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An ex-ante approach to brand capability valuation

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  • Ratnatunga, Janek
  • Ewing, Michael T.

Abstract

There are numerous financial metrics available in the academic and commercial world to estimate brand value. In the context of mergers and acquisitions, managers often use such metrics when purchasing or selling brands. However, the measurement of brand equity in a going-concern has received scant attention in the academic literature. The well-known Interbrand(TM) approach is an ex-post calculation of brand value. This paper extends Interbrand's brand strength valuation model by developing an ex-ante approach to guide managers in their budgeting and strategic decision-making processes geared towards building brand value. It then empirically tests the model in a company with an internationally recognized brand.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jbrese:v:62:y:2009:i:3:p:323-331
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    References listed on IDEAS

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    1. 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.
    2. M. L. Vidale & H. B. Wolfe, 1957. "An Operations-Research Study of Sales Response to Advertising," Operations Research, INFORMS, vol. 5(3), pages 370-381, June.
    3. Jean-Noël Kapferer, 1992. "Strategic Brand Management: New Approaches to Creating and Evaluating Brand Equity," Post-Print hal-00788649, HAL.
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    Cited by:

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    2. Yu-Yin Chang & Heng-Chiang Huang, 2021. "Exploring Patterns of Evolution for Successful Global Brands: A Data-Mining Approach," Sustainability, MDPI, vol. 13(14), pages 1-17, July.
    3. He, Junnan & Calder, Bobby J., 2020. "The experimental evaluation of brand strength and brand value," Journal of Business Research, Elsevier, vol. 115(C), pages 194-202.
    4. Vlad I. Rosca & Cristina Veronica Partenie, 2018. "A theoretical overview on understanding customer-based brand equity," Journal of Community Positive Practices, Catalactica NGO, issue 4, pages 19-28.
    5. Santos-Vijande, María Leticia & del Río-Lanza, Ana Belén & Suárez-Álvarez, Leticia & Díaz-Martín, Ana María, 2013. "The brand management system and service firm competitiveness," Journal of Business Research, Elsevier, vol. 66(2), pages 148-157.
    6. María Ángeles Alcaide & Elena De La Poza & Natividad Guadalajara, 2019. "Assessing the Sustainability of High-Value Brands in the IT Sector," Sustainability, MDPI, vol. 11(6), pages 1-20, March.
    7. Kilian, Karsten & Müller, Michael, 2016. "Markencontrolling: Markenerfolg messbar machen," PraxisWISSEN Marketing: German Journal of Marketing, AfM – Arbeitsgemeinschaft für Marketing, vol. 1(01/2016), pages 1-21.

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