Measuring Brand Value with Scanner Data

Using actual consumer choice data from a single-source scanner panel, we construct two measures of brand value which capture different aspects of brand equity. Brand Value measures perceived quality, the value assigned by consumers to the brand, after discounting for current price and recent advertising exposures. Brand Intangible Value isolates the component of brand value which cannot be directly attributed to the physical product, thus measuring the value created by such factors as brand name associations and perceptual distortions. We illustrate these measures in a study of the powder laundry detergent category and briefly relate the results to strategic variables (order of entry and cumulative advertising expenditures)