IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03878387.html
   My bibliography  Save this paper

The Experimental Evaluation of Brand Strength and Brand Value

Author

Listed:
  • Junnan He

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)

  • Bobby Calder

    (Kellogg School of Management - Northwestern University (Evanston))

Abstract

Investments in intangibles, as opposed to things such as plant and equipment, have become more and more critical to the financial performance and growth of organizations. Brands represent an important source of intangible investment. Unfortunately, expenditures for branding are still commonly treated in financial accounting as expenses rather than as investments. There is a movement, however, to treat brands as financial assets. This can be approached directly by evaluating the financial value of a brand based on how strong the brand is in determining consumer choice versus a comparatively weakly branded product. We present a practical approach to evaluating brand strength using discrete choice experiments and estimation techniques that allow for the calculation of the value of brands as financial assets. Treating brands as assets and not expenses can allow companies to align marketing and finance around internal investments and provide outside investors with much needed financial information.

Suggested Citation

  • Junnan He & Bobby Calder, 2020. "The Experimental Evaluation of Brand Strength and Brand Value," Post-Print hal-03878387, HAL.
    • Handle: RePEc:hal:journl:hal-03878387
    DOI: 10.1016/j.jbusres.2020.04.035
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03878387
    as

    Download full text from publisher

    File URL: https://sciencespo.hal.science/hal-03878387/document
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jbusres.2020.04.035?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jerry Hausman & Gregory Leonard & J. Douglas Zona, 1994. "Competitive Analysis with Differentiated Products," Annals of Economics and Statistics, GENES, issue 34, pages 143-157.
    2. repec:adr:anecst:y:1994:i:34:p:06 is not listed on IDEAS
    3. Burmann, Christoph & Jost-Benz, Marc & Riley, Nicola, 2009. "Towards an identity-based brand equity model," Journal of Business Research, Elsevier, vol. 62(3), pages 390-397, March.
    4. Brett R. Gordon & Florian Zettelmeyer & Neha Bhargava & Dan Chapsky, 2019. "A Comparison of Approaches to Advertising Measurement: Evidence from Big Field Experiments at Facebook," Marketing Science, INFORMS, vol. 38(2), pages 193-225, March.
    5. Ratnatunga, Janek & Ewing, Michael T., 2009. "An ex-ante approach to brand capability valuation," Journal of Business Research, Elsevier, vol. 62(3), pages 323-331, March.
    6. Calder, Bobby J & Philips, Lynn W & Tybout, Alice M, 1983. "Beyond External Validity," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 10(1), pages 112-124, June.
    7. Hans Muhlbacher & Karine Raïes & Reinhard Grohs & Oliver Koll, 2016. "Drivers of brand strength : Configural paths to strong cognitive brand equity," Post-Print hal-02312234, HAL.
    8. Bobby J. Calder & Alice M. Tybout, 2016. "What makes a good theory practical?," AMS Review, Springer;Academy of Marketing Science, vol. 6(3), pages 116-124, December.
    9. Myron J. Gordon & Eli Shapiro, 1956. "Capital Equipment Analysis: The Required Rate of Profit," Management Science, INFORMS, vol. 3(1), pages 102-110, October.
    10. Baltas, George & Doyle, Peter, 2001. "Random utility models in marketing research: a survey," Journal of Business Research, Elsevier, vol. 51(2), pages 115-125, February.
    11. Mühlbacher, Hans & Raies, Karine & Grohs, Reinhard & Koll, Oliver, 2016. "Drivers of brand strength: Configural paths to strong cognitive brand equity," Journal of Business Research, Elsevier, vol. 69(8), pages 2774-2780.
