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EFFECT OF BRAND EQUITY ON FIRMS’ FINANCIAL PERFORMANCE IN CONSUMER GOODS INDUSTRIES

Yıl 2015, Cilt: 4 Sayı: 3, 0 - 0, 29.09.2015

Gokhan Aydin Burc Ulengin

Öz

This study aims to find empirical evidence linking consumer based brand equity (CBBE) with financial performance of firms. Aaker’s CBBE approach is adopted and this equity is measured using a questionnaire developed from scales in existing literature. Differing from the extant literature, this study relates CBBE and firms’ performance by taking a direct approach in measuring financial performance by utilizing independently audited financial statements. A face-to-face survey study encompassing 28 companies from a variety of consumer goods industries was carried out in Turkey arriving at 505 valid responses. Firms’ financial performance was assessed using ten different performance indicators derived from financial statements submitted to Istanbul Stock Exchange. Following an exploratory factor analysis to reveal CBBE dimensions, a multiple regression analysis was carried out to test potential effects of CBBE factors on financial performance indicators. As an outcome of the analysis it has been seen that the components of CBBE positively affect most of the financial performance indicators to varying extents. Perceived quality dimension appears to be the major driver of financial performance followed by the composite factor encompassing brand awareness and brand association components.

Anahtar Kelimeler

Consumer based brand equity brand equity is adopted and this equity is measured using a questionnaire developed brand financial performance from scales in existing literature. Differing from the extant literature this

