What Affects Brand Equity: The Precise Measurement with Consumer Choice Model

20 Pages Posted: 23 Oct 2014 Last revised: 12 Nov 2014

See all articles by Natalia Kochkina

Natalia Kochkina

National Research University Higher School of Economics

Olga Novikova

National Research University Higher School of Economics

Dmitriy Potapov

National Research University Higher School of Economics

Date Written: October 23, 2014

Abstract

This paper investigates how different marketing variables (advertising, sales promotion and product assortment) affect brand equity. First, we assess weekly dynamics of brand equity intercepts using discrete choice model based on disaggregate store-level scanner data. Then we use these estimates as the dependent variable to study the impact of different marketing instruments. This paper contributes to the field basically in two ways: we measured brand equity of heterogeneous product taking into account its variety both on choice modeling stage and brand equity drivers estimation stage; we have got quite precise estimates because were able to exploit very detailed data about choices and marketing instruments. Our research reveals that share of voice of TV commercials affects brand equity positively and promotion intensity – negatively. Expanding product assortment, companies may enlarge brand equity by increasing the number of SKUs in large-format stores.

Keywords: brand equity, scanner data, marketing-mix instruments, product assortment

JEL Classification: L81

Suggested Citation

Kochkina, Natalia and Novikova, Olga and Potapov, Dmitriy, What Affects Brand Equity: The Precise Measurement with Consumer Choice Model (October 23, 2014). Higher School of Economics Research Paper No. WP BRP 26/MAN/2014 , Available at SSRN: https://ssrn.com/abstract=2513798 or http://dx.doi.org/10.2139/ssrn.2513798

Natalia Kochkina

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Olga Novikova

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Dmitriy Potapov (Contact Author)

National Research University Higher School of Economics ( email )

17 Malaya Ordynka Street
20 Myasnitskaya Street
Moscow, 119017
Russia

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