Managing Brands as a Resources: A Study of Hollywood Film Franchises

Early RBV work suggested that brands serve as a strategic resource leading to sustainable competitive advantage (SCA). To date however there has been little strategic management work regarding how brands can be effectively managed as a strategic resource. We suggest that brand management strategies can benefit from a strategic management perspective, in particular, that their effectiveness may vary by the consumption patterns of a given industry. We develop the notion of brand re-creation strategy employed in experiential industries such as books, video games and movies and derive product level similarity and brand concept consistency as a key factors influencing the effectiveness of brand re-creation strategies in the motion picture industry. Finally, we develop a test a contingency model arguing that the impact of consistency is contingent on deployment factors that influence consumption like time elapsed and sequel number.

[1]  Mirva Peltoniemi,et al.  Cultural Industries: Product–Market Characteristics, Management Challenges and Industry Dynamics , 2015 .

[2]  H. Unnava,et al.  The Usefulness of Product Warranties For Reputable and New Brands , 1991 .

[3]  Scott L. Newbert.  Empirical research on the resource‐based view of the firm: an assessment and suggestions for future research , 2007 .

[4]  George S. Avrunin,et al.  Single-Peaked Functions and the Theory of Preference. , 1977 .

[5]  Jamal Shamsie,et al.  THE CONTEXT OF DOMINANCE: AN INDUSTRY-DRIVEN FRAMEWORK FOR EXPLOITING REPUTATION , 2003 .

[6]  Brian T. Ratchford,et al.  The Economics of Consumer Knowledge , 2001 .

[7]  Sandra J. Milberg,et al.  Evaluation of Brand Extensions: The Role of Product Feature Similarity and Brand Concept Consistency , 1991 .

[8]  Tasadduq A. Shervani,et al.  Market-Based Assets and Shareholder Value: A Framework for Analysis , 1998 .

[9]  Paul Herbig,et al.  Evaluating the Brand Extension Decision Using a Model of Reputation Building , 1994 .

[10]  L. McAlister.  A dynamic attribute satiation model of variety seeking behavior , 2011 .

[11]  Subimal Chatterjee,et al.  Fast and frequent: Investigating box office revenues of motion picture sequels , 2008 .

[12]  Hermann Simon,et al.  Dynamics of Price Elasticity and Brand Life Cycles: An Empirical Study , 1979 .

[13]  Kevin Lane Keller,et al.  Consumer Evaluations of Brand Extensions , 1990 .

[14]  Constance E. Helfat,et al.  The dynamic resource-based view: capability lifecycles , 2003 .

[15]  John Roberts,et al.  Development and Testing of a Model of Consideration Set Composition , 1991 .

[16]  J. Hair.  Multivariate data analysis , 1972 .

[17]  Liam Fahey,et al.  The resource-based view and marketing: The role of market-based assets in gaining competitive advantage , 2001 .

[18]  E. Penrose.  The theory of the growth of the firm twenty-five years after , 1960 .

[19]  J. Spender,et al.  The Resource-Based View: A Review and Assessment of Its Critiques , 2009 .

[20]  Richard J. Arend.  Tests of the resource-based view: do the empirics have any clothes? , 2006 .

[21]  K. Sudhir,et al.  Forecasting Marketing-Mix Responsiveness for New Products , 2010 .

[22]  R. Hall.  The strategic analysis of intangible resources , 1992 .

[23]  D. Teece,et al.  DYNAMIC CAPABILITIES AND STRATEGIC MANAGEMENT , 1997 .

[24]  E. Hirschman,et al.  The Experiential Aspects of Consumption: Consumer Fantasies, Feelings, and Fun , 1982 .

[25]  Jean-Noël Kapferer,et al.  The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term , 2004 .

[26]  Niraj Dawar,et al.  Tilt: Shifting Your Strategy from Products to Customers , 2013 .

[27]  N. Foss,et al.  The Resource-Based Tangle: Towards a Sustainable Explanation of Competitive Advantage , 2003 .

[28]  W. Walls,et al.  Uncertainty in the Movie Industry: Does Star Power Reduce the Terror of the Box Office? , 1999 .

[29]  Harbir Singh,et al.  Corporate and industry effects on business unit competitive position , 2000 .

[30]  Srinivas K. Reddy,et al.  To Extend or Not to Extend: Success Determinants of Line Extensions , 1994 .

[31]  Franziska Völckner,et al.  Drivers of Brand Extension Success , 2006 .

