Brand equity evolution: A system dynamics model

Abstract

One of the greatest challenges in brand management lies in monitoring brand equity over time. This paper aims to present a simulation model able to represent this evolution. The model was drawn on brand equity concepts developed by Aaker and Joachimsthaler (2000), using the system dynamics methodology. The use of computational dynamic models aims to create new sources of information able to sensitize academics and managers alike to the dynamic implications of their brand management. As a result, an easily implementable model was generated, capable of executing continuous scenario simulations by surveying casual relations among the variables that explain brand equity. Moreover, the existence of a number of system modeling tools will allow extensive application of the concepts used in this study in practical situations, both in professional and educational settings. © 2009 Brazilian Administration Review.