Posted: September 16th, 2022
Buy Marketing Strategy Assignment
Firms often look for ways to improve the return on investment in costly innovation strategies. Barone and Jewell (2013) investigated a previously unexplored benefit of innovation that occurs when a brand’s reputation as a provider of valued new offerings allows it to earn innovation credit, a form of customer-based brand equity.
Innovation credit provides brands with the license or latitude to use strategies that violate category norms without the penalty (in the form of impaired attitudes) that consumers have been shown to levy on less innovative brands. Consistent with the proposed theoretical framework, the authors posited in three studies that innovative brands are granted the license to employ nonnormative strategies without consumer sanction. In addition to providing evidence regarding the inferential mechanism underlying this licensing effect, one study shows that, under certain conditions, innovative brands not only escape the penalty associated with using atypical strategies but are actually rewarded for utilizing such approaches.
Review the following:
Barone, M. J.,
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