Using Consumer Attitudes to Value Brands: Evaluation of the Financial Value of Brands
GfK Custom Research Inc
TREATING BRANDS AS ASSETS
BRANDS ARE NOT merely names or logos, they are valuable assets that need to be managed and cared for. Even though brands are classified as intangible assets, we know that strong brands have real and lasting effects on company performance. A strong brand represents an unmistakable mental image of a product or service that is solidly anchored in the consumer psyche (Meffert, 2000). When this image is positive, consumers find the brand attractive and can be expected to develop strong ties to it and buy it, even at higher prices than other products (Högl and Hupp, 2003). Strong brands often receive special treatment by retailers because they automatically have consumer acceptance. Also, because strong brands already have consumer confidence, it can be argued that their advertising is more efficient and effective in communicating benefits.