IDEAS home Printed from https://ideas.repec.org/a/eee/ijrema/v34y2017i3p604-621.html
   My bibliography  Save this article

Marketing accounts

Author

Listed:
  • Bendle, Neil Thomas
  • Wang, Xin (Shane)

Abstract

Marketing actions frequently create long-term value yet this is often not recorded in financial accounts. The same records are typically used for internal reporting limiting both recognition of the value created by marketing, and accountability for the misuse of market-based assets. Creating comprehensive “marketing accounts” can mitigate the problems caused by financial accounting's omission of market-based assets. We explain current accounting practice, outline the idea of marketing accounts, and contrast this with current accounting practice.

Suggested Citation

  • Bendle, Neil Thomas & Wang, Xin (Shane), 2017. "Marketing accounts," International Journal of Research in Marketing, Elsevier, vol. 34(3), pages 604-621.
    • Handle: RePEc:eee:ijrema:v:34:y:2017:i:3:p:604-621
    DOI: 10.1016/j.ijresmar.2017.03.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167811617300290
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijresmar.2017.03.002?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pfeifer, Phillip E., 2011. "On Estimating Current-Customer Equity Using Company Summary Data," Journal of Interactive Marketing, Elsevier, vol. 25(1), pages 1-14.
    2. Artz, Martin & Homburg, Christian & Rajab, Thomas, 2012. "Performance-measurement system design and functional strategic decision influence: The role of performance-measure properties," Accounting, Organizations and Society, Elsevier, vol. 37(7), pages 445-460.
    3. Leeflang, P.S.H. & Wittink, Dick R., 2000. "Building models for marketing decisions: past, present and future," Research Report 00F20, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    4. Diane-Laure Arjaliès & Julia Mundy, 2013. "The use of management control systems to manage CSR strategy: A levers of control perspective," Post-Print hal-00980329, HAL.
    5. Carol J. Simon & Mary W. Sullivan, 1993. "The Measurement and Determinants of Brand Equity: A Financial Approach," Marketing Science, INFORMS, vol. 12(1), pages 28-52.
    6. repec:dgr:rugsom:00f20 is not listed on IDEAS
    7. Natalie Mizik & Robert Jacobson, 2007. "Myopic Marketing Management: Evidence of the Phenomenon and Its Long-Term Performance Consequences in the SEO Context," Marketing Science, INFORMS, vol. 26(3), pages 361-379, 05-06.
    8. Thomas Günther & Catharina Kriegbaum-Kling, 2001. "Brand Valuation And Control: An Empirical Study," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 53(4), pages 263-294, October.
    9. Singfat Chu & Hean Keh, 2006. "Brand value creation: Analysis of the Interbrand-Business Week brand value rankings," Marketing Letters, Springer, vol. 17(4), pages 323-331, December.
    10. Zhang, Shoutong Thomas, 2016. "Firm valuation from customer equity: When does it work and when does it fail?," International Journal of Research in Marketing, Elsevier, vol. 33(4), pages 966-970.
    11. Jesse A. Ellis & C. Edward Fee & Shawn E. Thomas, 2012. "Proprietary Costs and the Disclosure of Information About Customers," Journal of Accounting Research, Wiley Blackwell, vol. 50(3), pages 685-727, June.
    12. Steven M. Shugan, 2005. "Brand Loyalty Programs: Are They Shams?," Marketing Science, INFORMS, vol. 24(2), pages 185-193.
    13. 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.
    14. Gary Lilien & Rajdeep Grewal & Douglas Bowman & Min Ding & Abbie Griffin & V. Kumar & Das Narayandas & Renana Peres & Raji Srinivasan & Qiong Wang, 2010. "Calculating, creating, and claiming value in business markets: Status and research agenda," Marketing Letters, Springer, vol. 21(3), pages 287-299, September.
    15. Sudhakar V. Balachandran, 2006. "How Does Residual Income Affect Investment? The Role of Prior Performance Measures," Management Science, INFORMS, vol. 52(3), pages 383-394, March.
    16. Sheth, Jagdish N. & Sisodia, Rajendra S., 2002. "Marketing productivity: issues and analysis," Journal of Business Research, Elsevier, vol. 55(5), pages 349-362, May.
    17. Bushman, Robert M. & Smith, Abbie J., 2001. "Financial accounting information and corporate governance," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 237-333, December.
    18. Lev, B & Zarowin, P, 1999. "The boundaries of financial reporting and how to extend them," Journal of Accounting Research, Wiley Blackwell, vol. 37(2), pages 353-385.
    Full references (including those not matched with items on IDEAS)

