brand value research

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The Four Steps of Effective Brand Research

Quantitative and qualitative research are crucial tools for building a brand strategy. Discover the four steps to effective research that finds insightful data.

When it comes to developing a cohesive brand and marketing strategy, the process should always start with a healthy amount of research. Both quantitative and qualitative methods are crucial for getting a lay of the land before delving into strategic planning. So how do brands use both to their advantage?

Below, we’ve outlined the importance of brand research as the foundation for an impactful strategy that captures attention and builds value for your company. Along the way, we also thoroughly review our recommended four-step brand research approach.

The Importance of Brand Research

When beginning any strategic branding process, it’s easy to assume that you know exactly what your client or audience needs or wants. But there’s a high chance that you have certain blind spots, knowledge gaps and things that could be leveraged that you’re unaware of.

When beginning a brand assessment, it’s important to go in with as broad a perspective as possible to vet and validate your assumptions about your brand.

You may discover that those outside your organization perceive and experience your brand differently than those inside the organization. All of this is crucial information for developing an effective brand strategy .

When it comes to using qualitative research versus quantitative research, both are valuable tools in your arsenal for understanding different dimensions of your audience. Many organizations jump straight into quantitative (or data-driven) surveys without taking the time to interview customers one-on-one to understand the emotions and experiences behind the data, which is the qualitative part of the research puzzle.

By using both, you can paint a more complete picture of the way people react and interact with your brand. Qualitative research provides a gut feel for what seems most important to your brand, while quantitative research tells you to what degree those things matter, allowing you to understand the depth and importance of the variables associated with your brand.

The four steps below help lay a foundation of knowledge upon which you can build a more-informed brand strategy and methodology that speaks to your brand’s mission and the needs of your customers.

Step #1: Identifying Key Issues Qualitatively

Qualitative interviews that capture common experiences, perceptions and sentiments about your brand are the first step towards a well-founded brand strategy. But to do so, you need to cast a wide net to capture the whole picture of what your brand represents to all stakeholders.

Start by taking a cross-section of your entire organization. Many organizations make the mistake of only interviewing the C-suite executives, but it’s crucial to interview employees from different departments, tiers, regions and branches. This is going to engage the organization and allow you to culturally align it. It also helps your interviewees buy into the brand because their voices are being heard, and helps you gather a healthy set of perspectives from the organization, top to bottom.

Customer engagement is the other side of this process, but don’t forget to talk to more people than just existing customers. What about past customers? What about lost customers? What’s a good customer? What’s a bad customer? What is their perspective going to be like? How do they think and talk about the brand? These questions will help provide insight into what your brand represents to different sectors of your audience, identify gaps, and likely provide opportunities for improvement.

Then, there’s often a competitive analysis factor to your qualitative research. Try to gather an understanding of what the marketplace is doing and saying, and how other brands might be organizing their products, services, their value-added benefits, their claims, their warranties and their service/product promises. This will also influence the survey design that you’re going to put together for the quantitative side of your research later on.

This step will begin to paint a broad picture of your brand from different perspectives. Remember: your brand exists as an idea in the minds of your employees, customers, competitors and onlookers. The qualitative research aims to understand that idea and begin to solidify issues, opportunities and recommendations that can be addressed in your brand and marketing strategy.

Step #2: Developing Concepts & Ideas

With your qualitative research in hand, you can begin to distill your findings into test concepts. Think of them as a kind of hypothesis about your brand: “people react well to our messaging about X product/service,” or “people don’t believe our claims about our value proposition.” This gives you something to test when you begin your quantitative research.

Whatever your test concept is, it should be founded in the research you performed in step 1. Comb through your interviews and identify common themes or similarities in responses to determine where your brand has issues or opportunities to address.

If your goal is to determine a design direction for a rebrand, this stage might be where you think about a few creative updates to ask about during the quantitative research. That will give you testable ideas to learn how people respond and react.

When you have your test concepts ready, it’s time to move into quantitative testing.

Step #3: Quantitative Testing

Now it’s time to put your hypotheses and themes found in the previous two steps to the test. Surveys using the ideas you developed in step 2 allow you to see what customers prefer: do they respond better to a personable, down-to-earth brand voice , or do they prefer a more elevated, professional approach? The same kinds of tests can be run on visual brand identities , taglines, and brand names.

The important benefit of quantitative research is that it confirms or denies the hypotheses you’ve developed from your qualitative research. You can then confidently say, “50% of the customers prefer this while 80% of the customers prefer that.” It strengthens your decision making with data that is more generally applicable to a wider audience.

The other benefit is that it provides hard numbers that can help increase buy-in for branding or marketing recommendations. An intensive brand strategy can take a lot of investment, but if you have data to back it up, it’ll be easier to more confidently prove the benefits of going in one direction over another. It’s a method of reducing risk by providing some insurance that this decision is backed up by solid research.

If the quantitative research indicates that your concepts and ideas are missing the mark, then you’ve learned early on that your findings are misaligned with broader trends. This could indicate an unintentional bias in your research, or show that it’s time to go back to the drawing board with a new concept that better captures your qualitative findings. Either way, you’ve saved yourself the trouble of finding this out after implementing the strategy, and can reset to find a better solution.

Step #4: Analyzing Data

In many cases, the biggest mistake organizations make happens after they have done the quantitative research and are equipped with their facts, figures and pie charts: Forgetting that those graphics must be interpreted in light of all the qualitative learning that went into creating them.

When evaluating the statistics found in your quantitative research, it’s crucial to remember that your qualitative findings help provide deeper context and insights into every quantitative finding. In order to transform your data into meaningful strategies and implementations, you have to fully understand the complete picture around the numbers.

When analyzing, try to look at the data, take biases out and think about what the numbers say. For instance, “How does that number correlate to what we heard in interviews?” You need to be able to put that emotion with the factual information as it allows people to buy in. It allows people to truly feel invested in the work you’re doing.

Connecting the dots between your quantitative and qualitative research is the biggest source for productive conversation and analysis. Try to keep your own personal assumptions out of your analysis and focus on what your team members, stakeholders and customers are saying. This can serve as a catalyst for your organization to make real change that speaks to your audience effectively and builds value for your company.

Take Your Brand Research to New Heights

Use this four-step plan to push the limits of your brand and truly understand the needs of your audience. If you’d like to learn more about how to upgrade your brand research process, explore methods of audience strategy . Or, contact BrandExtract to consult with an expert strategist and level-up your brand.

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Brand Value: What It Is, How To Build It, and How To Measure It

In this post, learn what dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value is, how it differs from other key dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978477">metrics such as dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">brand equity , and key components that feed into dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value.

Table of Contents: 

• What is brand value?
• Brand value vs. brand equity: How do they differ?
• Measuring brand value 
• Key components influencing brand value
• How to build brand value
• How quantilope can help you build and measure brand value 

What is dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value?

dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">Brand value is essentially your dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978470">brand worth from a monetary lens. It’s the price tag your brand would have if someone else were to buy it from you. It depends on things like company assets, intellectual property, dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978468">market value (stock share value), and cash flows (sales, revenue, profit).

Many other factors of your brand not directly financially-related can influence value as well. Some of those other factors include dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978469">brand awareness , dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978482">brand perceptions , and dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978459">brand loyalty (just to name a few). When these dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978477">metrics are strong, brands attract better employees, secure more investor interest, and generate more revenue; that’s because consumers want to buy from reputable brands (and investors want to invest in the same).

Part of building a reputable brand has to do with dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978461">brand identity - what your brand stands for and if it lives up to its word. A brand with a consistent dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978461">brand identity instantly communicates higher dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value than one that’s all over the place with no cohesive tie. These latter brands are ones that are probably trying to do too much rather than focusing on their craft/industry. Staying genuine to your brand goes a long way in consumers’ eyes.

Once you have your dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978461">brand identity in a solid place, focus on your audience. You want to make sure your customers have the best possible experience with your brand at all touch points. This includes in-store and online shopping, customer service interactions, and consumer-targeted advertisements. When customers have a positive experience with your brand, they have better overall dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978482">brand perceptions which (as you might guess) feeds into stronger dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value .   Back to table of contents

dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">Brand value  vs. dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">brand equity : How do they differ?

dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">Brand equity is the reputation and perception customers have of a brand; it’s almost like a brand's mental value - what customers know about the brand, how they perceive it, etc. On the other hand, dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value is like the price tag of a brand. It's a tangible, financial measurement that's used to assess how much a brand is monetarily worth.

Here are some additional differences between dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">brand equity and dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value :

Measurement : dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">Brand equity is often measured through online surveys, focus groups, or dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978460">social media metrics (as a few source examples). dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">Brand value is measured by things like company revenue, sales profits, and how much the brand is worth according to it’s stock value (whether public or private).

Influences : dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">Brand equity is influenced by things like how well-known the brand is, how people perceive the brand, how dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978492">loyal customers are, and what kind of experiences customers have. dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">Brand value is influenced by things like how much money the brand makes, how much dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978480">market share it holds, and what kind of assets it has.

Impact : dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">Brand equity affects how customers behave toward the brand (i.e. if they recommend it to others or not ) and how well it does comparative to competition. dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">Brand value affects financial decisions - how attractive the brand appears to investors and how much money shareholders actually earn.

To sum up brand equity vs. brand value, dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">brand equity generally refers to your brand reputation and dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978465">customer loyalty . dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">Brand value on the other hand is the financial worth of the brand: the dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978468">market value (stocks) and book value (assets). Both are important for success, and are somewhat related; the dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978476">most valuable brands are often ones with dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978463">strong dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">brand dropdown#toggle" data-dropdown-menu-id-param="menu_term_301978454" data-dropdown-placement-param="top" data-term-id="301978454"> equity ; when consumers and stakeholders think highly of your brand ( dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">brand equity ), they’re more likely to spend more on the brand to earn the brand more money ( dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value ).   Back to table of contents

Measuring dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value  

dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">Knowing brand value is important, you might now be wondering how to measure brand value. 

Because dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value is the monetary dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978479">value of a brand , companies can look into financial sources such as stock value; compare this to what competitors are worth to see where you stack up (i.e., market-based valuation). You can also measure your value through a cost-based valuation - adding up everything you've put into the business from the start (expenses, marketing investments, employee costs, etc.). Lastly, you can of course look at your earnings (income-based evaluation); this is your brand's cash flow, savings, revenue, and profit. 

dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">Brand equity is also closely related dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value , so brands can take their own initiative to run a dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978481">market research brand study that measures things like dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978469">brand awareness , brand recall, brand preference, dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978459">brand loyalty , and so on. All these dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978477">metrics feed into dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">brand equity letting a company know how they’re doing in consumers’ eyes. If dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">brand equity is incredibly low, chances are dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value is too (and vice-versa).    Back to table of contents

Key components influencing dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value

As mentioned above, dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">brand equity and dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value are slightly different, yet related. If your ultimate goal is to increase dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value (how much your brand is worth on the books), it often starts with dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">brand equity ; below are just a few areas that influence the value of a brand even though they're not directly financially related dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">: 

dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978469">Brand awareness : How well consumers know and recognize your brand. This can be measured through online surveys, dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978460">social media analytics, and website traffic. You’ll typically want to capture dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978477">metrics from your dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978478">target audience - existing and dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978491">new customers that will likely be in the market for your category/brand (or that you hope will be).

dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978482">Brand perceptions : The mental image that consumers have of your brand. This is influenced by factors such as advertising, customer service, and product quality. It can be measured through online surveys and online/in-person focus groups.

Brand consistency: The extent that your brand's dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978455">messaging and dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978461">brand identity is consistent across all channels and touch points. This can be measured through content analysis and customer feedback.

dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978459">Brand loyalty : The tendency consumers have to repurchase your brand's products or services. This can be measured through enrollment in dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978465">customer loyalty programs and customer dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978471">retention (or alternatively, by looking at customer churn rates).

These are just a few of the many dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978477">metrics that feed into a brand’s overall equity and therefore, brand value. There's rarely just one component that makes or breaks dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value ; it’s a culmination of many little things that form a strong end result.   Back to table of contents

How to dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978499">build dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value

Brands can reference the dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">Brand Value Chain model (developed by Kevin Lane Keller) when looking to build value. It breaks down the process into four main value areas, which relate to both dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">brand equity (marketing and communications - indirectly dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978499">building dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value through revenue ) and financial assets (which more directly influence dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value ).

Marketing programs investment: As the initial stage in the B dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">rand Value Chain, this is where a brand will develop consumer communications, invest in marketing and communication channels, and train their employees on external communication guidelines to build a successful dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978467">marketing strategy . Everything within this stage should focus on the brand’s dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978472">core values - such as its mission, vision, dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978497">brand voice , and brand personality. dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978460">Social media is a great way to add dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value as well, by increasing awareness and consideration for your brand.

Customer mindset: Marketing programs influence those who see them - aka your current and potential customers. In this stage, brands explore consumers’ mindsets, involving consumer awareness, associations, attitudes, and activities (i.e. word of mouth recommendations, or, dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978473">net promoter scores ). This is the stage where consumers begin to form dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978482">brand perceptions - a crucial part in building up dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">brand equity and thus, dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value .

Market performance: The market performance stage is where consumers begin to act as a result of marketing programs and newly-formed mindsets. Many factors can impact market performance, such as price elasticity , dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978465">customer loyalty to the brand, brand overhead costs, and dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978480">market share . All these aspects make a brand either appealing or unappealing to potential investors, which impacts shareholder value.

Shareholder value: Investors do a lot of dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978483">brand valuation research before moving forward; they look at things like market performance, growth potential, risk, price ratios, stock prices, and so on.

Between each of these value stages are ‘multipliers’. These are things like program quality (how clear, consistent, and relevant marketing programs were), market place conditions (how competitors, channels, and customer profiles impact customer mindsets and market performance), and investor sentiment (financial implications such as market dynamics, growth potential, and risk). The dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">Brand Value Chain provides a linear view of brand building and highlights the interconnectedness of different dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978456">brand strategy stages. By closely managing each stage, organizations can create dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978463">strong brands that deliver high value to both customers and the organization itself.

Aside from the model, generally brands have success in building value when they focus on their customers and their needs. This can be done through effective and engaging advertising materials, ambassador programs to build credibility with the brand, and dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978462">customer experiences at every brand touch point (from in-store shopping, to online dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978486">user experience and customer service support).   Back to table of contents

How quantilope can help you build and measure dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value  

quantilope’s Consumer Intelligence Platform is your end-to-end platform for uncovering insights around your brand. Whether you want to track specific brand dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978477">metrics or run a full brand health tracking study, quantilope equips you with a hands-on approach to gather clear takeaways for better dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978502">decision-making .

quantilope’s Better Brand Health Tracking solution is built based on the approach from The Ehrenberg-Bass Institute, giving brands a way to measure their brand health and dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978468">market value through mental availability dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978477">metrics . These dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978477">metrics include share of mind, mental penetration, mental dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978480">market share , and network size, all of which inform a brand of their place within a given category. Better Brand Health Tracking is a much more actionable and scientific approach to brand health tracking, going beyond basic brand funnel dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978477">metrics for clearer business insights. With these takeaways, brands have a better idea of their dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978454">brand equity and what their dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value might be stacked up against key competitors.

To learn more about how quantilope can help measure and understand your dropdown#toggle" data-dropdown-placement-param="top" data-term-id="301978453">brand value , get in touch below!

Get in touch to learn more about brand value measurement!

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Brand Research

Brand research is the systematic study of a brand’s perception, performance, and impact, primarily important for understanding consumer sentiment, improving brand strategy, and maintaining brand relevance in the market.

Table of Contents

Importance of Brand Research

Understanding brand research, techniques of brand research, exploring the versatility of online surveys in brand research, applications of brand research, case studies: brand research in action.

In the modern business environment, competition has become increasingly stiff due to the continuous entry of new players into the market. Therefore, understanding the intricacies of one’s brand and how it resonates with consumers is crucial for survival and growth. This underlines the importance of Brand Research in the wider scope of market research . This article aims to unpack the concept of brand research, its techniques, applications, real-life examples, challenges, and future prospects, emphasizing its crucial role in market research.

While market research provides a general understanding of the market and consumer behavior, brand research narrows down this focus, zeroing in on how a brand is perceived in the market. It looks at how the brand’s core attributes, its image, and messaging resonate with the existing and potential customers. Here’s why brand research is indispensable:

• Identification and Understanding of Target Audience : Brand research helps identify who the brand’s core audience is, what they value, and how they interact with the brand. This allows businesses to tailor their products, services, and communication strategies to meet the needs and preferences of this audience.
• Competitive Differentiation: By conducting brand research, businesses can understand how their brand is perceived in comparison to their competitors. This can reveal unique selling propositions and areas where the brand can differentiate itself to gain a competitive edge.
• Brand Health Tracking: Brand research can be conducted periodically to track the health of a brand over time. It can measure the brand’s performance, track changes in brand perception, and highlight areas that need improvement.
• Risk Management: Brand research can help identify potential risks to the brand’s reputation. It can provide early warnings about issues that could negatively impact the brand if not addressed proactively.

Brand research can enhance the overall performance of a company. It is a strategic tool to defend and optimise a brand’s position in a highly competitive market.

Elevate Your Brand Research Journey!

In the realm of brand research, precision and diversity drive success. Ready to uncover the true essence of your brand? Explore our comprehensive Brand Research Platform at resonio! Seamlessly conduct brand research using our powerful survey tool and tap into our vast pool of diverse survey participants to gather invaluable feedback and opinions on your brand.

In the complex web of market research, brand research stands as a fundamental component. In essence, it helps businesses understand how their brand resonates with customers, serving as a guide to navigate market trends and consumer preferences effectively.

Definition of Brand Research

At its core, brand research refers to the systematic process of collecting, analyzing, and interpreting data about a brand’s performance, image, and market position. This research helps evaluate how the brand is perceived in the marketplace, how it stacks up against competitors, and how effectively it communicates its values and mission to its target audience.

The insights gleaned from brand research serve multiple purposes, including:

• Guiding the development of new products and services that align with the brand’s values and target audience’s expectations.
• Shaping the brand’s marketing and communication strategies.
• Identifying potential areas of improvement in the brand’s existing strategy.
• Assessing the impact of rebranding or brand extensions on the target audience.

Historical Overview of Brand Research

The concept of brand research has its roots in the mid-20th century, during the era of mass media advertising. Brands realized that merely producing quality products wasn’t enough; understanding how their brand was perceived became increasingly important in a crowded marketplace.

Over the years, brand research methodologies have evolved, keeping pace with changes in technology, media, and consumer behavior. From traditional methods like surveys and focus groups, brand research now encompasses digital methodologies such as social media analytics and online consumer behavior tracking. Despite these advancements, the core goal remains unchanged: to understand and improve how a brand connects with its audience.

The Role of Brand Research in Market Research

While market research broadly encompasses understanding market dynamics, brand research offers a more targeted approach. It is like a specialized subset of market research focusing solely on a brand’s standing and perception within that market.

Key roles of brand research in market research include:

• Understanding Customer Perception: Brand research helps in gauging how customers perceive and feel about a brand. It identifies the strengths and weaknesses of a brand in the eyes of its target audience.
• Brand Performance Tracking : Brand research plays a pivotal role in tracking a brand’s performance over time, monitoring shifts in brand perception, and measuring the effectiveness of branding strategies.
• Competitor Analysis : It facilitates understanding where the brand stands vis-à-vis its competitors. It reveals opportunities for differentiation and understanding competitive threats.
• Guiding Strategic Decisions: Brand research provides valuable insights to guide various strategic decisions, such as entering new markets, launching new products, or repositioning the brand.

Effective brand research hinges on the appropriate selection and application of various research techniques. These methods are often chosen based on the brand’s specific objectives and the nature of the information required. Below, we explore the broad categories of brand research methods: qualitative, quantitative, and digital.

Overview of Brand Research Methods

Brand research methodologies are typically classified into three main types, depending on the kind of data they collect and analyze: qualitative, quantitative, and digital methods.