Kaynakça

  • • Aaker, D.A., (1991), Managing Brand Equity, The Free Press New York, NY.
  • • Aaker, D.A., (1996), “Measuring Brand Equity Across Markets Products”, California Management Review 38(3), 102-120.
  • • Aaker, D.A. and Keller, K.L. (1990), “Consumer evaluations of brand extensions”, Journal of Marketing 54(1), 27–41.
  • • Aaker, D.A. and Jacobson, R. (1994), “The Financial Information Content of Perceived Quality”, Journal of Marketing Research 31(2), 191-201
  • • Agarwal, M.K., Rao, V.R. (1996), “An Empirical Comparison of Consumer-Based Measures of Brand Equity”, Marketing Letters 7(3), 237-247
  • • Ambler, T. (2003) Marketing and the Bottom Line: Creating the Measures of Success. Financial Times/Prentice Hall, London, UK.
  • • Bendixen, M., Bukasa, K.A., Abratt R. (2004), “Brand equity in the business-to- business market” Industrial Marketing Management 33(5), 371– 380
  • • Biel, A.L., (1992). “How Brand Image Drives Brand Equity”, Journal of Advertising Research 32(6), 6-12.
  • • Bottomley, P.A. and Doyle, J.R. (1996), “The formation of attitudes towards brand extensions: testing and generalising Aaker and Keller’s model”, International Journal of Research in Marketing 13(4), 365–377.
  • • Buil, I., de Chernatony, L. and Martinez, E. (2008), “A cross-national validation of the consumer based brand equity scale”, Journal of Product and Brand Management 17(6), 384–392.
  • • Chaudhuri, A. and Holbrook, M. B. (2001), “The chain of effects from brand trust and brand affect to brand performance: The role of brand loyalty”, Journal of Marketing 65(2), 81-93.
  • • Chang, H. H. and Liu, Y. M. (2009). The Impact of Brand Equity on Brand Preference and Purchase Intentions in the Service Industries. The Service Industries Journal 29(12), 1687.
  • • Chen, A.C. (2001), “Using free association to examine the relationship between the characteristics of brand associations and brand equity”, Journal of Product & Brand Management 10(7), 439-451.
  • • Christodoulides, G. and de Chernatony L. (2010), “Consumer-based brand equity conceptualisation and measurement”, International Journal of Market Research 52(1), 43-66
  • • Cobb-Walgren, C.J., Ruble, C.A. & Donthu N. (1995), “Brand equity, brand preference, and purchase intent”, Journal of Advertising 24(3), 25–40.
  • • Davis, S.M. (2000), Brand Asset Management. Jossey-Bass, San Francisco, CA.
  • • de Chernatony, L. and McWilliam G. (1989), “The varying nature of brands as asset”, International Journal of Advertising 8(4), 339-349.
  • • Dodds, W.B., Monroe, K.B., Grewal, D. (1991), “Effects of price, brand, and store information on buyers' product evaluation”, Journal of Marketing Research 28, 307-319.
  • • Erdem, T., Swait, J. and Louviere, J. (2002), “The impact of brand credibility on consumer price sensitivity”, International Journal of Research in Marketing 19(1), 1–19.
  • • Farquhar, P.H., (1989). “Managing Brand Equity”, Journal of Marketing Research, September, 24-33.
  • • Farquhar, P.H., Han J.Y and Ijiri Y. (1991), “Recognizing and Measuring Brand Assets”, Marketing Science Institute, Cambridge, MA pp. 91-119.
  • • Feldwick, P. (1995), “What is brand equity anyway, and how do you measure it?” Journal of the Market Research Society 38(2), 85-104.
  • • Hankinson, G. A. and Cowking, P. (1993), Branding in Action, McGraw-Hill, Maidenhead.
  • • Howard, Steven, (1998), Corporate Image Management, Butterworth- Heinemann, Singapore p.30.
  • • Hsin Hsin, C., & Ya Ming, L. (2009), “The impact of brand equity on brand preference and purchase intentions in the service industries”, The Service Industries Journal 29(12), 1687-1706.
  • • Jones, T. and Taylor, S.F. (2007), "The conceptual domain of service loyalty: how many dimensions?", Journal of Services Marketing, 21(1), 36-51
  • • Jones, Tim, Shirley F. Taylor, and Harvir S. Bansal (2008), “Commitment to a Friend, a Service Provider, or aService Company—Are They Distinctions Worth Making?”, Journal of the Academy of Marketing Science 36(4), 473–487.
  • • Kapferer, J.N., (1992), Strategic Brand Management, The Free Press, New York, NY.
  • • Kamakura WA, Russell GJ., (1993), “Measuring brand value with scanner data”, International Journal of Research in Marketing 10(1), 9-21.
  • • Keller, K.L., (1993), Conceptualizing, Measuring, and Managing Customer-Based Brand Equity, Journal of Marketing, 57(1), 1-22.
  • • Keller, K.L., and Lehmann, D. (2003) “How do brands create value?” Marketing Management, (May–June) 27–31
  • • Kotler, P. and Keller K.L., (2006), Marketing Management, 12th edition, Prentice Hall, NJ.