[32]  J. Barney,et al.  The resource-based view of the firm: Ten years after 1991 , 2001 .

[33]  Francisco J. Samaniego,et al.  Abraham Wald's Work on Aircraft Survivability , 1984 .

[34]  Mary Tripsas.  Customer preference discontinuities: a trigger for radical technological change , 2008 .

[35]  R. Coff,et al.  Human Capital, Shared Expertise, and the Likelihood of Impasse in Corporate Acquisitions , 2002 .

[36]  Richard Makadok,et al.  The Theory of Value and the Value of Theory: Breaking New Ground versus Reinventing the Wheel , 2002 .

[37]  Neil A. Morgan,et al.  Brand Portfolio Strategy and Firm Performance , 2009 .

[38]  Susan Spiggle,et al.  More than Fit: Brand Extension Authenticity , 2012 .

[39]  George J. Stigler,et al.  De Gustibus Non Est Disputandum , 2010 .

[40]  M. Porter,et al.  HOW MUCH DOES INDUSTRY MATTER, REALLY? , 1997 .

[41]  Erwin Danneels.  Trying to become a different type of company: dynamic capability at Smith Corona , 2011 .

[42]  T. K. Srull,et al.  Human cognition in its social context. , 1986, Psychological review.

[43]  E. Pessemier,et al.  Variety Seeking Behavior: An Interdisciplinary Review , 2018 .

[44]  R. Schmalensee.  Do Markets Differ Much , 1984 .

[45]  Robert M. Wiseman,et al.  On the use and misuse of ratios in strategic management research , 2009 .

[46]  Gregory S. Carpenter,et al.  Consumer Preference Formation and Pioneering Advantage , 1989 .

[47]  Henry J. Claycamp,et al.  Prediction of New Product Performance: An Analytical Approach , 1969 .

[48]  David G. Sirmon,et al.  Managing Firm Resources in Dynamic Environments to Create Value: Looking Inside the Black Box , 2007 .

[49]  Ron Adner,et al.  A demand‐based perspective on sustainable competitive advantage , 2006 .

[50]  S. Ravid.  Information, Blockbusters and Stars? A Study of the Film Industry , 1997 .

[51]  Brian L. Connelly,et al.  Making the Most of What You've Got: Managerial Ability as a Source of Resource Value Creation , 2008 .

[52]  David M. Boush,et al.  A Process-Tracing Study of Brand Extension Evaluation , 1991 .

[53]  D. Hambrick,et al.  What is strategic management, really? Inductive derivation of a consensus definition of the field , 2007 .

[54]  J. W. Hutchinson,et al.  Dimensions of Consumer Expertise , 1987 .

[55]  X. Drèze,et al.  Brand Extensions of Experiential Goods: Movie Sequel Evaluations , 2006 .

[56]  Kevin Lane Keller,et al.  Brand Familiarity and Advertising Repetition Effects , 2003 .

[57]  John F. Sherry,et al.  Teaching Old Brands New Tricks: Retro Branding and the Revival of Brand Meaning , 2003 .

[58]  Patrick G. Maggitti,et al.  Market Watch: Information and Availability Cascades Among the Media and Investors in the U.S. IPO Market , 2008 .

[59]  Margaret A. Peteraf.  The cornerstones of competitive advantage: A resource‐based view , 1993 .

[60]  V. Ambrosini,et al.  Value Creation Versus Value Capture: Towards a Coherent Definition of Value in Strategy , 2000 .

[61]  Xavier Drèze,et al.  Modeling Movie Life Cycles and Market Share , 2005 .

[62]  Sali Li,et al.  Insights and New Directions from Demand-Side Approaches to Technology Innovation, Entrepreneurship, and Strategic Management Research , 2012 .

[63]  P. Nelson.  Information and Consumer Behavior , 1970, Journal of Political Economy.

[64]  Michael A. Hitt,et al.  Theory and research in strategic management: Swings of a pendulum , 1999 .

[65]  J. Hulland,et al.  Redeployment of Brands, Sales Forces, and General Marketing Management Expertise following Horizontal Acquisitions: A Resource-Based View , 1999 .

[66]  R. Grant,et al.  Environments: Organizational Capability as Knowledge Integration , 2022 .

[67]  J. Eliashberg,et al.  The Motion Picture Industry: Critical Issues in Practice, Current Research, and New Research Directions , 2006 .

[68]  Francisco J. Acedo,et al.  The resource based theory: dissemination and main trends , 2006 .

[69]  Richard L. Priem,et al.  Is the Resource-Based “View” a Useful Perspective for Strategic Management Research? , 2001 .

