Performance consequences of brand equity management: evidence from organizations in the value chain

Abstract

Evaluating the consequences of brand equity management is one of the most important measurement issues for intangible assets in the new economy. Studies have validated the effect of brand equity on the value of the firm and addressed the capital market effects of intangible associations such as brand value. Yet, there is not sufficient evidence on which dimensions of brand equity should be measured and monitored to support financial performance. Using regression analysis on a sample of managers in Austrian organizations, this study investigates the effect of perceived brand equity on brand profitability, brand sales volume, and perceived customer value. Results indicate strong support for measures of perceived quality, brand loyalty, and brand awareness as antecedents of firm performance, customer value and willingness to buy.