IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v68y2015i12p2560-2568.html
   My bibliography  Save this article

Brand equity estimation model

Author

Listed:
  • de Oliveira, Marta Olivia Rovedder
  • Silveira, Cleo Schmitt
  • Luce, Fernando Bins

Abstract

Although a consensus exists among marketing scholars and practitioners about the importance of brand equity, a uniformly accepted estimation model has yet to emerge. Most consumer-based brand equity (CBBE) models do not offer a monetary estimation of brand equity while many financial-based brand equity (FBBE) models do not consider consumers' perceptions. In this paper, the authors develop a model that combines these two approaches: CBBE and FBBE. The former considers consumers' purchase intentions and brand-switching probabilities using Markov matrices, while the latter calculates the monetary value of a brand using net present value of future generated cash flows. Additionally, the model enables the comparison of brand performance in relation to its competitors and the estimation of financial returns of marketing actions, thus distinguishing between the contributions of the different drivers of brand equity.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:12:p:2560-2568
    DOI: 10.1016/j.jbusres.2015.06.025
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296315002568
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2015.06.025?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. Peter M. Guadagni & John D. C. Little, 1983. "A Logit Model of Brand Choice Calibrated on Scanner Data," Marketing Science, INFORMS, vol. 2(3), pages 203-238.
    2. 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.
    3. Valette-Florence, Pierre & Guizani, Haythem & Merunka, Dwight, 2011. "The impact of brand personality and sales promotions on brand equity," Journal of Business Research, Elsevier, vol. 64(1), pages 24-28, January.
    4. Pierre Valette-Florence & Haythem Guizani & Dwight Merunka, 2011. "The impact of brand personality and sales promotions on brand equity," Post-Print hal-01822306, HAL.
    5. Baldauf, Artur & Cravens, Karen S. & Diamantopoulos, Adamantios & Zeugner-Roth, Katharina Petra, 2009. "The Impact of Product-Country Image and Marketing Efforts on Retailer-Perceived Brand Equity: An Empirical Analysis," Journal of Retailing, Elsevier, vol. 85(4), pages 437-452.
    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.
    7. Cai, Yuanyuan & Zhao, Guangzhi & He, Jiaxun, 2015. "Influences of two modes of intergenerational communication on brand equity," Journal of Business Research, Elsevier, vol. 68(3), pages 553-560.
    8. Sunil Gupta & Valarie Zeithaml, 2006. "Customer Metrics and Their Impact on Financial Performance," Marketing Science, INFORMS, vol. 25(6), pages 718-739, 11-12.
    9. Netemeyer, Richard G. & Krishnan, Balaji & Pullig, Chris & Wang, Guangping & Yagci, Mehmet & Dean, Dwane & Ricks, Joe & Wirth, Ferdinand, 2004. "Developing and validating measures of facets of customer-based brand equity," Journal of Business Research, Elsevier, vol. 57(2), pages 209-224, February.
    10. 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.
    11. Liao, Shuling & Cheng, Colin C.J., 2014. "Brand equity and the exacerbating factors of product innovation failure evaluations: A communication effect perspective," Journal of Business Research, Elsevier, vol. 67(1), pages 2919-2925.
    12. 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.
    13. Yoo, Boonghee & Donthu, Naveen, 2001. "Developing and validating a multidimensional consumer-based brand equity scale," Journal of Business Research, Elsevier, vol. 52(1), pages 1-14, April.
    14. Pierre Valette-Florence & H. Guizani & Dwight Merunka, 2011. "The impact of brand personality and sales promotions on brand equity," Post-Print halshs-00786047, HAL.
    15. Kevin Lane Keller & Donald R. Lehmann, 2006. "Brands and Branding: Research Findings and Future Priorities," Marketing Science, INFORMS, vol. 25(6), pages 740-759, 11-12.
    16. Villanueva, Julian & Hanssens, Dominique M., 2007. "Customer Equity: Measurement, Management and Research Opportunities," Foundations and Trends(R) in Marketing, now publishers, vol. 1(1), pages 1-95, March.
    17. 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.
    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. 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.
    2. Cowan, Kirsten & Guzman, Francisco, 2020. "How CSR reputation, sustainability signals, and country-of-origin sustainability reputation contribute to corporate brand performance: An exploratory study," Journal of Business Research, Elsevier, vol. 117(C), pages 683-693.
    3. Oleksandr Dorokhov & Liudmyla Dorokhova & Milica Delibasic & Justas Streimikis, 2017. "Consumer Behavior Modeling - Fuzzy Logic Model for Air Purifiers Choosing," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 13(4), pages 61-77.
    4. Jalal Rajeh Hanaysha, 2023. "Exploring the Relationship between Entrepreneurial Marketing Dimensions, Brand Equity and SME Growth," IIM Kozhikode Society & Management Review, , vol. 12(1), pages 22-38, January.
    5. Fronzetti Colladon, Andrea, 2018. "The Semantic Brand Score," Journal of Business Research, Elsevier, vol. 88(C), pages 150-160.
    6. Mitra, Satanik & Jenamani, Mamata, 2020. "OBIM: A computational model to estimate brand image from online consumer review," Journal of Business Research, Elsevier, vol. 114(C), pages 213-226.
    7. Marques, Catarina & da Silva, Rui Vinhas & Davcik, Nebojsa S. & Faria, Rita Tamagnini, 2020. "The role of brand equity in a new rebranding strategy of a private label brand," Journal of Business Research, Elsevier, vol. 117(C), pages 497-507.

