Marketing assets: Relating brand equity and customer equity

Abstract

Purpose: Brand equity and customer equity are inextricably linked. Some authors propose that marketing activities build these intangible assets simultaneously. In contrast, others suggest that brand equity is an antecedent of customer equity. In this research, we aim to shed light about the relationship between brand equity and customer equity, by empirically testing these two alternative explanations. Design/methodology:We propose four research models that reflect these two alternatives explanations regarding the link between brand equity and customer equity. In order to estimate these models we employ Structural Equations Modelling. We measure model variables using data collected through a survey to marketing managers of services companies that operate in Spain. We compare these four research models in terms of explanatory power and goodness of fit. Findings:Our results indicate that the models that correspond to the simultaneity approach have a higher explanatory power and goodness of fit than the models that suggest that brand equity is an antecedent of customer equity, thus supporting that these intangible assets are built by marketing activities at the same time.-591-Intangible Capital -http://dx.doi.org/10.3926/ic.727Research limitations/implications: Our results recommend caution when interpreting previous research about the effects of brand (customer) equity, as they might indeed correspond to customer (brand) management. Similarly, future research focusing on customer and brand management need to take into account both managerial areas in their studies. Practical implications:From a practitioners' point of view, our findings suggest adopting a brand-customer portfolio approach to enhance company profitability. Similarly, we derive implications for firm valuation processes, which incorporate brand equity and customer equity in their calculations. Originality/value:We empirically study the relationship between brand equity and customer equity, while previous research has analyzed this topic only at a theoretical level. Clarifying this link enriches our comprehension about how companies build these marketing intangible assets and increases the accuracy of firm valuation processes.

Intangible assets and business results of large companies

“…Hypothesis 2 establishes a direct and positive relationship between brand equity and market value. The results have confirmed this relationship in both periods under study, which confirms what was previously concluded by authors such as Lo (2012) or Romero and Yagüe (2016) who also observed this relationship. In addition, in the case of this work, it should be noted that this relationship was verified for a type of companies with particular characteristics, such as multinational companies, without focusing on a specific sector.…”

“…Brand equity is considered one of the most important intangible assets that exists when it comes to business management (Romero & Yagüe, 2016), as it is positively related to the financial performance of organizations and their survival in the market. "Brands are one of the most valuable assets and their management a key activity in any company" (Ludvík et al, 2018, p. 224).…”

Pengaruh Ekuitas Merek Terhadap Keputusan Pembelian (Studi Pada Konsumen Shopee)

“…Ekuitas merek berbasis pelanggan terjadi ketika pelanggan akrab dengan merek dan memiliki beberapa asosiasi yang menguntungkan, kuat, dan unik dalam ingatan mereka (Keller dalam Sherman, et.al 2015). Ini menunjukkan bahwa portofolio merek dan pelanggan adalah aset pemasaran tidak berwujud yang membantu perusahaan menghasilkan keuntungan karena pengaruhnya terhadap (Romero & Yague, 2016). Oleh karenanya penelitian mengenai keterkaitan brand equity bagi pengambilan keputusan untuk konsumen Shopee perlu menjadi perhatian guna mempertahankan posisi perusahaan dan memberikan gambaran kondisi hubungan antara brand equity dan pengambilan keputusan untuk lokus sektor e-commerce di Indonesia.…”

A Brand Road Map for Autoglym in China’s Market

“…For the brand equity, the emerging of brand equity can date back to 1980 [11] , it identified the importance of brand equity which serves as invisible asset that will help a company to gain profits [12] . Asker proposed five essential factors in the model of brand equity, namely brand loyalty, brand awareness, perceived quality, brand associations and other proprietary assets [13] .…”