Brand Equity, Firm Value, and the Moderating Influence of Industry Dynamics
Abstract
Data on 84 publicly traded Fortune 500 firms across 12 industries over six years was collected and analyzed to understand how the relationship between firm brand equity and firm financial performance is influenced by the level of importance consumers attribute to brand when making purchase decisions across different industries. While the existent research has established a relationship between firm brand equity and firm financial performance, the question of how that relationship differs across industries has not been studied. The analysis focuses on the four “pillars” (core brand equity dimensions) of VMLY&R’s BrandAsset Valuator (BAV) tool: differentiation, relevance, esteem, and knowledge. To determine the importance of brand at the industry level, the analysis used a validated framework and scale that previously established that consumers perceive the importance of brand differently when making purchase decisions across industries. Analysis shows that the relationship between industry-level perceived firm brand equity and perceived brand importance influences firm financial performance differently across industries. The central hypothesis that the decision-making of consumers is influenced by the brand equity dynamics reported in BAV, and that this influence impacts firm financial performance differently across industries was partially proved out by the data. Partial support for most of the hypotheses indicates that the relationship between firm consumer brand equity perceptions, and firm financial performance is moderated by the level of importance consumers attribute to brands across industries when making a purchase decision.
Subject Area
Marketing|Business administration|Finance
Recommended Citation
Petito, Fred, "Brand Equity, Firm Value, and the Moderating Influence of Industry Dynamics" (2022). ETD Collection for Pace University. AAI29993524.
https://digitalcommons.pace.edu/dissertations/AAI29993524
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