The Financial Value Impact of Perceptual Brand Attributes

Journal of Marketing Research, Vol. 45, pp. 15-32, February 2008

20 Pages Posted: 16 May 2008 Last revised: 28 Feb 2012

See all articles by Natalie Mizik

Natalie Mizik

University of North Carolina (UNC) at Chapel Hill; University of Washington

Robert Jacobson

University of Washington - Michael G. Foster School of Business; Diogenes Consulting

Abstract

The authors assess which brand asset metrics provide incremental information content to accounting performance measures in explaining stock return. The analysis focuses on the five pillars (i.e., central brand attributes) that form the basis for the newly updated Young & Rubicam Brand Asset Valuator model: differentiation, relevance, esteem, knowledge, and energy. Analysis shows that perceived brand relevance and energy provide incremental information to accounting measures in explaining stock returns. However, esteem and knowledge do not; that is, their effects are reflected in current-term accounting measures and in brand relevance and energy. The financial markets do not view brand differentiation as having incremental information content, but they hould. Changes in differentiation are indicative of future-term accounting performance, which in turn affects stock return. These conclusions are invariant to the use of alternative accounting performance measures, risk adjustments, and the inclusion of additional brand attributes into the analysis.

Keywords: brand, valuation, BAV, brand differentiation

JEL Classification: M39, M49

Suggested Citation

Mizik, Natalie and Mizik, Natalie and Jacobson, Robert and Jacobson, Robert, The Financial Value Impact of Perceptual Brand Attributes. Journal of Marketing Research, Vol. 45, pp. 15-32, February 2008, Available at SSRN: https://ssrn.com/abstract=1134088

Natalie Mizik (Contact Author)

University of North Carolina (UNC) at Chapel Hill ( email )

102 Ridge Road
Chapel Hill, NC NC 27514
United States

University of Washington ( email )

Seattle, WA 98195
United States

Robert Jacobson

University of Washington - Michael G. Foster School of Business ( email )

Box 353200
Seattle, WA 98195-3200
United States
206-543-4780 (Phone)

Diogenes Consulting ( email )

2002 1st Avenue North
Seattle, WA 98109
United States

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