Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-cd9895bd7-q99xh Total loading time: 0 Render date: 2024-12-23T06:07:14.508Z Has data issue: false hasContentIssue false

6 - Brand Value, Marketing Spending, and Brand Royalty Rates

from Part II - Understanding Marketing Phenomena

Published online by Cambridge University Press:  29 June 2023

By
Dominique M. Hanssens ,
Lorenzo Michelozzi  and
Natalie Mizik
Edited by
Jacob E. Gersen  and
Joel H. Steckel
Jacob E. Gersen
Affiliation:
Harvard Law School, Massachusetts
Joel H. Steckel
Affiliation:
New York University
Get access

Summary

According to the American Marketing Association, a brand is defined as “a name, term, design, symbol, or any other feature that identifies one seller’s goods or service as distinct from those of other sellers.”1 But to the brand owners, customers, employees, and investors, a brand is much more than just a name. A strong brand is a prized asset for many corporations. It can energize and engage the employees, create alignment around common values, and promote emotional and intellectual engagement at work. Strong brands can create positive associations in the consumer’s mind and reduce purchasing risk and search costs in buying situations. Not surprisingly, strong brands often outsell the competition, realize higher repeat purchase rates, are able to charge premium prices, and can command customer loyalty over a long time.

Keywords

brand valuemarketing spendingbrand royalty rates
Type
Chapter
Information
The Cambridge Handbook of Marketing and the Law , pp. 149 - 171
Publisher: Cambridge University Press
Print publication year: 2023

