Brand Equity Value Research Articles

The Impact of Regulation on Strategic Positioning: Self-Regulation in the RTE Cereal Industry

This paper exploits a natural experiment involving self-regulation in the ready-to-eat (RTE) breakfast cereal industry to evaluate how firms respond to entry in light of changes in competition and to estimate the value of brand equity as products are re-positioned. Self-regulation led to a crowding of the product space by forcing differentiated products to become more similar. Among other things we find that products constrained by regulation perform relatively worse than unconstrained products, brand equity specific to a product is tightly linked to existing product positions and does not transfer well to new positions, and that when competition increases, firms reposition to new segments and increase investments on product differentiation. The paper offers a performance based assessment of repositioning and to our knowledge offers the first empirical analysis in the strategy literature that measures in performance terms how repositioning changes the value of brand equity.

Brand Equity and Firm Sustainable Performance: The Mediating Role of Analysts’ Recommendations

Current literature has overlooked the signaling effects of the brand on a firm’s sustainable performance through financial analysts. This study posits that financial analysts may serve as the information bridge connecting brand equity and a firm’s sustainable performance by providing professional recommendations of stock investments to public investors. Using a longitudinal archived dataset of Chinese listed firms, we found that: (1) brand equity improves the level of analysts’ recommendations for a focal firm’s stock, and also reduces the inconsistency of analysts’ recommendations; (2) industrial competition further strengthens the positive impact of brand equity on analysts’ recommendation level and strengthen its negative impact on recommendation inconsistency; (3) analyst recommendations mediate the relationship between brand equity and a firm’s sustainable performance in terms of abnormal return, systematic and idiosyncratic risk. These findings emphasize the importance of financial analysts’ recommendations in influencing the value of brand equity on sustainable firm performance.

Designing the geography of luxury: Online perceptions and entrepreneurial options

Abstract This research applies the Design Thinking approach to explore the online perceptions of luxury and place experienced by potential purchasers and other interested parties. A netnographic study, encompassing observations and interviews, was conducted using a product purity framework developed from the analysis of over 3000 online-posted commentaries. The findings indicate that online users perceive luxury product purity and place of origin in three principal ways. First, uncertainty can breed scepticism of product purity. Second, some users expand their horizons to embrace the reality. Third, some use the information to develop their own definitions of luxury product purity. Designing suitable models to map the complexity of product purity is likely to enhance the effectiveness of companies and operators in managing the place-related perceptions surrounding their products, resulting in an increased brand equity value and a more effective responsiveness to the market.

Merger, acquisition – right move or emotional move for growth – case study of sun pharmaceutical

PurposeThe purpose of this paper is to analyze the merger and acquisition (M&A) strategy focusing on Indian company’s approaches and to understand steps of the process adopted by them. It focuses on the rationality of M&A and its impact on the profitability. This paper also discusses whether financial transaction in terms of value is right or done because of eagerness to expand by calculating the financial value of brand equity independently.Design/methodology/approachThe operating performance, capital adequacy and solvency measures were compared to three-years pre- and post-merger from the financial statements of the organizations through financial valuation of brands. Inter-brand and RKS model are used to calculate the brand value. The perception study on M&A is also conducted by interviewing stakeholders. This paper provides a theoretical and practical basis to decide on whether M&A. The present paper has taken recent mega M&A of Ranbaxy Lab by Sun pharmaceuticals for the analysis.FindingsThe results of the paper showed that Return on investment did not indicate significant improvement, but on average, it can be concluded that overall performance of the acquirer improves as a result of M&A activity as per the study. The decisions on M&A are more emotional than rational. The present paper reveals that M&A of pharmaceutical company was riskier because of emotional decisions. Research has proposed “Merger, acquisition Theory (RERC MA theory) based on rational, emotion, risk taking ability culture” to understand the M&A.Research limitations/implicationsThis paper is more focused on emerging markets which is more active with better gross domestic product (GDP) growth. It is more on analysis of financial decisions and has not taken customer equity, employee morale and engagement. A further study is suggested in the same areas. Managerial Implications: This paper will enable the managers to withstand the emotional influence and will help them to be more professional approach which will benefit the organization and stakeholder better. Mangers should look for long-term impact than short-term impact the present paper will also help them to understand on how financial calculations will help them to take more rational decisions.Originality/valueAlthough the topic is not very new, a lot of literature is available on M&A, but the pharmaceutical sector is comparatively new for such kind of studies. Specifically, the selection of respondents and brand valuation mechanism has got practical implications. Earlier papers on M&A paper are more focused on customers’ equity, but a financial analysis of M&A is done in the present paper will help to evaluate merger and acquisition process more analytically. Financial calculation for evaluating M&A is the highlight of this research paper. Study of M&A from emerging markets will help to increase the knowledge as such papers are few. Research uses two important financial tools to measure financial brand equity and tries to justify the need for more rational rather than emotional approach. Research has proposed “Merger, acquisition Theory (RERC MA theory) based on rational, emotion, risk taking ability culture” to understand the M&A.