  • • Krishnan, H.S., (1996), “Characteristics of memory associations: a consumer based brand equity Perspective”, International Journal of Research in Marketing, 13(4), 389-405.
  • • Kumar V., Shah D., Venkatesan R. (2006), “Managing Retailer Profitability-One Customer at a Time”, Journal of Retailing 82(4), 277-294.
  • • Kumar, V. and Reinartz, W. (2006), Customer Relationship Management: A Databased Approach. John Wiley, New York, NY.
  • • Lassar, W., Mittal, B. and Sharma, A., (1995), “Measuring Customer Based Brand Equity”, Journal of Consumer Marketing 12(4), 11-19.
  • • Mackay, M.M. (2001), “Evaluation of brand equity measures: further empirical results”, The Journal of Product and Brand Management 10(1), 38-51.
  • • Martin, G.S. and Brown, T.J.(1991), “In Search of Brand Equity: The Conceptualization and Operationalization of the Brand Impression Construct”, Winter Educator's Conference Proceedings, Terry L. Childers et al. eds. Chicago: American Marketing Association, 431-438.
  • • Mizik, N. and Jacobson, R. (2008), “The financial value impact of perceptual brand attributes”, Journal of Marketing Research, 45(1), 15–32.
  • • Moorman, C., & Rust, R. T. (1999). The role of marketing. Journal of Marketing, 63, 180–197.
  • • Motameni, R. and Shahrokhi, M., (1998), “Brand Equity Valuation A Global Perspective”, Journal of Product and Brand Management, 7(4), 275-290.
  • • Okazaki, S. and Taylor, S. (2008) “What is SMS advertising and why do multinationals adopt it? Answers from an empirical study in European markets” Journal of Business Research 61(1), 4-12
  • • Oliver, R.L., (1997), Satisfaction: A Behavioral Perspective on the Consumer, New York, McGraw-Hill.
  • • Pappu, R., Quester, P.G. and Cooksey, R.W. (2005), “Consumer-based brand equity: improving the measurement – empirical evidence”. Journal of Product and Brand Management, 14(3), 143–154.
  • • Park, C.S. and Srinivasan, V., (1994), “A Survey Based Method for Measuring and Understanding Brand Equity”, Journal of Marketing Research 31, 271-288.
  • • Pitta, D.A. and Katsanis, L.P. (1995), “Understanding brand equity for successful brand extension”, Journal of Consumer Marketing 12(4), 51-64
  • • Prasad, K. and Dev, C.S., (2000), Managing Hotel Brand Equity: A Customer- centric Framework for Assessing Performance, Cornell Hotel and Restaurant Administration Quarterly, Vol. June, pp. 22-31.
  • • Rangaswamy, A., Burke, R.R. and Oliva, T.A. (1993), Brand equity and the extendibility of brand names. International Journal of Research in Marketing 10(1), 61–75.
  • • Rossiter, J.R. and Percy, L. (1987), Advertising and Promotion Management, New York, NY: McGraw Hill.
  • • Senthilnathan, S., & Tharmi, U. (2012), “The Relationship of Brand Equity to Purchase Intention”. IUP Journal of Marketing Management, 11(2, pp. 7-26.
  • • Shocker, A.D., and Weitz, B., (1988), “A perspective on brand equity principles and issues”, Leuthesser L, editor. Report No: 88-104. Cambridge, Marketing Science Institute, 2-4.
  • • Smith, D.C. and Park, W. (1992), "The Effect of Brand Extensions on Market Share and Advertising Efficiency. Journal of Marketing Research 29, 296-313.
  • • Simon, C.J., and Sullivan, M.W., (1993), “The Measurement and Determinants of Brand Equity a Financial Approach”, Marketing Science 12(1), 28-52.
  • • Srinivasan, V. (1979), “Network models for estimating brand specific effects in multi-attribute marketing models”, Management Science, 25(1), 11-25.
  • • Srivastava, R. and Shocker, A.D. (1991), “Brand equity: a perspective on its meaning and measurement”, Report Number 91-124. Cambridge, Marketing Science Institute.
  • • Yoo, B., Donthu, N., Lee, S. (2000), “An examination of selected marketing mix elements and brand equity”, Journal of the Academy of Marketing Science, Vol. 28(2), 195–211.
  • • Yoo, B., and Donthu, N. (2001), “Developing and validating a multidimensional consumer-based brand equity scale", Journal of Business Research 52(1), 1-14.
  • • Washburn, J.H. and Plank R.E. (2002), “Measuring brand equity: an evaluation of a consumer-based brand equity scale”, Journal of Marketing Theory and Practice, 10(1), 46-62.
  • • Zeithaml, V.A. (1988), “Consumer perceptions of Price, Quality, Value: a means end model and synthesis of evidence”, Journal of Marketing 52, 2-22. • Zimmermann, R. (2001), Brand Equity Excellence Volume 1: Brand Equity Review, BBDO Group, Düsseldorf. 350 F2F3 R2 Adj. 0.133 5.145 5.571 3.650 5.141 6.868 3.248 3.855 7.139 0.001*** 0.932*** 0.406 1.102*** 0.591***
  • 0.273** 0.416*** 0.699*** 0.578***
  • 0.624 15.951 0.000*** 0.393 0.318** 0.362** 6.820 0.002***

