What Affects Brand Equity: The Precise Measurement With Consumer Choice Model

This paper investigates how different marketing variables (advertising, sales promotion and product assortment) affect brand equity. First, we assess weekly dynamics of brand equity intercepts using discrete choice model based on disaggregate store-level scanner data. Then we use these estimates as...

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Bibliographic Details
Published inIDEAS Working Paper Series from RePEc
Main Authors Kochkina, Natalia A, Novikova, Olga V, Potapov, Dmitriy B
Format Paper
LanguageEnglish
Published St. Louis Federal Reserve Bank of St. Louis 01.01.2014
Subjects
Brand equity
Marketing
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Summary:This paper investigates how different marketing variables (advertising, sales promotion and product assortment) affect brand equity. First, we assess weekly dynamics of brand equity intercepts using discrete choice model based on disaggregate store-level scanner data. Then we use these estimates as the dependent variable to study the impact of different marketing instruments. This paper contributes to the field basically in two ways: we measured brand equity of heterogeneous product taking into account its variety both on choice modeling stage and brand equity drivers estimation stage; we have got quite precise estimates because were able to exploit very detailed data about choices and marketing instruments. Our research reveals that share of voice of TV commercials affects brand equity positively and promotion intensity - negatively. Expanding product assortment, companies may enlarge brand equity by increasing the number of SKUs in large-format stores.