Linking Brand Equity to Organizational Outcomes

Abstract

In the recent years there has been an increased interest and importance placed on linking marketing actions to financial measures and firm value. In this quest intangible assets especially brand equity attracted special focus among marketing scholars but the ongoing debate about different perspectives and approaches of how to measure brand equity limits the output of this research area. Additionally scholars focused on results related to consumer markets such as sales and market share numbers but the link to financial outcomes and stock returns are lacking. In order to address this concern, this paper attempts to develop a theoretical model which examines the effect of firm-based and consumer-based factors on brand equity and the possible organizational outcomes that can result from brand equity. The primary objective is to provide a better understanding of brand equity while simultaneously examining for the effects of the two competing approaches to brand equity.