Quantification of Brand Equity

Empirical Evidence of Equity changes Caused by channel and Evidence of Negative Brand Equity

Larry Anderson
IPOS–NPD

and

Weina Jiang
IPOS–NPD

Introduction

As a result of the positive reception received following the 2000 ARE WOW to our methodology for measuring brand equity and subsequent publication in the Research Conference Report, we have been given the opportunity by several clients and academics to extend and further validate the methodology. In this paper we will answer several questions that were asked following the presentation at the 2000 ARE WOW and report on several startling findings that have been confirmed.

A brief review of the prior research is necessary in order to understand the issues presented in this paper. The objective of the SEB research (SEB is one of the world's largest manufacturers of small appliances) was to develop a new methodology of measuring brand equity for specific brands in specific categories. An additional objective was to measure the incremental value of a specific brand name. To accomplish this, we used the Van Westendorp pricing methodology and used the research opportunity to further validate this research tool.