Analysis of the Value of Brand Equity from the Perspective of Consumer Psychology

Brand equity is an important object of study in the field of marketing and consumer psychology. This paper proceeds from the three constituent elements of brand equity, and taking “Xiang Piao Piao” brand as an example, expounds the role of these factors such as brand awareness, perceived quality, brand preferences resulting from consumer subjective factors in enhancing the value of brand equity. Combining the information from “Xiang Piao Piao Foods Co., Ltd. initial public offering of shares and listing prospectus” published by China Securities Regulatory Commission, this paper analyzes the important role of brand equity for promoting the development of enterprise.

Marketing metrics: a meta-synthesis

The aim is to provide a meta-synthesis that identifies the key financial and marketing metrics, which can be linked to firm performance. The paper examines the existing dimensions from conceptual and empirical literature based on the link between marketing-financial metrics to the firm value. An extensive exploration is aimed to excavate the financial and marketing metrics that were analysed from the results from 100 studies published between 1991 and 2016. Emerging studies since the last two decades are equating the effect of marketing assets such as; brand equity, customer-based brand equity, customer equity, customer satisfaction and customer lifetime value that can influence firm performance.

Brands that do good: insight into social brand equity

Brand equity has been accepted as an important construct as evidenced by the proliferation of models and arguments on the concept. Brand equity has multiple definitions which reflect the commercial intention of brands. Social brands, however, have social intentions. It is therefore plausible that determining the value of social brand equity may be different from determining the value of commercial brand equity. The purpose of this article is to conduct exploratory research to obtain a sense of whether existing brand equity models apply to social brands, and if not, what modifications are needed to help in the measurement of social brands. In-depth interviews were conducted with fifteen experts from four continents. In general, constructs of brand equity were agreed upon as valid and useful in social brand equity. However, the application of two constructs is tempered by ethical and funding issues. This is due to the context of measuring social brand equity, and the unassailable fact that the social sector consists of complexities, over and above those experienced by the commercial sector.

Chasing the Fame: Investing in Brand Equity

This paper examines the relationship between a firm’s brand equity and its investment value. “Brand equity is defined as the incremental cash flows which accrue to branded products over unbranded products. The estimation technique extracts the value of brand equity from the value of the firm's other assets” (Simon & Sullivan, 1993). This study illustrates how stocks with higher growth of brand equity provide stronger investment value. Conversely, stocks with deteriorating brand equity generally feature lower return potential. An empirical portfolio-strategy is used to demonstrate the assumptions and predicts how to capitalize upon return potential from such a relationship.

PENGARUH BRAND EQUITY DAN CUSTOMER VALUE TERHADAP CUSTOMER SATISFACTION RUMAH SAKIT

Hospital as the provider of health service, should be well managed to improve the quality of service and the quantity of patient. The existence of hospitals both private and government-owned causes intense competition in providing the best health care services. Patients’ satisfaction occurs when their needs, desires and hopes can be fulfilled. To implement this, the hospital should hold a good relationship with patients. Factualy health services remains a complex problem. The complexity of the problem, arise along with the development of medical technology, the increasing socio-economic, educational, and public knowledge about health. This research is intended to find out the effect of brand equity and customer value on customer satisfaction RSUD Bhakti Dharma Husada Surabaya. Research’s approach is quantitative approach. The data were collected by taking sample of population were 111.443, using sampling purposive. From questionnaires that were distributed to 110 respondents and those who met the requirement for sample were 100 respondents. The result was: (1) brand equity has a positive and significant effect on customer satisfaction; (2) customer valuehas a positive and significant effect on customer satisfaction.