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Aaker, David A. (2011) Brand Relevance: Making Competitors Irrelevant, John Wiley & Sons.Google Scholar
Aaker, David A., & Jacobson, Robert (1994) “The Financial Information Content of Perceived Quality,” 31 Journal of Marketing Research 191.CrossRefGoogle Scholar
Aaker, David A., & Jacobson, Robert (2001) “The Value Relevance of Brand Attitude in High-Technology Markets,” 38 Journal of Marketing Research 485.Google Scholar
Ailawadi, Kusum L., Lehmann, Donald R., & Neslin, Scott A. (2003) “Revenue Premium as an Outcome Measure of Brand Equity,” 67 Journal of Marketing 1.CrossRefGoogle Scholar
Ataman, M. Berk, Mela, Carl F., & Van Heerde, Harald J. (2008) “Building Brands,” 27 Marketing Science 1036.CrossRefGoogle Scholar
Ataman, M. Berk, Van Heerde, Harald J., & Mela, Carl F. (2010) “The Long-Term Effect of Marketing Strategy on Brand Sales,” 47 Journal of Marketing Research 866.CrossRefGoogle Scholar
Bahadir, S. Cem, Bharadwaj, Sundar G., & Srivastava, Rajendra K. (2008) “Financial Value of Brands in Mergers and Acquisitions: Is Value in the Eye of the Beholder?,” 72 Journal of Marketing 49.Google Scholar
Barth, Mary A., et al. (1998) “Brand Values and Capital Market Valuation,” 3 (1/2) Review of Accounting Studies 41.CrossRefGoogle Scholar
Blair, Roger D., & Lafontaine, Francine (2011) The Economics of Franchising, Cambridge University Press.Google Scholar
Bommaraju, Raghu, et al. (2018) “The Impact of Mergers and Acquisitions on the Sales Force,” 55 Journal of Marketing Research 254.Google Scholar
Bronnenberg, Bart J., Mahajan, Vijay, & Vanhonacker, Wilfried R. (2000) “The Emergence of Market Structure in New Repeat-Purchase Categories: The Interplay of Market Share and Retailer Distribution,” 37 Journal of Marketing Research 16.Google Scholar
Bottomley, Paul A., & Holden, Stephen J. S. (2001) “Do We Really Know How Consumers Evaluate Brand Extensions? Empirical Generalizations Based on Secondary Analysis of Eight Studies,” 38 Journal of Marketing Research 494.Google Scholar
Calboli, Irene (2007) “The Sunset of Quality Control in Modern Trademark Licensing,” 57 American University Law Review 341.Google Scholar
Cao, Zixia, & Sorescu, Alina (2013) “Wedded Bliss or Tainted Love? Stock Market Reactions to The Introduction of Cobranded Products,” 32 Marketing Science 939.Google Scholar
Dekimpe, Marnik G., & Hanssens, Dominique M. (1995) “The Persistence of Marketing Effects on Sales,” 14 Marketing Science 1.CrossRefGoogle Scholar
Dekimpe, Marnik G., & Hanssens, Dominique M. (1999) “Sustained Spending and Persistent Response: A New Look at Long-Term Marketing Profitability,” 36 Journal of Marketing Research 397.Google Scholar
Dinner, Isaac M., et al. (2019) Branding a Merger: Implications for Merger Valuation and Future Performance, Working Paper, https://ssrn.com/abstract=1756368.Google Scholar
Erdem, Tulin (1998) “An Empirical Analysis of Umbrella Branding,” 35 Journal of Marketing Research 339.CrossRefGoogle Scholar
Farquhar, Peter H. (1989) “Managing Brand Equity,” 1 Marketing Research 24.Google Scholar
Fernandez, Pablo (2001) Valuation of Brands and Intellectual Capital, Working Paper, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=270688.Google Scholar
Fischer, Marc (2007) Valuing Brand Assets: A Cost-Effective and Easy-to-Implement Measurement Approach, Report 07-107 MSI Working Paper Series.Google Scholar
Goldfarb, Avi, Qiang, Lu, & Moorthy, Sridhar (2009) “Measuring Brand Value in An Equilibrium Framework,” 28 Marketing Science 69.Google Scholar
Hanssens, Dominique M., et al. (2014) “Consumer Attitude Metrics for Guiding Marketing Mix Decisions,” 33 Marketing Science 534.CrossRefGoogle Scholar
Hanssens, Dominique M., Parsons, Leonard J., & Schultz, Randall L. (2001) Market Response Models: Econometric and Time Series Analysis (2nd ed.), Kluwer Academic Publishers.Google Scholar
Jedidi, Kamel, Mela, Carl F., & Gupta, Sunil (1999) “Managing Advertising and Promotion for Long-Run Profitability,” 18 Marketing Science 1.Google Scholar
Johansson, Johny K., Dimofte, Claudiu ,& Mazvancheryl, Sanal (2012) “The Performance of Global Brands in the 2008 Financial Crisis: A Test of Two Brand Value Measures,” 29 International Journal of Research in Marketing 235.CrossRefGoogle Scholar
Keller, Kevin Lane (2012) Strategic Brand Management: Building, Measuring, and Managing Brand Equity (4th ed.), Pearson.Google Scholar
Keller, Kevin Lane, & Lehmann, Donald R. (2006) “Brands and Branding: Research Findings and Future Priorities,” 25 Marketing Science 740.CrossRefGoogle Scholar
Kimbrough, Michael D., & McAlister, Leigh (2009) “Linking Marketing Actions to Value Creation and Firm Value: Insights from Accounting Research,” 46 Journal of Marketing Research 313.Google Scholar
