They posit that marketing capabilities produce marketing assets (BE and CE); and that such marketing assets provide competitive advantages (customers’ loyalty and price premiums) to companies.
We validate these models using survey data from a sample of marketing managers, grounding our findings on managerial practice.
Our results indicate that the models that correspond to the simultaneity approach have a higher explanatory power and goodness of fit than the models that suggest that brand equity is an antecedent of customer equity, thus supporting that these intangible assets are built by marketing activities at the same time.
Measuring brand power validating a model for optimizing brand equity Dating uk seks
The few studies to date of the connection between BE and CE adopt two different perspectives.
On the one hand, some authors posit that the management of brands and customers could have some similar effects (Ambler 2015).
These (theoretical) studies do not provide any empirical support for their conclusions.
According to the authors that follow this perspective, BE and CE could occur simultaneously or even be two sides of the same asset (i.e., could be overlapping assets).
In short, BE is the differential effect of brand knowledge (including brand image and brand awareness) on consumer response to the elements of marketing mix for the brand in comparison to the same elements of a fictitiously named or unnamed version of the product or s 2004).
In this research we use the terms BE and CE to describe the assets built by marketing activities focused on brands and customers, respectively, and that are expected to provide future cash flows to a company (Hogan, Lemon Research efforts involving BE and CE have generally constituted well-differentiated lines of research.In contrast, others suggest that brand equity is an antecedent of customer equity.In this research, we aim to shed light about the relationship between brand equity and customer equity, by empirically testing these two alternative explanations.Clarifying this link enriches our comprehension about how companies build these marketing intangible assets and increases the accuracy of firm valuation processes.n Brand and customer portfolios are intangible marketing assets that help companies to make profits because of their effect upon competitive advantages.Academic literature has studied how to manage (build and develop) and measure the value — Brand Equity (hereafter, BE) and Customer Equity (CE) – that these assets provide to companies.Similarly, future research focusing on customer and brand management need to take into account both managerial areas in their studies.