• Qualitative Methods: These techniques seek to understand the ‘why’ behind consumer behaviors and attitudes towards the brand. They offer in-depth insights into customer perceptions and motivations.
• Quantitative Methods: These techniques aim to quantify data and apply statistical analysis. They help measure consumer behaviors, attitudes, and perceptions, often on a large scale.
• Digital Methods: These techniques leverage digital technologies to collect and analyze data. They provide insights into online customer behavior and sentiment towards the brand.

Let’s delve deeper into each category.

Qualitative Methods in Brand Research

Qualitative brand research methods focus on understanding the subjective, often complex aspects of consumer perception and interaction with the brand. These methods can provide rich, detailed insights that go beyond what can be captured through numerical data alone.

In-depth Interviews

In-depth interviews involve one-on-one conversations between a researcher and a participant. The interviewer follows a semi-structured guideline but allows the conversation to flow naturally, enabling the discovery of nuanced insights about the brand. Key benefits of in-depth interviews include:

• Gaining a deep understanding of a participant’s perceptions, feelings, and experiences with the brand.
• The ability to explore topics in detail and follow up on interesting points.
• Uncovering complex decision-making processes that affect brand preference.

Focus Groups

A focus group is a moderated discussion among a small group of participants. The group setting encourages participants to interact and discuss their perceptions, opinions, beliefs, and attitudes about the brand. Benefits of focus groups include:

• Generation of a broad range of ideas and opinions in a relatively short time.
• Observation of group dynamics, which can often reveal interesting insights about brand perception.
• The ability to probe deeper into responses, leading to rich qualitative data .

Ethnography

Ethnographic research involves observing consumers in their natural environment to understand how they interact with a brand’s products or services in their everyday lives. It offers insights into:

• Real-world usage behaviors and contexts that may not emerge in interviews or focus groups.
• Unarticulated needs or pain points that influence brand perception and choice.
• Deep cultural or social factors that shape brand interactions.

Quantitative Methods in Brand Research

Quantitative brand research methods focus on collecting and analyzing numerical data. These methods are ideal for testing hypotheses, tracking changes over time, or understanding the prevalence of certain attitudes or behaviors.

Surveys involve gathering data from a large sample of the target audience using a structured questionnaire. They can be conducted online, over the phone, or face-to-face. Surveys help to:

• Measure consumer attitudes, perceptions, and behaviors towards the brand.
• Gauge brand awareness and recall.
• Evaluate the effectiveness of branding or marketing campaigns.

Experiments

Experimental research involves manipulating one variable to understand its effect on another. In the context of brand research, this could mean testing different branding elements (like logo designs or taglines) to see how they affect brand perception. Experiments can help:

• Identify causal relationships between different branding elements and consumer reactions.
• Test the potential impact of changes to the brand’s image or marketing strategy.

Observational Studies

Observational studies involve systematically observing consumers’ behavior either in a natural or controlled setting. This method can provide insights into actual (rather than self-reported) behaviors relating to the brand. Benefits include:

• Understanding the real-world consumer interaction with the brand.
• Observing behaviors that consumers may not report in surveys or interviews.
• Uncovering unexpected behaviors or usage situations that can inform branding strategy.

Digital Methods for Brand Research

With the rise of the digital age, brand research has expanded into the online sphere. These methods leverage digital technologies to gather and analyze data about consumers’ online behavior and sentiments towards the brand.

Social Media Analysis

Social media analysis involves analyzing data from social media platforms to understand public opinion about the brand. This can include analyzing the sentiment of comments, shares, likes, and mentions. This method offers:

• Real-time feedback on brand perception.
• Insights into trending topics or issues related to the brand.
• A broad, unfiltered view of consumer sentiment.

Online Surveys and Questionnaires

Online surveys and questionnaires allow researchers to collect data from a broad audience at a relatively low cost. They can be used to gather data on a wide range of topics, including brand awareness , brand perception, and customer satisfaction. Benefits include:

• The ability to reach a large and diverse audience.
• Quick collection and analysis of data.
• Easy incorporation of multimedia elements to engage respondents.

Digital Ethnography

Digital ethnography involves observing and interacting with consumers in online environments, like social media platforms, forums, and virtual reality. This method can provide insights into:

• How consumers interact with the brand online.
• The role of the brand in consumers’ digital lives.
• Online cultural trends that influence brand perception.

In the digital age, online surveys have emerged as invaluable tools for brand research, offering a versatile and cost-effective means to understand, evaluate, and enhance your brand’s position in the market. Here, we’ll explore the multifaceted applications of online surveys in the realm of brand research.

• Measuring Brand Awareness and Recognition Online surveys allow you to gauge the level of awareness and recognition your brand enjoys within your target audience. By asking questions like “Have you heard of our brand?” or “Can you recognize our logo?” you can assess how effectively your branding efforts have penetrated the market.
• Assessing Brand Perception Understanding how consumers perceive your brand is fundamental to brand research. Surveys can be tailored to probe respondents’ perceptions, asking questions such as “What words come to mind when you think of our brand?” or “How do you perceive our brand in terms of quality and value?”
• Evaluating Brand Loyalty and Satisfaction Loyal customers are the lifeblood of any brand. Online surveys can help you measure brand loyalty and customer satisfaction. By asking questions like “How likely are you to recommend our brand to others?” or “On a scale of 1 to 10, how satisfied are you with our products/services?” you can gauge the strength of customer relationships.
• Identifying Brand Advocates and Detractors Online surveys can unearth brand advocates who are enthusiastic about your products or services, as well as brand detractors who may have had negative experiences. By identifying these groups, you can tailor your marketing strategies to nurture advocates and address detractors’ concerns.
• Exploring Competitive Analysis In addition to evaluating your brand’s performance, surveys can be used to gain insights into your competitors. Questions like “What do you like/dislike about our competitors?” or “How do we compare to similar brands in the market?” can provide valuable competitive intelligence.
• Product and Service Development Online surveys can serve as a testing ground for new products or services. You can gather feedback on potential offerings, pricing strategies, and features to align them with customer preferences and needs.
• Brand Messaging and Communication Effective communication is key to building a strong brand. Surveys can help you assess the impact of your brand messaging and advertising campaigns. Ask questions like “Which of our advertisements do you recall?” or “What messages resonate most with you?” to fine-tune your messaging strategy.
• Tracking Brand Performance Over Time Online surveys are dynamic tools that allow you to track changes in brand perception and customer sentiment over time. By conducting regular surveys, you can identify trends and adapt your brand strategy accordingly.
• Segmentation and Targeting Surveys can help you segment your audience based on demographics, preferences, and behaviors. This enables you to tailor marketing efforts to specific customer segments, making your brand more relevant and appealing.
• Crisis Management In times of crisis or negative publicity, online surveys can be deployed to gauge the impact on your brand’s reputation and customer sentiment. This data can inform crisis management strategies and help in brand recovery efforts.

The various techniques of brand research enable businesses to generate deep insights into their brand’s positioning, performance, and perception. But how do these insights translate into practical applications? This section outlines the numerous ways brand research can be applied to drive strategic decisions, mitigate risks, and promote growth.

Brand Strategy Development

One of the most significant applications of brand research is in the development of a brand strategy. A well-researched strategy provides a roadmap for the brand’s future, outlining how the brand will establish and maintain a unique presence in the market.

Brand research informs strategy development by:

• Identifying the Brand’s Unique Value Proposition (UVP): Brand research can highlight what makes a brand distinctive from its competitors and why customers choose it over others. This UVP becomes a central element of the brand’s identity and messaging.
• Segmenting the Market: By understanding different customer attitudes and behaviors, brand research can help businesses segment their market and identify the most profitable and relevant target audiences.
• Guiding Brand Positioning: Insights from brand research can reveal how a brand should position itself in the market to resonate with its target audience and stand out from competitors.

Product Development and Innovation

Brand research can also significantly contribute to product development and innovation. It provides a deep understanding of what consumers want, need, and expect from a brand’s products or services.

This research aids in:

• Identifying Unmet Needs: Qualitative methods like in-depth interviews and focus groups can reveal unmet needs or pain points that the brand’s current offerings do not address.
• Testing New Concepts: Before launching a new product or service, brand research can test how well the concept aligns with the brand and whether it resonates with the target audience.
• Evaluating Product Performance: Post-launch, brand research can assess how well the product is performing and whether it lives up to customer expectations.

Marketing and Communications

A brand’s marketing and communication strategies play a crucial role in shaping how it is perceived. Brand research helps ensure these strategies effectively convey the brand’s identity and value proposition.

Practical applications of brand research in this domain include:

• Creating Customer Personas: Based on insights about the target audience, brand research can help create detailed customer personas. These personas guide the development of tailored marketing and communication strategies.
• Crafting Brand Messages: Brand research can inform the creation of brand messages that accurately reflect the brand’s values, resonate with the target audience, and differentiate the brand from competitors.
• Choosing Marketing Channels: By understanding where the target audience spends time and how they consume information, brand research can guide the selection of the most effective marketing channels.

Crisis Management and Risk Mitigation

Brand research can play a proactive role in crisis management and risk mitigation by identifying potential threats to the brand’s reputation.

• Identifying Reputation Risks: Regular brand health tracking can flag potential issues that could harm the brand’s reputation if not addressed.
• Informing Crisis Response: If a crisis does occur, brand research can inform the response strategy by revealing how the crisis has impacted brand perception and what the brand can do to rebuild trust.

Brand Evolution and Growth

Finally, brand research supports a brand’s evolution and growth by informing strategic decisions and tracking progress over time.

• Planning Brand Evolution: Brand research can identify when it’s time for a brand to evolve – perhaps the market has changed, or the brand’s image no longer resonates with consumers.
• Tracking Brand Equity: Over time, brand research can track changes in brand equity – the value derived from consumer perception of the brand. This provides an ongoing measure of the brand’s strength and the effectiveness of its strategies.

From strategy development to risk mitigation, the applications of brand research are vast. As we explore real-life examples in the following section, the profound impact of brand research on a brand’s success will become even clearer. Through these examples, we will see how brands have harnessed the power of brand research to navigate their journey in the competitive business landscape.

These real-world examples of brand research showcase the vital role it plays in guiding strategic decision-making, informing branding initiatives, and driving business growth. Each case study reveals how a specific brand leveraged brand research techniques to enhance its position, address consumer needs, and measure its performance.

Case Study 1: Revamping Coca-Cola’s Brand Strategy

Coca-Cola, the world’s leading beverage company, provides an excellent example of how brand research can inform a successful brand strategy revamp.

In the mid-1980s, Coca-Cola noticed a decline in market share and attributed this to the taste of their product. They conducted a series of blind taste tests called the “Pepsi Challenge,” which revealed that consumers preferred the taste of Pepsi over Coca-Cola. Consequently, they decided to change their 99-year-old recipe and introduced “New Coke”.

However, this move resulted in a public outcry. Loyal customers were disgruntled about the change, leading to a significant PR crisis. The company realized their mistake: they had focused on the functional aspect (taste) and overlooked the emotional attachment customers had to the original Coca-Cola.

Coca-Cola quickly conducted brand research to understand consumer sentiment. The research revealed that consumers viewed Coca-Cola not just as a beverage, but as a part of their identity and tradition. Responding to these insights, the company reintroduced the original formula as “Coca-Cola Classic,” an action that was warmly welcomed by its customers.

This incident prompted Coca-Cola to reshape its brand strategy, focusing on the emotional connection and the sense of nostalgia associated with their brand, rather than just the product’s taste.

Key Takeaway: Coca-Cola’s experience underscores the importance of qualitative brand research in understanding the emotional connection consumers have with a brand – a factor that can significantly influence brand strategy.

Case Study 2: Airbnb’s Rebranding Journey

Airbnb, a popular online marketplace for lodging and tourism experiences, leveraged brand research for a comprehensive rebranding initiative.

In 2014, Airbnb decided to revamp its brand identity to reflect its evolving services and mission. The company embarked on a brand research project that involved interviewing employees, hosts, and guests to understand their experiences and perceptions.

The research showed that Airbnb was not just a platform to book accommodations but a way for people to “belong anywhere” by having unique, localized experiences. This insight became the basis for Airbnb’s rebranding strategy. They introduced a new logo, known as the “Bélo,” symbolizing belonging, and revamped their website and app to emphasize personal, local travel experiences over mere accommodations.

Despite some initial controversy over the new logo design, the rebranding was largely successful in repositioning Airbnb as a promoter of local and personal travel experiences.

Key Takeaway: Airbnb’s rebranding case demonstrates how brand research can provide critical insights for a successful rebranding strategy, helping the brand to resonate better with its target audience’s values and expectations.

Case Study 3: LEGO’s Product Innovation

LEGO, the renowned toy manufacturing company, offers a compelling example of how brand research can drive product innovation.

In the early 2000s, LEGO was facing a financial crisis . They had diversified into various product lines and themes, but many of these new ventures were unsuccessful. Realizing they had strayed from their core audience – children who enjoyed the creative play offered by traditional LEGO bricks – the company turned to brand research.

LEGO conducted extensive qualitative research, observing how children across different cultures played with toys. They found that children gain a sense of pride and achievement from the creative process of building something complex.

These insights led to a significant shift in LEGO’s product strategy. The company returned its focus to the classic brick sets and introduced new products that encouraged creativity and complex building, like the LEGO Technic and Architecture series.

This shift proved to be a massive success, helping LEGO recover from its financial woes and regain its position as one of the world’s leading toy manufacturers.

Key Takeaway: LEGO’s turnaround story illustrates the value of brand research in identifying consumer needs and informing product development – a move that can lead to substantial business growth.

Brand research stands as an essential pillar in a brand’s journey from conception to success, guiding its path through an often complex and unpredictable marketplace. As we’ve explored throughout this article, brand research is more than just a collection of data. It is a strategic process that allows brands to gain a deep understanding of their market environment, target audience, and their unique positioning.

The real-world case studies of Coca-Cola, Airbnb, and LEGO have shown us that brand research’s value extends beyond theoretical concepts. These are brands that have utilized research to make crucial decisions, shape their strategies, and ensure their relevance and success in a rapidly evolving marketplace.

As we look to the future, we see a landscape of opportunities defined by technology and a heightened focus on customer-centricity. Brand research, in its evolving form, is set to harness these advancements, offering brands an even deeper level of understanding about their customers and the market dynamics.

In a world where competition is fierce and consumer preferences shift rapidly, effective brand research can provide the insights necessary for a brand to distinguish itself, resonate with its audience, and thrive. The road to brand success can be challenging, but with brand research as a guide, it becomes a journey of informed decision-making, impactful strategies, and sustained growth.

What is brand research?

Brand research is a process that involves collecting and analyzing data about a brand's market, competition, target audience, and overall performance. It helps in understanding the strengths, weaknesses, opportunities, and threats for a brand and guides strategic decision-making.

Why is brand research important?

Brand research is crucial for making informed decisions about brand positioning, product development, marketing strategies, and customer engagement. It helps brands understand their target audience's needs, perceptions, and behaviors, thereby allowing them to deliver products and services that meet those needs and resonate with their audience.

What are some common methods used in brand research?

Common methods used in brand research include surveys, focus groups, interviews, observational studies, social listening, and competitor analysis. The choice of method depends on the research objectives and the resources available.

How is technology changing brand research?

Technology is introducing new ways to conduct and analyze brand research. Artificial intelligence and machine learning can analyze large volumes of data, including unstructured data from social media. Predictive analytics can forecast future consumer behavior, and virtual and augmented reality can provide immersive environments for product testing and brand experience research.

What is the future of brand research?

The future of brand research lies in leveraging emerging technologies and focusing more on customer-centricity. Brands will likely use more sophisticated data analysis techniques, utilize AI and predictive analytics, and place a greater emphasis on understanding the individual customer journey. Furthermore, new research techniques, such as neuromarketing and ethnographic research, are expected to gain more popularity.

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Brand Measurement Essentials: How to Monitor, Analyze, and Grow Your Brand

In this complete guide to brand measurement, we'll explore various techniques and tools for assessing the performance and value of your brand. From initial brand research to brand equity analyses, this article covers everything you need to know to navigate the world of brand measurement effectively.

What is brand measurement and why is it important?

Brand measurement is a crucial aspect of modern marketing, as it helps businesses make data-driven decisions to optimize their brand strategies. A strong brand is essential for companies to differentiate themselves, build trust, and foster customer loyalty for long-term success. The primary types of brand measurement include brand tracking , brand lift , brand equity , and brand research . By implementing brand measurement initiatives, businesses can gain insights into their brand performance, identify opportunities for growth, and ultimately strengthen their brand's position in the market.

Now let’s dive into the intricacies of brand measurement and gain valuable insights to help drive your brand strategy in this 10-part guide:

The Comprehensive Guide to Brand Measurement:

• An Introduction to Brand Measurement
• The Importance of Brand Measurement
• Aligning Brand Measurement with Overall Business Goals
• Best Practices for Implementing Brand Measurement Initiatives
• Different Types of Brand Measurement
• Estimating Budgets and Costs for Brand Measurement
• Optimizing Your Marketing Efforts with Brand Measurement Insights
• Case Study: Extra's Approach to Brand Measurement
• Adapting Brand Measurement Strategies to Market Changes
• Brand Measurement in Conclusion

1. An Introduction to Brand Measurement

In today's highly competitive and rapidly evolving business landscape, a strong and distinctive brand has become more important than ever. McKinsey estimates that brands within a consumer’s initial consideration set are three times more likely to be purchased than other brands. Google’s own data points to brand signals as the most important factors that influence purchase decisions .

Companies need to differentiate themselves from the competition, build trust with their target audience, and foster customer loyalty to ensure long-term success. As a result, many businesses of all sizes are now investing in brand measurement—a powerful tool that helps them make objective, data-driven decisions around their brand strategy and ultimately grow their brand.

This comprehensive guide will delve into the critical role of brand measurement in driving business success. We will explore the importance of brand measurement and discuss its various types, including brand tracking, brand lift, brand equity, and brand research.

Additionally, we will cover best practices for implementing brand measurement initiatives, and provide a case study of a rapidly-growing startup’s approach to brand measurement. By the end of this guide, you will have a deep understanding of the role brand measurement plays in today's business landscape and how to use it effectively to strengthen your brand and achieve your objectives.

Before we continue, consider using our free Chat GPT-powered business case generator to build a strong argument for a brand measurement program within your own organization.

2. The Importance of Brand Measurement

A powerful brand is vital for companies looking to establish a competitive advantage, build trust with consumers, and foster customer loyalty. Brand measurement allows businesses to make objective decisions based on data, helping them to better understand their brand's performance and uncover areas for improvement. By doing so, companies can optimize their brand strategy and achieve greater success.

Brand measurement offers several key benefits for businesses:

• Align brand strategy with business objectives : By measuring various aspects of your brand, you can identify areas that align with your overall goals and work towards achieving them. This ensures your brand strategy is always in line with your business objectives and helps drive growth.
• Identify opportunities for improvement and growth : Brand measurement helps uncover potential weaknesses in your brand strategy, allowing you to address these issues and create a stronger, more successful brand. It also reveals opportunities for growth, enabling you to capitalize on them and expand your business.
• Measure the effectiveness of brand marketing initiatives : By monitoring the impact of your brand marketing efforts, you can determine which initiatives are driving results and optimize your campaigns accordingly. This helps you allocate resources more effectively and maximize the return on your marketing investments.
• Gain insights into consumer perceptions and behavior : Understanding how consumers perceive your brand and what drives their behavior allows you to tailor your messaging and marketing strategies more effectively. This leads to better engagement and a stronger connection with your target audience.
• Stay ahead of the competition : Regular brand measurement enables you to keep a finger on the pulse of your industry, ensuring you remain ahead of competitors. By staying informed about market trends and consumer preferences, you can adapt your brand strategy and maintain a competitive edge.

