The impact of product innovation attributes on brand equity

Abstract

Purpose – This paper aims to examine the impact of product innovation attributes (complexity, relative advantage, compatibility, trialability and observability) on brand equity, and whether these attributes exert a different effect on low- versus high-equity brands. The moderating role of consumer innovativeness in this relationship is investigated further. Design/methodology/approach – The study is based on survey data from users of two brands of digital audio players of different brand equity levels. Findings – Overall, it was found that innovation attributes have an effect on brand equity, and this effect differs between low- and high-equity brands, with a low-equity brand being benefited more than a high-equity brand from perceptions towards a product’s innovation attributes. Additionally, it was found that the impact of complexity and relative advantage on brand equity increases when consumer innovativeness increases in the case of a high-equity brand. However, no significant difference was found between low- and high-equity brands regarding the proposed moderating effect of innovativeness. Research limitations/implications – The study only examines two brands belonging to one particular industry, which limits the findings’ generalizability. Thus, the use of more test brands from different industries should be the goal for future research. Practical implications – Managers should consider the firm’s current brand equity level and its competitive position to maximize the effect of product innovation attributes. Originality/value – The study makes an original contribution to the research on the relationship between product innovation and brand equity and provides theoretical and managerial implications in the field of innovation and brand management.