Yıl 2015, Cilt: 4 Sayı: 3, 0 - 0, 29.09.2015

Gokhan Aydin Burc Ulengin

Öz

Kaynakça

  • • Aaker, D.A., (1991), Managing Brand Equity, The Free Press New York, NY.
  • • Aaker, D.A., (1996), “Measuring Brand Equity Across Markets Products”, California Management Review 38(3), 102-120.
  • • Aaker, D.A. and Keller, K.L. (1990), “Consumer evaluations of brand extensions”, Journal of Marketing 54(1), 27–41.
  • • Aaker, D.A. and Jacobson, R. (1994), “The Financial Information Content of Perceived Quality”, Journal of Marketing Research 31(2), 191-201
  • • Agarwal, M.K., Rao, V.R. (1996), “An Empirical Comparison of Consumer-Based Measures of Brand Equity”, Marketing Letters 7(3), 237-247
  • • Ambler, T. (2003) Marketing and the Bottom Line: Creating the Measures of Success. Financial Times/Prentice Hall, London, UK.
  • • Bendixen, M., Bukasa, K.A., Abratt R. (2004), “Brand equity in the business-to- business market” Industrial Marketing Management 33(5), 371– 380
  • • Biel, A.L., (1992). “How Brand Image Drives Brand Equity”, Journal of Advertising Research 32(6), 6-12.
  • • Bottomley, P.A. and Doyle, J.R. (1996), “The formation of attitudes towards brand extensions: testing and generalising Aaker and Keller’s model”, International Journal of Research in Marketing 13(4), 365–377.
  • • Buil, I., de Chernatony, L. and Martinez, E. (2008), “A cross-national validation of the consumer based brand equity scale”, Journal of Product and Brand Management 17(6), 384–392.
  • • Chaudhuri, A. and Holbrook, M. B. (2001), “The chain of effects from brand trust and brand affect to brand performance: The role of brand loyalty”, Journal of Marketing 65(2), 81-93.
  • • Chang, H. H. and Liu, Y. M. (2009). The Impact of Brand Equity on Brand Preference and Purchase Intentions in the Service Industries. The Service Industries Journal 29(12), 1687.
  • • Chen, A.C. (2001), “Using free association to examine the relationship between the characteristics of brand associations and brand equity”, Journal of Product & Brand Management 10(7), 439-451.
  • • Christodoulides, G. and de Chernatony L. (2010), “Consumer-based brand equity conceptualisation and measurement”, International Journal of Market Research 52(1), 43-66
  • • Cobb-Walgren, C.J., Ruble, C.A. & Donthu N. (1995), “Brand equity, brand preference, and purchase intent”, Journal of Advertising 24(3), 25–40.
  • • Davis, S.M. (2000), Brand Asset Management. Jossey-Bass, San Francisco, CA.
  • • de Chernatony, L. and McWilliam G. (1989), “The varying nature of brands as asset”, International Journal of Advertising 8(4), 339-349.
  • • Dodds, W.B., Monroe, K.B., Grewal, D. (1991), “Effects of price, brand, and store information on buyers' product evaluation”, Journal of Marketing Research 28, 307-319.
  • • Erdem, T., Swait, J. and Louviere, J. (2002), “The impact of brand credibility on consumer price sensitivity”, International Journal of Research in Marketing 19(1), 1–19.
  • • Farquhar, P.H., (1989). “Managing Brand Equity”, Journal of Marketing Research, September, 24-33.
  • • Farquhar, P.H., Han J.Y and Ijiri Y. (1991), “Recognizing and Measuring Brand Assets”, Marketing Science Institute, Cambridge, MA pp. 91-119.
  • • Feldwick, P. (1995), “What is brand equity anyway, and how do you measure it?” Journal of the Market Research Society 38(2), 85-104.
  • • Hankinson, G. A. and Cowking, P. (1993), Branding in Action, McGraw-Hill, Maidenhead.
  • • Howard, Steven, (1998), Corporate Image Management, Butterworth- Heinemann, Singapore p.30.
  • • Hsin Hsin, C., & Ya Ming, L. (2009), “The impact of brand equity on brand preference and purchase intentions in the service industries”, The Service Industries Journal 29(12), 1687-1706.
  • • Jones, T. and Taylor, S.F. (2007), "The conceptual domain of service loyalty: how many dimensions?", Journal of Services Marketing, 21(1), 36-51
  • • Jones, Tim, Shirley F. Taylor, and Harvir S. Bansal (2008), “Commitment to a Friend, a Service Provider, or aService Company—Are They Distinctions Worth Making?”, Journal of the Academy of Marketing Science 36(4), 473–487.
  • • Kapferer, J.N., (1992), Strategic Brand Management, The Free Press, New York, NY.
  • • Kamakura WA, Russell GJ., (1993), “Measuring brand value with scanner data”, International Journal of Research in Marketing 10(1), 9-21.
  • • Keller, K.L., (1993), Conceptualizing, Measuring, and Managing Customer-Based Brand Equity, Journal of Marketing, 57(1), 1-22.
  • • Keller, K.L., and Lehmann, D. (2003) “How do brands create value?” Marketing Management, (May–June) 27–31
  • • Kotler, P. and Keller K.L., (2006), Marketing Management, 12th edition, Prentice Hall, NJ.
  • • Krishnan, H.S., (1996), “Characteristics of memory associations: a consumer based brand equity Perspective”, International Journal of Research in Marketing, 13(4), 389-405.