3. Aligning Brand Measurement with Overall Business Goals

Ensuring that your brand measurement initiatives align with your overall business strategy and objectives is crucial for maximizing their effectiveness and driving long-term growth. Here are the steps you can take to align your brand measurement efforts with your business goals:

• Identify your key business objectives : Start by outlining your company's overarching business objectives, such as increasing market share, driving revenue growth, or expanding into new markets. Having a clear understanding of your business goals will help you design brand measurement initiatives that support these objectives.
• Define relevant brand metrics : Identify the brand metrics that are most closely aligned with your business objectives. For example, if your goal is to increase market share, you may want to focus on metrics such as brand awareness , consideration, and preference. If your goal is to drive revenue growth, metrics like customer lifetime value, brand loyalty, and purchase intent may be more relevant.
• Set clear and measurable goals : Establish clear, measurable goals for your brand measurement initiatives that are tied to your business objectives. For example, you might set a goal to increase brand awareness by a specific percentage within a certain timeframe or improve brand loyalty by reducing customer churn.
• Align research methodologies with objectives : Choose research methodologies and data sources that best support your business objectives and the brand metrics you've identified. For example, if your goal is to better understand whether your overall awareness is increasing overtime, quantitative research methods like brand tracking surveys or brand lift experiments might be more appropriate than qualitative studies.
• Implement insights into business strategy : Use the insights gained from your brand measurement efforts to inform and refine your overall business strategy. This may involve adjusting your product or service offerings, marketing strategies, or target audience segments based on the insights you've gained.
• Monitor progress and adjust as needed : Regularly track the impact of your brand measurement initiatives on your business objectives and make adjustments as needed. This may involve refining your research methodologies, reallocating resources, or reevaluating your goals based on the insights you've gained.
• Communicate results to stakeholders : Keep stakeholders informed about the progress of your brand measurement efforts and their impact on your overall business objectives. This can help build buy-in and support for your initiatives, as well as demonstrate the value of brand measurement in driving business growth.

By aligning your brand measurement initiatives with your overall business goals and objectives, you can ensure that your efforts support and complement your broader business strategy. This alignment can help you make more informed decisions, optimize your marketing and branding efforts, and ultimately drive long-term growth for your company.

4. Best Practices for Implementing Brand Measurement Initiatives

In addition to the steps above, there are also a handful of best practices to consider when implementing a brand measurement strategy:

• Involve stakeholders in the process : Ensure that key stakeholders, such as senior management, marketing teams, and product teams, are involved in the brand measurement process. This will foster a collaborative approach to decision-making and help ensure that insights are effectively integrated into your brand strategy.
• Leverage advanced tools and platforms : Utilize advanced analytics tools and platforms to streamline the data collection and analysis process. These tools can help you derive valuable insights more efficiently and make more informed decisions to strengthen your brand.
• Be prepared to adapt your strategy : Brand measurement insights may reveal the need for changes in your brand strategy. Be prepared to adapt and evolve your strategy based on the insights you gain, and continually monitor and measure the impact of these changes.

• Set clear objectives : Before embarking on any brand measurement initiative, it's essential to establish clear objectives. Determine the specific goals you want to achieve, whether it's understanding consumer perceptions, identifying areas for improvement, or evaluating the effectiveness of marketing campaigns.
• Choose the right methodologies : Select the most appropriate brand measurement methodologies that align with your objectives. This may involve using a mix of quantitative and qualitative research methods to gain a comprehensive understanding of your brand's performance.
• Regularly track and analyze data : For brand measurement initiatives to be effective, it's crucial to regularly monitor and analyze your data. This will help you identify trends, uncover areas for improvement, and stay informed about market dynamics.

5. Different Types of Brand Measurement

There are four main types of brand measurement methodologies: brand research, brand tracking, brand lift and brand equity. It's essential to understand what each type entails and how they differ from one another. This will help you determine which methods are most relevant to your business and how you can leverage them to strengthen your brand.

Brand Research

Definition and purpose : Brand research encompasses a wide range of methodologies designed to gain insights into consumer preferences, market trends, and competitor activities, ultimately helping businesses refine their brand strategy. It’s the broadest category of brand measurement.

Gaining insights into consumer preferences and market trends : Brand research can reveal valuable information about your target audience's needs, preferences, and perceptions, as well as the competitive landscape in your industry.

Key methodologies and tools : Brand research can be conducted using methods such as surveys, focus groups, interviews, and market analysis.

How it helps businesses refine their brand strategy : By understanding the factors that influence consumer decisions and staying informed about industry trends, businesses can make more informed decisions about their branding efforts and create a more compelling brand strategy. Brand research is often highly customized to answer specific questions or solve known problems.

Brand Tracking

Definition and purpose : Brand tracking involves monitoring your brand's performance over time, focusing on metrics such as awareness, consideration, and sentiment. By tracking these key indicators, you can gain insights into your brand's health, monitor the progress of competitors and make informed decisions to improve its performance.

Key metrics and indicators : Some of the critical metrics measured through brand tracking include brand awareness (both aided and unaided), brand consideration, brand preference, and brand promoters score (bNPS). These metrics help paint a comprehensive picture of your brand's performance in the market and offer insights into areas that require improvement.

Methodologies and tools : Brand tracking typically relies on quantitative research methods, such as surveys, to collect data from your target audience. This data is then analyzed to determine trends and patterns in brand performance. Advanced tools and platforms can be used to streamline the data collection and analysis process, providing you with valuable insights more efficiently.

How it helps businesses make data-driven decisions : By regularly monitoring your brand's key performance indicators (KPIs) and identifying trends, you can make data-driven decisions to optimize your brand strategy. This enables you to address weaknesses and capitalize on strengths, ultimately driving business growth.

Definition and purpose : Brand lift refers to the increase in consumer awareness, perception, or intent to purchase a product or service as a result of a specific marketing campaign. Brand lift studies are conducted to measure the effectiveness of these campaigns and help businesses optimize their marketing efforts.

Key metrics and indicators : Some crucial brand lift metrics include ad recall, brand awareness, brand consideration, purchase intent, and consumer sentiment. These metrics help businesses assess the impact of their marketing campaigns on their target audience.

Methodologies and tools : Brand lift studies typically involve a combination of pre- and post-campaign surveys or experiments to evaluate the change in consumer perceptions and behavior. Advanced analytics tools can be used to process and analyze the data, providing insights into the effectiveness of marketing initiatives.

How it helps businesses optimize marketing efforts : By measuring the impact of marketing campaigns on brand lift, businesses can identify which initiatives drive the most significant results and allocate resources more effectively. This helps maximize the return on investment (ROI) and optimize marketing efforts for better outcomes.

Brand Equity

Definition and purpose : Brand equity refers to the value that a strong brand adds to a company's products or services, as perceived by consumers. It is a crucial component of a brand's overall value and plays a significant role in driving consumer preferences and loyalty.

Key components and indicators : Brand equity consists of comparing components from brand lift or brand tracking studies, including brand awareness, brand associations, brand sentiment, and brand loyalty to key company metrics like revenue, market share and lifetime value per customer to understand the relation between brand and business value.

Methodologies and tools : Brand equity can be measured using advanced quantitative research methods, such as regression, clustering, and machine-learned predictive models. These tools can be employed to analyze the data and derive insights into the brand's overall value.

How it helps businesses enhance their brand strategy : By understanding the components of their brand equity and identifying areas of strength and weakness, businesses can make more informed decisions to enhance their brand strategy. This helps drive long-term growth and foster customer loyalty.

Next, let’s cover how to estimate the costs for a brand measurement program.

6. Estimating Budgets and Costs for Brand Measurement

Allocating an appropriate budget for your brand measurement initiatives is essential to ensure you can effectively collect, analyze, and act on the insights you gain. Here are some key factors to consider when estimating budgets and costs for brand measurement:

• Research methodology : The costs associated with various research methodologies can vary significantly. For example, conducting a large-scale survey may be more expensive than analyzing existing data from your marketing platforms. Consider the most suitable methodologies for your brand measurement needs and factor in the costs of conducting research, data collection, and data processing.
• Sample size and audience : The size of your target audience and the desired level of accuracy in your findings will influence the cost of your brand measurement efforts. Larger sample sizes generally result in more reliable insights but may require a higher budget to collect and analyze data.
• Frequency of measurement : Depending on your goals and objectives, you may need to conduct brand measurement initiatives at different frequencies. Frequent measurement efforts, such as ongoing brand tracking studies, will require a larger budget compared to one-time or ad-hoc studies.
• Use of external vendors : Engaging external research vendors or consultants to support your brand measurement initiatives may increase your costs. However, these experts can provide valuable insights and expertise that can help you optimize your efforts and maximize your return on investment.
• Technology and tools : Investing in the right technology and tools to support your brand measurement efforts, such as data analytics platforms and survey tools, can be a significant cost factor. Consider the potential return on investment when choosing which tools and technologies to invest in.
• Internal resources : Account for the time and resources your internal team will need to dedicate to your brand measurement initiatives. This may include time spent on planning, data collection, analysis, and implementing insights into your brand strategy.

It’s common for companies to spend between 5-10% of their brand budgets on measurement. To estimate your brand measurement costs, begin by outlining your objectives, desired research methodologies, and target audience. Assess the costs associated with each aspect of your brand measurement plan, including research, technology, tools, and internal resources.

At this point, you’ll likely have to make trade-offs between sample sizes, screening levels, number of studies, etc. to end up with a program that meets your objectives while staying cost-effective.

By carefully estimating budgets and costs for brand measurement, you can allocate resources effectively, optimize your efforts, and maximize the value of the insights you gain, driving long-term growth for your business.

Next, let's dive into the best practices for implementing brand measurement initiatives and how to leverage these insights to strengthen your brand.

7. Optimizing Your Marketing Efforts with Brand Measurement Insights

Once you've gained valuable insights from your brand measurement initiatives, it's essential to use this information to optimize your marketing efforts. Here are some practical ways to leverage brand measurement insights for more effective marketing:

• Refine your target audience : Brand measurement can provide insights into the demographics, behaviors, and preferences of your most engaged customers. Use this information to refine your target audience and create marketing campaigns that resonate with them.
• Improve your brand messaging : Identify areas where your brand messaging may be unclear or inconsistent, and use your brand measurement insights to make improvements. Ensure that your messaging aligns with your target audience's values and communicates your unique selling points effectively.
• Optimize your marketing channels : Analyze the performance of your marketing channels using brand measurement data to determine which channels are driving the most brand awareness, engagement, and conversions. Allocate your marketing budget more effectively by focusing on high-performing channels and optimizing those that need improvement.

• Enhance your creative assets : Use your brand measurement insights to identify which creative assets are resonating with your target audience and driving the desired results. Refine your visual identity, ad creatives, and content to better align with your audience's preferences and improve engagement.
• Test and iterate : Continuously test new marketing strategies, tactics, and creative assets based on your brand measurement insights. Use A/B testing and other experimentation methods to determine which approaches yield the best results, and iterate on your marketing efforts accordingly.
• Monitor campaign performance : Leverage your brand measurement data to track the performance of your marketing campaigns over time. Evaluate the impact of your campaigns on key brand metrics such as awareness, consideration, and loyalty, and use this information to refine your marketing strategy.

We’re getting close to the end of our guide to brand measurement. Next, we’ll explore how one fast-moving brand has leveraged brand measurement to accelerate its already rapid growth.

8. Case Study: Extra’s Approach to Brand Measurement

Extra , the first debit card that builds credit and earns rewards, understood the importance of leading with a strong brand to help disrupt the extremely competitive consumer financial product landscape.

To achieve this, they created a comprehensive brand measurement program in partnership with Brandata, utilizing a mix of brand research, brand tracking, brand lift, and brand equity methodologies.

Brand Research Project

Situation : Extra is focused on building credit for cardholders and helping them achieve their credit-related goals. With that in mind, they turned to brand experience research to better understand the credit goals of their cardholders, where the Extra debit card served them best and how to improve their product to make cardholders even happier.

Approach : Brandata designed and facilitated a brand experience survey using the industry-leading Qualtrics customer experience platform that explored cardholder goals, beliefs, behaviors and perceptions about the Extra brand and its role in their lives.

Results : The cardholder brand experience study revealed core insights around how cardholders thought about and used credit in their lives. The project helped solidify key decisions around pricing, product features and ideas for churn reduction.

Brand Tracking Project

Situation : Like most high-growth companies, customer acquisition costs, churn, and lifetime customer value are among the key performance indicators for Extra’s success. Their leadership team believed that a strong brand would pave the way for stronger outcomes in these focus areas, so they also launched a brand tracker to round out their key marketing metrics.

Approach : Brandata created and deployed a brand tracking study using Pollfish , a next-generation panel + survey provider well suited for many types of quantitative research. The team transformed the results in Google BigQuery , then surfaced the insights through a Google Slides presentation and a multi-page filterable Google Looker Studio dashboard.

Results : The comprehensive brand tracker provided insights across 15+ consumer data points and 20+ questions about consumer finance, Extra’s brand and its competitors, which were then leveraged across the organization to achieve customer success goals, hit marketing growth targets, as well as create further focus for the product roadmap.

Brand Lift Project

Situation : Extra’s innovative debit card doesn’t charge any fees and there’s never any interest charges because it works with their customers’ existing checking accounts. Instead, a subscription fee is used as the main revenue model for the startup. Their objective was to identify the ideal monthly and yearly subscription fee for Extra’s debit card.

Approach : Brandata designed and facilitated a pricing study with a Van Westendorp Price Sensitivity Meter approach using the Pollfish survey platform. In the study, respondents selected different price points at which Extra would be deemed inexpensive, expensive and optimal. The test was conducted with a control group and two test groups.

Results : After running the pricing lift study, Brandata recommended an optimal price range for Extra at their monthly and annual subscription levels for each plan type to help them serve more customers, increase their total addressable market and maximize their market share in the newly-created financial product category of debit cards that build credit.

Brand Equity Project

Situation : Extra’s rapid brand growth has allowed the brand to help thousands of consumers improve their credit scores and achieve more financial goals. In order to understand the degree to which their product helped their customers and to see if there were any drawbacks to using Extra, the company partnered with Experian and Brandata on a brand equity analysis.

Approach : Consumer data company, Experian , provided a dataset of ~10k consumers, half of which were Extra cardholders. Brandata then employed cloud-based machine learning tools and comparative analysis techniques to better understand how to further impact the credit situation and positive credit outcomes of Extra cardholders

Results : Extra’s cardholders were more likely to grow their credit, make new credit-based purchases, and demonstrate positive credit outcomes than average consumers. These insights were used to develop marketing claims, inform customer success strategies and create capabilities for AI-powered credit coaching functionality on the product roadmap.

Armed with these insights, Extra was able to make data-driven decisions to refine their brand strategy. They focused on enhancing their brand messaging, improving their product offerings, and optimizing their marketing efforts to better resonate with their target audience.

As a result, they experienced significant improvements in brand awareness, consideration, and sentiment, ultimately driving long-term growth for their business.

9. Adapting Brand Measurement Strategies to Market Changes

Getting a brand measurement program up and running is just step one. As you continue to leverage brand measurement insights to optimize your brand strategy, it's crucial to remain adaptable and responsive to market changes. Here are some key considerations to help you stay ahead of the curve:

• Monitor industry trends : Keep a close eye on emerging trends and shifts in your industry. This will help you stay informed about potential threats and opportunities, allowing you to make proactive adjustments to your brand strategy.
• Listen to your customers : Pay attention to customer feedback and sentiment. By understanding their changing needs and preferences, you can adapt your brand strategy to better meet their expectations and create a stronger connection with your target audience.
• Keep an eye on competitors : Regularly evaluate your competitors' branding and marketing initiatives to identify areas where your brand can differentiate itself and seize new opportunities.
• Stay agile and flexible : Be prepared to adjust your brand strategy as needed based on the insights you gain from brand measurement initiatives. Embrace change and be open to exploring new approaches and tactics to keep your brand relevant and engaging.
• Continuously innovate : Stay ahead of the curve by continuously innovating your products, services, and brand experiences. This will not only help maintain your competitive edge but also foster customer loyalty and attract new audiences.

10. Brand Measurement in Conclusion

In conclusion, brand measurement plays a critical role in today's business landscape, enabling companies to make data-driven decisions to strengthen their brand and achieve their objectives. By understanding the various types of brand measurement methodologies and implementing best practices, businesses can optimize their brand strategy, enhance customer loyalty, and drive growth.

If you’re building the case for brand measurement at your organization and would like some feedback, or if you’re looking for an experienced partner to facilitate a brand measurement program, don’t hesitate to reach out to our team of experienced brand measurement professionals for a consultation . We’re always excited to meet and serve the people behind today’s fastest growing brands and are looking forward to hearing from you.

(Editor's note: this article was created and edited by the author using ChatGPT-4).

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Demand Gen: Growth Unleashed.

Brand Research: Definition, Types, Benefits, & Approaches

Ron Sela / Last updated: February 8, 2024

Brand research  serves as a compass in the complex landscape of brand management. It empowers businesses to understand consumer perceptions, attitudes, and preferences toward their brand.

Knowing the minds of consumers helps brands decode the emotional and cognitive factors that drive purchasing decisions.

It enables businesses to pinpoint areas of strength that can be amplified in  marketing management  efforts and areas of improvement that require attention.

Brand research employs different methods and approaches that allow companies to gather actionable insights that inform strategic branding decisions.

It provides a clear picture of how a brand is perceived relative to competitors, identifies potential gaps between brand image and consumer expectations, and guides the development of messaging and campaigns that resonate with the target audience.

This post seeks to offer guidance through brand research, explaining its definition, types, and benefits. You’ll learn the components of effective brand market research and the best methods and approaches.

By the end, you’ll be ready to conduct your brand research, armed with the knowledge to make informed decisions.

Let’s kick-start your brand’s success together.

Table of Contents

Key Takeaways

• Brand research is a systematic process to understand consumer perceptions and public opinion, which is essential for refining brand strategies and forging deeper connections with the audience. It leverages various methods to provide actionable insights for informed decision-making.
• By identifying strengths and areas for improvement, brand research guides businesses in enhancing their market positioning and developing resonant messaging and campaigns, ensuring the brand aligns with consumer expectations and stands out in competitive landscapes.
• The effectiveness of brand research lies in its comprehensive approach, incorporating diverse research techniques and thorough analysis to offer a nuanced understanding of the brand’s impact on consumer behavior, aiding in the development of tailored, impactful brand strategies.

What is Brand Research?

Brand research  refers to a systematic examination of the perceptions, emotions, and attitudes held by consumers toward a specific brand to refine strategies, cultivate authenticity, and forge deeper connections.

It unravels the brand’s identity, values, and resonance to inform strategic decisions that enhance its  strategic market positioning , communication strategies, and overall impact on consumer behavior.

Brand research is a vital tool that helps you understand your brand’s current standing and future potential.

Ahead, we study the various types of brand research. You will learn about the diverse research techniques that can help you gauge brand recall, measure brand equity, or assess brand perceptions.

Equipped with this knowledge, you can select the right type of research that aligns with your specific objectives and needs.

Types of Brand Research

Brand research can be categorized into different types, each serving a unique purpose and providing distinct insights into your brand’s performance and perception in the market.

Understanding these types and their applications can help you decide which research best suits your business context.

Here are some common types of brand research:

• Brand Awareness Research : This research measures how consumers recognize and recall a brand. It helps understand how well a brand is known within its target audience.
• Brand Perception Research : This research aims to uncover how consumers perceive a brand. It involves studying people’s associations, feelings, and attitudes toward a brand.
• Brand Equity Research : Brand equity refers to the value a brand adds to products and services. This research assesses the financial value and intangible benefits a brand brings to a company. It often involves measuring factors like brand loyalty, perceived quality, brand associations, and brand recognition.
• Brand Loyalty Research : This research examines the level of  customer loyalty  and repeat business a brand enjoys. It helps understand how likely customers will stick with a brand over time.
• Brand Identity Research : This research explores the visual and verbal elements of a brand’s identity, such as logos, slogans, colors, and messaging. It assesses how well these elements  communicate the brand’s  values and personality.
• Brand Positioning Research : This type of research helps determine how a brand is positioned in the minds of consumers relative to its competitors. It aims to identify a unique and compelling position that differentiates the brand.

Each type of brand research serves a specific purpose and provides insights that can guide brand strategy, marketing efforts, and overall business decisions. The choice of research type depends on the specific objectives and questions you want to address about your brand.

Key Components of Effective Brand Research

Brand market research has components that make it effective and reliable.

What exactly are these components? What factors should be reflected in your research methodology? How does each component contribute to a comprehensive understanding of your brand’s standing in the market?

