An empirical investigation of brand equity: drivers and their consequences

Abstract

Purpose -The author aims to present a model of the brand value drivers, measured by brand equity. The goal of this research is to identify the drivers, and determine how they influence brand equity performance in the researched industry, in order to develop a more effective brand strategy. Design/methodology/approach -The author studied an aggregate dataset for 739 food brands. Six predictors were controlled for (i.e. marketing investments, price, revenue, perceived quality [organic and functional] and brand ownership), while the impact of the brand equity drivers on brand value was estimated. The model was formulated and estimated using a robust OLS procedure. Several data sources have were in this study, such as market-based data from ACNielsen, as well as information and variable constructs using data from the Bureau Van Dijk Electronic Publishing AIDA financial statements database. Findings -Results suggest that marketing investment, price, revenue, brand ownership and perceived quality are highly associated with brand equity, and consequently with a higher brand value in the food industry. Research limitations/implications -This study has only studied one industry (food), one industry segment (enriched-food) and one country (Italy). Originality/value -The majority of marketing studies apply a single research approach and measures. This is the first study of brand equity that combines consumer, financial and marketing approaches. The model contributes to theory and practice in terms of suggesting which business drivers create brand value and what type of brand strategy a firm can apply in order to create brand value.

Towards a unified theory of brand equity: conceptualizations, taxonomy and avenues for future research

“…Christodoulides and de Chernatony, 2010) as well as different perspectives on the factors that influence brand equity. Indeed, academic discussion is inconclusive about the conceptual foundations, sources, essence, and measures of brand equity (Davcik, 2013). For example, there is no consensus in the literature whether brand equity refers to the value of a brand name or the value of a brand (Park et al, 2008) or what is the theoretical delineation of brand equity in the multi-brand organization -i.e., how brand equity affects the brand portfolio strategy and firm performance.…”

“…In contrast, strictly consumer-based measures are limited by subjectivity and availability of respondents. Additionally, these intermediate outcomes are incapable of converting consumer value into financial value (Davcik, 2013). In other words, brand measurement methods must include non-financial measures, such as brand awareness, purchase intentions, and consumer loyalty, as well as financial measures that reflect consumer willingness to pay premium prices, market share, etc.…”

Gestão da Produção em Foco - Volume 31

“…Essa diferenciação possibilita a comercialização de produtos com maior valor agregado, proporcionando benefícios econômicos, além de melhorar o produto produzido e consequentemente garantir a satisfação dos consumidores. Davcik (2013) relata que o valor agregado dos alimentos recém desenvolvidos é um fator e pode ser aprimorado através do uso de uma estratégia de marca.…”

Impact of product differentiation, marketing investments and brand equity on pricing strategies

“…There is fierce academic debate about the conceptualization of the appropriate theoretical and measurement approach in brand equity (Davcik 2013). The major cause of this debate is the numerous research approaches that define different -and in many instances conflictingmeasurement approaches and research assumptions:…”

“…It is possible to achieve this by estimating the organic and functional brands in comparison to conventional brands. Interested readers can assess this typology in detail from the food-orientated research articles (e.g., Sparke and Menrad 2009;Sorenson andBogue 2007, Hamzaoui-Essoussi andZahaf 2012;Davcik 2013).…”