Measuring the value of a brand to an individual firm

Abstract Traditionally marketers focus on brand equity metrics such as choice or purchase intention to assess the value of a brand for consumers. Studies of firm brand value typically employ a cross-firm level of analysis using data from a sample of firms to show that brands have greater financial value than unbranded or weakly branded products. However, this type of analysis only establishes the value of brands in general. An important marketing problem is to measure the value of a brand to an individual firm. This calls for an individual firm level of analysis . We propose a two-step method for this type of analysis, combining a consumer choice experiment with financial modeling to compare a firm’s cash flow with the brand to what it would be, counterfactually, without the brand. We provide an empirical proof-of-concept demonstration of this measurement methodology. The goal is treating brand as an asset, not an expense.