• Audience Analysis:  Understand your target audience’s demographics, psychographics, behaviors, needs, and pain points. This forms the  foundation for tailoring your brand  to meet their preferences effectively.
• Competitive Landscape :  Analyze your competitors to identify their strengths, weaknesses, unique selling points, and market positioning. A competitive analysis helps you differentiate your brand and capitalize on gaps in the market.
• Market Trends:  Stay updated on industry trends, consumer preferences, and emerging technologies. This knowledge guides your brand’s evolution to remain relevant and forward-thinking.
• Brand Perception:  Assess how your brand is perceived by customers, stakeholders, and the public. Identify strengths and areas for improvement to align your brand’s identity with its intended perception.
• Customer Journeys:  Map out the customer journey stages, from awareness to loyalty. This helps identify opportunities to engage customers effectively at each touchpoint.
• Measurement Metrics:  Define key performance indicators (KPIs) to measure the success of your brand efforts. These could include brand awareness, customer engagement, conversion rates, and loyalty.
• Brand Value:  Assess your brand’s perceived value and reputation among customers and stakeholders. Brand value measures the overall impact of your brand on customer decisions.
• Long-Term Strategy:  Develop a comprehensive brand strategy integrating research findings, goals, tactics, and a roadmap for consistent  brand development .

Effective brand research goes beyond surface-level insights, diving deep into understanding your audience and marketplace. It provides the knowledge needed to create a brand identity that resonates, messaging that connects, and strategies that position your brand for success.

Methods and Approaches

Now that we’ve explored the types of brand research and the key components that make it effective, let’s get into the methods and approaches used in conducting this research.

These methods are as diverse as the brands they study and range from traditional techniques like surveys and interviews to modern methods leveraging technology and artificial intelligence.

Each method offers unique benefits and is chosen based on the research objectives.

Surveys and Questionnaires

Surveys and questionnaires are quantitative research tools you can’t overlook when conducting effective brand research. They’re simple, cost-effective, and offer a wealth of information about your target audience that you might not otherwise discover.

They allow you to ask  consumers what they think about your brand directly . You’re no longer guessing or making assumptions. You’re hearing it straight from the horse’s mouth. That’s invaluable data right there.

Designing an effective online survey requires careful thought and planning.

First off, get clear on what you want to learn from respondents. Then, craft questions that are straightforward and easy for them to understand. Avoid leading questions that may skew results.

Survey completion rates are often less than the response rates and can be influenced by the length of the survey. According to SurveyMonkey , the average completion rate drops by 5-20% if a survey has more than 8 questions or takes longer than 5 minutes to complete.

When it’s time to analyze the data, don’t rush through it. Take your time to ensure accuracy and glean insights that can help shape your brand research strategy moving forward.

Focus Groups and Interviews

Focus groups and interviews can provide in-depth insights into customer perceptions and preferences.

Unlike surveys, these qualitative research methods allow for a more interactive and dynamic discussion. They let you study the consumer’s mind, understanding what they like or dislike and why.

In a  focus group , you gather a small group of people who fit your target demographic. You’d have them discuss your product or service under the guidance of a moderator.

It’s like eavesdropping on a conversation about your brand. It doesn’t get more real than that! The dynamics of group interactions often spark valuable insights that individual responses may miss.

On the other hand,  interviews  are  one-to-one  sessions where you probe further into individual thoughts and experiences. This format allows deep insights into personal feelings and opinions regarding your brand.

Though time-consuming, it’s worth it as you better understand their emotional and rational responses.

Remember, while focus groups and interviews give rich qualitative data, they aren’t statistically representative of your entire market.

Use them alongside quantifiable brand research methods to create a holistic picture of your audience’s views. That way, you’re covering all bases effectively in your brand research.

Observational Research

Observational research is a valuable approach to brand research, particularly when understanding consumer behavior and interactions in real-world settings.

This research method involves observing individuals or groups in their natural environments, allowing researchers to gain firsthand insights into how consumers engage with brands, products, and services.

By observing without direct interaction or intervention, observational research provides an unbiased view of consumer behavior, capturing genuine reactions and behaviors that may not be fully expressed through other research methods.

One specific type of observational research that holds great potential for understanding real-world interactions is  ethnographic studies .

Ethnography involves immersing researchers in the target audience’s environment and culture, enabling them to observe and understand the contextual factors influencing consumer behavior.

Ethnographic studies often involve spending extended periods with participants, allowing researchers to observe daily routines, rituals, and social dynamics that shape individuals’ perceptions and interactions with brands.

This qualitative approach helps uncover deep insights about consumer motivations, needs, and preferences, which are valuable for informing brand strategies and developing more meaningful and impactful brand experiences.

Online Analytics and Social Listening

Online analytics and social listening are increasingly becoming the go-to tools for understanding customer behavior and perception of products or services.

You can use these tools to track user activity on your website and monitor conversations about your brand on social media platforms, blogs, forums, and other online spaces.

Imagine this: you’ve just launched a new product. Using online analytics, you can see how many people visit your product page, how long they stay there, what actions they take, and where they visit.

This data gives you a clear picture of who’s interested in your product and why.

Then there’s social listening. What are your customers saying about you? Are they praising your new product? Or do they have complaints?

This feedback is invaluable because it helps you better understand your customers’ needs so that you can improve or adjust marketing initiatives as needed.

There’s no one-size-fits-all in brand research. You’ll benefit from using a mix of these research methods. They’ll complement each other and provide a more holistic view of your brand’s standing in the market.

Steps in Conducting Brand Research

The journey towards effective brand research is a meticulous process. What steps should one follow?

Here’s a guide to the key steps in conducting brand research:

Define Research Objectives

Before diving into brand research, you must clearly define your research objectives.

This crucial step builds the  pillars of your brand’s  success. It’s all about understanding what you want to achieve, such as improving your marketing strategy or better reaching your target audience.

This focus keeps you on track throughout the research process.

Remember, your objectives guide your brand research. They’ll help you gather the right information and insights. You’ll be able to answer vital questions about your brand and its position in the market.

Defining your research objectives isn’t just a step in the process. It’s the compass that guides your journey to a stronger, more successful brand. So don’t skip this step. It’s your roadmap to meaningful and impactful brand research.

Choose Research Methodology

Choosing the right methodology for your study is essential, as it’ll directly impact the quality and relevance of your findings.

When conducting brand research, it’s crucial to choose a research methodology that strikes a balance between qualitative insights and quantitative insights. This research mix will give you a comprehensive understanding of your brand’s performance.

Qualitative insights provide a deep, nuanced understanding of consumer behavior and emotions. On the other hand, quantitative insights offer hard numbers that can be used to make data-driven decisions.

So, whether diving into customer motivations or measuring brand awareness, ensure you’re leveraging both insights.

Ultimately, your chosen methodology will be instrumental in framing the effectiveness of your brand research.

Develop Research Instruments

Having chosen your research methodology, it’s time to develop your research instruments. This is an essential step when you conduct brand research. Think of it as your toolkit for digging into the heart of your brand strategy.

You’ll want to use various tools, from focus groups to online surveys. These instruments are designed to help you gather the information necessary for a comprehensive  brand analysis .

Focus groups, for instance, can offer rich qualitative data about consumer perceptions and attitudes. On the other hand, online surveys can provide a broader quantitative perspective on consumer preferences and behaviors.

Sampling Strategy

You’ll need to develop a solid sampling strategy to capture data from a representative group of your target market. Selecting a sample that accurately reflects your relevant market population is crucial when conducting market research.

This is why brand research is essential. It helps you understand your potential customers better.

Your sampling strategy should aim to include diverse perspectives within your target market. Don’t limit your research to just the most vocal or accessible customers.

Consider demographics, consumption habits, and lifestyle choices while identifying your sample. Doing so will gather richer, more robust data, making your brand research more effective and informative.

In short, a well-planned sampling strategy is a cornerstone of successful market research.

Collect Data

Next, it’s time to collect data, which can be done through various methods such as surveys, interviews, or focus groups. Using a mix of these in your brand research is crucial to get a comprehensive view of your market.

Online surveys, for instance, can provide a wealth of quantitative data, giving you insight into consumer behaviors and preferences.

You’ll also want to keep an eye on social media metrics. They’ll give you a real-time pulse of your audience’s sentiment towards your brand.

The data you collect will be the bedrock of your market research, painting a detailed picture of your brand’s current standing.

Analyze Data

Once you’ve gathered all the necessary data, it’s time to probe into it and discover what it’s telling you about your market. Analyzing data is a crucial step in brand research. It’s not just about numbers.

It’s about understanding the story behind those figures.

It’ll give you insights into your brand’s perception, helping you shape your marketing strategies accordingly. You may think you know your audience, but marketing research using all the data you’ve gathered can reveal surprising truths.

It’s an opportunity to see your business from the consumer’s perspective.

Extract Insights and Actionable Recommendations

After analyzing your brand research data, you can step into the next phase: extracting insights and actionable recommendations.

This is where you’ll gain insights that offer deeper business insights. You’ve sifted through the raw data, and now it’s time to uncover the gold nuggets, highlighting relevant information that can guide your future business decisions.

This phase of brand research isn’t just about understanding what the data says but interpreting what it means for your brand. It’s about transforming those numbers and trends into strategic moves.

You’re not just extracting insights. You’re crafting a roadmap for your brand’s future. And the best part? These aren’t just insights. They’re actionable recommendations that can propel your brand forward.

You’ve now clearly understood brand research – its definition, types, benefits, and approaches. Remember, it’s not just about knowing your brand’s position but also understanding your customers and competing brands. Don’t underestimate the power of effective brand research. It’s a secret weapon for staying ahead. So, let’s apply these insights and start your brand research journey today.

What is the difference between brand research and brand analysis?

Brand research is the process of collecting data on a brand’s position, audience perceptions, and competitive environment. A brand analysis examines this data to identify the brand’s strengths, weaknesses, opportunities, and threats, informing strategic decisions.

What is the difference between brand research and market research?

While brand research focuses specifically on a brand’s positioning, perception, and performance, you conduct market research to study the entire market or industry, including customer needs, market trends, and competitive landscapes.

Why is brand research important?

Brand research is important because it provides insights into how a brand is perceived, identifies growth opportunities, helps in understanding competitive landscapes, and informs strategic decisions. It ensures that brand strategies are aligned with consumer expectations and market trends.

How often should brand research be conducted?

The frequency of brand research depends on the brand’s market dynamics, the speed of change in consumer preferences, and the competitive environment. Generally, it’s advisable to conduct some form of brand research at least annually, with more frequent checks for fast-changing markets.

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About Ron Sela

Ron is a marketing advisor to technology-driven businesses. He has 15 years of digital marketing experience and an MBA from the University of Florida. Ron helps companies grow their revenue by developing and executing integrated marketing plans that align with their business goals. He has a proven track record of success in helping companies achieve their growth objectives.

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Article Contents

Introduction, the pleasure and/or pain of brands, brand attachment and loyalty, consumer relevance and distinctiveness in branding, consumer communications about brands, managerial considerations in branding, other future research directions, conclusions.

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Consumer Research Insights on Brands and Branding: A JCR Curation

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Kevin Lane Keller, Consumer Research Insights on Brands and Branding: A JCR Curation, Journal of Consumer Research , Volume 46, Issue 5, February 2020, Pages 995–1001, https://doi.org/10.1093/jcr/ucz058

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Brands are a fact of everyday life and an omnipresent reality for consumers. Understanding how consumers respond to brands—what they think and feel and how they act toward them—is a critical aspect of consumer research. Consumer research in branding is expansive in nature and has investigated a wide range of topics in terms of how different kinds of consumers respond to different types of brands and branding activities in various contexts ( Schmitt 2012 ).

Researchers have explored how consumer responses to brands vary by factors such as knowledge, experience, gender, attitudes, and cultural background. They have studied the effects of brands that vary by product or industry type, personality or other image factors, country of origin, and more. They have explored branding as applied to products or services, people, countries and other geographical locations, and the like. Different forms of marketing activity relating to various aspects of the classic marketing mix (the “4 Ps”: product, price, place, and promotion) have been assessed, and the contexts studied have included a host of situations or settings.

The pleasure and/or pain of brands

Brand attachment and loyalty

Consumer relevance and distinctiveness in branding

Consumer communications about brands

Managerial branding considerations

Despite the relatively short time period involved, these five themes exhibit some of the diversity in subject matter characteristic of branding research. Some of these themes tap into broader interests in consumer research that also can be found in research streams outside of branding. Others capture phenomena wholly unique to the branding area. All themes reflect conceptual rigor and practical relevance. For each theme, we provide some background and highlight the findings of two recent JCR articles, one of which we describe in more detail in the form of its abstract and discussion of its future research implications. We conclude with commentary on other future research directions for brands and branding.

In theory, brands can play many different roles for consumers. In a basic sense, brands can make consumer lives simpler, easier, or more rewarding. Moreover, brands can take on rich meaning and allow consumers to signal to others, or themselves, who they are or who they would like to be and what they value. Yet not all consumers ascribe to the positive qualities of brands, and some consumers actively dislike brands and branding in general. Understanding the basic forces—positive and negative—associated with brands is an enduring consumer research priority.

Recent JCR Research

Reimann, Nuñez, and Castaño (2017) show the remarkable power of brands to insulate consumers from physical pain. Brands allow consumers to cope with pain by offering them a reassuring sense of social connectedness. On the other hand, Brick et al. (2018) show the yin-yang of brands in one of the most important aspects of consumers’ lives: their relationship with close others. They find that brands can also be a source of conflict, as summarized in their abstract below.

Brick et al., “Coke vs. Pepsi: Brand Compatibility, Relationship Power, and Life Satisfaction”   (2018) Individuals often evaluate, purchase, and consume brands in the presence of others, including close others. Yet relatively little is known about the role brand preferences play in relationships. In the present research, the authors explore how the novel concept of brand compatibility, defined as the extent to which individuals have similar brand preferences (e.g., both partners prefer the same brand of soda), influences life satisfaction. The authors propose that when brand compatibility is high, life satisfaction will also be high. Conversely, because low brand compatibility may be a source of conflict for the relationship, the authors propose that it will be associated with reduced life satisfaction. Importantly, the authors predict that the effects of brand compatibility on conflict and life satisfaction will depend upon relationship power. Across multiple studies and methodologies, including experimental designs (studies 2, 3, 5) and dyadic data from real-life couples (studies 1, 4, 6), the authors test and find support for their hypotheses. By exploring how a potentially unique form of compatibility influences life satisfaction, including identifying a key moderator and an underlying mechanism, the current research contributes to the literatures on branding, close relationships, consumer well-being, and relationship power.

Several aspects of this research are noteworthy. One crucial consideration, building on past research and worthy of further study, is how brands are embedded in consumer lives and part of their identities in profound ways. Additionally, this research reinforces one of the most central considerations in branding—compatibility, or “fit”—which manifests in different ways with many different branding phenomena (e.g., brand extensions, leveraged secondary associations from cause marketing or sponsorship). Finally, another valuable insight suggested by this research is the polarization that can occur with brands; that is, the same brand can elicit decidedly different responses from different people. Greater attention to the downside of brands and branding and their more detrimental effects with certain consumers is needed.

Not all brands have the same importance to consumers, and understanding why some brands take on special meaning has much theoretical and managerial importance. In a practical sense, in today’s intensely competitive marketplace, firms are going to greater and greater lengths to try to forge strong bonds with consumers and build mutually beneficial relationships. Understanding consumer-brand relationships has been a fertile research topic for years now as the complexity of those relationships continues to spawn intriguing and productive new research directions.

Khamitov, Wang, and Thomson (2019) offer a comprehensive meta-analysis of factors affecting when and how different types of brand relationships increase loyalty. The authors find that various brand, loyalty, time, and consumer characteristics all can affect brand relationship elasticity. They specifically reinforce the power of the intangible and emotional qualities of brands. Huang, Huang, and Wyer (2018) home in on a very specific consideration—how consumers connect with brands in crowded social settings, as summarized in their abstract.

Huang et al., “The Influence of Social Crowding on Brand Attachment”   (2018) Feeling crowded in a shopping environment can decrease consumers’ evaluations of a product or service and lower customer satisfaction. However, the present research suggests that a crowded environment can sometimes have a positive impact on consumer behavior. Although feeling crowded motivates consumers to avoid interacting with others, it leads them to become more attached to brands as an alternative way of maintaining their basic need for belongingness. The effect does not occur (a) when the crowding environment is composed of familiar people (and, therefore, is not considered aversive); (b) when individuals have an interdependent self-construal (and consequently, high tolerance for crowdedness); (c) when people are accompanied by friends in the crowded environment; (d) when the social function of the brands is made salient; (e) when people have never used the brand before; or (f) when the brand is referred to as a general product rather than a specific brand.

Understanding situational and contextual influences on consumer behavior with respect to brands offers much practical value to marketing managers who must make many different types of decisions based on assumptions about how consumers will behave in particular places or at particular times. Identifying boundary conditions in these and other ways is important to provide a more nuanced depiction of how consumers actually think, feel, and act toward brands under certain circumstances or in specific settings. Finally, more generally, this research underscores the contingent nature of consumer processing of brands and the need to thoroughly investigate moderator variables that can impact the direction and strength of branding effects in meaningful ways.

Distinctiveness is at the core of branding and a key element in virtually any definition of brands. Branding success is all about differentiation and offering consumers unique value. Unique value requires relevance, too; accordingly, another core branding concept is brand relevance and how meaningful a brand is to consumers. Ensuring that brands are relevant and differentiated, however, is a challenging managerial priority in today’s fluid and fast-changing marketplace. Consumers are also seeking relevance and differentiation and consequently demanding personalized, customized brand offerings that suit their individual preferences and distinguish them from others. In part because of these new dynamics, many important consumer research opportunities are emerging in how consumers and brands fit into their respective landscapes.

Torelli et al. (2017) show how consumer feelings of cultural distinctiveness in foreign locations can lead to consumer preferences for more culturally aligned brands, even if those brands may be deficient in other ways. In a desire to connect with home and not feel as distinctive, consumers broaden how they actually think of “home.” By expanding their in-group boundaries in that way, they exhibit preferences to include culturally related brands that are merely similar in geographic proximity or sociohistorical or cultural roots. Puzakova and Aggarwal (2018) show how a consumer desire for distinctiveness can actually result in less preference for an anthropomorphized brand, as summarized in their abstract.

Puzakova and Aggarwal, “Brands as Rivals: Consumer Pursuit of Distinctiveness and the Role of Brand Anthropomorphism”   (2018) Although past research has shown that anthropomorphism enhances consumers’ attraction to a brand when social-connectedness or effectance motives are active, the current research demonstrates that anthropomorphizing a brand becomes a detrimental marketing strategy when consumers’ distinctiveness motives are salient. Four studies show that anthropomorphizing a brand positioned to be distinctive diminishes consumers’ sense of agency in identity expression. As a result, when distinctiveness goals are salient, consumers are less likely to evaluate anthropomorphized (vs. nonanthropomorphized) brands favorably and are less likely to choose them to express distinctiveness. This negative effect of brand anthropomorphism, however, is contingent on the brand’s positioning strategy—brand-as-supporter (supporting consumers’ desires to be different) versus brand-as-agent (communicating unique brand features instead of focusing on consumers’ needs) versus brand-as-controller (limiting consumers’ freedom in expressing distinctiveness). Our results demonstrate that an anthropomorphized brand-as-supporter enhances consumers’ sense of agency in identity expression, compared to both an anthropomorphized brand-as-agent and an anthropomorphized brand-as-controller. In turn, enhancing or thwarting consumers’ sense of agency in expressing their differences from others drives the differential impact of anthropomorphizing a brand positioned to be distinctive.

Two aspects of this research are especially noteworthy in terms of future research. Given how many marketers are trying to bring their brands to life—literally and figuratively—in today’s digital world, anthropomorphism is likely to continue to be an important consumer research topic. In particular, AI and robotic advances in service settings and elsewhere will raise a number of similar issues in terms of how consumers interact with more human-like marketing devices. These are complex phenomena that will require new theoretical development as well as the careful adaption of concepts from consumer psychology originally developed with humans. Secondly, understanding how consumers and brands are—or want to be—distinctive is a fundamental element of branding that can yield interesting insights with a variety of branding phenomena.

