An Empirical Investigation of Brand Equity : Drivers and Their Consequences

Purpose: The author presents a model of the brand value drivers, measured by brand equity. The goal of this research is to identify the drivers, and determine how they influence brand equity performance in the researched industry, in order to develop a more effective brand strategy. Design/Methodology: The author studied an aggregate dataset for 739 food brands. Six predictors have been controlled for (i.e. marketing investments, price, revenue, perceived quality [organic and functional] and brand ownership), while the impact of the brand equity drivers on brand value has been estimated. The model has been formulated and estimated using a robust OLS procedure. Several data sources have been used in this study, such as market-based data from ACNielsen, as well as information and variable constructs using data from the Bureau Van Dijk Electronic Publishing AIDA financial statements database. Findings: Results suggest that marketing investment, price, revenue, brand ownership and perceived quality are highly associated with brand equity, and consequently with a higher brand value in the food industry. Research limitations/Implications: This study has only studied one industry (food), one industry segment (enriched-food) and one country (Italy). Originality/Value: The majority of marketing studies apply a single research approach and measures. This is the first study of brand equity that combines consumer, financial and marketing approaches. The model contributes to theory and practice in terms of suggesting which business drivers create brand value and what type of brand strategy a firm can apply in order to create brand value