Revenue Premium as an Outcome Measure of Brand Equity
Coauthor(s): Kusum Ailawadi, Scott Neslin.
The authors propose that the revenue premium a brand generates compared with that of a private label product is a simple, objective, and managerially useful product-market measure of brand equity. The authors provide the conceptual basis for the measure, compute it for brands in several packaged goods categories, and test its validity. The empirical analysis shows that the measure is reliable and reflects real changes in brand health over time. It correlates well with other equity measures, and the measure's association with a brand's advertising and promotion activity, price sensitivity, and perceived category risk is consistent with theory. Reprinted by permission of the publisher.
Source: Journal of Marketing
Ailawadi, Kusum, Donald Lehmann, and Scott Neslin. "Revenue Premium as an Outcome Measure of Brand Equity." Journal of Marketing 67, no. 4 (October 2003): 1-17.