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A financial approach-based measurement of brand equity in the restaurant industry

Author

Listed:
  • Serin Choi

    (The Pennsylvania State University, USA)

  • Kyuwan Choi

    (Kyung Hee University, South Korea)

  • Seoki Lee

    (The Pennsylvania State University, USA)

  • Kyuseok Lee

    (Korea Advanced Institute of Science and Technology (KAIST), South Korea)

Abstract

Brand equity plays a significant role in the restaurant industry due to the competitive advantage gained by differentiation. It has been identified as a main component of intangible assets that decides the market value of a firm in the industry. Although the importance of brand equity has been well recognized in the restaurant literature, there has been little investigation regarding how to objectively quantify brand equity, especially by using secondary market data. Further, there is no publicly available brand equity data of restaurant firms thus far. For these reasons, this study aims to develop an approach on how to estimate a restaurant’s brand equity not only by utilizing the secondary market data but also by incorporating the unique characteristics of restaurant firms. By proposing a restaurant-specific model to estimate brand equity, this study contributes to the restaurant literature and to the industry as a whole.

Suggested Citation

  • Serin Choi & Kyuwan Choi & Seoki Lee & Kyuseok Lee, 2017. "A financial approach-based measurement of brand equity in the restaurant industry," Tourism Economics, , vol. 23(7), pages 1515-1522, November.
    • Handle: RePEc:sae:toueco:v:23:y:2017:i:7:p:1515-1522
    DOI: 10.1177/1354816616688104
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    References listed on IDEAS

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    3. Kevin Lane Keller & Donald R. Lehmann, 2006. "Brands and Branding: Research Findings and Future Priorities," Marketing Science, INFORMS, vol. 25(6), pages 740-759, 11-12.
    4. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
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    Cited by:

    1. Jaehee Gim & SooCheong Jang, 2024. "The determinants of aggressive share buybacks: An empirical examination of U.S. publicly traded restaurant firms," Tourism Economics, , vol. 30(1), pages 132-151, February.
    2. Wen-Qi Ruan & Shu-Ning Zhang, 2022. "Understand the differences in the brand equity construction process between local and foreign restaurants," Service Business, Springer;Pan-Pacific Business Association, vol. 16(3), pages 681-719, September.

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