Communications are the lifeblood of any brand. In a “paid-earned-owned-shared” media world, consumer-to-consumer communications are taking on increased importance. Different communication channels have different properties, however, that require careful analysis and planning. Understanding what, when, where, how, and why consumers decide to share information or opinions about brands is a research priority that will likely continue to drive research activity for many years to come.

Through an extensive text mining study of social media, Villarroel Ordenes et al. (2019) use speech act theory to identify distinct elements—rhetorical styles such as alliteration and repetition, cross-message compositions, and certain visual images—that lead to greater consumer sharing of messages posted by brands. They reinforce the power of informational and emotional content in online brand messages and find some important distinctions in message sharing across Facebook and Twitter social media platforms. Moving to also include the offline world, Shen and Sengupta (2018) found that when consumers communicate about brands to others by speaking versus writing, they develop deeper self-brand connections, as summarized in this abstract.

Shen and Sengupta, “Word of Mouth versus Word of Mouse: Speaking about a Brand Connects You to It More than Writing Does”   (2018) This research merges insights from the communications literature with that on the self-brand connection to examine a novel question: how does speaking versus writing about a liked brand influence the communicator’s own later reactions to that brand? Our conceptualization argues that because oral communication involves a greater focus on social interaction with the communication recipient than does written communication, oral communicators are more likely to express self-related thoughts than are writers, thereby increasing their self-brand connection (SBC). We also assess the implications of this conceptualization, including the identification of theoretically derived boundary conditions for the speech/writing difference, and the downstream effects of heightened SBC. Results from five studies provide support for our predictions, informing both the basic literature on communications, and the body of work on consumer word of mouth.

Word of mouth has been a critical aspect of marketing since the origin of commerce. In today’s digital world, word of mouth can take many different forms (structured vs. unstructured, public vs. private, and so on). Understanding the full consumer psychology implications of reviews, in particular, is a top research priority given their increasingly important role in consumer decision-making. Contrasting oral and written speech, as in the referenced article, will have important implications for social media usage and marketing communications more generally. Lastly, the crucial mediating role of self-brand connections reinforces the need to consider the relevance of brands and when and how they are drawn into consumers’ identities and lives.

There is a managerial side to branding that can benefit from principles and insights gleaned from more practically minded consumer research. Managers make numerous decisions on a daily basis related to building, measuring, managing, and protecting their brands with significant short- and long-term consequences. A thorough understanding of applicable consumer behavior theory is extremely valuable to guide that decision-making. The research opportunities here are vast, as a wide gap still exists in many areas between academic research and industry practice.

Studying the James Bond film franchise, Preece, Kerrigan, and O'Reilly (2019) take an evolutionary approach to study brand longevity. Applying assemblage theory, they show how brands can optimally balance continuity and change at different levels over time. van Horen and Pieters (2017) show how copycat brands—that is, those that imitate brand elements of another brand—meet with more success when the imitated product is in a product category distinct from that of the imitated brand, as summarized in their abstract.

van Horen and   Pieters, “Redefining Home: How Cultural Distinctiveness Affects the Malleability of In-Group Boundaries and Brand Preferences”   (2017) Copycat brands imitate the trade dress of other brands, such as their brand name, logo, and packaging design. Copycats typically operate in the core product category of the imitated brand under the assumption that such “in-category imitation” is most effective. In contrast, four experiments demonstrate the benefits of “out-of-category imitation” for copycats, and the harmful effect on the imitated brand. Copycats are evaluated more positively in a related category, because consumers appraise the similarity between copycat and imitated brand more positively than in the core category, independent of the perceived similarity itself. This is due to a reduced salience of norms regarding imitation in the related category. Moreover, the results show a damaging backlash effect of out-of-category imitation on the general evaluation of the imitated brand and on its key perceived product attributes. The findings replicate across student, MTurk [Amazon Mechanical Turk], and representative consumer samples; multiple product categories; and forms of brand imitation. This research demonstrates that out-of-category brand imitation helps copycat brands and hurts national leading brands much more than has so far been considered, which has managerial and public policy implications.

Research on trade dress goes to the very heart of brands and branding: the brand elements themselves. Because of how they shape awareness and image with consumers, brand elements are often invaluable assets to brand marketers. A deeper understanding of their intrinsic properties, as well as their interface with various marketing activities, would be very helpful for managers. More generally, adopting a legal perspective to branding research, as with this article, should be encouraged given its increasingly significant role in managerial decision-making. In a related sense, given that most brands span multiple categories, ensuring that a broader multicategory perspective is recognized in branding research is also essential.

The five themes reviewed above each suggested a number of important future research directions. Nevertheless, an abundance of other research opportunities also exist in other areas with brands and branding, five of which are highlighted here (for further discussion, see Keller 2016 ; Keller et al. 2020 ).

Brand Emotions and Feelings

What are the most important types of brand feelings and emotions? What is a useful taxonomy of brand feelings and emotions?

What are the most effective ways for marketers to elicit brand feelings and emotions? How do different marketing activities create brand feelings and emotions?

Can affective information be shared by consumers as effectively as more cognitive information? What is the role of word of mouth and social media for spreading feelings and emotional qualities of brands across consumers?

How easily can feelings and emotions be linked to a brand? In what ways are they stored and later activated?

In what ways do feelings and emotions affect consumer decision-making? When can positive brand feelings overcome product deficiencies? When can negative feelings undermine product advantages?

Brand Intangibles

As noted above, successful branding is about differentiation. Increasingly, brand intangibles are playing a bigger role in creating, or at least strengthening, differentiation. Brand intangibles are those associations to a brand that are not directly related to the product or service and its function and performance. In a broad sense, the increased emphasis on brand intangibles reflects the fact that consumers have become more interested in learning about the people and companies behind products and brands, posing questions such as: Who are they? What values do they hold? What do they stand for? How do they make the product or service?

How do consumers form opinions about authenticity ( Newman and Dhar 2014 ; Spiggle, Nguyen, and Caravella 2012 )? How important is it for a brand to be seen as authentic or genuine?

How does history or heritage define a brand ( Paharia et al. 2011 )? In what ways can it help or hurt? How flexible are consumers in updating their perceptions and beliefs about brands? What is the proper balance of continuity and change for brands over time?

How do consumers view political stances by brands ( Horst 2018 )? How do they respond to brands taking positions on important political issues that support or contradict the positions they hold?

What are consumer expectations for corporate social responsibility for brands ( Bhattacharya and Sen 2003 ; Chernev and Blair 2015 ; Kotler and Lee 2005 ; Torelli, Monga, and Kaikati 2012 )? What are the accepted standards for sustainability, community involvement, and social impact? How do consumers make those judgments? How do they influence brand attitudes and behavior?

Given the subjective nature of brand intangibles, how do marketers reconcile the potentially varying or even contradictory opinions held by different consumers about any particular brand intangible? How much consensus can reasonably be expected?

Brand Positioning

One well-established strategic tool for branding is the concept of positioning —how consumers think or feel about a brand versus a defined set of competitor brands ( Keller, Sternthal, and Tybout 2002 ). Although historically significant, some marketers have questioned the value of traditional positioning in developing modern marketing strategies. One fundamental question is the role of consumers in setting strategies for brands. Some marketing pundits proclaim that “customers are now in charge of marketing,” maintaining that consumers now set the strategic directions of brands. Such statements, however, presume that consumers are empowered, enlightened, and engaged with respect to brands and branding. In other words, consumers have the motivation (engagement), ability (enlightenment), and opportunity (empowerment) to actually impact brand strategies.

In what ways do consumers think they can influence brand strategy? How much input do consumers think they should have about what a brand does?

How much do consumers know about brands and branding? How deep and broad is consumer brand knowledge? How do they define the “rules of the game” for branding?

How actively invested are consumers with a brand’s fortunes? How much do consumers care about how other consumers view a brand or how it is performing in the marketplace as a whole?

How much do consumers want to engage with brands and in what ways? What is a useful taxonomy of brand engagement?

Developing a more complete understanding of the consumer-brand terrain along these lines will be invaluable in understanding how different types of relationships are formed between consumers and brands ( Fournier 1998 ).

Brand Purpose, Storytelling, and Narratives

How well do these alternative brand strategy concepts tap into our understanding of consumer behavior? What assumptions do they make about consumer behavior? When are they most valid or useful? Are they ever unhelpful or even counterproductive?

What types of brand purposes are most meaningful to consumers? How should brand purposes be crafted internally and expressed externally? How should brand purpose relate or be aligned with other aspects of the brand positioning and strategy? For example, how closely tied should brand purposes be to the products or services for the brand?

What makes brand stories or narratives compelling ( Escalas 2004 )? Are there any disadvantages to their use? Can brand stories or narratives distract marketers or consumers from a focus on potentially more important product or service performance considerations?

Brand Measurement

Lastly, for both academics and managers to fully understand the effects of brands and branding, there needs to be a deep, rich understanding of how consumers think, feel, and act toward brands. Although one common industry research technique has been consumer surveys, as consumers have become more difficult to contact and less willing to participate, the viability of surveys has diminished in recent years. Yet marketers today arguably need to stay closer than ever to consumers, underscoring the need to develop new methods and evolve existing ones to gain critical insights into consumers and brands.

Fortunately, as much as any area, branding research has benefited from a full range of quantitative and qualitative methods that go beyond surveys and other traditional data collection methods (e.g., focus groups). For example, researchers are continuing to refine neural techniques (Chang, Boksem, and Smidts 2018; Yoon et al. 2006 ) and ethnographic methods ( Belk 2006 ; Chang Coupland 2005 ). One particularly promising tack involves digital methods and measures that can be used at the individual or market level to monitor online behavior ( Berger et al. 2020 ; Moe and Schweidel 2014 ; Yadav and Pavlou 2014 ). Although full of potential, the methodological properties of these digital approaches need to be validated carefully, and boundaries need to be established as to their comparative advantages and disadvantages.

More broadly, for all traditional or emerging research methods, strengths and weaknesses must be identified and contrasted in terms of their effectiveness and efficiency in gaining consumer and brand insights. In many ways, brand-building can be thought of in terms of painting a picture of a brand in consumers’ minds and hearts. Extending that metaphor, it is important that marketers skillfully combine a full range of research methods to be able to appreciate the colors, vividness, and texture of the mental images and structures they are creating.

Perhaps not surprisingly, research on branding mirrors many of the broad themes found in consumer research more generally. Consumer researchers of all kinds are interested in achieving a better understanding of consumer motivations and desires and how consumers choose to interact with the world around them, especially in digital terms. Researchers studying branding have certainly homed in on these and other topics and also have focused on more managerial considerations, all of which help marketers achieve a deeper understanding of consumers to help them build, measure, manage, and protect brand equity.

The reality is that brands and consumers are inextricably linked. Brands exist for consumers, and consumers generally value brands. Yet, in today’s data-rich world, both brands and consumers can be too easily reduced to online and offline statistical footprints. It is incumbent upon consumer researchers to breathe life into branding to ensure that consumer psychology as applied to branding is undeniable in its importance and essential to marketers everywhere.

This curation was invited by editors J. Jeffrey Inman, Margaret C. Campbell, Amna Kirmani, and Linda L. Price .

The author thanks the editors for the opportunity to write this research curation and for their helpful feedback.

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Systematic Reviews and Meta-Analysis of Brand Value, Brand Equity, Brand Trust, and Brand Loyalty in Agribusiness

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• Horațiu Oliviu Buzgău 3 &
• Smaranda Adina Cosma 4  

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The purpose of branding is to differentiate products or companies from their competitors and to create a positive perception of the product or company in the minds of the consumers. In agribusiness, branding is important because it helps to build trust and loyalty with customers. This research aims to provide an overview of the scientific studies that addressed various components or dimensions of the brand in agribusiness. The PRISMA 2020 statement is followed in the present research for systematic reviews and meta-analysis of brand value, brand equity, brand trust, and brand loyalty studied in articles dedicated to branding agribusiness in the last 12 years. The research reveals that the main factors that determine the value of a brand in agribusiness are customer satisfaction, vertical/horizontal integration, transparency, and association with local products; the equity of a brand in agribusiness is affected by the brand labeling process, place of origin, quality certificates/standards, the financial performance of the brand, age of the brand in the market, and brand familiarity; the brand trust in agribusiness is determined by the private label/manufacturer’s brand, local/regional/national brand, availability to pay, type of labeling, and the implications of the word-of-mouth, and the determinants of the brand loyalty are emotional customer involvement, proximity, brand awareness, and recognition of the manufacturer’s involvement in maintaining standards. The study provides relevant information for both academia and industry.

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• Home > Publications > Measuring Brand Value – How Much Are Brands Worth?

Measuring Brand Value – How Much Are Brands Worth?

We frequently refer to ‘brand values’ as if everyone knows what we mean. It is assumed that there is a general understanding that a brand stands for something and what it stands for must have a value.

These values can be critically important or small inconsequential things but above all they are the things which give the brand its worth and differentiate it from all others. Through these brand values a product or service is enhanced beyond its functional purpose. In this context the brand provides the consumer with more value and this is why they are prepared to pay a premium to acquire it.

Measuring Brand Value and Cash Value

Various research studies have been carried out in consumer markets to determine the premium that people will pay for brands over and above a base line. Measuring the value of brands and assessing the value of intangibles by asking consumers to separate out the brand and place a monetary value on it is difficult because this is not what we do in the real world. In fact, most consumers, when asked to place a monetary value on brands, are in denial about paying a premium just for the name. That is for all the other mugs, not for me.

That said, when people are asked in brand value surveys to place a monetary value on a car (the same car is used in the photographs but different badges are superimposed on the bonnet to suggest it is a different brand) the Volkswagen brand is seen to be worth more than that of Ford while the Mercedes brand has a value above both. In each case, the brand is seen to be worth around 10 per cent of the retail value of the car.

We now want to consider the value of brands in another context – that of a company’s monetary worth if sold on the open market and how this value can be estimated even when disposal is not anticipated. At the outset it is important to draw a distinction between individual brands owned by a company (e.g. Kit-Kat) and a brand which is also the a company name (e.g. Speedy Hire).

Goodwill and the Value of Brands

When a company is sold, it seeks to obtain a value over and beyond that of its tangible assets. Historically this has been referred to as `goodwill’ and was taken to mean the value of the loyalty of the firm’s customers. This is an interesting concept as loyalty is an important component of branding – so already it is clear that there is a strong link between goodwill and brands. After all, a good brand is one which customers insist on by name and for which they are prepared to pay a premium. This loyalty would have a value if the brand was ever sold.

Accountants are now refining their views of goodwill and accept that it extends beyond loyalty. On these grounds goodwill is taken to include other intangibles which enable a company to earn `super profits’ or those profits over and above what could be expected from the tangible assets of the company alone. This concept of goodwill is important as it signifies that it is an asset, namely something which a company controls and which will provide future benefits. The asset of goodwill can be realized by the sale of a company but its very existence implies that it can also be assessed at any time and given an internal valuation – this view departs from the traditional approach which crystallized goodwill only at the time of sale.

Firms have a collection of intangible assets in the form of people (key personnel such as a skilled workforce, managers, scientists), special company procedures, distribution agreements (which keep the product in and the competition out) and patents (which give a product protection over a finite number of years). All these intangible assets have a value and in theory at least could be assessed within goodwill. In practice it is only aspects of goodwill such as patents that have been readily separated out for valuation. But other intangibles can in theory be separated out and one of relevance to this discussion is brands.

The recognition of brands as an asset to the company is not new to firms making consumer products but, hitherto, it has been largely ignored by industrial companies. In effect there has been a failure of industrial companies to recognize that brands do have a value, including the possibility that they also have a value on the balance sheet. However, as already mentioned, that the company name and brand are often one and the same in industrial markets, presents additional difficulties.

Internal valuations of goodwill are the subject of some contention in accountancy circles. Conventionally, it has been accepted that goodwill is something which only arises when a business is sold and until this happens the value of goodwill is not included in balance sheet assets. In this view, goodwill is the difference between the price paid for the business and the value of its net assets at that time.

This view recognizes three components to goodwill. Two of them are of little importance to us here. The first includes any benefits which the company possesses, perhaps because it has a monopoly position or because it occupies a particular niche which others would find difficult to enter for legal or technical reasons. The second component arises from the fact that accountants find it difficult to precisely value all the identifiable assets and so there will be some over or under valuation which enters into the equation. It is in the third component of goodwill, the value of separately identifiable intangible assets, that our interest lies as it is here that any value attached to brands would fit – but so too would any value that could be recognized in a company’s distribution routes, key personnel or customer lists. Up to recently, all these things have been lumped together as it has been deemed too difficult if not impossible to separate them from each other and the other components of goodwill.

Assessing the Value of Brands

Over the last few years there have been many listings of the value of brands. One of the most famous is carried out by Interbrand. This annual research study of the world’s top 100 brands assesses values on a variety of issues such as strategic brand management, marketing budget allocation, marketing ROI, portfolio management, brand extensions, M&A, balance sheet recognition, licensing, transfer pricing and investor relations. No one is surprised that Apple is a leader but it is more difficult to see how Toyota has a brand value greater than Mercedes-Benz. I show the results from the 2020 survey in the table below.

The Top 20 World Brands From The Interbrand/Business Week Rankings For 2020

The reason that measuring the value of brands becomes contentious is that brands are increasingly being recognized as an asset and their value is being included in company balance sheets. In other words they were given special status and not treated as part of the goodwill.

Grand Metropolitan was one of the first companies to recognize this potential when, in August 1988, it arrived at an assessment of £565 million in respect of the brands, such as Smirnoff Vodka, it had acquired during the previous three years. This was followed shortly in November of that same year by Rank Hovis McDougall who capitalized its internally created brands, (ie not ones which had ever been purchased for cash) such as Bisto, Hovis and Mr Kipling, placing a value on them of £678 million. The significance of this act can be seen when it is set against the company’s net assets at the time which were only around £300 million.

In the case of RHM or Cadbury Schweppes it is easy for us to see how one of the brands could be spun off and sold to another company without any disturbance to customers. As long as the brand continues to deliver the same qualities in terms of the product and its surround, most customers will not care who owns the factory. But what of a situation where the brand is the company, as in many business-to-business or industrial firms? Here the brand and the company are intertwined and because they are inseparable, one cannot easily be sold without the other.

Problems of Capitalizing the Value of Brands

Brands are vulnerable in being dependent on such intangibles as people’s perceptions of them. Building these perceptions can take many years as reputations are earned by repeated proof that a brand justifies its position. The perceptions can, however, be destroyed overnight. Perrier’s reputation took an embarrassing blow in 1990 when a North Carolina study reported having found benzene in the water. Source Perrier shifted from explanation to explanation on the issue, finally stating that it was an isolated incident of a worker having made a mistake in the filtering procedure and that the spring itself was completely unpolluted. The incident was the cause of the recall of 160 million bottles of Perrier. Imagine that you were in the process of buying Perrier at the time; it would surely have caused you to want to knock a few pound of its price.

The capitalization of a company’s brand value on the balance sheet is therefore contentious as it requires the brand to be separated out from the other intangibles and, as in the case of the Perrier problem, the value can melt away quickly. So, whether or not the value of a brand can be separately assessed realistically, remains a problem of confirming or reassessing its value each year. Similar problems face accountants in the valuation of other assets such as property (whose value can also fluctuate). The difference in the case of brands is the lack of an efficient market for them. The procedures and practices of valuation in this area are not yet agreed.

Keep Building the Brand – But it may not be Time to Capitalize Yet

Brands clearly have a value to the companies which own them; the business is worth more because of the position of the brand in its market. As we have seen, the value of a brand has traditionally been regarded as part of goodwill (the extra worth of a business over and above the value of physical assets) and accountants have only valued this at the time a business is sold – up to then it does not appear on the balance sheet – at least in B2B or industrial companies.

In recent years some major consumer brands have been capitalized – a value has been put on the brand and included as a balance sheet asset of the company owning the brand. Various approaches to measuring the value of brands have developed but are not as yet standardized. Problems remain, including that brand worth can fluctuate quickly (e.g. as the result of some marketing disaster).

