We study the optimal levels of advertising and promotion budgets in dynamic markets with brand equity as a mediating variable. To this end, we develop and estimate a state-space model based on the Kalman filter that captures the dynamics of brand equity as influenced by its drivers that include a brand’s advertising and sales promotion expenditures. By integrating the Kalman filter with the ran...

B has emerged as a top management priority in the last decade due to the growing realization that brands are one of the most valuable intangible assets that firms have. Driven in part by this intense industry interest, academic researchers have explored a number of different brand-related topics in recent years, generating scores of papers, articles, research reports, and books. This paper iden...

We propose that brand equity can influence job seekers’ perceptions of job opportunities. Our results suggest that job seekers view working for a strong brand as a way to build the power of their résumé. The belief that strong brands build powerful résumés is, in part, the outcome of job seekers’ beliefs that working for a strong brand will allow them to advance to better positions internally, ...

27 The prevalence of line extensions, as manufacturers struggle to maximize the leverage of their brand equity, is undoubted and well documented (Aaker 1991; Ries and Trout 1986; Tauber 1981). Brand owners use existing brand names to reduce barriers to entry for the new line with the implicit assumption that additional profit will be earned as a result. But haunting the parent brand is the spec...

We propose a game-theoretic model in which one national-brand manufacturer, acting as a leader, maximizes her own profit and one retailer, selling the national brand and her private label and acting as a follower, maximizes her category profit. We characterize the resulting Stackelberg equilibrium in terms of the amount of shelf space allocated to these brands as well as their prices. The resul...