Schultz, Don E.
March 2000
Marketing Management;Spring2000, Vol. 9 Issue 1, p8
The article focuses on the measurement of the brand-equity or the value of a brand in the marketplace. Measurement of brand-equity is important because it defines a firm's willingness to invest in the brand based on an expected return. Three approaches for brand-equity measurement are given, according to the first approach, buyer and seller should agree on a price and on the brand equity's financial value. The second approach is that the buyer or seller uses the brand's financial value placed by the stock market and then calculate the brand-equity based on it. The third approach is to measure the brand-equity by determining the value the customer wishes to place on it. All these approaches require some amount of customer loyalty to the brand and do have some drawbacks as well.


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