Brand value: does it belong on the balance sheet?

Abstract

Purpose

The authors offer the viewpoint that a requirement to put the value of intangible assets like brands on a company's balance sheet may be in prospect – and that such a requirement would benefit businesses.

Design/methodology/approach

Brands and elements of brands like a package can be valued, the authors assert, and describe an experiment to value the Gateway “cowbox” package. In the study, 61 university students saw identical ads for a computer, except that half saw one with a generic name, half with the name Gateway, and half of each of these two subgroups saw a “cowbox,” the other half no package.

Findings

The box did not influence the price respondents who saw the Gateway name in their ad said they would expect to pay for the computer. However, the box's presence in an ad for the “no‐name” computer boosted the expected price from $515 to $648.

Originality/value

If one brand element has a measurable value, investors have a right to know that value. The same applies for the brand as a whole. Furthermore, managers benefit from directing marketing dollars to the promotion of valuable brand elements, to associate them in the public mind with their brand.

Citation

Gelb, B.D. and Gregory, J.R. (2011), "Brand value: does it belong on the balance sheet?", Journal of Business Strategy, Vol. 32 No. 3, pp. 13-18. https://doi.org/10.1108/02756661111121956