Brand Value Creation: Analysis of the Interbrand-Business Week Brand Value Rankings

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Brand Value Creation: Analysis of the Interbrand-Business Week Brand Value Rankings Author(s): Singfat Chu and Hean Tat Keh Source: Marketing Letters, Vol. 17, No. 4 (Dec., 2006), pp. 323-331 Published by: Springer Stable URL: . Accessed: 04/04/2011 12:32 Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at . JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at . . Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact

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Market (2006) 17:323-331 Lett DOI 10.1007/sl 1002-006-9407-6

Brand value creation: of Analysis the Interbrand-Business Weekbrandvalue rankings Chu • Hean Tat Keh Singfat

O Springer Science-IBusiness Media,LLC 2006

AbstractBrand valuehasbecome important an as metric, can corporate performance be observed Valuesranked from close following theannual the of 100 Brand by Top brand firm in In we and consultancy Interbrand reported BusinessWeek. thisstudy, influence lagged of a the model examine non-linear to employ simultaneous equations on valueafter andR&D expenses brand controlling advertising, marketing promotions for income laggedbrand net that and valuation. infer these We yield laggedexpenses is returns brand value. effect R&D expense theweakest, The of to possibly diminishing Differences effects. becauseit is confounded theadvertising promotional with and base acrossindustry orcountry arenotstatistically significant. segments • Promotions • R&D value• Advertising KeywordsBrand 1. Introduction and from much attention bothmanagers academics. Brand has performance received oftheworld'stopbrands Business A popular metric theannual is brand by ranking firm.1 a brand in with which conducted conjunction Interbrand, is Week, consulting S. Chu(El) of NUS Business School, Department DecisionSciences, National of University Singapore, Singapore e-mail: bizchucl@ sg H. T. Keh of SchoolofManagement, Department Marketing, Guanghua P.R.China Peking University, Beijing100871, e-mail: 1 Financial overthe its of world's brands a World,now-defunct period top publication, published rankings the World (e.g.,Kerin Sethuraman, data and 1992-1996. works brand on valueuseFinancial previous Although that In Interbrand contends some distances itself from FinancialWorld the 1998),Interbrand rankings. fact, with direct inaccurate" didnotrecommend and ofFinancialWorld's valuations "werehighly comparisons



Market (2006) 17:323-331 Lett

has a Overthepastdecade,thisannualbrandvaluation attracted strong following in with The ScienceInstitute, consultation in themarketing community. Marketing has brand metric a top as leadersand marketing acdemics, also designated industry research topic.2 priority or it the valueis importanttwolevels.Atthemacro firm at Brand level, affects perand of and analysts, subsequently a roleindetermining plays ception investors financial or thestock of...
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