Analysis of the Ecuadorian government's proposed methodology of brand valuation: application in agricultural sector brands

Abstract

PurposeThe purpose of this work is to analyze a brand valuation methodology proposed by the current Ecuadorian National Service for Intellectual Rights, assessing the relevance of the proposed marketing variables: awareness, associations and evaluation of purchase determinants, and their relationship within the proposed methodology.Design/methodology/approachThe authors used data from surveys of 482 consumers of two agricultural brands in Ecuador (supplies, equipment and services). The authors applied linear multiple regressions estimated by generalized least squares with heteroskedasticity-robust standard errors. “Intention to repurchase” and “recommend” the brands were selected as dependent variables due to their relationship with brand value.FindingsBrand awareness and associations positively influence the two dependent variables. However, the interaction between brand awareness and associations is negative, suggesting that, for the upper level of awareness, associations have no effect over intentions. This result holds for both brands. Brand evaluation of purchase determinants was a significant predictor of intentions only for the brand which belongs to a product category in which the purchase decision process is more extensive and with more effort.Research limitations/implicationsThis study is focused only on agricultural brands, which limits the generalization of the findings.Originality/valueThe agricultural sector is very important in Ecuador due to its contribution to GDP and employment, and the country's position as the fifth exporter of bananas worldwide. Understanding consumer behavior is important for brands and firms' managers in order to preserve or increase brand value, for which a reliable valuation model is useful.

Brand equity and purchase decision of fast-moving consumer goods

“…Awareness is important because the greater it is, the greater the probability that the consumer will consider the brand among his or her set of possible options for the purchase decision and bypass the alternatives evaluation stage (Aaker, 1991). There is even evidence that awareness may be more important in purchase decisions of low-involvement product categories, where the relevance of the product is lower for the consumer and the purchase process is done with less effort (Macias et al, 2021). Favorable, unique and strong associations, in addition to high perceived quality, generate brand differentiation from competitors in the consumer's mind, contributing to the perception of added value (Buil et al, 2013).…”

Research on the operation mechanism and path of regional public brand of agricultural products based on the perspective of industrial clusters

“…In addition, in a country like China, with vast rural areas and abundant agricultural resources, how to promote agricultural modernization and increase farmers' income through a regional common brand strategy is also an urgent problem to be solved at present [9][10]. Therefore, it is of great practical significance to study the mechanism and path of operating regional public brands of agricultural products in China [11].…”

“…Xihua Zhang and Qiaoyan Cai. Applied Mathematics and Nonlinear Sciences, 9(1) (2024)[1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18][19] …”