Deciphering the Brand Value Structure: New Measures and Business Insights

Abstract

To assess brand equity and value, research has proposed many brand equity measures, including those based on the customer mind-set, product market (or company), and financial market (Ailawadi, Lehmann, and Neslin 2003; Keller and Lehmann 2006). Both product market-based and financial market-based measures are brand performance outcome-based measures (Ailawadi, Lehmann, and Neslin 2003) that employ brand product market or financial market data to determine utility or dollar values of brands. Compared with customer mind-set measures, that focus on brand equity sources, brand outcome measures provide a single, simple, more “complete,” objective measure of brand performance and are appealing to both marketing and nonmarketing managers (Ailawadi, Lehmann, and Neslin 2003). However, brand outcome measures also suffer from several disadvantages, including lack of diagnostic ability, confusing brand short-term performance and long-term value (i.e., brand asset value), which limit their usefulness in brand research and management.