Brand value is one of the more popular concepts in marketing today. Brand equity is a way to describe a brand and measure its total value. Brand equity can be illustrated by a hierarchy incorporating the four Ps (product, price, place, and promotion of marketing-advertising).
The crucial point of this framework is that brand equity only exists as a function of consumer choice. It comes when the consumer chooses a product. The characteristics of the product are evaluated and then they are translated into "objective" utility, the value the consumer places on the brand.
But how much is brand label "worth"? How much more will a consumer pay for the brand "name" over, say, a generic version of the same product?
At Multivariate Solutions we have successfully employed a range of choice models to determine a "dollar" value for a brand label. Using our own SPSS syntax programs, we have created, among others, a discrete choice module which we employ to value our clients' brands. A case study was covered in a piece in Quirks Market Research Review, "Brand Equity and Discrete Choice Models".
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