    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. David Wang & Tiffany Yu & Fang-Ru Ye, 2012. "The value relevance of brand equity in the financial services industry: an empirical analysis using quantile regression," Service Business, Springer;Pan-Pacific Business Association, vol. 6(4), pages 459-471, December.
    2. Wiesel, Thorsten & Skiera, Bernd & Villanueva, Julian, 2011. "Customer Lifetime Value and Customer Equity Models Using Company-reported Summary Data," Journal of Interactive Marketing, Elsevier, vol. 25(1), pages 20-22.
    3. Dirk Crass & Dirk Czarnitzki & Andrew A. Toole, 2019. "The Dynamic Relationship Between Investments in Brand Equity and Firm Profitability: Evidence Using Trademark Registrations," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 26(1), pages 157-176, January.
    4. Hans B. Christensen & Luzi Hail & Christian Leuz, 2021. "Mandatory CSR and sustainability reporting: economic analysis and literature review," Review of Accounting Studies, Springer, vol. 26(3), pages 1176-1248, September.
    5. Anne-Laure Farjaudon, 2006. "L'évaluation des marques, au carrefour des recherches en comptabilité, finance, contrôle de gestion et marketing," Post-Print halshs-00548127, HAL.
    6. Mohamed El Hedi Arouri & Aldo Lévy & Duc Khuong Nguyen, 2010. "ROE and Value Creation under IAS/IFRS: Evidence of Discordance from French Firms," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2010(3), pages 84-112.
    7. Denis Cormier & Walter Aerts & Marie‐Josée Ledoux & Michel Magnan, 2010. "Web‐Based Disclosure About Value Creation Processes: A Monitoring Perspective," Abacus, Accounting Foundation, University of Sydney, vol. 46(3), pages 320-347, September.
    8. Ryoo, Juyoun & Jeon, Jin Q. & Lee, Cheolwoo, 2016. "Do marketing activities enhance firm value? Evidence from M&A transactions," European Management Journal, Elsevier, vol. 34(3), pages 243-257.
    9. 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.
    10. Qiong Yao & Liwen Huang & Mingli Li, 2019. "The effects of tech and non-tech innovation on brand equity in China: The role of institutional environments," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-24, May.
    11. Bilal Gerekan & Abdulkadir Pehlivan & Mahmut Kocan, 2019. "The Effect of Firm Growth on Brand Value: Evidence from Brand Finance Turkey-100," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(9), pages 1067-1076, September.
    12. Power, Michael, 2021. "The financial reporting system - what is it?," LSE Research Online Documents on Economics 110220, London School of Economics and Political Science, LSE Library.
    13. Muhammad Fahid MUQADDAS & Ishtiaq AHMAD, 2016. "Determinants Of Brand Equity: An Empirical Study Of It Industry," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 12, pages 555-560, December.
    14. Stoffman, Noah & Woeppel, Michael & Yavuz, M. Deniz, 2022. "Small innovators: No risk, No return," Journal of Accounting and Economics, Elsevier, vol. 74(1).
    15. Matsuoka, Kohsuke, 2021. "A framework for variance analysis of customer equity based on a Markov chain model," Journal of Business Research, Elsevier, vol. 129(C), pages 57-69.
    16. Elizabeth Abiola-Oke, 2019. "The Branded Hotel as an Element of Destination Branding," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 12(1), pages 83-96.
    17. Jason L. Brown & Patrick R. Martin & Geoffrey B. Sprinkle & Dan Way, 2023. "How Return on Investment and Residual Income Performance Measures and Risk Preferences Affect Risk-Taking," Management Science, INFORMS, vol. 69(2), pages 1301-1322, February.
    18. Luo, Shuqing & Courtenay, Stephen M. & Hossain, Mahmud, 2006. "The effect of voluntary disclosure, ownership structure and proprietary cost on the return-future earnings relation," Pacific-Basin Finance Journal, Elsevier, vol. 14(5), pages 501-521, November.
    19. Wang, Qian & Ettredge, Michael, 2015. "Discretionary allocation of corporate income to segments," Research in Accounting Regulation, Elsevier, vol. 27(1), pages 1-13.
    20. 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.

    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:eee:ijrema:v:34:y:2017:i:3:p:604-621. 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: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/international-journal-of-research-in-marketing/ .

    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.