Purpose: Brand effect is an important source of innovation performance, but rarely any study in the past has paid attention to explore the way firm innovation activities transform into brand effect. The purpose of this paper is to investigate how firm innovation activities transform into brand effect. Design/methodology/approach: A set of hypothesis has been developed to show the relationships among firm innovation activities, brand prototype, brand preference and brand recommendation. The online survey method was used for data collection. In total, 546 valid questionnaires were retrieved. The study used confirmatory factor analysis and structural equation modeling technique to test the hypothesis. Findings: Results indicate that brand prototype leads the process of cognitive processing from innovation activities’ perception to brand preference and recommendation. The consumer perception of process innovation, marketing innovation, product innovation and the store environment have direct impact on brand prototype that further influences product sophistication, brand preference and brand recommendation. But, the most powerful influence is on brand preference. Moreover, product sophistication–attribute-specific brand knowledge has direct impact on brand preference and indirect impact on the brand recommendation. The whole process from brand prototype to brand preference and brand recommendation mainly reflects the strength of the brand effect formation. Practical implications: This study provides useful managerial insights so that firms can learn the way to maximize brand effect through the management of innovation perception and cultivation of innovation soft capability to enhance innovation performance. Originality/value: This study unfolds the transformation of firm innovation activities into brand effect that provides a new theoretical explanation and a holistic framework for the source of innovation performance.

Purpose: The purpose of this paper is to design a game theory based model that not only provide theoretical basis to control brand counterfeiting, but it also provide a mechanism to enhance brand revenue.Design/methodology/approach: This study used the dynamic game theory of incomplete information to understand and encounter the brand counterfeiting issues. The study analyzed the economic relationship of legitimate brand, counterfeiter and consumers using mixed strategy of the dynamic game theory of incomplete information.Findings: The results have indicated that brands those take countermeasures to reduce counterfeiting earn maximum revenue, even when the legitimate brands and consumers are unaware from the actions of counterfeiting firms, the legitimate brands should take countermeasures to reduce counterfeiting to earn maximum revenue, and there exists optimal anti-counterfeiting cost for the legitimate brand. Further, this study provides theoretical basis where brand managers can decide to adopt or not to adopt anti-counterfeiting strategy, and also indicate the consequences of each decision.Practical implications: Based upon the findings, the study put forward valuable managerial implications. The study revealed that the legitimate brand must emphasize on the significance of taking countermeasures against counterfeiter and also, brand managers should focus on making product traceable, empowering the consumer and ensuring coordination with government officials to control the counterfeiting issues.Originality/value: This paper incorporates the role of legitimate brand, counterfeiter and a consumer to establish the dynamic game theory model using mixed strategy to understand and address the counterfeiting issues in the global market.