Using consumer attitudes to value brands: evaluation of the financial value of brands

Oliver Hupp and Ken Powaga

This article introduces an Advanced Brand Valuation (ABV) model that combines the psychological strength of a brand in the mind of its consumers with accepted accounting practices to determine the true financial value of a brand.

Using Consumer Attitudes to Value Brands: Evaluation of the Financial Value of Brands

Oliver HuppGfK Markforschung

Ken PowagaGfK Custom Research Inc

TREATING BRANDS AS ASSETS

BRANDS ARE NOTmerely 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...

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