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Contribution of individual to collective brands

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Author Info

  • Francisco Mas Ruiz

    ()
    (Universidad de Alicante)

  • Juan Luis Nicolau Gonzálbez

    ()
    (Universidad de Alicante)

Abstract

Traditionally, literature estimates the equity of a brand or its extension but it pays little attention to collective brand equity even though collective branding is increasingly used to differentiate the homogenous products of different firms or organizations. We propose an approach that estimates the incremental effect of individual brands (or the contribution of individual brands) on collective brand equity through the various stages of a consumer hierarchical buying choice process in which decisions are nested: “whether to buy”, “what collective brand to buy” and “what individual brand to buy”. This proposal follows the approach of the Random Utility Theory, and it is theoretically argued through the Associative Networks Theory and the cybernetic model of decision making. The empirical analysis carried out in the area of collective brands in Spanish tourism finds a three-stage hierarchical sequence, and estimates the contribution of individual brands to the equity of the collective brands of “Sun, Sea and Sand” and of “World Heritage Cities”. La literatura ha puesto énfasis en el análisis del valor de una marca o sus extensiones, pero se ha centrado menos en el valor de la marca colectiva, aunque su uso empresarial sea cada vez mayor con el fin de diferenciar los productos homogéneos de diferentes organizaciones. Proponemos un enfoque que estima el efecto incremental de las marcas individuales (es decir, la contribución individual de cada marca) en el valor de la marca colectiva a través de un proceso de compra jerárquica en varias etapas en el que las decisiones están anidadas: “si comprar o no”, “qué marca colectiva comprar” y “qué marca individual comprar”. Esta propuesta sigue el enfoque de la Teoría de la Utilidad Aleatoria, y se argumenta a través de la Teoría de Redes Asociativas y el Modelo Cibernético de Decisión. La aplicación empírica desarrollada en el área de las marcas turísticas colectivas detecta una secuencia en tres etapas, y estima la contribución de las marcas individuales en el valor de las marcas colectivas “Sol y playa” y “Ciudades Patrimonio de la Humanidad”.

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File URL: http://www.ivie.es/downloads/docs/wpasec/wpasec-2010-07.pdf
File Function: Fisrt version / Primera version, 2010
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Bibliographic Info

Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 2010-07.

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Length: 32 pages
Date of creation: Sep 2010
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasec:2010-07

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Related research

Keywords: valor de marca colectiva; proceso de elección multi-etápico; Modelo Logit con coeficientes aleatorios collective brand equity; consumer multi-stage choice process; random parameter Logit Model;

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References

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  1. Francisco José Goerlich Gisbert & Rafael Pinilla Pallejà, 2009. "Esperanzas de vida libres de discapacidad por sexo y comunidad autónoma: 2004-2006," Working Papers. Serie EC 2009-13, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  2. Maria Teresa Balaguer-Coll & Diego Prior & Emili Tortosa-Ausina, . "Devolution Dynamics of Spanish Local Government," Working Paper 201001, Department of Business Economics, Universitat Autonoma de Barcelona.
  3. Pilar Beneito López & Amparo Sanchis Llopis & María Engracia Rochina Barrachina, 2009. "The role of learning in innovation: in-house versus externally contracted R&D experience," Working Papers. Serie EC 2009-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  4. Jacint Balaguer Coll & José C. Pernías, 2010. "Spatial density, average prices and price dispersion. Evidence from the Spanish hotel industry," Working Papers. Serie EC 2010-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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