Skip to main content
SpringerLink
Log in

Chasing brand value: Fully leveraging brand equity to maximise brand value

  • Paper
  • Published:
Journal of Brand Management Aims and scope Submit manuscript

Abstract

Both researchers and practitioners seek to understand how to leverage brand equity to create value. Adopting ‘the theoretical separation of brand equity and brand value’ framework originally proposed in the Journal of Brand Management by Raggio and Leone, this conceptual paper looks more closely at the brand value construct and the implications of the proposed theoretical separation. The authors argue that firms are continually attempting to ‘chase’ the appropriable value of their brands—defined as the theoretical maximum value that a brand could achieve if all brand equity were fully leveraged. Implications for developing measures of brand value are discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Figure 1
Figure 2
Figure 3
Figure 4

Similar content being viewed by others

Reference and Notes

  • Ambler, T. (2000) ‘Marketing and the Bottom Line’, FT Prentice Hall, London, p. 5 (emphasis in original).

  • Raggio, R. D. and Leone, R. P. (2007) ‘The theoretical separation of brand equity and brand value: Managerial implications for strategic planning’, Journal of Brand Management, Vol. 14, No. 5, pp. 380–395.

    Article  Google Scholar 

  • Raggio and Leone, ref. 2 above.

  • Mizik, N. and Jacobson, R. (2003) ‘Trading off between value creation and value appropriation: The financial implications of shifts in strategic emphasis’, Journal of Marketing, Vol. 67 (January), p. 63.

    Article  Google Scholar 

  • Barth, M. E., Clement, M. B., Foster, G. and Kasznik, R. (1998) ‘Brand values and capital market valuation’, Review of Accounting Studies, Vol. 3, pp. 41–68.

    Article  Google Scholar 

  • Simon, C. J. and Sullivan, M. W. (1993) ‘The measurement and determinants of brand equity: A financial approach’, Marketing Science, Vol. 12 (Winter), pp. 28–52.

    Article  Google Scholar 

  • Cravens, K. S. and Guilding, C. (2001) ‘Brand value accounting: An international comparison of perceived managerial implications’, Journal of International Accounting, Auditing & Taxation, Vol. 10, pp. 197–221.

    Article  Google Scholar 

  • Simon, C. J. and Sullivan, M. W. (1993) ‘The measurement and determinants of brand equity: A financial approach’, Marketing Science, Vol. 12 (Winter), pp. 28–52.

    Article  Google Scholar 

  • Kerin, R. A. and Sethuraman, R. (1998) ‘Exploring the brand value-shareholder value nexus for consumer goods companies’, Journal of the Academy of Marketing Science, Vol. 26 (Fall) pp. 260–273.

    Article  Google Scholar 

  • Kallapur, S. and Kwan, S. Y. S. (2004) ‘The value-relevance and reliability of brand assets recognized by UK firms’, Accounting Review, Vol. 79 (January), pp. 151–172.

    Article  Google Scholar 

  • Madden, T. J., Fehle, F. and Fournier, S. (2006) ‘Brands matter: An empirical demonstration of the creation of shareholder value through branding’, Journal of the Academy of Marketing Science, Vol. 34 (Spring), pp. 224–235.

    Article  Google Scholar 

  • Simon and Sullivan, ref. 8 above.

  • Raggio and Leone, ref. 2 above.

  • Raggio and Leone, ref. 2 above.

  • See Mizik and Jacobson, ref. 4 above, for a discussion of ‘appropriating’ value.

  • Feder, B. J. (1997) ‘Quaker bites the bullet, sells snapple to triarc’, The New York Times, March 28, as quoted in Raggio and Leone, ref. 2 above.

  • Srivastava, R. K. and Shocker, A. D. (1991) ‘Brand equity: A perspective on its meaning and measurement’, MSI Working Paper Series, Report No. 91–124.

  • Keller, K. L. (1993) ‘Conceptualizing, measuring, managing customer-based brand equity’, Journal of Marketing, Vol. 57 ( January), pp. 1–22.

    Article  Google Scholar 

  • Keller, K. L. and Lehmann, D. R. (2002) ‘The brand value chain: Optimizing strategies and financial brand performance,’Working paper (see p. 1), Dartmouth College, Hanover, NH.

  • Krishnan, H. S. (1996) ‘Characteristics of memory associations: A consumer-based brand equity perspective’, International Journal of Research in Marketing, Vol. 13 (October), pp. 389–405 (see p. 390).

    Article  Google Scholar 

  • Rust, R. T., Lemon, K. N. and Zeithaml, V. A. (2004) ‘Customer-centered brand management’, Harvard Business Review, Vol. 82 (September), p. 9, 110–118 (see p. 118).

    Google Scholar 

  • Simon and Sullivan, ref. 7 above, see p. 29.

  • Jones, R. (2005) ‘Finding sources of brand value: Developing a stakeholder model of brand equity’, Journal of Brand Management, Vol. 13 (October), pp. 10–32 (see pp. 11, 13).

    Article  Google Scholar 

  • Raggio and Leone, ref. 2 above.

  • Ailawadi, K. L., Lehmann, D. R. and Neslin, S. A. (2003) ‘Revenue premium as an outcome measure of brand equity’, Journal of Marketing, Vol. 67 (October), pp. 1–17.