Knowles, Jonathan (2003) “Value-Based Brand Measurement and Management,” 5 Interactive Marketing 40.Google Scholar
Lagarden, Martin (2014) “Intangibles in a Transfer Pricing Context: Where Does the Road Lead?,” 21 International Transfer Pricing Journal 331.Google Scholar
Lane, Vicki, & Jacobson, Robert (1995) “Stock Market Reactions to Brand Extension Announcements: The Effects of Brand Attitude and Familiarity,” 59 Journal of Marketing 63.CrossRefGoogle Scholar
Lodish, Leonard M., & Mela, Carl F. (2007) “If Brands Are Built over Years, Why Are They Managed over Quarters?,” 85 Harvard Business Review 104.Google ScholarPubMed
Lodish, Leonard M., et al. (1995) “A Summary of Fifty-Five In-Market Experimental Estimates of the Long-Term Effect of TV Advertising,” 14 Marketing Science G133.Google Scholar
Lowrey, Tina M., & Shrum, L. J. (2007) “Phonetic Symbolism and Brand Name Preference,” 34 Journal of Consumer Research 406.Google Scholar
Mahajan, Vijay, Rao, Vithala R., & Srivastava, Rajendra K. (1994) “An Approach to Assess the Importance of Brand Equity in Acquisition Decisions,” 11 Journal of Product Innovation Management 221.Google Scholar
Melnyk, Valentyna, Klein, Kristina, & Voelckner, Franziska (2012) “The Double-Edged Sword of Foreign Brand Names for Companies from Emerging Countries,” 76 Journal of Marketing 21.Google Scholar
Mizik, Natalie (2014) “Assessing the Total Financial Performance Impact of Brand Equity with Limited Time-Series Data,” 51 Journal of Marketing Research 691.CrossRefGoogle Scholar
Mizik, Natalie, & Jacobson, Robert L. (2008) “The Financial Value Impact of Perceptual Brand Attributes,” 45 Journal of Marketing Research 15.CrossRefGoogle Scholar
Mizik, Natalie, & Jacobson, Robert L. (2009) “Valuing Branded Businesses,” 73 Journal of Marketing 137.Google Scholar
Palmatier, Robert W., Stern, Louis W., & El-Ansary, Adel L. (2016) Marketing Channel Strategy: An Omni-Channel Approach (8th ed.), Routledge.Google Scholar
Park, Chan Su, & Srinivasan, Vern (1994) “A Survey-Based Method for Measuring and Understanding Brand Equity and Its Extendibility,” 31 Journal of Marketing Research 271.Google Scholar
Paul, Jonathan M. (1994) Managerial Myopia and the Observability of Future Cash Flows, Working Paper, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2788.Google Scholar
Pauwels, Koen, et al. (2004) “New Products, Sales Promotions, and Firm Value: The Case of The Automobile Industry,” 68 Journal of Marketing 142.CrossRefGoogle Scholar
Pauwels, Koen, et al. (2005) “Modeling Marketing Dynamics by Time Series Econometrics,” 15 Marketing Letters 167.CrossRefGoogle Scholar
Peterson, Robert A., & Ross, Ivan (1972) “How to Name New Brands,” 12 Journal of Advertising Research 29.Google Scholar
PricewaterhouseCoopers (2013) International Transfer Pricing: 2013/2014, www.pwc.com/gx/en/international-transfer-pricing/assets/itp-2013-final.pdf.Google Scholar
Schmitt, Bernd H. (1999) Experiential Marketing: How to Get Consumers to Sense, Feel, Think, Act, Relate to Your Company and Brands, Simon & Schuster.Google Scholar
Sethuraman, Raj (1996) “A Model of How Discounting High-Priced Brands Affects the Sales of Low-Priced Brands,” 33 Journal of Marketing Research 399.CrossRefGoogle Scholar
Simon, Carol J., & Sullivan, Mary W. (1993) “The Measurement and Determinants of Brand Equity: A Financial Approach,” 12 Marketing Science 28.Google Scholar
Skinner, Douglas J. (2008) “Accounting for Intangibles – A Critical Review of Policy Recommendations,” 38 Accounting and Business Research 191.Google Scholar
Sood, Sanjay, & Keller, Kevin Lane (2012) “The Effects of Brand Name Structure on Brand Extension Evaluations and Parent Brand Dilution,” 49 Journal of Marketing Research 373.Google Scholar
Srinivasan, Shuba, & Hanssens, Dominique M. (2009) “Marketing and Firm Value: Metrics, Methods, Findings and Future Directions,” 46 Journal of Marketing Research 293.CrossRefGoogle Scholar
Srinivasan, Vern, Park, Chan Su, & Chang, Dae Ryun (2005) “An Approach to the Measurement, Analysis, and Prediction of Brand Equity and Its Sources,” 51 Management Science 1433.Google Scholar
Steenkamp, Jan-Benedict E. M. and Geyskens, Inge (2014) “Manufacturer and Retailer Strategies to Impact Store Brand Share: Global Integration, Local Adaptation, and Worldwide Learning,” 33(1) Marketing Science, 6.CrossRefGoogle Scholar
Tavassoli, Nader T., Sorescu, Alina, & Chandy, Rajesh (2014) “Employee-Based Brand Equity: Why Firms with Strong Brands Pay Their Executives Less,” 51 Journals of Marketing Research 676.CrossRefGoogle Scholar
Winer, Russell S., & Dhar, Ravi (2011) Marketing Management (4th ed.), Pearson.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×