We have seen that in many industrial markets there is additional complication to valuing brands; the brand and the company name are often the same. Although, arguably, the two can be separated conceptually, how or whether this should be done in practice is as yet uncertain. It shouldn’t however, stop us building those brands and keep adding value (whatever that may be).

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Why are brand values so important (and how to define them).

In today’s world, we’re almost constantly bombarded with infinite choices of where to spend our hard-earned dollars. What makes a brand exceptional and worthy of our decision?

Well, the ongoing success of a brand can very often rest on the values at its heart and how authentically they are expressed and communicated in the marketplace. Brand values play indeed a significant role in building deeper connections that turn one-time customers into loyal ones.

Let’s dive into what brand values and guiding principles are, why they’re critical to any brand strategy, and how you can define them for your brand. We also included a few examples of brand values from big companies to help you find those unique to your brand.

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Table of Contents

What are brand values?

Brand values can be defined as the foundational beliefs that a company stands for. They refer to the “ideals” guiding the brand’s actions, such as environmental protection, diversity, solidarity, or transparency. Brand values give meaning to the existence and actions of the brand and form an essential part of the brand’s core identity.

Brand values should always reflect what is truly important to the company behind the brand. They must be honest and implemented throughout every part of the brand strategy, from any communication with employees and consumers to strategic decision-making. 

What is the difference between brand values and guiding principles?

As mentioned above, a brand’s values are, in effect, a set of guiding beliefs that an organization inherently follows and upholds in pursuit of its mission. They define what the brand stands for.

A brand’s guiding principles are the ‘how’ the brand should act and behave to meet these values and achieve its goals.

Examples of brand values and guiding principles

Brand value: Transparency Guiding principle: Communicating to customers about the origin and manufacture of our products. To be transparent by showing our publishing our pricing strategy in detail.

Brand value: Freedom Guiding principle: Promoting a remote-first work culture that allows employees to work from anywhere in the world.

Brand value: Simplicity Guiding principle: We ensure that our brand communications are clear, easy to understand, and aren’t overloaded with too much information for the customer.

Why are brand values important?

An organization should never leave the house without its brand values fully understood and intact, with clear guidance provided on how to demonstrate and display these in the day-to-day.

With competition constantly increasing, standing out from the crowd through representing these core values can often separate the meek from the mighty.

A brand’s values are very often communicated and negotiated through the subconscious, a place where, as Gerald Zaltman notes, 95% of our consumer choices are made. [1]

This helps us understand that values are central to branding; these values and subconscious presuppositions really drive our choices, whether we know it or not!

The benefits of brand values

1. Strong values can lead to loyal customers and business growth

A brand’s core values are the primary vehicle through which a brand can genuinely connect with its audience beyond the shimmer and glow of advertising.

Maria Garrido, Chief Insights Officer at Vivendi, highlights, “Our findings show that consumers will reward brands who want to make the world a better place and who reflect their values. A massive 77% of consumers prefer to buy from companies who share their values.” 

A brand’s values serve as a way to express identity and personality in the marketplace, a way to identify with the consumer.

“One of the ultimate goals of corporate marketing is to establish a strong relationship bond between consumers and brands, and the core value of brand is the basis for the establishment of the relationship between consumers and the brand, a direct impact on the success of the brand.” [2]

2. Brand values can help a company attract the right talent

Brand values represent a human element with which consumers, employees, partners, and the broader community can identify.

Brands with clear values can easily attract potential employees whose personal values align with the brand’s values. This can lead to more motivated, passionate, and efficient employees.

Without a strong set of values, things can start to crumble quickly.

3. Brand values serve as a guide for day-to-day actions and long-term decision-making

On a day-to-day level, a brand requires strong core values as part of its DNA to ensure people are reminded of what the brand stands for and what the people steering the brand really work for. Companies can get closer to their goals when employees align their behavior and decision-making to organizational values.

Values also inform the direction of long-term decision-making and business activities in alignment with the brand’s purpose .

Examples and case studies of brand values in action

Let’s dive into a handful of real-life examples to illustrate and learn more about this sometimes abstract concept of brand values and how they fit into the overall brand schematic.

Burger King

This global purveyor of whooping-good, flame-grilled burgers is an excellent case study of how a brand’s values are applied in the everyday. A bit of research uncovers that Burger King’s core brand values rest on the concepts of:

• Teamwork and family
• Excellence, and
• Respect [3]

These core brand values are ideally exemplified at every level of the business and the brand’s operations. From creating an environment where all team members work together and creating a sense of family.

We can also begin to see that these values begin to unify their global team as well under this common banner: an organization of people who are excellent in their respective fields, working together towards Burger King’s common goal and vision of being, “the world’s favorite, innovative burger restaurant.” [4]

Tech-disruptor, Tesla, is at the forefront of innovation, design, and pretty much whatever initiative its founder, Elon Musk, applies his mind to on any given day.

In reviewing their core brand values of “doing the best, taking risks, respect, constant learning, and environmental consciousness”, [5] we can see that Tesla is about driving growth and change fueled by bold, powerful ideas without harming the planet.

This statement of values establishes right off the bat that Tesla and its people are unafraid of taking risks when they are taken conscientiously in the name of progress and innovation.

However, Tesla is an interesting example, as it demonstrates the tension between a brand and its founder. Founder Musk has often found himself in the midst of a maelstrom due to his equally disruptive Twitter game.

While a brand (and its personality extensions) should represent its core values, it’s crucial to balance these with the brand’s core values in the marketplace, which are often broader and go beyond the larger-than-life personality of the founder.

Nike’s mission is to bring inspiration and innovation to every athlete in the world, moving the world forward through the power of sport. [6]   Their values include inspiration, innovation, every athlete in the world, authentic, connected, and distinctive. [7]

Nike’s brand values are an example of how organizations can build foundational beliefs that guide their interactions with the world around them, becoming an important voice within the wider social narrative.

We can see how Nike’s brand values play out differently through multiple channels and touchpoints. From innovative product design to its increasingly inclusive and community-driven marketing strategies like its wildly popular global running clubs, we can reliably find a mix of these brand values to convey the brand’s ultimate message.

Starbucks is a little more detailed in the way they articulate their brand values:

• With our partners, our coffee, and our customers at our core, we live these values:
• Creating a culture of warmth and belonging, where everyone is welcome.
• Acting with courage, challenging the status quo, and finding new ways to grow our company and each other.
• Being present, connecting with transparency, dignity, and respect.
• Delivering our very best in all we do, holding ourselves accountable for results.
• We are performance-driven, through the lens of humanity.

In his book, It’s Not About the Coffee: Lessons on Putting People First from a Life at Starbucks , Starbucks CEO Howard Schultz sums it up perfectly:

“At Starbucks, I’ve always said we’re not in the coffee business serving people, we’re in the people business serving coffee.” [8]

We can see that all of Starbucks’ brand values are intrinsically linked to the social codes they uphold and promote as part of not only their service but the wider company culture, as well.

Lego is another brand whose core values extend through its company culture and into its product/service. The company’s core values – fun, creativity, imagination, learning, caring, and quality – relate to the concept of play. Lego sees these values as the foundational elements of its company culture.

Demonstration of their brand values can be found in every nook and cranny of the brand experience, from its fun and creative products for children to its positive, people-first company culture. [9]   While their articulation of the brand values is kept clear and straightforward versus Starbucks’ elongated value statements, we can also see the power of more concise expressions.

Simple and easy-to-understand values guarantee they can proliferate through the brand and all of its experiences.

How to develop and use your brand’s core values

Naturally, there are several ways you can work towards defining your brand’s core values.

• Brainstorm with your team. Ask, what does the brand stand for? What are the standards of behavior that it upholds? What are the common links or threads in your thinking? This could indicate that you’re starting to think about concepts that can bring people together – the right track to be on!
• Survey your customers. Again, are there pre-existing themes or concepts that your existing customer base strongly identifies with? Try to articulate these simply and easily to understand; no words wasted!
• Analyze your competition for an opportunity. Try to identify whether or not your direct competitors operate according to established brand values. Is there something they’re doing that offers an opportunity or space for you to establish a more dominant set of values? For example, if your main competitor’s Google reviews are negative due to poor customer service, focus on how you can strengthen your offering and values in this space to build a more attractive proposition.

Once you’ve defined your list of brand values, make sure to:

• Narrow the list down to 3-to 5 main brand values. Of course, an organization or brand can stand for many values and guiding principles. Yet we recommend identifying three to five central brand values. This will help you stay focused and more precise in your strategy.
• Choose 1-2 guiding principles per brand value. This will help you stay consistent and ensure the brand values are well implemented across your business.
• Include the values and guiding principles in your brand guidelines. It’s important to communicate them internally so that your employees know them. We suggest adding them to your brand guidelines where your team can visit them regularly to ensure their day-to-day work is aligned with these values.
• Keep your promise and stay consistent: Just defining and communicating your brand values isn’t enough! It’s essential to implement them across all the brand’s assets. You must ensure your customer experiences will be aligned with those values. Any action that isn’t aligned with your main brand values can significantly negatively impact your brand’s image and reputation.

A brand’s core values are an organization’s most basic and lasting beliefs. They can be understood as qualities or characteristics that truly power organizations to achieve their mission and vision, creating a blueprint for how things should be done.

We’ve briefly examined five remarkably different global brands and how they articulate and apply their brand values to achieve standout success in the marketplace.

Through these case studies, we can see a brand’s set of core values provide the tenets that people can identify on a subconscious level, whether that be its employees or customers.

By amplifying the volume of these messages, a brand can have the ability to step into wider social narratives (Nike), lead the world in innovative thought (Lego, Tesla), or develop loyalty beyond reason by building intimate relationships with its customers (Starbucks).

With a strong, well-articulated set of brand values, an organization can transform from being a mere business to something far greater and more meaningful.

[1] Zaltman, G. How Customers Think: Essential Insights into the Mind of the Market [2] Li, X. and Sun, C. (2015) A Study on the Core Values of the Brand. Journal of Service Science and Management, 8, 868-873. doi: 10.4236/jssm.2015.86087 . [3] https://mission-statement.com/burger-king-mission-statement/ [4]   https://mission-statement.com/burger-king-mission-statement/ [5] https://mission-statement.com/tesla/#Core_Values [6] https://purpose.nike.com/ceo-letter [7] https://mission-statement.com/nike/#:~:text=Nike’s%20core%20values%20include%20%E2%80%9Cinspiration,Inspiration [8] Behard, H. It’s Not About the Coffee: Lessons on Putting People First from a Life at Starbucks. Penguin, 2017. [9] https://www.lego.com/en-us/aboutus/lego-group/the-lego-brand/

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Jumpstarting value creation with data and analytics in fashion and luxury

The COVID-19 crisis is first and foremost a humanitarian crisis, but its economic impacts are far-reaching. Fashion is no exception: apparel companies lost 90 percent of their profits in 2020, according to the McKinsey Global Fashion Index . Consumer confidence plummeted during the pandemic, and it has yet to recover.

Data will be the key to unlocking the insights needed to adapt to change and to reengage customers in the coming months and years. Yet the pandemic has exposed a major shortfall in data gathering and analysis across much of the industry. The gap between data leaders and laggards has widened: some data-savvy fashion and luxury companies have dramatically increased their market value, while others have lost ground to competitors. Indeed, the 25 top-performing retailers—most of which epitomize the powerful shift to digital, data, and analytics—represent more than 90 percent of the sector’s increase in global market capitalization during the pandemic.

Simply put, the sooner fashion and luxury companies learn to harness the power of data, the better.

Data gold mines in the value chain

Data are more abundant than ever—and the COVID-19 crisis has made the case for building data capability even more pressing. The fashion and luxury firms that are likely to come out of the crisis stronger than before are tapping into their data to stay a step ahead.

The use cases for data and analytics are varied, numerous, and fairly well known, but where to focus along the value chain isn’t always intuitive. The challenge often lies in pinpointing where and how to integrate data into the business in a cross-functional way, and building the appropriate operating model to do so. Over the past 12 months, we’ve seen fashion companies navigate and extract value across the whole value chain.

Fashion companies that have harnessed the power of data to personalize customer e-commerce experiences have grown digital sales by between 30 and 50 percent.

In particular, fashion and luxury companies that have integrated data into their planning, merchandising, and supply-chain processes have seen tangible results. Data-driven decisions around stock and store optimization have increased sales by 10 percent. And enhancing visibility throughout the supply chain has streamlined inventory management, improved returns forecasting, and optimized transport networks—reducing inventory costs by up to 15 percent. Most significantly, fashion companies that have harnessed the power of data to personalize customer e-commerce experiences have grown digital sales by between 30 and 50 percent (Exhibit 1).

While it is evident that data and analytics can unlock significant value in e-commerce sales, the potential for improving physical sales should not be ignored. In an omnichannel world like the one we are heading toward in the aftermath of the COVID-19 crisis, businesses need the flexibility to respond and adjust to shifting customer preferences. As pandemic-related restrictions ease, physical sales may pick up again. Data capabilities are relevant for getting the omnichannel model right.

Four pillars for building data capabilities in fashion and luxury

Data are a precious resource. Leaving such information untapped leaves value on the table. Fashion and luxury companies can build four critical capabilities to unlock their data’s value: strategy and use-case battlegrounds, data architecture and platforms, governance and operating model, and talent and culture.

Define the data strategy and prioritize the ‘battlegrounds’

The data journey starts with setting a vision for how data will support business goals over the next two to four years. A shorter horizon may be too shortsighted and not ambitious enough for fashion and luxury businesses. Any longer, and time to impact makes the upfront investment untenable. This vision-setting process is best led by a chief data officer (CDO), someone senior in the organization who can champion the change through the many competing business priorities. The data journey is a collaborative process including most executives, since use cases hit so many parts of the value chain. The CDO translates that vision into a set of core priority business domains—the company’s data and analytics “battlegrounds”—and defines specific use cases for each priority domain.

The following example brings this process to life: A leading digital-native fashion marketplace declared “size and fit” its top data and analytics battleground. The firm created a team of researchers, data scientists, and engineers embedded in the merchandising and product teams to solve the persistent returns–fit-optimization problem. The firm defined the initial size-curve buy as a single use case and set out to make it a much more data-driven and dynamic decision.

Customer personalization should be on every fashion player’s data and analytics road map, as this is table stakes today. A leading sports-apparel retailer developed an ambitious data vision to power one-to-one relationships with consumers through data-driven personalized experiences. The firm collects huge volumes of data generated from customer-facing apps that enable it to offer more targeted and personalized experiences. The firm has also acquired predictive analytics platforms that forecast the behavior and lifetime value of customers, among other capabilities. Personalization as a battleground has enabled this retailer to develop a whole series of use cases to drive one-to-one engagement with customers.

The COVID-19 crisis has accelerated technology use along the value chain, significantly increasing the ‘data footprint’

The pandemic has catalyzed the adoption of many tech tools across the fashion and luxury value chain. For example, many brands and wholesalers have adopted buying platforms such as JOOR or NuORDER, use enhanced digital-imaging tools including ORDRE or Product Lifecycle Management (PLM), and use 3-D design tools such as Backbone, Optitex, and Browzwear to help improve the product-design process.

These tools not only boost digitization of key processes but also significantly improve the quality and quantity of the data generated—which in turn accelerate the quality of the insights gleaned.

Other fashion companies have personalized their customers’ e-commerce journeys, and in doing so have been able to offer customers what they want when they want it and build brand loyalty. Data and analytics applications have helped these companies to optimize assortment, reduce returns, and launch new brands (see sidebar “The COVID-19 crisis has accelerated technology use along the value chain, significantly increasing the ‘data footprint’”). Building a personalized interaction with customers across multiple channels has led to a 20 percent increase in revenue, and companies that have used data to optimize price have also been able to increase margins by up to 10 percent (Exhibit 2).

Invest in data architecture and platforms aligned with ‘battlegrounds’

Modern fashion data architectures handle core retail day-to-day data sets that are large and unstructured, such as SKUs, sales, point-of-sale (POS) transactions, stock transactions, e-commerce touchpoints, customer 360 information, and radio-frequency identification (RFID). The truth is, most fashion and luxury companies have expensive legacy systems built on inflexible, nonscalable, and limited data warehouses that cannot integrate new data sources.

Most turn to data lakes as a solution, which serves as the organization’s single source of truth and features several layers for data consumption. However, modern data architectures must evolve  across all layers, drawing on new architectural paradigms including cloud-based data platforms, serverless and containerized data platforms and applications, no-SQL databases, flexible data schemas, and solutions that provide real-time data-processing capabilities.

To picture these innovations in practice, consider the following example: A leading fashion player built a new data architecture, and most of the company’s databases and systems have been migrated in the past three to four years. This retailer made a significant investment to develop a massive multilayer data lake in the private cloud and consolidate hundreds of internal and external data repositories. In addition, the retailer set up a data-architecture lab and is continually experimenting with new data tools to support and improve performance. For instance, the firm recently deployed a real-time data-streaming platform to power a wide range of business use cases across its priority domains of digital personalization and real-time supply-chain management. Thanks to these efforts, it has achieved processing power of several petabytes of data per hour, enabling a rapid response to market changes while also acquiring the capacity to identify trending products and introduce them earlier than competitors.

However, many fashion and luxury companies fall into blind investment traps. Too often, the CDO will ask for the freedom to get the data fixed before committing to value creation through data use cases. It’s a common fallacy. Successful fashion players scale data-platform investments alongside real value delivery. This phased approach allows firms to pace investment as the benefits materialize—saving on upfront investment. Firms that get this right typically invest in the resources they need to deliver the first set of use cases, and then build on this in an incremental way, ensuring development of road-tested assets (in particular, data protocols, ontologies, models, and data products) to ensure faster time to market with every new use case.

Define a high-performing data and analytics operating model

Data management is often the Achilles’ heel of many fashion and luxury companies. The absence of high-quality data and clean taxonomies, and the general lack of common language and understanding around data across the organization, wreak havoc when starting on an analytics journey. This could not be more true for core data sets; data from POS transactions, for example, are a mix of structured and unstructured data and include sensitive personal information such as credit card numbers. And SKU–product data, which is key to managing integrated omnichannel stock, typically comes with unstandardized formats from suppliers, generating a need for tight master-data management and integration of several merchandising and vendor-management systems.

Fashion companies have tackled the problem by setting up a value-backed data-operating-model framework  across 20 to 30 data domains—such as sales, stock, and store transactions, among others—that have a clear owner in each business unit. These owners are best placed to define what kind of information is needed from various business functions and understand what such data can measure. They can also work collaboratively to ensure that the organization has a uniform definition of data and put processes in place to monitor data quality. Ownership is important, as it builds the mindset that the process of getting data right is not just an IT issue, but it is critical for decision making across the organization.

A leading integrated omnichannel fast-fashion player followed this approach, with tangible results. The firm defined a data-governance framework—including roles, responsibilities, and processes—to improve data quality and build an understanding of key data sets necessary to provide insight and enhance decision making. The firm set up teams responsible for developing tools or sets of use cases for the business, and those same teams were also responsible for defining and integrating data governance. The firm saw a 50 percent improvement in data quality, measured as compliance with business-defined data-quality rules.

A more sophisticated solution is to use machine-learning algorithms to improve data quality in key data assets such as customer information. For instance, fashion retailers have used pattern-recognition algorithms to eliminate duplicates in customer databases. And other machine-learning techniques such as data imputation and natural language processing can improve demand forecasting (Exhibit 3).

Develop talent and build a data and analytics culture

Many fashion and luxury companies have taken the leap of upskilling their workforces and reinventing talent and culture practices. We see fashion companies grabbing talent from academia, digital natives, and start-ups; few build their bench purely in-house. However, talent is often hidden in plain sight. Some leading businesses have found success with data academies to train new data professionals—such as data architects, data scientists, and data stewards—and ensure that core decision makers, such as designers, merchandising teams, and e-commerce teams, can translate data and analytics to fit business needs. A data culture that not only accepts data-driven insights and modeling, but also is hungry for it, is critical to get value from the data investment. Too many fashion companies make the leap only to find the business is stuck in old ways of working, and these firms tend to view data and analytics with an unfair amount of skepticism .