Effects of customer perception and social interactions on brand equity: automobile sector

The consumer perceptions, attitude and behaviours towards a product have witnessed a boom in marketing in recent past. The customer perceptions and behaviour are logical a precursor to, product brand equity. We proposed a model by using relevant mediators to calculate the value of car brand equity. Since the link between predictors, mediators and dependent variables is quantified. The model includes utility and artistic as two antecedents, two mediators' customer perception and customer interactions on social media websites to assess the influence on the car brand equity (consequent). The study used the stepwise regression technique to evaluate the hypotheses results. A sample size of 332 customers using Maruti cars in India was examined to determine the mediating effect on car brand equity. Our findings recommend that the social interactions about car play a significant role in deciding brand equity along with other properties. The paper provides an important contribution in providing the managerial insight in formulating new policies, marketing strategies to promote cars online.

Toward the Importance of Nonprofit Brand Equity

Various brand evaluation approaches assess the value and equity of for-profit brands; accordant approaches for nonprofit brands, however, have been limited, and there is disagreement on what makes up a strong brand in the nonprofit sector. In response, this article provides insights into the conceptualization and operationalization of stakeholder-based nonprofit brand equity and derives an initial measurement index. We conceptualize nonprofit brand equity as having three dimensions—nonprofit brand awareness, nonprofit brand trust, and nonprofit brand commitment—thereby empirically investigating trust in nonprofit brand equity building for the first time. The methodological procedure for building the index is based on partial least squares path modeling, and we draw on a sample of forty brands (N = 3,617 brand evaluations) identified as some of the best-known nonprofit brands in Germany. Applying the index yields some of the strongest German nonprofit brands; for example, German Red Cross has by far the highest value of brand equity, followed by Aktion Mensch and UNICEF. The nonprofit brand equity index provides the basis for nonprofit managers to compare their brands’ performance over time and develop accordant branding strategies; it can be also used by organizations from other countries.

Importance of Brand Equity

Abstract: This paper aims to explore the value of brand, brand equity, brand personality and brand image. In today’s scenario it is extremely important for any company to build its brand value through proper Marketing, Advertising and Sales Promotion. Today’s markets are governed by principles of Marketing, customer is the king and selling as a concept has lost its value. The case in point is Maggi Noodles by Nestle. This paper aims to explore the different concepts of making product tick for the customer. One of the major concepts driving the markets today is Innovation and Innovention. Besides, this customer service has become all the more important. This paper aims to study various case studies, to explore the importance of Marketing in today’s world. Its no longer sufficient to just sell the product. It is extremely important to conduct Market Research and Focus Group discussion to find out the need for the product. Branding in itself is not an end, there is need to ensure proper quality of the product and educate the customer about the product. Proper Segmentation, Targeting and Positioning was never as important as today.

Assessing sport brand value through use of the contingent valuation method

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.

Intellectual capital through the eyes of the consumer

Purpose– The purpose of this study is to measure intellectual capital of the firm through the eyes of the consumer by investigating the relationships between financial-based brand equity (FBBE) and consumer-based brand equity (CBBE) and their related constructs.Design/methodology/approach– Fifteen consumer brands were evaluated based on three different perspectives of CBBE, and were then regressed on FBBE. Prior to the regression analysis, the FBBEs of 15 consumer brands were standardized using the total assets and three-year weighted average of their brand equity values.Findings– Findings show that existing CBBE scales and related brand dimensions partially explain FBBE, namely, sustainability and brand experience, and that the product category contributes significantly in explaining FBBE. In addition, brand experience is positively associated with FBBE.Research limitations/implications– The study only includes brands from the food, electronics and clothing industries.Practical implications– The study provides guidance to brand managers regarding which brand dimensions directly influence brands’ financial values.Originality/value– The paper empirically measures consumers’ perceptions of the firm’s intellectual capital by using brand equity.

The Impact of Marketing Efforts on Brand Equity: A Case of Samsung Brand in Sudan

This study investigates the relationships between selected marketing mix elements in the creation of brand equity at Samsung Company-Sudan. In order to achieve the research objectives and to test its hypotheses data was collected by deploying questionnaire for 368 Samsung customers in Sudan. The research results reveal that marketing efforts have a significant effect on perceived quality and brand loyalty; whereas marketing activities have partial significant effect on brand image and brand awareness. The test results also show that all the marketing-mix efforts except advertising spending affect the overall value of brand equity.

