Evaluation of Brand Equity Measures: Further Empirical Results
There is no consensus about what brand equity means and how a firm can measure the value of a brand, hence not possible to evaluate marketing interventions in terms of their ability to enhance brand value. Agarwal and Rao (1996)- The ability of ten consumer based measures of brand equity to estimate individual choice and market share, and the relationship between these measures. The underlying assumption in the study was that individual choice and market share were indicators of brand equity. A replication and extension study was carried out to determine whether the results would concur when adopted in a different product category and country using different sampling and methodology. Objectives/Hypothesis Tested:
1. How are various customer-based measures of brand equity related to each other (i.e. do they have convergent validity at both the individual and aggregate level)? 2. How well do the customer-based measures of brand equity estimate choice at the individual level? 3. How well do the customer-based measures of brand equity estimate market share at the aggregate level?
The sample consisted of 383 respondents from members of a short-term consumer purchasing panel that had recently ended. The key reason for using respondents that had recently participated in a consumer panel was that their purchase behaviour had been collected, which enabled the market shares of the brand to be calculated.
A combination of both indirect and direct consumer-based measures of brand equity was used. The indirect approach is concerned with identifying the possible sources of equity (Keller, 1993; Park and Srinivasan, 1994), while the direct approach attempts to assess the added value of the brand (Farquhar, 1990; Keller, 1993).
The survey methodology involved:
An expert panel: An expert panel was used, and reference to trade and consumer magazines was...
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