    12. Srinivasan, V. Seenu & Park, Chan Su & Chang, Dae Ryun, 2005. "An Approach to the Measurement, Analysis, and Prediction of Brand Equity and Its Sources," Research Papers 1685r2, Stanford University, Graduate School of Business.
    13. Reinhard Grohs & Karine Raïes & Oliver Koll & Hans Muhlbacher, 2016. "One pie, many recipes : Alternative paths to high brand strength," Post-Print hal-02312233, HAL.
    14. V. Srinivasan & Chan Su Park & Dae Ryun Chang, 2005. "An Approach to the Measurement, Analysis, and Prediction of Brand Equity and Its Sources," Management Science, INFORMS, vol. 51(9), pages 1433-1448, September.
    15. Baruch Lev, 2019. "Ending the Accounting-for-Intangibles Status Quo," European Accounting Review, Taylor & Francis Journals, vol. 28(4), pages 713-736, August.
    16. Roger Sinclair & Kevin Lane Keller, 2017. "Brand value, accounting standards, and mergers and acquisitions: “The Moribund Effect”," Journal of Brand Management, Palgrave Macmillan, vol. 24(2), pages 178-192, March.
    17. Green, Paul E & Srinivasan, V, 1978. "Conjoint Analysis in Consumer Research: Issues and Outlook," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 5(2), pages 103-123, Se.
    18. Grohs, Reinhard & Raies, Karine & Koll, Oliver & Mühlbacher, Hans, 2016. "One pie, many recipes: Alternative paths to high brand strength," Journal of Business Research, Elsevier, vol. 69(6), pages 2244-2251.
    19. de Oliveira, Marta Olivia Rovedder & Silveira, Cleo Schmitt & Luce, Fernando Bins, 2015. "Brand equity estimation model," Journal of Business Research, Elsevier, vol. 68(12), pages 2560-2568.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aravind Reghunathan, 2021. "Branding of Government Services: Benefits and Challenges," IIM Kozhikode Society & Management Review, , vol. 10(2), pages 232-235, July.
    2. Diandian Ma & Benfu Lv & Ying Liu & Shuqin Liu & Xiuting Li, 2023. "Brand Premium and Carbon Information Disclosure Strategy: Evidence from China Listed Companies," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    3. Lindsay P. Schwartz & Steven R. Hursh, 2022. "A behavioral economic analysis of smartwatches using internet‐based hypothetical demand," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 2729-2736, October.
    4. Imran Khan & Mobin Fatma, 2023. "Impact of CSR Authenticity on Brand Advocacy: The Mediating Role of Brand Equity," Sustainability, MDPI, vol. 15(11), pages 1-11, May.
    5. Vaidyanathan, Rajiv & Aggarwal, Praveen, 2022. "Asymmetric brand alliances: When joint promotions with strong brands hurt," Journal of Business Research, Elsevier, vol. 141(C), pages 213-228.
    6. Viengkham, Doris & Baumann, Chris & Winzar, Hume & Dahana, Wirawan Dony, 2022. "Toward understanding Convergence and Divergence: Inter-ocular testing of traditional philosophies, economic orientation, and religiosity/spirituality," Journal of Business Research, Elsevier, vol. 139(C), pages 1335-1352.
    7. Marina Kholod & Nikita Mokrenko & Alberto Celani & Valentina Puglisi, 2023. "Choice Modeling of Laundry Detergent Data for Sustainable Consumption," Sustainability, MDPI, vol. 15(24), pages 1-16, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Atadil, Hilmi A. & Sirakaya-Turk, Ercan & Baloglu, Seyhmus & Kirillova, Ksenia, 2017. "Destination Neurogenetics: Creation of destination meme maps of tourists," Journal of Business Research, Elsevier, vol. 74(C), pages 154-161.
    2. de Oliveira, Marta Olivia Rovedder & Silveira, Cleo Schmitt & Luce, Fernando Bins, 2015. "Brand equity estimation model," Journal of Business Research, Elsevier, vol. 68(12), pages 2560-2568.
    3. Fronzetti Colladon, Andrea, 2018. "The Semantic Brand Score," Journal of Business Research, Elsevier, vol. 88(C), pages 150-160.
    4. Sally Baalbaki & Francisco Guzmán, 2016. "A consumer-perceived consumer-based brand equity scale," Journal of Brand Management, Palgrave Macmillan, vol. 23(3), pages 229-251, May.
