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Abstract
This paper presents a technique for estimating a firm's brand equity that is based on the financial market value of the firm. Brand equity is defined as the incremental cash flows which accrue to branded products over unbranded products. The estimation technique extracts the value of brand equity from the value of the firm's other assets. This technique is useful for two purposes. First, the macro approach assigns an objective value to a company's brands and relates this value to the determinants of brand equity. Second, the micro approach isolates changes in brand equity at the individual brand level by measuring the response of brand equity to major marketing decisions. Empirically, we estimate brand equity using the macro approach for a sample of industries and companies. Then we use the micro approach to trace the brand equity of Coca-Cola and Pepsi over three major events in the soft drink industry from 1982 to 1986.
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Discover the latest findings in the global marketplace with detailed results prepared through rigorous scientific methodology. Reviewed by prestigious scholars in the field of marketing science, articles often feature game theory, econometrics, multivariate analysis, econometric modeling, and choice models. Advertising Consumer choice modeling Interactions between manufacturers and retailers Market research Pricing decisions Purchase behavior Revenue forecasting
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With over 12,500 members from around the globe, INFORMS is the leading international association for professionals in operations research and analytics. INFORMS promotes best practices and advances in operations research, management science, and analytics to improve operational processes, decision-making, and outcomes through an array of highly-cited publications, conferences, competitions, networking communities, and professional development services.
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Marketing Science © 1993
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