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Measuring brand equity in the car market: a hedonic price analysis

Author

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  • G Baltas

    (Athens University of Economics & Business)

  • C Saridakis

    (Athens University of Economics & Business)

Abstract

This paper designs and implements a hedonic model to investigate brand-name effects in the car market. The proposed model provides considerable empirical evidence in support of model-name premia, after controlling for observed product differentiation. Such premia incorporate not only manufacturer equity but also effects that are specific to individual models. The estimated price premia are remarkably intuitive and consistent across carmakers and models. The results yield important implications for brand and range management in the car market and suggest directions for future research.

Suggested Citation

  • G Baltas & C Saridakis, 2010. "Measuring brand equity in the car market: a hedonic price analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(2), pages 284-293, February.
    • Handle: RePEc:pal:jorsoc:v:61:y:2010:i:2:d:10.1057_jors.2008.159
    DOI: 10.1057/jors.2008.159
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    References listed on IDEAS

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    Cited by:

    1. Chen, Bo & Zhang, Xiaoheng & Zhou, Qingjie, 2021. "Product differentiation and brand building: a hedonic analysis of yogurt price in China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3), March.
    2. Alexander Kihm & Colin Vance, 2016. "The determinants of equity transmission between the new and used car markets: a hedonic analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(10), pages 1250-1258, October.
    3. Edward L. Glaeser, 2013. "The Supply of Environmentalism," NBER Working Papers 19359, National Bureau of Economic Research, Inc.
    4. Marta Dziechciarz-Duda & Anna Król, 2017. "The Application Of Multivariate Statistical Analysis To The Valuation Of Durable Goods Brands," Statistics in Transition New Series, Polish Statistical Association, vol. 18(1), pages 75-90, March.
    5. repec:zbw:rwirep:0521 is not listed on IDEAS
    6. Dziechciarz-Duda Marta & Król Anna, 2017. "The Application of Multivariate Statistical Analysis to the Valuation of Durable Goods Brands," Statistics in Transition New Series, Polish Statistical Association, vol. 18(1), pages 75-90, March.
    7. Prieto, Marc & Caemmerer, Barbara & Baltas, George, 2015. "Using a hedonic price model to test prospect theory assertions: The asymmetrical and nonlinear effect of reliability on used car prices," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 206-212.
    8. M Esteban-Bravo & N Lado, 2011. "Brand value in horizontal alliances: the case of twin-cars," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(8), pages 1533-1542, August.
    9. Alexander Kihm & Colin Vance, 2014. "The Determinants of Equity Transmission Between the New and Used Car Markets – A Hedonic Analysis," Ruhr Economic Papers 0521, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    10. Ramírez Muñoz de Toro, Gonzalo R. & Uriarte, Juan I. & Delbianco, Fernando & Larrosa, Juan M.C., 2017. "Un modelo hedónico de precios en línea de automóviles usados en Argentina || A Hedonic Model of Online Prices of Used Cars in Argentina," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 24(1), pages 25-53, Diciembre.
    11. Majid, Kashef Abdul & Russell, Cristel Antonia, 2019. "Value dynamics in the secondary market: How pricing and product lines in the primary market affect value retention," Journal of Business Research, Elsevier, vol. 103(C), pages 89-99.
    12. Kurz, Claudia, 2017. "Finanzielle Anreizwirkung der Förderung von Elektromobilität durch die Bundesregierung: Empirische Evidenz bezüglich der Umweltprämie und der Kfz-Steuerbefreiung," UASM Discussion Paper Series 6/2017, University of Applied Sciences Mainz.
    13. Leslie J. Verteramo Chiu & Loren W. Tauer & Yrjo T. Gröhn, 2022. "Pricing efficiency in livestock auction markets: A two‐tier frontier approach," Agricultural Economics, International Association of Agricultural Economists, vol. 53(S1), pages 139-151, November.
    14. Chiraz Karamti & Lukasz Grzybowski, 2010. "Hedonic study on mobile telephony market in France: pricing–quality strategies," Netnomics, Springer, vol. 11(3), pages 255-289, October.

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