How to get started and shape a winning data road map

How a north american fast-fashion firm turned to data in a crisis.

In March 2020, stores across the United States closed overnight, sales plummeted by 80 percent, and a leading fast-fashion player was sitting on inventory locked in the back rooms of its stores. The firm had a few months of runway and was facing bankruptcy.

Fast on their feet, executives at the company created three cross-functional teams to accelerate one-to-one personalized marketing, launch ship-from-store, and mine merchandising insights using the rich data they were getting from their online channel. In weeks, the firm was operating in a fundamentally different way—testing and learning, driving data-backed actions, and making decisions as a cohesive unit.

The business also avoided massive discounting as other apparel retailers raced to the bottom through promotional offers. Instead, the firm canceled its fall-season orders and was able to quickly respond to the at-home casual trends that were gaining momentum. By the end of 2020, the business was picking up market share, a first in ten years.

The firm’s leap into data and analytics set it on a course of transformation—the business went on to create cross-functional teams across all major steps in the value chain. In 2021, it launched teams for buy online, pick up in store; price and promo; and digital experience and started a new subscription business and a new marketplace business.

Many fashion and luxury companies have harnessed the power of data to build stronger relationships with their customers and drive sales (see sidebar “How a North American fast-fashion firm turned to data in a crisis”). They have also achieved operational efficiencies that have increased margins. But building data capability is only half of the equation. A data-transformation strategy and road map can put it into practice and set companies on a path to unlocking value. Fashion and luxury companies seeking to extract value from data can implement a sustained campaign in four phases:

• A North Star definition phase, headed up by the CDO, to define the vision, priority domains, and key battlegrounds across the value chain. During this phase, the company creates the data strategy, establishes the data team, selects data-architecture tools, and identifies pilot use cases for high-impact, quick-win opportunities in priority domains. This phase typically lasts six to ten weeks.
• The value-creation phase, where the company starts generating value through two or three quick-win use cases. In this phase, the company also migrates data to the new architecture, sets up data governance, and launches training and change-management programs. This phase lasts four to six months.
• Scale, where the transformation is scaled to tens of use cases in parallel, in three- to four-month development cycles, with many rounds of two-week sprints. In this phase, it is critical to tackle the topic of data culture, which is typically the most formidable barrier to scaling digital and analytics transformations. In fact, 33 percent of executives cited culture as the top challenge  in meeting their digital and analytics priorities. This phase lasts six to nine months.
• The final phase of data and analytics transformation, when data and analytics are fully embedded within the company value-creation machine. By now, the company will have data capabilities spread across the organization and will have hundreds of use cases in production that deliver value.

The initial leap into data should not be daunting for fashion and luxury companies; many have proven the investment worthwhile. What’s more, investment in data and analytics could pay for itself—the upfront cash investment can be scaled as value is created. The sooner fashion and luxury companies leap in, the better. And help is at hand—a strategic approach can structure an effective data-transformation program, build momentum through realizing quick wins, and create long-term value.

Sandrine Devillard is a senior partner in McKinsey’s Montreal office, Holger Harreis is a senior partner in the Düsseldorf office, Nicholas Landry is an associate partner in the Vancouver office, and Carlos Sanchez Altable is an associate partner in the Madrid office.

The authors wish to thank Anita Balchandani, Achim Berg, Antonio Gonzalo, Carly Donovan, Davide Grande, Kayvaun Rowshankish, Kate Smaje, and Asin Tavakoli for their contributions to this article.

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Addressing these issues is crucial for three reasons. Firstly, brand value is a key parameter associated with firm performance (Chu & Keh, 2006 ; Lin et al., 2021 ). Enhancing brand value is a strategic plan for sustainable returns, not just pursuing short-term financial results (Melewar & Nguyen, 2014 ). Brand value enhancement is essential for building a positive brand image and gaining a competitive advantage (Dutordoir et al., 2015 ). Therefore, examining the impact of ESG on brand value contributes to a more comprehensive understanding of the role and limitations of ESGP. Secondly, the application of digital technology has been proven to play an important role in firm performance (Wielgos et al., 2021 ). However, mechanistic studies on the impact of CSR or ESG on brand value have not fully considered the influence of digitisation level. Thirdly, understanding the role of ESG sub-items on brand value can help firms allocate resources and implement branding programmes more effectively.

This study examines how ESGP affects brand value to fill a gap in the literature. Firstly, based on the signalling theory, we systematically articulate the theoretical logic of the impact of ESGP on brand value and empirically test it by using 10 years of panel data. Secondly, we investigate the moderating effect of digitalisation level on the relationship between ESGP and brand value, and explore the role boundary of ESGP affecting brand value. Thirdly, we explore the role of ESG sub-items in brand value and verify its role direction and strength. In addition, in terms of methodology, we first establish a linear regression equation to verify the relationship. Then we establish a quadratic linear regression equation to further verify the relationship. We performed endogeneity tests and robustness tests to enhance the rigour and depth of the study.

The theoretical framework of this study is illustrated in Figure 1 .

Research review and hypothesis development

Research review, brand value.

Brand value is a concept covering multiple dimensions, which not only represents consumers’ cognition and emotional connection to the brand but also reflects the brand’s status and influence in the market. It is a synthesis of the economic, reputational and emotional values of a brand in the commercial market and in the minds of the public. Brand value involves three main perspectives: consumer-based perspective, firm-based perspective and stakeholder-based perspective. From the consumer-based perspective, the brand value lies in consumer perceptions such as awareness, attitude, knowledge and behaviour towards the brand (Baalbaki & Guzmán, 2016 ; Christodoulides & De Chernatony, 2010 ; Lee et al., 2022 ), reflecting the brand’s performance in the product market. From the firm-based perspective, brand value is the creation of excess profits, expressed in price, market share, revenue and cash flow (Dutordoir et al., 2015 ; Harjoto & Salas, 2017 ; Melo & Galan, 2011 ). It also includes considerations for product and financial markets (Keller & Lehmann, 2006 ), representing the brand’s ability to attract profits (Ailawadi et al., 2003 ). The stakeholder-based perspective suggests that brand value is generated through the interaction between the firm, consumers and all other stakeholders, considering how these groups work together to create brand value (Eugenio-Vela et al., 2020 ; Merz et al., 2009 ; Mingione & Leoni, 2020 ; Nguyen et al., 2015 ).

Today’s consumers live in the digital age and can access brand information from multiple channels. Some consumers leave their opinions on social platforms, which in turn influence other consumers or brands. The formation of brand value is the result of the gradual shaping of consumers and firms in the interaction process, which must be recognised by the firm, tested and widely recognised by the market. The definition of brand value is not uniform and is often made according to the specific research context. In line with the research context of this article, we adopt the consumer perspective of brand value. Referring to Aaker ( 1992 ; 1996 ), Yoo and Donthu ( 2001 ), and Keller and Lehmann ( 2002 , 2006 ), brand value is considered as ‘firms influence customer perceptions of the brand through a series of strategic and tactical actions, ultimately reflected in the valuation of the firm’s brand equity’.

Environmental, social, and governance performance as a signal

High-value brands can yield greater brand premiums, more stable market positions and stronger competitive advantages (Ailawadi et al., 2003 ; Dutordoir et al., 2015 ; Gupta et al., 2020 ). Factors driving brand value primarily encompass three aspects (Keller, 2003 ; Lim et al., 2020 ; Thanasuta et al., 2009 ). The first is brand elements or identity, such as brand name, spokespersons and packaging. The second aspect comprises marketing activities, supportive marketing plans and brand integration methods, such as product, pricing, distribution and communication strategies. The third is other entities indirectly associated with the brand, such as the firm, country of origin, distribution channels or other brands.

In addition to the above three factors, focussing on a positive firm reputation, such as sustainability investments or social responsibility, can enhance performance (Kiessling et al., 2016 ; Price & Sun, 2017 ), brand evaluation (Gürhan-Canli & Batra, 2004 ; Sweetin et al., 2013 and brand equity (Heinberg et al., 2018 ; Wang & Sengupta, 2016 ). Environmental, social and governance or corporate social responsibility activities are a way of signalling to consumers, aiming to build a strong firm reputation and gain a reputation premium (Chabowski et al., 2011 ; Fombrun & Shanley, 1990 ; Porter & Kramer, 2006 ; Roberts & Dowling, 2002 ). Hur et al. ( 2014 ) proved that social responsibility positively affects firm reputation and influences brand equity through brand trust and firm reputation.

However, investing in reputation does not always guarantee increased brand equity (Sierra et al., 2017 ; Swoboda et al., 2016 ). Consumers identify associations with brands by searching for signals and making purchasing decisions (Gupta et al., 1999 ; Karaosmanoglu et al., 2016 ). In the process of ESG acting as a signal of reputation, a variety of factors come into play, including the sender, transmission medium and receiver. These factors may reduce the effectiveness of the signal, leading consumers to underestimate the reputation efforts made by the brand and not fully recognise the actual brand quality or the firm’s intentions (Purohit & Srivastava, 2001 ). Environmental, social and governance or CSR efforts consume substantial resources and may increase brand costs without significantly improving brand performance, or even having a negative impact (Sen & Bhattacharya, 2001 , 2006 ; Torelli et al., 2012 ).

Effective signals exhibit two significant characteristics (Spence, 1973 ). Firstly, they must be sufficiently observable. Secondly, they require certain cost. Previous research has indicated variations in signal strength, with some signals being more easily received than others (Gulati & Higgins, 2003 ). Effective signals need to reach a certain level of strength for the receiver to perceive them. They require clear motivation (Pancer et al., 2017 ; Spence, 1973 ) and consistency with the unobservable quality of the sender. Signal senders can increase the signal effectiveness by sending more observable signals or increasing the number of signals (Janney & Folta, 2003 ). From the perspective of the signal receiver, signal effectiveness depends on whether the receiver focusses on the signal (Ilmola & Kuusi, 2006 ) and how the receiver interprets the signal (Perkins & Hendry, 2005 ; Srivastava, 2001 ).

The above analysis suggests that the relationship between ESGP as a signal and brand value has not been sufficiently explored. This is predominantly reflected in three aspects. Firstly, current research on ESGP tends to rely on accounting results and empirical evidence supporting positive, negative and non-significant correlations is inconsistent (Aouadi & Marsat, 2018 ; Avetisyan & Hockerts, 2017 ; Duque-Grisales & Aguilera-Caracuel, 2021 ; Wong et al., 2021 ). Therefore, it is difficult to directly derive the relationship between ESGP and brand value based on the consumer perspective from previous research. Secondly, the literature on signalling theory and brand value theory lacks empirical evidence on the intrinsic mechanisms of the impact of ESGP on brand value, especially the impact of digital technology on this relationship. Thirdly, the impact of ESG sub-items (environment, social responsibility and governance) on brand value has not been clearly depicted.

Hypothesis development

The factors that drive brand value are complex, with potential interactions and inhibitions. Whether or not ESGP can be transformed into a driver of brand value depends on the interaction between ESGP and other brand activities. Firms inform, persuade or remind consumers about their brand through traditional brand activities, such as advertising, promotional activities and research and development (R&D) to establish a dialogue and connection with consumers to enhance brand equity. This process involves firms allocating resources to brand activities (Keller & Lehmann, 2003 ). These activities influence consumers’ brand perceptions, thus achieving the goal of enhancing brand value (Cobb-Walgren et al., 1995 ; Keller, 2003 ). Prior research has demonstrated the impact of investments in brand activities such as advertising, research and development, and promotion on brand value (Chaudhuri, 2002 ; Chu & Keh, 2006 ; Jeong, 2015 ). Firms that invest in ESG to gain a good reputation, thereby increasing brand value, exhibit a ‘reputation spillover effect’. Investments in ESG occupy a large portion of a firm’s operating costs and resources, but crowd out investments in other brand activities, ultimately leading to a reduction in brand value, known as the ‘reputation constraint effect’.

When ESGP is at a low level, the reputation signal strength is insufficient, resulting in low signal validity. The reputation signal conveyed by ESGP is not easily perceived, noticed or recognised by consumers and relevant stakeholders. Firms that incur ESG costs reduce the resources or costs they invest in other general brand activities, such as advertising and promotion. The reputation spillover effect is not significant, but it crowds out the contribution of other brand activities to brand value. The reputation spillover effect is smaller than the reputation constraint effect, resulting in a negative correlation between ESG and brand value.

As the ESGP increases, so does the strength of the reputation signal, thereby greatly increasing its signal validity. Reputation signals conveyed by ESGP are more likely to be perceived, noticed and recognised by consumers and relevant stakeholders. At this point, the relationship between firms and consumers improves, consumer trust in the firm increases and perceived risk decreases. The reputation spillover effect is significantly enhanced and exceeds the reputation constraint effect, resulting in a positive correlation between ESG and brand value.

Based on the analysis aforementioned, we propose the first hypothesis:

H1: The effect of ESGP on brand value follows a U-shaped relationship, initially declining and then rising.

Figure 2 illustrates the irregular fluctuations in brand value. The monotonicity of brand value is not obvious. As the level of ESGP increases, brand value may exhibit a non-linear relationship, initially declining and then rising.

The moderating role of digitalisation level

Signalling theory suggests that the signal environment affects the extent to which information asymmetry is reduced, both within and between organisations (Lester et al., 2006 ). Therefore, the study speculates that the technological environment in which a firm operates may affect the effectiveness of signalling. Digital technologies such as big data mining and AI have a disruptive impact on a firm’s production methods, organisational forms and business models (Nambisan et al., 2017 ; Orlando, 2021 ; Yoo et al., 2010 ). Digital technologies support the efficient transmission of information within and between firms, helping firms provide more effective information to reduce information asymmetry with consumers. Digitalisation refers to the process where firms leverage digital technologies to change traditional production and operation methods, innovate products and services, and implement strategic transformations (Blichfeldt & Faullant, 2021 ; Chen et al., 2012 ). Firms utilise digital technologies to coordinate all processes of manufacturing, design, production, management, sales and service. Firms control, monitor, test, predict and execute other production and operational activities based on data produced during the process. As a result, firms curtail the R&D cycle, increase procurement real-time visibility, improve production efficiency and quality, reduce energy consumption and respond to customer demands promptly (Besson & Rowe, 2012 ).

The application of digital technologies supports intra- and inter-organisational collaboration, and effectively improves the efficiency of information transmission. Digitalisation greatly improves the ability of firms to acquire and analyse information, which facilitates the rapid capture of information about consumer needs (Chen et al., 2020 ), and enhances business performance and market position. The study conducted by Li et al. ( 2023 ) pointed out that the digitalisation of firms can help them break through the information boundaries and reduce the cost of inter-enterprise information searching and supplier verification. Boukis ( 2020 ) presented an exploratory discussion about how blockchain applications and platforms impact the relationship between consumers and brands, drawing on a wide range of real-life examples of blockchain applications. Shi et al. ( 2023 ) specifically explored the impact of digitalisation on supply chain resilience through China’s manufacturing industry. The increase in digitalisation level may help firms enhance the strength of ESG signals and improve the efficiency of information transmission. Based on the above analysis, we propose the second hypothesis:

H2: The level of digitalisation moderates the impact of ESGP on brand value.

Research design

Sample selection and variable description.

Our research sample came from empirical panel data in China. The sample was drawn from the listed firms in the ‘Top 500 Most Valuable Chinese Brands’ of the World Brand Lab from 2012 to 2021. After excluding missing data and singleton entries (firms that appeared on the list only once), a total of 126 listed firms with 777 samples were retained. Brand value data were sourced from the World Brand Lab, while ESGP data were obtained from Bloomberg’s database. Control variables were selected from the China Stock Market & Accounting Research (CSMAR) database. With reference to the industry classification standards of the China Securities Regulatory Commission, the sample covered 33 different sub-industries, including automobile manufacturing, banking and securities, real estate, wholesale and retail, and providing a representative cross-section.

Dependent variable

The dependent variable is brand value. Kerin et al. ( 1998 ) used brand value assessment reports published by Financial World when studying the relationship between brand value and shareholder value. Wang et al. ( 2016 ) and Cowan et al. ( 2020 ) relied on Interbrand’s brand value ranking data. Drawing on the foreign scholars’ research method, this study adopted brand value data provided by the World Brand Lab. The World Brand Lab’s evaluation of brand value integrates consumer research, competitive analysis and forecasts of future firm revenue.

Independent variable

The independent variable is ESGP. Drawing from the study of Hammami and Hendijani Zadeh ( 2020 ), Eliwa et al. ( 2021 ) and Cheng et al. ( 2023 ), Bloomberg’s ESG scores were used to measure ESGP. Scores range from 0 to 100, with higher scores indicate better ESGP.

Moderator variable

The moderating variable is the digitalisation level. Digitalisation level was measured through the digitalisation index provided by the CSMAR collaboration database, which is built based on relevant information from listed firms’ annual reports, fundraising announcements and qualification certifications. It derives the digitalisation transformation index by weighting six indicators: environmental support, strategic leadership, technology drive, organisational empowerment, digital achievements and digital applications.

Control variables

Inspired by Gillan et al. ( 2021 ) and Cheng et al. ( 2023 ), this study added control variables of board size (Bs), independent director ratio (Idr), development capacity (De), leverage ratio (Lev), firm size (Size), property rights nature (Prty) and industry type (Ind) from various aspects of firms’ finance, governance and nature of business. In addition, the model controlled for firm, time and industry effects.

Specific variables are defined in Table 2 .

Model design

In order to examine the impact of ESGP on brand value, the regression in this article employed the fixed effects model of firm, year and industry. Because the dependent variables are continuous, we tested the hypotheses using ordinary least squares (OLS) regressions on the panel dataset (Zhong et al., 2021 ) in Stata 17. We introduced four equations (Eqs) for the modelling design.

Firstly, a baseline model with control variables was constructed:

Then, the first-order term of ESGP was introduced to examine the linear relationship between ESGP and brand value, creating Model 2:

To better investigate whether there is a non-linear relationship, the square term of ESGP was added to Model 2 to capture non-linear effects and determine whether a U-shaped or inverted U-shaped relationship exists, forming Model 3:

To further examine the influence of digitalisation level on the relationship, Model 4 introduced digitalisation level and its interaction with ESGP to test for moderation effects:

Ethical considerations

This article followed all ethical standards for research without direct contact with human or animal subjects.

Empirical results and analysis

Analysis of empirical results, descriptive statistics.

Table 3 presents the descriptive statistics and correlation coefficients of the variables. The mean value of ESGP for the sample firms is 34.31, with a maximum value of 64.38 and a minimum value of 11.49, while the median is 32.54. There exists a significant correlation between Brand Value (BV) and the ESG variable ( p < 0.05). The correlation coefficients exceed 0.4 between Size and BV, Lev and Bs and Lev and Size. All other variables exhibit correlations below 0.4. In addition, the variance inflation factors of the variables are estimated and all values range from 1.03 and 1.86, which indicates that there is no serious problem of multicollinearity in the regression model.

Regression results

Table 4 provides the regression results for the hypotheses proposed earlier. All models control for individual firm fixed effects, year fixed effects and industry fixed effects. All regressions use robust standard errors clustered to the firm level. Model 1 is the baseline model with control variables. Model 2 introduces a first-order term of ESGP (ESG) into the baseline model. The results indicate that the regression coefficient between ESGP and brand value is not significant, suggesting that there is not a linear relationship. Model 3 introduces the second-order term of ESG into Model 2. The results show that the regression coefficient for the second-order term of ESG is significantly positive, while the coefficient for the first-order term of ESG is significantly negative ( α 1 = −32.935, p < 0.05; α 2 = 0.428, p < 0.05). The U-test (Lind & Mehlum, 2010 ) confirms the significance of these results at the 5% level. The inflection point for ESG is found to be 38.43229, within the range of sample firms’ ESG scores [11.4878, 64.3798]. The slope at the minimum ESG value is −23.09045, while at the maximum ESG value, it is 22.23607. Before reaching the critical point of ESG at 38.43229, there is a negative correlation between ESGP and brand value, and after reaching this point, there is a positive correlation. These findings indicate a U-shaped relationship, supporting Hypothesis 1.

