CHAPTER:10

MEASURING OUTCOMES
OF BRAND EQUITY:
CAPTURING MARKET
PERFORMANCE

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Learning Objectives
Recognize the multidimensionality of brand equity
and the importance of multiple methods to measure
it
Contrast different comparative methods to assess
brand equity
Explain the basics of how conjoint analysis works
Review different holistic methods for valuing brand
equity
Describe the relationship between branding and
finance
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Comparative Methods

Brand-Based Comparative
Approaches

Marketing-Based
Comparative Approaches

Conjoint Analysis

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Brand-Based Comparative Approaches

Competitive brands used as benchmarks by

consumers
Exemplar: Category leader or some other brand that
consumers feel is representative of the category, like
their most preferred brand
Applications
Critique

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Marketing-Based Comparative Approaches

Hold the brand fixed and examine consumer

response based on changes in the marketing
program
Applications
Critique

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Conjoint Analysis

Survey-based multivariate technique that enables

marketers to profile the consumer decision process
with respect to products and brands
Part worth: The value consumers attach to each
attribute level, as statistically derived by the conjoint
formula
Applications
Critique

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Holistic Methods

Residual Approach

Examines the value of the brand by

subtracting consumers preferences for
the brand from their overall brand
preferences

Valuation Approach

Places a financial value on brand equity

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Residual Approaches

Scanner Panel Choice

Experiments

Multi-Attribute
Attitude Critique
Models

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Valuation Approaches

Accounting Background

Historical Perspectives

General Approaches

Simon and Sullivans Brand Equity Value

Interbrands Brand Valuation Methodology

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

To Sum Up..
Brand valuation and the brands on the balance
sheet debate are controversial subjects
Limitations of valuation approaches
Require much judgmental data and thus contain much
subjectivity
Intangible assets are not always synonymous with brand
equity
Methods sometimes defy common sense

Strength of the brand measures may be confounded

with the strength of the company
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Figure 10.2 - Product Profiles for Conjoint
Analysis Application

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Figure 10.2 - Product Profiles for Conjoint
Analysis Application

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Guidelines for Creating and Measuring ROI
from Brand Marketing Activities

Spend wisely
Focus and be creative

Look for benchmarks

Examine competitive spending levels and historical
company norms
Be strategic
Apply brand equity models

Be observant
Track both formally and informally
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.
To Sum Up..
Single measures of brand equity provide at best a
one- or two-dimensional view of a brand
No single number or measure fully captures brand
equity
There are many different sources of, and outcomes
from, brand equity, depending on the marketers
skill and ingenuity

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.