Entrepreneurship, excise taxes, and the “flight to quality”

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Authors
Friske, Wesley
Cockrell, Seth
Advisors
Issue Date
2019-05-07
Type
Article
Keywords
Entrepreneurship , Excise taxes , Microbreweries , Product quality , Resource-Advantage theory
Research Projects
Organizational Units
Journal Issue
Citation
Friske, W., & Cockrell, S. (2019). Entrepreneurship, Excise Taxes, and the “Flight to Quality.” Journal of Macromarketing
Abstract

Research on entrepreneurial marketing is now fairly common, and macromarketing is an established field. However, studies that incorporate variables of interest to both entrepreneurial marketing and macromarketing scholars are scarce. In the spirit of the special issue, this study crosses disciplinary boundaries in order to investigate how a macro-level policy variable (i.e., excise taxes) affects a key marketing variable (i.e., product quality) in a sample of small firms (i.e., microbreweries). The results of the study support Barzel’s “flight to quality” hypothesis. We conclude that high excise taxes invite quality-based competition. Furthermore, entrepreneurial microbreweries appear to recognize the flight to quality, and they capitalize on the opportunity to bring relatively high quality products to market. Implications for entrepreneurial marketing researchers, macromarketing researchers, and public policy are discussed.

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Publisher
SAGE
Journal
Book Title
Series
Journal of Macromarketing;2019
PubMed ID
DOI
ISSN
0276-1467
EISSN