Measuring Outcomes of
Brand Equity: Capturing
Market Performance
COMPARATIVE METHODS
Studies or experiments that examine consumer
attitudes and behavior toward a brand to
directly estimate specific benefits arising from
having a high level of awareness and strong,
favorable, and unique brand associations.
Brand-based comparative approaches
The classic example of the brand-based
comparative approach is “blind test- ing”
research studies in which different
consumers examine or use a product
with or without brand identification.
Marketing-based comparative approaches
Marketing-based comparative
approaches hold the brand fixed and
examine consumer response based on
changes in the marketing program.
Conjoint Analysis
Survey-based multivariate technique that
enables marketers to profile the
consumer decision process with respect to
products and brands.9 Specifically, by
asking consumers to express preferences
or choose among a number of carefully
designed product profiles
HOLISTIC METHODS
Holistic methods place an
overall value on the brand in
either abstract utility terms or
concrete financial terms.
Residual Approaches
Is what remains of con-
sumer preferences and
choices after we subtract
physical product effects.
Scanner Panel
Analysis of brand value based on
data sets from supermarket
scanners of consumer purchases.
Choice Experiments
Measuring brand equity with choice experiments that account for
brand names, product attributes, brand image, and differences in
consumer sociodemographic characteristics and brand usage.
Multi-Attribute Attitude Models
Their approach reveals the relative sizes of different
bases of brand equity by dividing brand equity into
three components: brand awareness, attribute
perception biases, and nonattribute preference.
Critique
Valuation Approaches
It has been argued that adjusting the balance
sheet to reflect the true value of a company’s
brands permits us to take a more realistic view
Accounting Background
Tangible assets
include property, plant, and
equipment; current assets
(inventories, marketable
securities, and cash); and
investments in stocks and bonds.
Intangible assets
Are any factors of production or
specialized resources that permit the
company to earn cash flows in excess
of the return on tangible assets.
Historical Perspectives
General Approaches
The cost, market, and
income approaches.
Simon and Sullivan’s
Brand Equity Value
Technique for estimating a firm’s
brand equity derived from
financial market estimates of
brand-related profits.
Interbrand’s Brand Valuation
Methodology
In developing its brand valuation methodology, Interbrand
approached the problem by assuming that the value of a
brand, like the value of any other economic asset, was the
pres- ent worth of the benefits of future ownership.