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Brand Value Creation versus Destruction: The Relationship between Consumers, Marketers, and Financiers

Finance Reconsidered: New Perspectives for a Responsible and Sustainable Finance

ISBN: 978-1-78560-980-0, eISBN: 978-1-78560-979-4

ISSN: 2043-9059

Publication date: 2 September 2016

Abstract

Purpose

The aim of the chapter is to focus on the connections between three types of actors who build the new world of brands – consumers, marketers, and financier – by focusing on the co-creation of value between the brand community and the company owning the brand.

Methodology/approach

The chapter use three case vignettes to highlight the dual process at play when a community of consumers co-create brand value.

Findings

The chapter not only highlights a value-creating trajectory for companies but also shows how a reverse process can destroy value for the very same companies. It suggests that marketers’ desire to maximize the value co-created between the company and the community in order to answer the financial requirement of brand valuation could damage the value co-creation process. According to our case vignettes’ results, these marketers are exposing themselves to the risk that consumers/fans will rebel as a result of this branding maximization, leading in return to the creation of a competitor in the form of a community brand.

Research limitations/implications

Future research will have to investigate how by cutting across organizational boundaries and functional areas, brand communities would reshape the marketing–finance interface.

Practical implications

The chapter stresses the need for companies to manage carefully the triadic relationship community/marketing/finance in order to avoid the development of a reverse brand value destruction process. In addition, the chapter contributes to research on the marketing–finance interface by highlighting the need to look beyond this level of interaction when it comes to branding.

Originality/value

Starting with the principle that consumers grouped into communities are increasingly responsible for making brands through their value-creating practices, the chapter highlights the problems raised by the company’s will to transform them into value for shareholders.

Keywords

Citation

Paranque, B. and Cova, B. (2016), "Brand Value Creation versus Destruction: The Relationship between Consumers, Marketers, and Financiers ", Finance Reconsidered: New Perspectives for a Responsible and Sustainable Finance (Critical Studies on Corporate Responsibility, Governance and Sustainability, Vol. 10), Emerald Group Publishing Limited, Bingley, pp. 245-261. https://doi.org/10.1108/S2043-905920160000010030

Publisher

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Emerald Group Publishing Limited

Copyright © 2016 Emerald Group Publishing Limited