The authors develop and validate a conditional multiplier approach for valuing branded businesses. The approach enhances traditional multiplier-based valuation by explicitly incorporating brand characteristics into the model. The authors present theoretical arguments why, develop a model to demonstrate how, and provide an empirical illustration to show that brand assets are not fully reflected …
The authors assess which brand asset metrics provide incremental information content to accounting performance measures in explaining stock return. The analysis focuses on the five "pillars" (i.e., central brand attributes) that form the basis for the newly updated Young & Rubicam Brand Asset Valuator model: differentiation, relevance, esteem, knowledge, and energy. Analysis shows that perceive…
Firms allocate their limited resources between 2 fundamental processes of creating value (i.e., innovating, producing and delivering products to the market) and appropriating value (extracting profits in the marketplace). Although both value creation and value appropriation are required for achieving sustained competitive advantage, a firm has significant latitude in deciding the extent to whic…