The Information-Economics Perspective on Brand Equity

Tülin Erdem and Joffre Swait

Foundations and Trends(R) in Marketing, 2016, vol. 10, issue 1, 1-59

Abstract: The focus of this monograph is the information-economics theoretic framework of brand equity. Adopting this view, Erdem and Swait [1998] argue that consumer-based brand equity is the value of a brand as a credible signal of a product's positioning. In their framework, the content, clarity, and credibility of the brand signal creates intangible benefits, enhances perceived quality, and decreases consumer-perceived risk and information costs, and hence increases consumer utility, which underlies the added value associated with a brand. The central (and motivating) construct in this view is the "credibility" of brands as signals.

Keywords: Information economics; Brand equity; Signaling; Consumer decision making; Brand loyalty (search for similar items in EconPapers)
JEL-codes: D12 D8 L14 M31 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (3)

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