    5. Venkatesh Shankar & Pablo Azar & Matthew Fuller, 2008. "—: A Multicategory Brand Equity Model and Its Application at Allstate," Marketing Science, INFORMS, vol. 27(4), pages 567-584, 07-08.
    6. Rovelli, Paola & Benedetti, Carlotta & Fronzetti Colladon, Andrea & De Massis, Alfredo, 2022. "As long as you talk about me: The importance of family firm brands and the contingent role of family-firm identity," Journal of Business Research, Elsevier, vol. 139(C), pages 692-700.
    7. Kapoor, Ankur & Sahay, Arvind & Singh, Nandini C. & Chandrasekhar Pammi, V.S. & Banerjee, Prantosh, 2023. "The neural correlates and the underlying processes of weak brand choices," Journal of Business Research, Elsevier, vol. 154(C).
    8. Szőcs Attila & Berács József, 2015. "A Causal Model of Consumer-Based Brand Equity," Acta Universitatis Sapientiae, Economics and Business, Sciendo, vol. 3(1), pages 5-26, December.
    9. repec:cup:judgdm:v:16:y:2021:i:6:p:1324-1369 is not listed on IDEAS
    10. Laura Toschi & Elisa Ughetto & Andrea Fronzetti Colladon, 2023. "The identity of social impact venture capitalists: exploring social linguistic positioning and linguistic distinctiveness through text mining," Small Business Economics, Springer, vol. 60(3), pages 1249-1280, March.
    11. Raffaele Filieri & Zhibin Lin & Simona D’Antone & Elena Chatzopoulou, 2019. "A cultural approach to brand equity: the role of brand mianzi and brand popularity in China," Journal of Brand Management, Palgrave Macmillan, vol. 26(4), pages 376-394, July.
    12. Muhammad Adnan Bashir & Syed Muhammad Faheem & Masood Hassan & Waseem Akhtar Shaikh, 2019. "Impact Of Brand Equity On Consumer Brand Preference And Brand Purchase Intention," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(1), pages 138-148.
    13. Subhani, Muhammad Imtiaz & Osman, Ms.Amber, 2009. "A Study On The Association Between Brand Awareness And Consumer/Brand Loyalty For The Packaged Milk Industry In Pakistan," MPRA Paper 21367, University Library of Munich, Germany, revised 12 Sep 2009.
    14. Mirzaei, Abas & Baumann, Chris & Johnson, Lester W. & Gray, David, 2016. "The impact of brand health on customer equity," Journal of Retailing and Consumer Services, Elsevier, vol. 33(C), pages 8-16.
    15. Valentín Gallart-Camahort & Luis Callarisa Fiol & Javier Sánchez García, 2023. "Influence of the Internet on Retailer’s Perceived Quality in the Generation of Retailer’s Brand Equity," Vision, , vol. 27(1), pages 33-47, February.
    16. Muhammad Ishtiaq Ishaq & Eleonora Di Maria, 2020. "Sustainability countenance in brand equity: a critical review and future research directions," Journal of Brand Management, Palgrave Macmillan, vol. 27(1), pages 15-34, January.
    17. Basu, Sandip & Phelps, Corey & Kotha, Suresh, 2011. "Towards understanding who makes corporate venture capital investments and why," Journal of Business Venturing, Elsevier, vol. 26(2), pages 153-171, March.
    18. Ching-Hsun Chang & Yu-Shan Chen, 2014. "Managing green brand equity: the perspective of perceived risk theory," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1753-1768, May.
    19. Barchiesi, Maria Assunta & Fronzetti Colladon, Andrea, 2021. "Corporate core values and social responsibility: What really matters to whom," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    20. L von Auer & M Trede, 2012. "The dynamics of brand equity: a hedonic regression approach to the laser printer market," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 63(10), pages 1351-1362, October.
    21. Munjal, Surender & Bhasin, Niti & Nandrajog, Divya & Kundu, Sumit, 2022. "Examining the evolution of emerging market multinational enterprises’ competitive advantages: Evidence from India," Journal of Business Research, Elsevier, vol. 145(C), pages 732-744.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-03878387. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.