Brand value creation: Analysis of the Interbrand-Business Week brand value rankings

Singfat Chu, Hean Tat Keh

Research output: Contribution to journalArticleResearchpeer-review

98 Citations (Scopus)

Abstract

Brand value has become an important corporate performance metric, as can be observed from the close following of the annual Top 100 Brand Values ranked by brand consultancy firm Interbrand and reported in Business Week. In this study, we employ a simultaneous equations model to examine the non-linear influence of lagged advertising, marketing promotions and R D expenses on brand value after controlling for net income and lagged brand valuation. We infer that these lagged expenses yield diminishing returns to brand value. The effect of R D expense is the weakest, possibly because it is confounded with the advertising and promotional effects. Differences across industry segments or country base are not statistically significant.
Original languageEnglish
Pages (from-to)323 - 331
Number of pages9
JournalMarketing Letters
Volume17
Issue number4
DOIs
Publication statusPublished - 2006
Externally publishedYes

Cite this