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Assessing sport brand value through use of the contingent valuation method

Author

Listed:
  • J. Lucy Lee

    () (Assistant Professor, Sport Management Program, Bowling Green State University, United States.)

  • Jeffrey D. James

    (Department of Sport Management, Florida State University, United States.)

Abstract

This work is a first attempt to estimate customer-based brand equity with the contingent valuation method (CVM) for a service-oriented product. We assess the value of a sport brand, IRONMAN triathlon, utilizing the CVM - one of the few available measures for estimating intangible product values. The equity of the IRONMAN brand was derived from consumers’ perceptions, attitudes, and behaviours by asking consumers (i.e., triathletes who have experiences with IRONMAN and non-IRONMAN branded events) about their willingness to pay for an IRONMAN and generic non-IRONMAN triathlon events. We found (1) the presence of price premiums that sport consumers were willing to pay for the branded sport product and (2) the estimated brand equity value of approximately $102 million for IRONMAN Half-distance events, and $123 million for IRONMAN Full-distance event.

Suggested Citation

  • J. Lucy Lee & Jeffrey D. James, 2015. "Assessing sport brand value through use of the contingent valuation method," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 3(6), pages 33-44, December.
  • Handle: RePEc:lrc:lareco:v:3:y:2015:i:6:p:33-44
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    References listed on IDEAS

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    More about this item

    Keywords

    Brand equity measurements; Contingent valuation method (CVM); Sport brand value.;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • P42 - Economic Systems - - Other Economic Systems - - - Productive Enterprises; Factor and Product Markets; Prices
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods

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