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Every new product introduction entails a branding decision: whether to name the product using a direct extension, a sub-brand, or a new brand. While previous research has focused on how consumers evaluate alternatives in lab settings, or, in studies based on secondary data, on the effectiveness of brand extensions in general, a comprehensive framework of the antecedents and consequences of new product branding decisions is lacking from the literature. The authors propose a theoretical framework that organizes product-, category-, and firm-level determinants of firms' new product branding decisions, and empirically test the framework's predictions using a large sample of new product introductions, documenting with real world data how managers choose among three branding alternatives. In addition, using both product-specific and firm-specific valuation metrics, the authors quantify the negative impact on firm value of misaligning the new product branding decisions with the conditions facing new products. Conceptually, the authors bridge the branding and new product performance literatures, and present findings that extend knowledge from behavioral research on brand extensions. Empirically, the authors provide evidence to managers on how to choose brand names for new products in a way that enhances the stock market value of firms., Author(s): Larisa Kovalenko [sup.1] , Alina Sorescu [sup.2] , Mark B. Houston [sup.3] Author Affiliations: (1) grid.208226.c, 0000 0004 0444 7053, Boston College, , 140 Commonwealth Avenue, 02467, Chestnut Hill, [...]

Author(s): Alina Sorescu [sup.1] , Martin Schreier [sup.2] Author Affiliations: (1) grid.264756.4, 0000 0004 4687 2082, Texas A&M University, , College Station, TX, USA (2) grid.15788.33, 0000 0001 1177 4763, [...]

Abstract. The Interplay between innovation and the stock market has been extensively studied by scholars across all business disciplines. However, one phenomenon remains understudied: the association between innovation and stock [...]

Event studies examine stock price movements around corporate events. These events can be voluntary firm announcements (e.g., new product introduction, alliance formation, channel restructuring) or announcements made by other entities such as regulatory bodies (e.g., FDA approval) or competitors (e.g., new market entry). The event study methodology was developed by finance researchers but has been widely adopted in other fields, including marketing. We review the manner in which event studies have been used in the marketing literature and summarize the current state of knowledge about the design and interpretation of event studies. We provide guidelines for researchers who use this methodology and for readers who draw inferences from results obtained from event studies, and we highlight a few areas where the methodology can be leveraged to help us better understand the financial value of marketing actions., Author(s): Alina Sorescu [sup.1] , Nooshin L. Warren [sup.2] , Larisa Ertekin [sup.1] Author Affiliations: (1) 0000 0004 4687 2082grid.264756.4Texas A&M University, 4112 TAMU, 77843-4112, College Station, TX, USA (2) [...]

We examine whether cobranding--the practice of using two established brand names on the same product--increases the market value of parent firms. Using data from the consumer packaged goods industry, we [...]