Home / Summaries / Class notes - International Brand Management / executives-brands-equity

Tavassoli et al. (2014): Employee-Based Brand Equity: Why Firms with Strong Brands Pay Their Executives Less

Q: What kind of framework does the paper by Tavassoli et al. (2014) propose? What does it explain and what is it based on?

The authors propose an identity-based framework that describes why executives accept lower pay to manage firms that own strong brands This framework is based on self-enhancement

12 important questions on Tavassoli et al. (2014): Employee-Based Brand Equity: Why Firms with Strong Brands Pay Their Executives Less

What wants the paper by Tavassoli et al. (2014) to add to existing literature about brand equity?

Most research on brands focus on customer-based outcomes, but according to the authors this is an incomplete view of the brand’s value to the firm. If strong brands can help attract customers at higher prices, then they should also be able to help attract employees at lower levels of pay.

What kind of framework does the paper by Tavassoli et al. (2014) propose? What does it explain and what is it based on?

The authors propose an identity-based framework that describes why executives accept lower pay to manage firms that own strong brands
This framework is based on self-enhancement

Which theory is important in the paper by Tavassoli et al. (2014)?

Identity theory

How can employee-based brand equity be defined?

Employee-based brand equity is the value that a brand provides to a firm through its effects on the attitudes and behaviours of its employees

Which two aspects have an impact on the executive's willingness to accept lower pay? And what kind of relationship is it (positive/negative)?

The perceived strength of identification between the individual and the brand
Potential for uncertainty reduction afforded by the association with the brand

The higher one of the two are, the higher the executive's willingness to accept lower pay (positive relationship)

Do strong or weak brands offer greater possibilities for self-enhancement? And to what should this benefit lead?

Strong brands offer greater possibilities for self-enhancement to the executives associated with them than do weak brands.
This benefit should lead to a willingness to accept lower pay

What are the four implications from te paper of Tavassoli et al. (2014)?

Look for brand value beyond customer-based brand equity

Brand Equity is a broader construct

Broaden the scope of marketing metrics

Not only measure things right, also measure the right things

Make brand core to human resource practices

HR department should leverage the strength of the brand just as they leverage the tangible advantages that employees of the firm receive

Expand the scope of research on the marketing-finance interface

Compensation committees can use brand equity as an effective bargaining tool when establishing executive pay

Which three hypothesis were stated in the paper by Tavassoli et al. (2014) and were they supported or not?

H1: Firms with strong brands pay their executives less.
H2: The negative effect of brand strength on executive pay is the strongest for the CEO compared to other executives.

The CEO will be most willing to accept lower pay

H3: The negative effect of brand strength on executive pay is stronger for younger executives compared to older executives.

Because young executives benefit more from equity transfer and uncertainty avoidance by working for a certain brand

All the hypothesis were supported.

What does the employee-based view of brand equity emphasise?

Strong brands can enhance earnings through cost reductions, making it possible for firms to employ key personnel more cheaply

What does the employee-based view of brand equity emphasise?

Strong brands can enhance earnings through cost reductions, making it possible for firms to employ key personnel more cheaply

Strong brands are the most likely to be effective in negotiations with CEOs. In executive compensation negotiations, the board of a firm with a strong brand should therefore emphasise what?

They should emphasise the equity transfer benefits of strong brands and also adjust peer pay benchmarks according to brand strength

What are the main conclusions from the paper by Tavassoli et al. (2014)?

Firms with strong brands pay their executives less than other firms

This effect is stronger for CEOs and for younger executives.

Executives value being associated with strong brands and, therefore, accept substantially lower pay at firms that own them.

This effect is stronger for CEOs compared to other top executives, as well as for younger executives

The question on the page originate from the summary of the following study material:

International Brand Management

View summary

A unique study and practice tool
Never study anything twice again
Get the grades you hope for
100% sure, 100% understanding

Remember faster, study better. Scientifically proven.

Tavassoli et al. (2014): Employee-Based Brand Equity: Why Firms with Strong Brands Pay Their Executives Less

12 important questions on Tavassoli et al. (2014): Employee-Based Brand Equity: Why Firms with Strong Brands Pay Their Executives Less

What wants the paper by Tavassoli et al. (2014) to add to existing literature about brand equity?

What kind of framework does the paper by Tavassoli et al. (2014) propose? What does it explain and what is it based on?

Which theory is important in the paper by Tavassoli et al. (2014)?

How can employee-based brand equity be defined?

Which two aspects have an impact on the executive's willingness to accept lower pay? And what kind of relationship is it (positive/negative)?

Do strong or weak brands offer greater possibilities for self-enhancement? And to what should this benefit lead?

What are the four implications from te paper of Tavassoli et al. (2014)?

Which three hypothesis were stated in the paper by Tavassoli et al. (2014) and were they supported or not?

What does the employee-based view of brand equity emphasise?

What does the employee-based view of brand equity emphasise?

Strong brands are the most likely to be effective in negotiations with CEOs. In executive compensation negotiations, the board of a firm with a strong brand should therefore emphasise what?

What are the main conclusions from the paper by Tavassoli et al. (2014)?

Summaries related to Keller (1993): Conceptualizing, Measuring, and Managing Customer-Based Brand Equity

Class notes - International Brand Management

Class notes - Marketing & Innovation

Indian Economics

Global politics

Essentials of international relations

Behavioral genetics

Management and organisational behaviour

Follow Up Engels idioom 4/5 H

International Business

Marketing fundamentals

Projectmanagement, A practical Approach-Engl…

Basic Management Accounting for the Hospital…