Model 4 introduces the moderating variable digitalisation level (Dig), the interaction term of ESG and Dig (ESG*Dig) and the interaction term of ESG 2 and Dig (ESG 2 *Dig) into Model 3. The results show that even with the inclusion of the moderating variable Dig, a significant U-shaped relationship persists. The coefficient for the interaction term of ESG 2 *Dig is significantly negative ( β 5 = −0.025, p < 0.1), indicating that digitalisation level significantly negatively moderates the U-shaped relationship between ESGP and brand value, supporting Hypothesis 2.

Moreover, deriving the inflection point for the U-shaped relationship in Model 4, we find that ESG* = −( β 1 + β 4 * Dig)/ (2 β 2 + 2 β 5 * Dig). According to Haans et al. ( 2016 ), the derivative of Dig (dESG*/dDig = ( β 1 β 5 − β 2 β 4 )/ 2( β 2 + β 5 * Dig) 2 ) is less than 0, indicating that the inflection point of the U-shaped relationship shifts to the left with increasing Dig. Figure 3 presents the change of the inflection point at different digitalisation levels.

The aforementioned results derived from Model 4 imply two main conclusions. Firstly, the application of digital technology mitigates the U-shaped relationship. Before reaching the threshold, an increase in ESG has a less negative impact on brand value. Secondly, the inflection point for ESG shifts leftward, implying an earlier transition from a negative to a positive correlation between ESGP and brand value.

Extended analysis

Handling endogeneity issues.

In this research, two methods of instrumental variables and lagged explanatory variable models were employed to address potential omitted variables, measurement error and reverse causality endogeneity issues for research rigour. The results obtained supported the conclusions drawn from the regression.

Instrumental variable approach : Drawing inspiration from Song et al. ( 2022 ) and Breuer et al. ( 2018 ), this research utilised the industry average ESG score (INS1) for the current year as the instrumental variable for ESG and the square of the industry average ESG score (INS2) as the instrumental variable for ESG squared. Industry ESG was expected to be correlated with firm-level ESG while having minimal impact on brand value at the firm level. Two-stage least squares analysis with instrumental variables was employed.

The results presented in Table 5 show that Model 5 presents the first-stage regression results, with ESG and ESG squared as dependent variables and instrumental variables along with control variables as explanatory variables. Model 6 shows the second-stage regression results with the fitted values of ESG and ESG squared obtained from Model 5. The results demonstrate that the estimated impact of ESG squared on the digital transformation of firms, as obtained using instrumental variables, is significantly positive ( β = 0.7015, p < 0.01), consistent with the previous regression results. Furthermore, non-identification tests ( p < 0.01) and weak instrument tests indicate no issues with non-identification and weak instruments. A comparative analysis with the baseline regression results confirms the robustness of the study’s conclusions.

Lagged explanatory variable model : Given the potential time lag in the impact of ESGP on brand value, explanatory variables were lagged by one period to alleviate concerns about reverse causality. The regression results indicate that the coefficients for ESG and ESG squared at each lagged period remain significantly negative, consistent with the previous regression results. These findings underline the robustness of research results (see Table 6 ).

Robustness tests

Considering regional differences in economic development levels, which may influence the responses of firms, governments, industry regulators, consumers and suppliers to ESGP, the sample was divided into two groups based on the level of urban development. Firms registered in Beijing (B), Shanghai (S), Guangzhou (G) and Shenzhen (S) were grouped (Model 9) together, while those registered in other cities were grouped separately (Model 8). The subsample regression results in Table 7 demonstrate that the coefficients for ESG and ESG squared remain significant, indicating the robustness of research findings.

Examining the impact of different environmental, social and governance sub-items on brand value: To investigate the influence of individual ESG sub-items on brand value, this study replaced the core explanatory variable in the baseline model with environmental (E), social responsibility (S) and corporate governance (G), separately. The regression results in Table 8 reveal that E and S exhibit U-shaped relationships with brand value, while G’s impact on brand value is not significant. These results suggest that ESGP predominantly drives overall improvements in brand value through E and S sub-items, while the synergistic effect of G with other brand activities does not significantly impact brand value. This might be attributed to the fact that enhancements in operational performance through optimisation of governance structures and management mechanisms mainly occur within the firm, with external consumers perceiving reputation signals less prominently.

In this section, we present three key findings as follows.

Firstly, the impact of ESGP on brand value is not a simple linear relationship but exhibits a U-shaped pattern, characterised by an initial decline followed by an ascent. Before reaching the inflection point, ESGP exerts a negative influence on brand value. After the inflection point, ESGP positively affects brand value. On one hand, firms convey a reputation signal to consumers through strong ESGP, increasing brand value and illustrating a ‘reputation spillover effect’. However, to enhance ESGP, firms must allocate resources and incur costs, which may compete with other brand activities such as R&D, advertising and promotions. This ultimately leads to a decrease in brand value, demonstrating a ‘reputation constraint effect’. When ESGP is relatively low, it generates a reputation signal of insufficient strength and contributes less to brand value enhancement than the contribution of other resource allocations. Therefore, the reputation spillover effect is smaller than the reputation constraint effect, indicating that ESGP has a suppressing effect on brand value. Once a certain threshold is exceeded, the strength of the reputation signal generated by ESG increases significantly, outweighing the contribution of other brand communication activities. This shows the contribution of ESGP to brand value.

Secondly, the digitisation level negatively moderates the U-shaped relationship and shifts the inflection point to the left. When the digitalisation level is high, the reputation spillover effect of ESGP is strengthened, mitigating the negative impact of the reputation constraint effect. This leads to a slower decline in the impact of ESGP on brand value before the tipping point is reached and shifts the relationship from negative to positive earlier.

Thirdly, when examining ESG sub-items separately, the impact of ESGP on brand value is mainly reflected in the sub-items of environment and social responsibility, and the effect of governance is not significant.

Theoretical contributions

Our contribution mainly includes the following two aspects.

Firstly, our study adds value to CSR and ESG literature by investigating the non-linear impact of ESGP on brand value. Despite the rich research outcomes on ESGP over the past decade, much attention has been given to accounting outcomes such as asset return rates, net profits or stock values (Aouadi & Marsat, 2018 ; Wong et al., 2021 ). Brand value at the consumer level has been largely overlooked (Lin et al., 2021 ). Although studies have demonstrated the positive effects of CSR on brand value, conclusions are mainly positive (Lai et al., 2010 ; Torres et al., 2012 ). This study compares consumer reactions to ESGP with other brand communication activities (e.g. advertising or convention and exhibition) based on signalling theory. We find that as a reputation signal, ESGP exhibits different brand effects at different strength levels. Our study contributes to the research on the complex relationship between ESG and brand value, as well as empirical research on the scope and limitations of the role played by ESG and CSR performance. In addition, we open the black box of the effect of sub-items (E/S/G) on brand value, including the specific direction and strength. Our study enriches the boundaries of CSR and ESG research.

Secondly, we complement the research on the mechanisms of how ESGP affects brand value. The intrinsic mechanisms of how ESGP influences brand value are not yet clear and thorough. Existing research on the intrinsic mechanisms between ESG or CSR and brand value mainly focusses on psychological variables such as brand fit, brand awareness and brand identification (Gupta et al., 2013 ; He et al., 2011 ), ignoring the role of digital technologies. Artificial intelligence and the Internet of things add more dimensions to understanding brand value, which is a process involving multiple stakeholders between firms and consumers. Some authors have demonstrated the role of digital technology in firm performance (Li et al., 2022 ; Martínez-Caro et al., 2020 ; Wielgos et al., 2021 ). Scholars have called for more research on the co-creation of brand value based on digital technology and stakeholders (Iacobucci et al., 2019 ; Lee et al., 2022 ). This study evaluated the moderating role of digital technology in the impact of ESGP on brand value. We demonstrate the role of digital technologies in enhancing brand value and enrich the research on the impact of digitalisation on brand equity.

Managerial contributions

The conclusions drawn from this study provide several managerial insights for firms aiming to enhance brand value and promote sustainable development.

Firstly, firms should recognise the complex relationship between ESG and brand value and strive to find a balance between economic benefits and sustainable development. While it is generally believed that ‘doing good’ can improve a firm’s performance, the reality is that reputation-building efforts do not guarantee success until the ESGP reaches a threshold, because the reputation signals sent out by firms may not be effective to consumers. Reputation building is a continuous, long-term process that cannot be achieved overnight. Firms should assess reputation activities and other brand activities based on their resource investment returns (effectiveness and cost) so that they can develop a reasonable brand activity plan to achieve a positive brand impact. This gradual accumulation of reputation can garner consumer support and brand performance, such as Unilever or Cadillac.

Secondly, firms can utilise digital technologies and platforms to communicate and interact with consumers, integrating ESG principles into their daily brand activities. This will increase the effectiveness of ESG signalling across the interactive network of firms and consumers, co-creating brand value. Many firms recognise that digital technology is critical to remain competitive. However, in the ever-changing business environment, firms must be flexible in integrating digital technologies across functions, depending on the external market environment and internal organisational structure. Firms must fundamentally change the way they operate to deliver better value to their customers. Firms need to strive to identify the right approach for their organisation to achieve digital transformation and engage directly with customers throughout the organisation’s value chain. Thirdly, firms that fulfil more obligations on the environmental and social responsibility indices are more likely to be recognised by consumers than on the corporate governance index. Investments in environmental and social responsibility are more significant in enhancing brand value at the consumer level.

Limitations and directions for future research

This study emphasises that ESGP, as a reputation factor driving brand value, exhibits non-linear brand effects influenced by the strength of the reputation signal and its interaction with other brand activities. In an era marked by declining brand differentiation and enhanced information exchange because of digitalisation, how firms go beyond the traditional marketing mix to incorporate ESG into their marketing activities plays a pivotal role in enhancing brand value and gaining sustainable competitive advantage. One of the limitations of this study is that resource allocation plans for ESG activities, R&D, and promotional activities were not discussed. Future research could consider developing mathematical models to quantitatively analyse the relationship between ESG and R&D, marketing and digital technology, attempting to identify optimal solutions.

Furthermore, this study finds that digitisation level moderates the U-shaped effect of ESG on brand value. Before the inflection, digitalisation mitigates the inhibitory effect of ESG on brand value and accelerates the shift from a negative to a positive relationship. However, after a certain threshold, digitalisation weakens the promotional effect of ESG on brand value. Existing studies generally agree that the digitalisation level plays a key role in breaking through resource constraints and enhancing firm value. Studies also suggest that unreasonable digitalisation can lead to resource squeezing, increase coordination costs with stakeholders, weaken the impetus of digitisation to promote high-quality firm development and even cause adverse effects. Therefore, we hypothesise that digital transformation may exacerbate resource constraints and limit business activities, thus hindering the role of ESGP in promoting brand value. However, this study does not analyse and discuss the complex interaction between digital technology and other resources. Future research could look for evidence of these complex relationships, leading to intriguing conclusions.

Finally, we used empirical data from China. The sample data yield general conclusions that are representative and extendable. However, we call for more cross-cultural scholars to participate in the ESG research. We hope that the cross-cultural context of ESG and brand value research can make a greater contribution to the academic community.

Acknowledgements

Competing interests.

The authors declare that they have no financial or personal relationships that may have inappropriately influenced them in writing this article.

Authors’ contributions

Y.W., J.C. and X.C. contributed to the article, including writing the draft, collecting data, applying statistical techniques, analysing the results and writing, reviewing and editing the article.

Funding information

This research received a specific grant from Chaohu University’s Quality Engineering Project Number ch19zhkt03.

Data availability

The data were obtained from three databases: World Brand Lab, Bloomberg and CSMAR. All the data that support the findings of this study are available from the corresponding author, J.C., on reasonable request.

The views and opinions expressed in this article are those of the authors and are the product of professional research. It does not necessarily reflect the official policy or position of any affiliated institution, funder, agency or that of the publisher. The authors are responsible for this article’s results, findings and content.

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Kia, Hyundai sedans top most stolen car list of 2023

2021 Hyundai Elantra

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For the first time in a long time, Kia and Hyundai sedans outpaced full-size trucks as the most stolen vehicles in America, according to an annual report released Thursday by the National Insurance Crime Bureau (NICB).

The Hyundai Elantra , Hyundai Sonata, and Kia Optima took the top three spots for the most stolen vehicles in 2023. The Chevy Silverado 1500 pickup truck ranked fourth. 

While the findings may be new for the NICB, it's not news in what has become an epidemic of car theft. Last month, the NICB reported that vehicle thefts have continued to rise since 2019, with vehicle thefts increasing 1% from 2022 to 2023. The nonprofit organization funded by the insurance industry reported 1,020,729 vehicles stolen in 2023.

For reference, there were 278 million passenger and commercial vehicles registered in the U.S. in 2022, according to the U.S. Department of Transportation. Trucks accounted for about 171 million of those registrations, which is why trucks typically take the top spots in the most stolen vehicles. Until this year. 

Why car thieves target Hyundai and Kia models 

Hyundai and Kia sedans with keyed ignitions instead of pushbutton starts have been besieged by high rates of car theft since before the pandemic, accelerated by viral social media posts demonstrating how to hack the cars' ignition systems with a USB cable or similar device. The hack allowed the thieves to drive away without a key or key fob. The vehicles, typically older entry-level models, lacked theft immobilizers.  

A 2021  study by the Highway Loss Data Institute , the research agency of the Insurance Institute for Highway Safety (IIHS), found that 26% of 2015 Hyundai and Kia vehicles had such passive theft immobilizers; 96% of all other makes combined had an anti-theft device as standard. For the 2021 model year, the number of Hyundais and Kias with theft immobilizers increased to 78%. 

During the pandemic, viral videos of "Kia Boys" featuring underage teens stealing cars in urban areas to go on joy rides until crashing brought the issue under the national spotlight. The viral trend had been attributed to eight vehicular deaths, in part prompting a class-action lawsuit that the related brands settled for $200 million in May 2023.

At the time, auto insurance companies seemed reluctant to take on clients purchasing older Hyundai/Kia models,  according to an NPR report .

The settlement covered roughly 9 million owners of 2011-2022 model year cars with traditional keyed ignitions. In February of last year, Hyundai and Kia, who are owned by the Hyundai Motor Group conglomerate headquartered in South Korea, rolled out a free software upgrade for cars that lack engine immobilizers. In addition to window stickers and car alarm sirens that would sound for a minute instead of 30 seconds, the software upgrade required the key to be in the ignition switch to turn on. It can be installed at dealers for free. The brands also provided steering wheel locks or compensation for steering wheel locks to deter theft.

Top 10 most stolen cars in 2023

Car theft remains a problem nationwide, the NICB reports, with the number of thefts in 2023 breaking another record. It's not just vulnerable models like older Hyundai and Kias, either. The top 10, and the number of models stolen, breaks down as follows:

• Hyundai Elantra (48,445)
• Hyundai Sonata (42,813)
• Kia Optima (30,204)
• Chevrolet Silverado (23,721)
• Kia Soul (21,001)
• Honda Accord (20,895)
• Honda Civic (19,858)
• Kia Forte (16,209)
• Ford F-150 (15,582)
• Kia Sportage (15,749)

The reasons for the record-breaking amount of vehicular thefts are manifold. 

“Criminals are employing increasingly sophisticated methods to steal vehicles, including the use of advanced technology to bypass security systems,” David J. Glawe, president and CEO of the NICB, said in a statement. “From keyless entry hacks to relay attacks on key fobs, perpetrators are exploiting vulnerabilities in modern vehicle security measures with alarming success rates." 

The NICB reported that recovery rates remain high, with more than 85% of stolen vehicles recovered. The agency advises to call law enforcement and your insurance carrier immediately in case of theft to increase the chances of it being recovered. 

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What is brand value and how can you measure and improve it.

7 min read Products and services aren’t the only valuable things your company owns. By understanding and optimizing brand value, you can invest in a powerful strategy for long-term gains.

The power of the brand

The brand awareness as a valuable asset is relatively recent. Back in the 1950s, business success and consumer choice were defined solely on product quality and value, not the name on the tin, according to the Atlantic . The advertising boom of the 1960s turned company identities into household names, bringing them into public consciousness through the medium of marketing. Brand names became a proxy for desirable characteristics like sleek design, durability, refinement, service, and innovation.

Nowadays it’s hard to imagine making purchase decisions without brand coming into play, so immersed are we in the culture of brand identity and meaning. We reflexively look to the brand name of an item to help determine its value. Little wonder then that today’s brands are valuable commodities that are built, nurtured, and even bought and sold between companies.

What is brand value?

Brand value is the monetary worth of your brand, if you were to sell it.

If your company were to merge or be bought out by another business, and they wanted to use your name, logo, and brand identity to sell products or services, your brand value would be the amount they would pay you for that right. This is market-based brand value.

Another way to think of brand value is in terms of replacement cost (cost-based brand value). In this sense, brand value is the amount you would need to spend to design, execute, promote and amplify a totally new brand to the same level as your old one. That figure might include the cost of hiring a design agency, the time and effort spent on marketing and social media strategy, the cost of advertising, PR outreach and sponsorship, and so on.

Brand value vs. brand equity

Whereas brand value is a financial gauge of your brand’s worth, brand equity is to do with customer perceptions and how positive they are. Customers who prefer your brand to others and exhibit loyalty to your brand over time are contributing to your brand equity.

Brand equity can be viewed as a factor influencing brand value, since in building your brand equity, you’re contributing to the qualities that will make it valuable – things like brand recognition, positive associations with quality and service, or aspirational value. All these factors promote revenue by driving customer spend and customer loyalty.

However, a brand can also have value without having equity. For example, in the pre-release phase of a product, a company would spend money and invest value into developing a brand before its future customers ever see it. Brand equity is linked to both reputation and brand purpose , since these relate to how a customer’s personal values align to a brand’s, and the resulting bond that forms between them.

Compared with brand value, brand equity is a more nebulous concept and harder to measure, since it relates to consumer motivation, opinion, and behaviour rather than financial figures.

How to measure brand value

Today’s appreciation of the power of brands means that there is deep thinking, and as a result, a wide array of perspectives on what makes a brand successful, how brands interact with consumer psychology, and even what the true definition of brand should be. Unsurprisingly then, measuring brand value can be complex and confusing without a clear strategy in mind.

That said, the most fundamental ways of measuring brand value are still quite simple. One of the most straightforward methods is to ask other companies what they would pay for the rights to your brand. By doing this, you’d get a range of figures you could average out to arrive at a fair market value.

Likewise, you can gather quotes from providers or make internal projections to find out how much it would cost to develop a brand equivalent to your current one.

The brand value chain

An important milestone in the development of brand-building strategy is the  brand value chain model . It’s a 4-step schematic developed by marketing experts Keller and Lehman in 2003. It describes how brand value can be built through marketing, and the variables that affect progress along the journey.

There are 4 brand value chain stages (marketing program investment, customer mindset, market performance, and shareholder value.) These stages are moderated by three “multipliers” – (marketing) program quality, marketplace conditions, and investor sentiment, which may affect how fast and well brand value can be increased.

As it was developed in 2003, the brand value chain does not specifically take into account digital marketing and how brand value and reputation are built online, and in particular, how digital culture has changed consumer behaviour. However, it can provide a useful framework for building and quantifying brand value.

Building your brand value

Here are a few of the ways you can enhance your brand’s equity and ultimately, your brand value:

1. Marketing and advertising

Marketing helps you to move from brand awareness and recognition to understanding, alignment and loyalty from your customers.

According to the original definition, brand value chains start with marketing is the first step to realising brand value, since it establishes the brand in the mind of the customer .

2. Ambassadorship and sponsoring

Whether it’s sports stars, social media influencers, or musicians, aligning with a well-known individual or group is a well-established form of brand-building. It not only raises awareness and recognition of your brand, but it can also be linked with brand purpose, where your company’s ethical and social values are enhanced and amplified by your choice of ambassador.

3. Customer experience

Providing  great customer experiences is a powerful way to boost brand equity. As much as quality products and services, customers increasingly expect a good experience from brands, and research has shown that many are willing to pay more and choose brands ahead of their competitors when they’ve enjoyed a positive experience.

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