Brand value creation: Analysis of the Interbrand-Business Week brand value rankings

Brand value has become an important corporate performance metric, as can be observed from the close following of the annual Top 100 Brand Values ranked by brand consultancy firm Interbrand and reported in Business Week. In this study, we employ a simultaneous equations model to examine the non-linear influence of lagged advertising, marketing promotions and R&D expenses on brand value after controlling for net income and lagged brand valuation. We infer that these lagged expenses yield diminishing returns to brand value. The effect of R&D expense is the weakest, possibly because it is confounded with the advertising and promotional effects. Differences across industry segments or country base are not statistically significant. Copyright Springer Science + Business Media, LLC 2006Brand value, Advertising, Promotions, R&D,

Country image and consumer-based brand equity: relationships and implications for international marketing

This paper examines the relationships between consumers' country-level and product-level images of a country, and the equity they associate with a brand from that country, using canonical correlation analysis. Results from mall-intercept surveys conducted in an Australian state capital city indicated that the consumer-based equity of a brand was significantly associated with both the macro and micro images of the country of origin of the brand. The relationship between these two sets of constructs was found to be positive as well as product category specific. Furthermore, each consumer-based brand equity dimension contributed differently to the relationship according to the product category, while the contribution of both country image dimensions (macro and micro) was also product category specific. Results also showed that cars, as a product category, are more sensitive to country image than televisions. These findings have direct and important implications for international marketers.Ravi Pappu, Pascale G Quester and Ray W Cookse