Advertising Officer

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A Product-Market-Based Measure of Brand Equity

Kusum L. Ailawadi, Donald 3rd there’s r. Lehmann, and Scott A. Neslin

FUNCTIONING PAPER • REPORT NO . 02-102 • 2002

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A Product-Market-Based Measure of Manufacturer Equity

Kusum L. Ailawadi, Donald Ur. Lehmann, and Scott A. Neslin

FUNCTIONING PAPER • REPORT NUMBER 02-102 • 2002

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MSI was established around 1962 as a not-for-profit institute with all the goal of bringing together organization leaders and academics to create knowledge that will improve business overall performance. The primary quest was to offer intellectual leadership in marketing and its allied fields. Through the years, MSI's global network of scholars from leading graduate educational institutions of supervision and believed leaders via sponsoring companies has widened to encompass multiple organization functions and disciplines. Problems of important importance to business overall performance are determined by the Plank of Wholesale real estate flipper, which represents MSI companies and the academics community. MSI supports research by scholars on these issues and disseminates the effects through conferences and workshops, as well as through its publications series. This kind of report, prepared with the support of MSI, is being delivered to you to your information and review. It is not to be reproduced or published, in any contact form or in any respect, electronic or perhaps mechanical, with out written permission from the Institute and the author. The views expressed through this report are certainly not necessarily those of the Marketing Science Start. Copyright В© 2002 Kusum L. Ailawadi, Donald 3rd there’s r. Lehmann, and Scott A. Neslin

PROMOTING SCIENCE INSTITUTE • Survey Summary #02-102

A Product-Market-Based Measure of Manufacturer Equity

Kusum L. Ailawadi, Donald R. Lehmann, and Scott A. Neslin

Inspite of all the attention brand value has received in the past decade, fairly little is known about how to measure this or just how it alterations over time. From this report, writers Ailawadi, Lehmann, and Neslin propose a straightforward and easily quantifiable measure of manufacturer equity and validate this by analyzing its habit over time and across product categories, and in response to advertising activities including advertising and promotion. They conceptualize product-market-level brand fairness as the incremental earnings that the manufacturer earns over the revenue it could earn if it were distributed without the name brand. The fairness of the brand is usually calculated because the difference in revenue (i. e., selling price x volume) between a branded good and the corresponding private label. They will examine the measure to get brands in 23 grouped together goods categories over a seven-year period. The measure is found to be stable, still related in expected methods to marketing activities (that is definitely, positively associated with advertising although not with promotion) and sector trends (in general this declined throughout the period once conventional wisdom suggests that nationwide brands dropped out to shop brands). Additional, the brand equity measure is definitely positively linked to stockpileability and hedonic types and in a negative way associated with white label quality. Finally, the " up” own-price elasticity, my spouse and i. e., the result on sales when cost is increased, is definitely significantly below the " down” own-price elasticity pertaining to high value brands. Total, this way of measuring brand value offers a number of advantages to marketing managers. It is a simple measure that could serve as an acceptable standard of performance in fact it is readily integrable from existing internal stats or widely available data. Importantly, it should also have believability with monetary and working managers who have understand and find out the value...

Referrals: Marketing Research Institute 31

Hjorth-Andersen, Christian (1984), " The Concept of Quality and the Efficiency of Marketplaces for Buyer Products. ” Journal of Consumer Research 11 (2)(September), 719-27

thirty-two Marketing Technology Institute

Perrier, Raymond (1997), Brand Value, 3rd education

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