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Article
Publication date: 6 June 2016

Dorian-Laurentiu Florea, Claudiu-Catalin Munteanu and Alexandra-Elena Postoaca

The purpose of this paper is to integrate brand equity into companies’ overall risk assessment by suggesting a methodology of evaluating the relevant aspects of brand risk.

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Abstract

Purpose

The purpose of this paper is to integrate brand equity into companies’ overall risk assessment by suggesting a methodology of evaluating the relevant aspects of brand risk.

Design/methodology/approach

Based on a theoretical framework which discriminates between brand assets, brand strength and brand value, this paper set two alternative directions that can be followed to assess brand risk: a financial direction, which accounts on brand value, and a marketing direction, which stresses on brand assets and brand strength. Following the latter one, this paper provides mathematical formulas which contain specific factors of volatility that can be integrated in a future scoring system.

Findings

This paper proposes four major risks that need to be considered when evaluating brand assets risk: reputational risk, presence risk, loyalty risk and halo effect risk. This paper provides an evaluation methodology for each one. In addition, a 12-step implementation model is proposed as a managerial guideline for integrating brand risk in the companies’ risk management.

Originality/value

This paper emphasizes the importance of considering brand equity as a potential source of risk and thus integrating it into risk management. Also, we continue Abrahams’ pioneer work on adding risk literacy into brand management.

Details

Review of International Business and Strategy, vol. 26 no. 2
Type: Research Article
ISSN: 2059-6014

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Article
Publication date: 4 October 2021

Dorian Laurentiu Florea, Cătălin Mihail Barbu and Claudia Cristina Rotea

Drawing on signaling theory, this paper aims to argue in favor of a “placebo outsourcing effect” (POE) consisting of a positive relationship between provider’s bluffing and…

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Abstract

Purpose

Drawing on signaling theory, this paper aims to argue in favor of a “placebo outsourcing effect” (POE) consisting of a positive relationship between provider’s bluffing and customer satisfaction.

Design/methodology/approach

The authors applied prediction-oriented segmentation SEM on a dyadic sample of 171 outsourcing relationships.

Findings

The authors highlighted two segments that display a form of POE, representing about three-quarters of the customer-provider dyads. The first segment exhibits a positive relationship between the provider’s bluffing and customer satisfaction that is further strengthened by the provider’s reputation and customer’s operational capabilities, while for the other segment, the provider’s bluffing has positive interactions with both operational capabilities and outsourcing experience. These findings show that service providers have reached the bluffing proficiency that enables them to bluff customer firms with varying levels of operational capabilities and outsourcing experience by using the most appealing signals for every type of customer.

Practical implications

Based on the findings, the authors provided to customer firms extensive guidelines to avoid the POE by frustrating service provider’s bluffing proficiency.

Originality/value

This study’s originality resides in the amendment of the disconfirmation paradigm of satisfaction in the outsourcing context by introducing and testing the POE.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 6
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 8 May 2018

Dorian-Laurentiu Florea, Catalin Mihail Barbu and Mihai Constantin Razvan Barbu

The purpose of this paper is to reveal the conditions that facilitate or hinder a favorable reaction of fans to the resurrection of sport club brands.

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Abstract

Purpose

The purpose of this paper is to reveal the conditions that facilitate or hinder a favorable reaction of fans to the resurrection of sport club brands.

Design/methodology/approach

The proposed model was empirically tested by applying partial least squares-SEM to a sample of 462 fans of five Romanian football and handball clubs that were resurrected in the last five years.

Findings

The study showed that a positive relationship between the new and the old club owners, the keeping of the brand name, and the involvement of the club’s historic figures are favorable conditions for a successful resurrection. The faded brands that enjoy salient heritage and numerous loyal fans are more likely to be successfully resurrected. Moreover, when the resurrection is undertaken immediately after the old club’s bankruptcy, fans tend to alienate from the brand, as they consider the new club to be trying to counterfeit the meaning of the faded brand.

Research limitations/implications

The cross-sectional nature of the study and the narrow scope of the empirical data are the major limitations of the study.

Practical implications

Based on the empirical findings, the authors made recommendations to sport entrepreneurs who consider reviving faded clubs, and highlighted the difficulties of the resurrection process.

Originality/value

To the best of the authors’ knowledge, this is the first study of brand resurrection in the sports industry.

Details

International Journal of Sports Marketing and Sponsorship, vol. 19 no. 2
Type: Research Article
ISSN: 1464-6668

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