Brand Equity Journal Paper Research

Brand Equity Journal Paper Research-67
The distinction between equity and value becomes clear if we imagine two firms bidding to purchase a brand from a third firm.At a particular point in time, assuming an objective measure of brand equity exists and is used by all three firms, each firm should be looking at the same ‘number’ for the brand's equity.The different prospective owners might, however, develop totally different brand valuations on the basis of their existing capabilities and resources, which would impact their ability to leverage that brand equity to generate value.

The distinction between equity and value becomes clear if we imagine two firms bidding to purchase a brand from a third firm.At a particular point in time, assuming an objective measure of brand equity exists and is used by all three firms, each firm should be looking at the same ‘number’ for the brand's equity.The different prospective owners might, however, develop totally different brand valuations on the basis of their existing capabilities and resources, which would impact their ability to leverage that brand equity to generate value.

presents a simplified version of the process a firm might follow to value a brand.

Basically, the valuation process is approached from the perspective of the firm and involves ‘following the money’ as it flows from the marketplace into the firm and then tracking how this activity impacts shareholder value.

Such an encounter may occur when a consumer views only the name, logo or packaging of the brand and automatically generates perceptions about and/or associations with the brand.

These perceptions and/or associations contribute to brand equity.

Such a distinction is important because, from a managerial perspective, the ultimate goal of brand management and brand equity research should be to understand how to leverage equity to create value.

In this paper, we present a new conceptual model that establishes brand equity and brand value as two distinct constructs.

Different bid prices do not represent different assessments of brand equity calculated by the firms but rather different valuations based on their perceived abilities to leverage existing and build new brand equity.

Moreover, if a purchase takes place, the purchaser's valuation must have been higher than that of the current owner, again suggesting the idiosyncratic nature of brand value.

Because Quaker Oats was unable to increase supermarket and drug store sales enough to compensate for lost convenience and gas station sales, Quaker was forced to sell Snapple for a mere 0m only three years later.

In this case, Snapple's brand value decreased enormously over the three years that Quaker Oats owned it, but this decrease may have had nothing to do with its brand equity, which could have stayed the same over this time period or even increased due to its new exposure in supermarkets and drug stores.

SHOW COMMENTS

Comments Brand Equity Journal Paper Research

The Latest from csgo777.ru ©