Brand Efficiency and Brand Relevance - Introducing and Linking Both Concepts

Abstract

Brand managers are under increased pressure to show the productivity of their multimillion dollar expenditures. As a first contribution we provide a methodologically and theoretically sound measure for the efficiency of the brand management process. As a second contribution we examine if brand management efficiency is influenced by the market specific brand relevance. Our results show that firms in different markets are equally successful in transforming brand investments into consumer based brand outputs. In contrast, industries differ significantly in capitalizing them in terms of financial outcomes according to their 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 efficiency, Brand Equity, Data Envelopment Analysis