IDEAS home Printed from https://ideas.repec.org/a/kap/mktlet/v35y2024i3d10.1007_s11002-024-09727-5.html
   My bibliography  Save this article

The impact of brand equity on profit premium in an equilibrium framework

Author

Listed:
  • Zsolt Sándor

    (Sapientia Hungarian University of Transylvania
    Babeş-Bolyai University)

  • Attila Szőcs

    (Sapientia Hungarian University of Transylvania)

  • Matthijs R. Wildenbeest

    (University of Arizona
    CEPR)

Abstract

Recent research extends the estimation and analysis of structural demand and supply models to consider the concepts of brand equity and brand value and their role in product investment decisions. In this paper, we analyze data from the Dutch market for new cars to show that differences in brand equity may also entail significant differences in marginal costs. Next, we illustrate that ignoring the role of brand equity in marginal costs, as the existing literature has, ignores the possibility that investments in brand equity may actually reduce the marginal profits for the offering. This can change investment incentives and produce different market structures.

Suggested Citation

  • Zsolt Sándor & Attila Szőcs & Matthijs R. Wildenbeest, 2024. "The impact of brand equity on profit premium in an equilibrium framework," Marketing Letters, Springer, vol. 35(3), pages 423-438, September.
    • Handle: RePEc:kap:mktlet:v:35:y:2024:i:3:d:10.1007_s11002-024-09727-5
    DOI: 10.1007/s11002-024-09727-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11002-024-09727-5
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11002-024-09727-5?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.

    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:kap:mktlet:v:35:y:2024:i:3:d:10.1007_s11002-024-09727-5. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.