To read this content please select one of the options below:

An empirical investigation of brand equity: drivers and their consequences

Nebojsa S. Davcik (ISCTE Business School, University Institute of Lisbon (ISCTE – IUL), Lisbon, Portugal)

British Food Journal

ISSN: 0007-070X

Article publication date: 2 September 2013

2213

Abstract

Purpose

The author aims to present a model of the brand value drivers, measured by brand equity. The goal of this research is to identify the drivers, and determine how they influence brand equity performance in the researched industry, in order to develop a more effective brand strategy.

Design/methodology/approach

The author studied an aggregate dataset for 739 food brands. Six predictors were controlled for (i.e. marketing investments, price, revenue, perceived quality [organic and functional] and brand ownership), while the impact of the brand equity drivers on brand value was estimated. The model was formulated and estimated using a robust OLS procedure. Several data sources have were in this study, such as market-based data from ACNielsen, as well as information and variable constructs using data from the Bureau Van Dijk Electronic Publishing AIDA financial statements database.

Findings

Results suggest that marketing investment, price, revenue, brand ownership and perceived quality are highly associated with brand equity, and consequently with a higher brand value in the food industry.

Research limitations/implications

This study has only studied one industry (food), one industry segment (enriched-food) and one country (Italy).

Originality/value

The majority of marketing studies apply a single research approach and measures. This is the first study of brand equity that combines consumer, financial and marketing approaches. The model contributes to theory and practice in terms of suggesting which business drivers create brand value and what type of brand strategy a firm can apply in order to create brand value.

Keywords

Acknowledgements

The author is very grateful to Francesco Favotto and Giacomo Boesso for their support during the early stage of the research process. Comments and suggestions from Zoran Čajka are highly appreciated. Some parts of this study, in their early stage, were developed during the author's doctorate programme at the University of Padova, Department of Economic Studies “Marco Fanno”. This research is partially funded by the PRIN 2006 of MIUR, grant: 2006072800_003. All mistakes and misunderstandings are the author's.

Citation

S. Davcik, N. (2013), "An empirical investigation of brand equity: drivers and their consequences", British Food Journal, Vol. 115 No. 9, pp. 1342-1360. https://doi.org/10.1108/BFJ-01-2012-0005

Publisher

:

Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

Related articles