An Analysis Of Brand Equity Determinants: Gross Profit, Advertising, Research, And Development

Abstract

<p class="MsoBodyTextIndent" style="text-indent: 0in; margin: 0in 0.5in 0pt;"><span style="font-family: "Times New Roman","serif"; font-size: 10pt;">The topic of brand equity continues to be of great importance to private sector firms in the creation and development of both product and company brand strategy. This study analyzes the relationship of different variables and brand equity with the purpose of providing useful insight into brand management and advancement. This research approach is unique in its use of private sector generated measures of brand equity as the main data source. The methodology entails collecting financial information from a list of publicly traded companies evident on the annual Interbrand ranking of top brand values, then executing statistical analysis using correlation and regression. Results make evident a significant positive correlation between brand equity and gross profit, advertising expense, and research and development expense. However, findings reveal that advertising is not as important a driver of brand equity in the short-term as put forward in previous research and evidence suggesting the presence of dynamics and non-linear effects exists.<span style="mso-spacerun: yes;">  </span></span></p>

Intangible Assets Investment and Firms’ Performance: Evidence From Small and Medium-Sized Enterprises in Korea

“…Following previous management research, investment in advertising is related to an indicator of marketing capability (Kotabe et al, 2002;McAlister et al, 2007;Fosfuri & Giarratana, 2009;Srinivasan et al, 2009;Jeng & Pak, 2016). Many empirical studies found a significant relationship between investment in advertising and a firm's performance (Chauvin & Hirschey, 1993;Ghosh & Lusch, 2000;Wang et al, 2009;Joshi & Hanssens, 2010;Smith et al, 2011). For instance, Ghosh and Lusch (2000) propose that investment in advertising is significantly and positively related to financial performance.…”

Pengaruh Social Media Marketing terhadap Brand Equity (Survei terhadap Anggota Fanpage Facebook Elevania)

“…Temuan hasil penelitian brand equity di beberapa negara antara lain: 1) Bauran pemasaran dapat mempengaruhi brand equity (Nasrabadi E.M, 2015), 2) Menawarkan kerangka kerja komprehensif yang menunjukkan bagaimana upaya pemasaran media sosial mempengaruhi brand equity terhadap lima merek mewah di empat negara (Godey et al, 2016), 3) Meningkatkan brand equity industri dapat dilakukan dengan memanfaatkan arus kas dan meningkatkan daya jaringan; memperjelas dan memperkuat identitas merek perusahaan atau industri; serta membangun brand equity melalui brand image dan reputasi perusahaan (Smith, Gradojevic, & Irwin, 2007). Berdasarkan penelitian-penelitian diatas, kegunaan brand equity dalam dunia bisnis dianggap penting.…”

An Examination Regarding the Role of Corporate Social Responsibility (CSR) within Financial Institutions: A Literature Review

“…Leaders of corporations know that CSR is linked to their reputation and brand identity (Nam & Ekinci, 2011). Smith et al (2007) asserted that one of the marketing factors that private companies engaged in was in developing brand equity. Truong et al (2008) also argued that most companies are distinguished by their brand and are evaluated based on how they perform in the eyes of society.…”