[70]  T. Hassard,et al.  Applied Linear Regression , 2005 .

[71]  Edward I. Brody,et al.  News: A Decision-Oriented Model for New Product Analysis and Forecasting , 1982 .

[72]  Birger Wernerfelt,et al.  Brand loyalty and user skills , 1985 .

[73]  Joseph T. Mahoney,et al.  Strategic Management Journal Research Notes and Commentaries How Dynamics, Management, and Governance of Resource Deployments Influence Firm-level Performance , 2022 .

[74]  Margaret A. Peteraf,et al.  Published online in Wiley InterScience (www.interscience.wiley.com). DOI: 10.1002/mde.1126 Unraveling The Resource-Based Tangle , 2022 .

[75]  J. W. Chang.  Willa Family Brand Image By Diluted By an Unfavorable Brand Extension? a Brand Trial-Based Approach , 2002 .

[76]  Kevin Lane Keller.  Strategic Brand Management: Building, Measuring, and Managing Brand Equity , 1997 .

[77]  C. Armstrong,et al.  A Review of Approaches to Empirical Research on the Resource-Based View of the Firm† , 2007 .

[78]  Thomas Keil,et al.  What Makes a Resource Valuable? Identifying the Drivers of Firm-Idiosyncratic Resource Value , 2012 .

[79]  James G. Combs,et al.  Strategic resources and performance: a meta‐analysis , 2008 .

[80]  J. Swait,et al.  Brand Credibility, Brand Consideration, and Choice , 2004 .

[81]  Kevin Lane Keller.  Managing Brands for the Long Run: Brand Reinforcement and Revitalization Strategies , 1999 .

[82]  J. Redden,et al.  Reducing Satiation: The Role of Categorization Level , 2008 .

[83]  R. Coff.  When Competitive Advantage Doesn't Lead to Performance: The Resource-Based View and Stakeholder Bargaining Power , 1999 .

[84]  Robert E. Ployhart,et al.  Human Capital Is Dead; Long Live Human Capital Resources! , 2014 .

[85]  Jordan J. Louviere,et al.  Brand equity and retailer acceptance of brand extensions , 1999 .

[86]  Suman Basuroy,et al.  Interactive influence of genre familiarity, star power, and critics' reviews in the cultural goods industry: The case of motion pictures , 2005 .

[87]  Richard L. Priem.  A Consumer Perspective on Value Creation , 2007 .

[88]  J. E. Butler,et al.  Tautology in the resource-based view and the implications of externally determined resource value: f , 2001 .

[89]  Ron Adner.  When Are Technologies Disruptive: A Demand-Based View of the Emergence of Competition , 2002 .

[90]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[91]  Gerard J. Tellis,et al.  How Well Does Advertising Work? Generalizations from Meta-Analysis of Brand Advertising Elasticities , 2011 .

[92]  B. Wernerfelt,et al.  Umbrella Branding as a Signal of New Product Quality: An Example of Signalling by Posting a Bond , 1988 .

[93]  Stephen J. Carson,et al.  The Effects of Positive and Negative Online Customer Reviews: Do Brand Strength and Category Maturity Matter? , 2013 .

[94]  Daniel C. Snow,et al.  'Old' Technology Responses to 'New' Technology Threats: Demand Heterogeneity and Graceful Technology Retreats , 2009 .

[95]  Chiranjeev Kohli,et al.  A brand is forever! A framework for revitalizing declining and dead brands , 2009 .

[96]  John G. Lynch,et al.  Memory and Attentional Factors in Consumer Choice: Concepts and Research Methods , 1982 .

[97]  Jeffrey M. Wooldridge,et al.  Cluster-Sample Methods in Applied Econometrics , 2003 .

[98]  David A. Aaker,et al.  The Effects of Sequential Introduction of Brand Extensions , 1992 .

[99]  Allan D. Shocker,et al.  Managing Brand Equity , 1991 .

[100]  Absolute and Relative Resources as Determinants of International Acquisitions , 2002 .

[101]  David G. Hoopes,et al.  A capability-based view of competitive heterogeneity , 2008 .

[102]  A Resource-Based Analysis of the Conditions for the Emergence of Profits , 2008 .

[103]  Rolph E. Anderson.  Consumer Dissatisfaction: The Effect of Disconfirmed Expectancy on Perceived Product Performance , 1973 .

[104]  Eric J. Johnson,et al.  Product familiarity and learning new information , 1984 .