  • • Kumar V., Shah D., Venkatesan R. (2006), “Managing Retailer Profitability-One Customer at a Time”, Journal of Retailing 82(4), 277-294.
  • • Kumar, V. and Reinartz, W. (2006), Customer Relationship Management: A Databased Approach. John Wiley, New York, NY.
  • • Lassar, W., Mittal, B. and Sharma, A., (1995), “Measuring Customer Based Brand Equity”, Journal of Consumer Marketing 12(4), 11-19.
  • • Mackay, M.M. (2001), “Evaluation of brand equity measures: further empirical results”, The Journal of Product and Brand Management 10(1), 38-51.
  • • Martin, G.S. and Brown, T.J.(1991), “In Search of Brand Equity: The Conceptualization and Operationalization of the Brand Impression Construct”, Winter Educator's Conference Proceedings, Terry L. Childers et al. eds. Chicago: American Marketing Association, 431-438.
  • • Mizik, N. and Jacobson, R. (2008), “The financial value impact of perceptual brand attributes”, Journal of Marketing Research, 45(1), 15–32.
  • • Moorman, C., & Rust, R. T. (1999). The role of marketing. Journal of Marketing, 63, 180–197.
  • • Motameni, R. and Shahrokhi, M., (1998), “Brand Equity Valuation A Global Perspective”, Journal of Product and Brand Management, 7(4), 275-290.
  • • Okazaki, S. and Taylor, S. (2008) “What is SMS advertising and why do multinationals adopt it? Answers from an empirical study in European markets” Journal of Business Research 61(1), 4-12
  • • Oliver, R.L., (1997), Satisfaction: A Behavioral Perspective on the Consumer, New York, McGraw-Hill.
  • • Pappu, R., Quester, P.G. and Cooksey, R.W. (2005), “Consumer-based brand equity: improving the measurement – empirical evidence”. Journal of Product and Brand Management, 14(3), 143–154.
  • • Park, C.S. and Srinivasan, V., (1994), “A Survey Based Method for Measuring and Understanding Brand Equity”, Journal of Marketing Research 31, 271-288.
  • • Pitta, D.A. and Katsanis, L.P. (1995), “Understanding brand equity for successful brand extension”, Journal of Consumer Marketing 12(4), 51-64
  • • Prasad, K. and Dev, C.S., (2000), Managing Hotel Brand Equity: A Customer- centric Framework for Assessing Performance, Cornell Hotel and Restaurant Administration Quarterly, Vol. June, pp. 22-31.
  • • Rangaswamy, A., Burke, R.R. and Oliva, T.A. (1993), Brand equity and the extendibility of brand names. International Journal of Research in Marketing 10(1), 61–75.
  • • Rossiter, J.R. and Percy, L. (1987), Advertising and Promotion Management, New York, NY: McGraw Hill.
  • • Senthilnathan, S., & Tharmi, U. (2012), “The Relationship of Brand Equity to Purchase Intention”. IUP Journal of Marketing Management, 11(2, pp. 7-26.
  • • Shocker, A.D., and Weitz, B., (1988), “A perspective on brand equity principles and issues”, Leuthesser L, editor. Report No: 88-104. Cambridge, Marketing Science Institute, 2-4.
  • • Smith, D.C. and Park, W. (1992), "The Effect of Brand Extensions on Market Share and Advertising Efficiency. Journal of Marketing Research 29, 296-313.
  • • Simon, C.J., and Sullivan, M.W., (1993), “The Measurement and Determinants of Brand Equity a Financial Approach”, Marketing Science 12(1), 28-52.
  • • Srinivasan, V. (1979), “Network models for estimating brand specific effects in multi-attribute marketing models”, Management Science, 25(1), 11-25.
  • • Srivastava, R. and Shocker, A.D. (1991), “Brand equity: a perspective on its meaning and measurement”, Report Number 91-124. Cambridge, Marketing Science Institute.
  • • Yoo, B., Donthu, N., Lee, S. (2000), “An examination of selected marketing mix elements and brand equity”, Journal of the Academy of Marketing Science, Vol. 28(2), 195–211.
  • • Yoo, B., and Donthu, N. (2001), “Developing and validating a multidimensional consumer-based brand equity scale", Journal of Business Research 52(1), 1-14.
  • • Washburn, J.H. and Plank R.E. (2002), “Measuring brand equity: an evaluation of a consumer-based brand equity scale”, Journal of Marketing Theory and Practice, 10(1), 46-62.
  • • Zeithaml, V.A. (1988), “Consumer perceptions of Price, Quality, Value: a means end model and synthesis of evidence”, Journal of Marketing 52, 2-22. • Zimmermann, R. (2001), Brand Equity Excellence Volume 1: Brand Equity Review, BBDO Group, Düsseldorf. 350 F2F3 R2 Adj. 0.133 5.145 5.571 3.650 5.141 6.868 3.248 3.855 7.139 0.001*** 0.932*** 0.406 1.102*** 0.591***
  • 0.273** 0.416*** 0.699*** 0.578***
  • 0.624 15.951 0.000*** 0.393 0.318** 0.362** 6.820 0.002***
Toplam 61 adet kaynakça vardır.

Ayrıntılar

Bölüm Articles
Yazarlar

Gokhan Aydin Bu kişi benim

Burc Ulengin

Yayımlanma Tarihi 29 Eylül 2015
Yayımlandığı Sayı Yıl 2015 Cilt: 4 Sayı: 3

Kaynak Göster

APA Aydin, G., & Ulengin, B. (2015). EFFECT OF BRAND EQUITY ON FIRMS’ FINANCIAL PERFORMANCE IN CONSUMER GOODS INDUSTRIES. Journal of Business Economics and Finance, 4(3).

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