Consumer-based brand equity and purchase decision of Indian gold jewellery

Value of brand equity is proportional to the perceived risk from buying a product. When a consumer is attached with the purchase of a product emotionally or when the product is expensive, brand equity gains more significance. In the case of purchase of gold jewellery in the Indian conditions, the consumer adds more importance to the brand name and the brand equity attached to it. This study is unique in analysing the brand equity elements behind the purchase decision of Gold Plus gold jewellery with the help of predictive neural networks model. A study of the relative importance of the brand equity dimensions is not attempted in this study as there is rich literature on this subject. This paper identifies the significant brand equity elements which lead to the purchase decision of gold jewellery sold in India under the brand name of Gold Plus, a leading brand name in India.

Structural Analysis of Port Brand Equity Using Structural Equation Modeling

Port competition, especially in the Northeast Asia (NEA) region, can be described as a price war. In this price competition, it is necessary to build up the brand concept to acquire higher market share. This paper aims to provide structural relationships for port brand equity (PBE) and explore the PBE stages statistically. The stages are divided into three steps: port service quality as the precedent of PBE, the PBE dimensions (brand awareness [BA] and brand loyalty [BL]), and the antecedent of PBE (overall value of brand equity [OVBE]). From a survey conducted with port users in Korea, the empirical results revealed several significant relationship: between tangibles (TA) dimension of port service quality and BL, between the empathy (EMP) dimension of port service quality and both BA and BL, and between BA and BL and OVBE. From the empirical analysis, this study suggests both managerial and academic contributions for port managers and scholars for further policy development and research in this important area.

The Impacts of Electronic Word of Mouth on Brand Equity in the Context of Social Media

Social media has become the driving force which transforms the web into an interactive information andcommunications technology device. Social media has a significant role in influencing customer’s choice inselecting products and services based on the customers’ feedbacks that appeared in the weblogs, web sites,online boards and other kinds of user-generated content (Raman, 2009). It is indeed important to remember thatbrand equity is no longer valued by large sums of money that companies invest; instead customers are dictatingthe value of brand equity by what they are saying to each other. Therefore, this study will focus on evaluating theroles of various brand equity constructs (including brand loyalty, brand association, brand awareness and brandimage) in mediating the interrelation among electronic word of mouth and the dimensions of brand equity in thecontext of social media. There were total of 300 usable questionnaires were collected in this research. Thefinding revealed that there is an indirect inter-relationship between electronic word of mouth and the dimensionof brand equity, mediated by the respective various brand equity constructs.

Assessing a brand equity model for fast moving consumer goods in cosmetic and hygiene industry

Article history: Received June 4, 2014 Accepted 29 September 2014 Available online October 6 2014 This paper presents an empirical investigation to study the effects of ten factors on brand equity. The study provides an assessment using a brand equity model for fast moving consumer goods in cosmetic and hygiene industry. The study has accomplished among people who purchase goods in six major cities of Iran based on an adapted questionnaire originally developed by Aaker (1992a) [Aaker, D. A. (1992a). The value of brand equity. Journal of Business Strategy, 13(4), 27-32.]. Cronbach alpha has been calculated as 0.88, which is well above the minimum acceptable level of 0.7. In addition, Kaiser-Meyer-Olkin Measure of Sampling adequacy and Bartlett's test of Sphericity approximation Chi-Square are 0.878, 276628 with Sig. = 0.000, respectively. The proposed study of this paper uses structural equation modeling to test different hypotheses of the survey. The Root Mean Square Error of Approximation (RMSEA), Comparative Fit Index (CFI) and Chi-Square/df are 0.067, 0.840 and 4.244 and they are within desirable levels. While the effects of seven factors on brand equity have been confirmed. However, the survey does not confirm the effects of perceived value, advertisement effectiveness and advertisement to brand on brand equity. In our survey, brand loyalty maintains the highest positive impact followed by having updated brand, trust to brand, perceived quality to brand, brand awareness, intensity of supply and perception to brand. © 2014 Growing Science Ltd. All rights reserved. Aaker Model Brand Loyalty Brand awareness Perceived quality Brand Association

The Value of Brand Equity

This paper aims to be a brief presentation of brand equity as a provider of strategic advantages for companies that own brands. Successful management of a brand must be focused on values capitalization so that these attributes could represent a natural extension of general perception. The stated goal of any brand manager is to strengthen the brand values so that they may be easily recognizable and identifiable to the public.