d'Administration des Entreprises (IAE) - Paris, CEROS - Centre d'Etudes et de Recherches sur les Organisations et la Stratégie - UPN - Université Paris Nanterre)
    Abstract: This research proposes to introduce the concept of stereotype to definebrand gender and to make a new contribution on the analysis of cross-gender extension evaluation. The results of an experiment, made on two product categories and considering the two possible directions of these extensions – from men to women and from women to men – reveal that the perceived fit between the cross-gender extension and the brand is more positive when the brand gender is non-stereotyped and, surprisingly, when the brand extends from the female to the male market. The interaction effect suggests also that the impact of the cross-gender extension direction is more important in the case of a brand with a non-stereotyped gender. Those results challenge previous research. A concluding discussion lays out recommendations for business.
    Keywords: stereotypes,gender,Cross-gender extension,perceived fit,direction of cross-gender extension
    Date: 2017–12
  6. By: Sangmin Aum; Dongya Koh; Raül Santaeulàlia-Llopis
    Abstract: We document a rise of intellectual property products (IPP) captured by up-to-date national accounts in 31 OECD countries. These countries gradually adopt the new system of national accounts (SNA08) that capitalizes IPP -which was previously treated as an intermediate expense in the pre-SNA93 accounting framework. We examine how the capitalization of IPP affects stylzed growth facts and the big ratios (Kaldor, 1957, Jones, 2016). We find that the capitalization of IPP generates (a) a decline of the accounting labor share, (b) an increase in the capital-to-output ratio across time, and (c) an increase in the rate of return to capital across time. The key accounting assumption behind the IPP capitalization implemented by national accounts is that the share of IPP rents that are attributed to capital, x, is equal to one. That is, national accounts assume that IPP rents are entirely owed to capital. We question this accounting assumption and apply an alternative split of IPP rents between capital and labor based on the cost structure of R&D as in Koh et al. (2018). We find that this alternative split generates a secularly trendless labor share, a constant capital-to-output ratio, and a constant rate of return across time. We discuss the implications of these new measures of IPP capital -conditional on x- for cross-country income per capita differences using standard development and growth accounting exercises. Please see the abstract on the paper to see
    Keywords: growth facts, intellectual property products, labor share, cross-country income differences
    JEL: E01 E22 E25
    Date: 2018–03

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