An Examination of Brand Equity Differences between Utilitarian and Hedonic Products

Jing Yang
2015 International Journal of Marketing Studies  
This paper examines how country-of-origin and manufacturer-of-origin effects impact brand equity for utilitarian versus hedonic products. Applying the concept of revenue premium as a measure of brand equity, this paper uses a variance component model together with secondary panel data for the U.S. passenger car market to show it is possible to apply a measure of brand equity for product categories without private labels. The results show that proportionally country-of-origin influences brand
more » ... ity for hedonic products; whereas manufacturer-of-origin impacts brand equity for utilitarian products. Keywords: brand equity, country-of-origin, manufacturer-of-origin, utilitarian products, hedonic products, revenue premium Literature Review Brand equity is an important market asset measure, which is defined as "the marketing effects uniquely attributable to the brand" (Keller, 1993, p. 2). It is an indispensable component in the chain of marketing productivity (Rust et al., 2004) , and has impact on market position, financial position and value of the firm. Brand equity has been measured using three approaches: financial market outcomes, product market outcomes www.ccsenet.org/ijms
doi:10.5539/ijms.v7n4p42 fatcat:iomvn7nzvnezlgnxmqjjykeylq