Assessing the Financial Impact of Brand Equity with Short Time-Series Data

Natalie Mizik () and Eugene Pavlov ()
Additional contact information
Natalie Mizik: University of Washington
Eugene Pavlov: University of Washington

A chapter in Handbook of Market Research, 2022, pp 1035-1054 from Springer

Abstract: Abstract In this chapter, we describe an approach to estimating the total long-term impact of brand perceptions on financial performance. The approach relies on modeling the stock market reactions to changes in brand perceptions and allows estimating their total impact even with limited time-series data. We present an application of the method to the Y&R Brand Asset Valuator (BAV) data. The analyses show that, on average, the bulk of brand impact on financial performance is realized in the future and the contemporaneous effects reflect only a small portion of the total impact. The analyses, however, also show considerable heterogeneity across industries: while in some industries the whole impact of brand asset occurs in current period only (restaurants), in other industries it occurs in future periods only (high-tech). Further, some components of consumer perceptions have differential effects in different industries. Returns to brand building, and to marketing efforts in general, should not be evaluated based on contemporaneous outcomes, but should rather be evaluated over a long-time horizon.

Keywords: Brand equity; Customer mindset; Financial impact; Heterogeneity; Dynamic panel; Instrumental variables (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-319-57413-4_31

Ordering information: This item can be ordered from
http://www.springer.com/9783319574134

DOI: 10.1007/978-3-319-57413-4_31

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().