Brand Efficiency and Brand Relevance - Introducing and Linking Both Concepts

AMA Winter Educators' Conference Proceedings, Austin, Texas, 2008

Posted: 20 Aug 2007

See all articles by Maik Hammerschmidt

Maik Hammerschmidt

Mannheim Business School - Department of Marketing

Tobias Donnevert

University of Mannheim - Department of Business Administration and Marketing

Abstract

Brand managers are under increased pressure to illustrate the performance of their multimillion dollar expenditures. As a first contribution we provide the concept of brand efficiency as a methodologically and theoretically sound measure for the performance of the brand management process. As a second contribution we develop a measure for the industry specific brand relevance, i.e. the influence of the decision criterion "brand" on buying decisions in an industry. Third we link these concepts and examine if brand management efficiency in an industry is influenced by brand relevance. Our results show that firms in different industries are equally successful in transforming brand investments into consumer based brand outputs. In contrast, firms differ significantly in capitalizing them in terms of financial outcomes according to their industry specific level of brand relevance. Thus, brand relevance should be used as a key metric for determining and allocating brand investments.

Keywords: brand management, brand relevance, brand equity, marketing-finance interface, brand efficiency, data envelopment analysis

Suggested Citation

Hammerschmidt, Maik and Donnevert, Tobias, Brand Efficiency and Brand Relevance - Introducing and Linking Both Concepts. AMA Winter Educators' Conference Proceedings, Austin, Texas, 2008, Available at SSRN: https://ssrn.com/abstract=1007782

Maik Hammerschmidt (Contact Author)

Mannheim Business School - Department of Marketing ( email )

Germany

Tobias Donnevert

University of Mannheim - Department of Business Administration and Marketing ( email )

Germany

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