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What Affects Brand Equity: The Precise Measurement With Consumer Choice Model

Author

Listed:
  • Natalia A. Kochkina

    (National Research University Higher School of Economics)

  • Olga V. Novikova

    (National Research University Higher School of Economics)

  • Dmitriy B. Potapov

    (National Research University Higher School of Economics)

Abstract

This paper investigates how different marketing variables (advertising, sales promotion and product assortment) affect brand equity. First, we assess weekly dynamics of brand equity intercepts using discrete choice model based on disaggregate store-level scanner data. Then we use these estimates as the dependent variable to study the impact of different marketing instruments. This paper contributes to the field basically in two ways: we measured brand equity of heterogeneous product taking into account its variety both on choice modeling stage and brand equity drivers estimation stage; we have got quite precise estimates because were able to exploit very detailed data about choices and marketing instruments. Our research reveals that share of voice of TV commercials affects brand equity positively and promotion intensity – negatively. Expanding product assortment, companies may enlarge brand equity by increasing the number of SKUs in large-format stores.

Suggested Citation

  • Natalia A. Kochkina & Olga V. Novikova & Dmitriy B. Potapov, 2014. "What Affects Brand Equity: The Precise Measurement With Consumer Choice Model," HSE Working papers WP BRP 26/MAN/2014, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:26man2014
    as

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    References listed on IDEAS

    as
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    6. Buil, Isabel & de Chernatony, Leslie & Martínez, Eva, 2013. "Examining the role of advertising and sales promotions in brand equity creation," Journal of Business Research, Elsevier, vol. 66(1), pages 115-122.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    brand equity; scanner data; marketing-mix instruments; product assortment;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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    This paper has been announced in the following NEP Reports:

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