CoreBrand Ranks as Most Effective in Assessing Brand Equity

NEW YORK, June 17, 2014 /PRNewswire/ -- CoreBrand, a leading brand strategy and communications firm and creator of the Corporate Branding Index®, announced today that its market-based approach to brand valuation has been selected as the leading tool for measuring brand equity by an independent international university validation study.  

Dr. Marc Fischer, director of the University of Cologne's Department for Marketing and Market Research, conducted the study "How Useful are Brand Valuation Methods?" by analyzing nine prominent valuation methods, pulling data from more than 4,500 different brands across 70 industries from a 22-year-period. The study found that CoreBrand's market-based model performs "best in meeting the validity requirements."

"Today, corporate executives are paying closer attention to the worth of their brand derived from a company's core intangible assets, in part because of the unique models available,"CoreBrand CEO Jim Gregory said. "But the lingering question—and the one this study sought to unravel—lies in how best to trust results produced from the range of competitive models."

Dr. Fischer's large-scale study analyzed data from 1990 to 2011 to assess the convergent, discriminant, nomological and predictive validity of market, cost and income-based brand valuation models. The sample included roughly 37,000 financial values from 89 countries.

Key findings:

• CoreBrand's market-based approach tested highest for reliability, meeting criteria for convergent, nomological and predictive validity. Simon-and-Sullivan's similar market-based method reported comparable findings, though the model did not match criteria for predictive validity.
• Market-based research models such as CoreBrand's Corporate Branding Index outperformed both income-based and cost-based models. Income-based models scored in reliability, discriminant and predicative validity, but largely fell short in convergent and nomological validity, while the capitalized cost-approach lacked reliability and predicative validity.

"Companies that invest in developing their brand need a consistent measure to track the reputation they've built," Gregory added. "Time and time again, CoreBrand's model offers unique insights on companies and industries—information that, in turn, better informs stakeholders and effectively shapes corporate strategies."

You can access a summary of the report here: http://www.corebrand.com/news-views/thought-leadership/reports

About CoreBrand

CoreBrand is a full-service brand consultancy that helps organizations understand, define, express and leverage their brands for measurable results. For 40 years, we have been fueled by fact-based branding, driven by a curiosity to understand how brand can help clients achieve their goals. Whether delivering research, strategy, creative expression or ongoing brand management, our sole focus is to help clients use their brands to make a measureable difference in business results. To learn more about CoreBrand, please visit http://www.corebrand.com.

SOURCE CoreBrand