    Article  Google Scholar 

  • Ailawadi, Lehmann and Neslin, ref. 22 above.

  • Ailawadi, Lehmann and Neslin, ref. 22 above, p. 1 (italics in original).

  • Srivastava and Shocker, ref. 15 above.

  • Faircloth, J. B., Capella, L. M. and Alford, B. L. (2001) ‘The effect of brand attitude and brand image on brand equity’, Journal of Marketing Theory and Practice, Vol. 9 (Summer), pp. 61–75 (see p. 61).

    Article  Google Scholar 

  • Clifton, R. and Simmons, J., (eds.) (2004) ‘Brands and Branding’, Bloomberg Press, Princeton, NJ.

  • Ward, S., Light, L. and Goldstine, J. (1999) ‘What high-tech managers need to know about brands’, Harvard Business Review, Vol. 77 (July–August), pp. 85–95.

    Google Scholar 

  • Raggio and Leone, ref. 1 above.

  • See Keller, K. L. (2003) ‘Brand synthesis: The mulidimensionality of brand knowledge’, Journal of Consumer Research, Vol. 29 (March), pp. 595–600, for a complete discussion of how brand knowledge contributes to brand equity.

    Article  Google Scholar 

  • Jones, ref. 20 above.

  • Thompson, S. (1997) ‘Frito DSD could revive cracker jack’, Brandweek, Vol. 38, No. 38, p. 16.

    Google Scholar 

  • Hartnett, M. (2000) ‘Cracker jack’, Advertising Age, Vol. 71, No. 27, p. 22.

    Google Scholar 

  • Barney, J. B. (1986) ‘Strategic factor markets: Expectations, luck and business strategy’, Management Science, Vol. 42, pp. 1231–1241.

    Article  Google Scholar 

  • Eg Ibid.

  • Leone, R. P. (1987) ‘Forecasting the effect of an environmental change on market performance’, International Journal of Forecasting, Vol. 3, No. 3 (September), pp. 463–478.

    Article  Google Scholar 

  • Raggio and Leone, ref. 2 above.

  • Ad Age (2006) ‘100 leading national advertisers,’Special Report: Profiles Supplement, June 26.

  • Krishnan, ref 16 above.

  • Rao, V. R., Agarwal, M. K. and Dahlhoff, D. (2004) ‘How is manifest branding strategy related to the intangible value of a corporation’, Journal of Marketing, Vol. 68 (October) pp. 126–141.

    Article  Google Scholar 

  • Del Vecchio, D., Jarvis, C. B. and Klink, R. R. (2003) ‘Brand equity in resource market exchanges: Leveraging the value of brands beyond product markets’, Working Paper, University of Kentucky.

  • Ibid.

  • Gupta, S., Lehmann, D. R. and Stuart, J. A. (2004) ‘Valuing customers’, Journal of Marketing Research, Vol. 41 (February) pp. 7–18.

    Article  Google Scholar 

  • Ibid.

  • Ibid.

  • Blattberg, R. C. and Deighton, J. (1996) ‘Manage marketing by the customer equity test’, Harvard Business Review, Vol. 74 (July–August), pp. 136–144.

    Google Scholar 

  • Rust, R. T., Lemon, K. N. and Zeithaml, V. A. (2004) ‘Return on marketing: Using customer equity to focus marketing strategy’, Journal of Marketing, Vol. 68 (January), 1, pp. 109–127.

    Article  Google Scholar 

  • Rust, Lemon, and Zeithaml, ref. 18 above.

  • Cravens and Guilding, ref. 7 above.

  • C.f., Keller, K. L. (2003) ‘Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 2nd edn Prentice-Hall, Upper Saddle River, NJ.

  • Barney, J. B. (1991) ‘Firm resources and sustained competitive advantage’, Journal of Management, Vol. 17 (March), pp. 99–120.

    Article  Google Scholar 

  • Keller, ref. 53 above.

  • Cravens and Guilding, ref. 7 above.

  • Ibid.

  • Cravens and Guilding, ref. 7 above, p. 212.

  • Koenig, B. and Lippert, J. (2007) ‘Ford motor seeks buyers for Volvo, Jaguar, Land Rover’, www.Bloomberg.com, viewed June 11.

  • As quoted in Koenig and Lippert, Ibid.

  • Eg Barney, ref. 39 above.

  • Rust, Lemon, and Zeithaml, ref. 50 above.

  • Del Vecchio, Jarvis, and Klink, ref. 44 above.

  • Barth, Clement, Foster and Kasznik, ref. 5 above. See p. 62.

Download references

Author information

Authors and Affiliations

  1. E. J. Ourso College of Business, Louisiana State University, 3122 C Patrick F. Taylor Hall, Baton Rouge, 70803, LA, USA

    Randle D Raggio & Robert P Leone

Authors
  1. Randle D Raggio
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Robert P Leone
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Randle D Raggio.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Raggio, R., Leone, R. Chasing brand value: Fully leveraging brand equity to maximise brand value. J Brand Manag 16, 248–263 (2009). https://doi.org/10.1057/palgrave.bm.2550142

Download citation

  • Received:

  • Revised:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/palgrave.bm.2550142

Keywords

Search

Navigation