Measuring Outcomes of Brand Equity, + TB Chapter 11 Flashcards
Comparative methods
Brand-based comparative approaches
Marketing-based comparative approaches
Conjoint analysis
Brand-based comparative methods
Experiments in which one group of consumers responds to marketing to the target brand, and another group responds to that same marketing when marketed to a competitor or fictional brand. Uses exemplars
Blind testing research (consumers examine or use a product without branding)
Marketing-based comparative methods
Hold the brand fixed (examine consumer response based on changes in marketing programs), use experiments in which consumers respond to changes in elements of the marketing for target brand or competitive brands
Exemplar
May be the category leader or some other brand that consumers feel is representative of the category, like the consumer’s most preferred brand
Conjoint analysis
Survey-based multivariate technique that enables marketers to profile consumer decision process with respect to products and brands
Allows study of different brands and different aspects of product or marketing program simultaneously
Holistic methods
Compared to comparative methods, holistic methods place an overall value on a brand. Includes:
Residual approach
Valuation approach
Residual approach
Examines the value of the brand by subtracting consumers’ preferences for the brand from their overall brand preference (based on physical attributes only)
Approaches include scanner panel, choice experiments, and multi-attribute attitude models
Scanner panel
Analysis of brand value based on data sets from supermarket scanners of consumer purchases
Proposed a measure that employs consumer purchase histories from supermarket scanner data to estimate brand equity through a residual approach
Choice experiments
Account for brand names, product attributes, brand image, and differences in consumer sociodemographic characteristics and brand usage
Valuation approach
Places a financial value on brand equity (accounting purposes, mergers and acquisitions, etc)
Approaches include accounting background, historical perspectives, and general approaches
Brand valuation
Academic approaches
Three additional well-established brand valuation approaches include interbrand, brand Z, and brand finance
Interbrand (FRS)
Leading brand valuation consultancy firm
Uses three key components:
Financial forecast
Role of brand
Strength of analysis
BrandZ (MDS)
Based on the meaningfully different framework
Suggests brands create value if they offer three key benefits:
They are meaningful, different, and salient
Key steps in the brandZ valuation include calculating financial value, brand contribution, brand value
Income-based brand valuation
Price premium method (calculated by taking price difference between branded and generic product, then multiplied with total branded sales volume)
Based on the “relief from royalty” approach (brand’s value based on the royalties a company would have paid for licensing that brand from a third party)
Brand value
Company based perspective of brand equity