    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. 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.
    2. 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.
    3. Rojas-Lamorena, Álvaro J. & Del Barrio-García, Salvador & Alcántara-Pilar, Juan Miguel, 2022. "A review of three decades of academic research on brand equity: A bibliometric approach using co-word analysis and bibliographic coupling," Journal of Business Research, Elsevier, vol. 139(C), pages 1067-1083.
    4. Lang, Le Dang & Lim, Weng Marc & Guzmán, Francisco, 2022. "How does promotion mix affect brand equity? Insights from a mixed-methods study of low involvement products," Journal of Business Research, Elsevier, vol. 141(C), pages 175-190.
    5. 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.
    6. 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.
    7. 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.
    8. Mehran REZVANI & Seyed Hamid Khodadad HOSEINI & Mohammad Mehdi SAMADZADEH, 2012. "Investigating the Role of Word of Mouth on Consumer Based Brand Equity Creation in Iran’s Cell-Phone Market," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(1), pages 1-3, February.
    9. Ahmed Y. Ebeid & Hesham F. Gadelrab, 2014. "A Structural Equation Modeling Approach to Investigate Negative Word of Mouth Impact on Customer-Based Brand Equity: Does Attribution Matter?," International Journal of Business and Social Research, LAR Center Press, vol. 4(9), pages 1-13, September.
    10. Ahmed Y. Ebeid & Hesham F. Gadelrab, 2014. "A Structural Equation Modeling Approach to Investigate Negative Word of Mouth Impact on Customer-Based Brand Equity: Does Attribution Matter?," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(9), pages 1-13, September.
    11. Hariharan, Vijay Ganesh & Desai, Kalpesh Kaushik & Talukdar, Debabrata & Inman, J. Jeffrey, 2018. "Shopper marketing moderators of the brand equity – behavioral loyalty relationship," Journal of Business Research, Elsevier, vol. 85(C), pages 91-104.
    12. 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.
    13. Rajesh Sharma, 2020. "Building Consumer-based Brand Equity for Fast Fashion Apparel Brands in the Indian Consumer Market," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 45(3), pages 337-365, August.
    14. 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.
    15. Avi Goldfarb & Qiang Lu & Sridhar Moorthy, 2009. "Measuring Brand Value in an Equilibrium Framework," Marketing Science, INFORMS, vol. 28(1), pages 69-86, 01-02.
    16. Beatriz Moliner-Velázquez & María Fuentes-Blasco & Irene Gil-Saura, 2019. "Effects of value and innovation on brand equity in retailing," Journal of Brand Management, Palgrave Macmillan, vol. 26(6), pages 658-674, November.
    17. Aloy Okafor & Olusoji George, 2016. "Theorising the Concept of Product Branding: A Qualitative Approach to the History of Branding; the Case of the Nigerian Milk Industry," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 8(2), pages 84-96, April.
    18. Chen, Lijun & Parcell, Joe L & Chen, Chao & James, Harvey S. Jr & Xu, Danning, 2016. "Consumer preference for supermarket food sampling in China," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236043, Agricultural and Applied Economics Association.
    19. Wu, Chih-Wen, 2014. "The study of service innovation for digiservice on loyalty," Journal of Business Research, Elsevier, vol. 67(5), pages 819-824.
    20. Remeikiene Rita, 2015. "Evaluation of Self-Employment Development Factors: Latvian Case," Acta Universitatis Sapientiae, Economics and Business, Sciendo, vol. 27(1), pages 5-11, December.

    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:jbrese:v:68:y:2015:i:12:p:2560-2568. 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: http://www.elsevier.com/locate/jbusres .

    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.