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Pricing Mini Case: Calculating Brand Equity Brand equity is one of the most important concepts for marketers, yet it remains notoriously difficult to measure.
Pricing Mini Case: Calculating Brand Equity Brand equity is one of the most important concepts for marketers, yet it remains notoriously difficult to measure. There are many definitions for brand equity, but they all deal with the concept of how much tangible value a brand is capable of generating through the intangible elements communicated about the brand. As a very simple example, If someone was willing to pay $1000 for an Apple laptop, but would be only willing to pay $500 for the exact same unbranded laptop, that would be clear evidence that Apple has large positive brand equity. Click the icon to view the Help menu. Click the icon to view the brands sales table. According to this calculation of brand equity, which brand has the best brand equity? has the best brand equity,. (Round to two decimal places.) Brand B Brand A Brand A Brand B Durability 0.60 0.60 Typical Selling Price of Brand 8 6 Typical Selling Price of Product in Category 4.80 4.80 Segment A Brand Sales % in segment 50% 30% Brand market share in segment 40% 10% Segment B Brand Sales % in segment 50% 70% Brand market share in segment 50% 40% x More Info The brand equity index (BRI) is calculated as: BRI = (Effective Market Share) x (Durability) x (Relative Price) i Effective Market Share= (Brand Sales % in segment) x (Brand market share in segment) Durability = % of current buyers of brand expected to buy in next year Typical selling price of Brand Relative Price = Typical selling price of Product in Category where i segment a brand competes in. Print Done - ONDOR PER x
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Brand A Effective Market Share 50405050 045 Durability 060 given Relative Price 8 480 167 BRI 045060...Get Instant Access to Expert-Tailored Solutions
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