Thursday, October 22, 2009

A recent paper on measuring the value of branding dollars spent, written by  Susan Fournier, associate professor of marketing at Boston University School of Management, has reached the “Top Ten” download list for articles on managerial marketing, accessible through the Social Science Research Network (SSRN). SSRN is one of the world’s major research destinations for management scholars.

The paper, co-authored with Thomas Madden and Frank Fehle, is entitled “Brands Matter: An Empirical Demonstration of the Creation of Shareholder Value Through Brands.”

Paper Abstract:

Past research has shown a correlation between measures of brand equity and stock price. However, these results are not sufficient to conclude that branding creates shareholder value. Using time-honored models from the discipline of finance, this paper specifies, and subsequently tests, the necessary and sufficient conditions to determine whether brand strength leads to the creation of shareholder value.

The results presented extend previous research by showing that strong brands not only deliver greater returns to stockholders versus a relevant market benchmark, they do so with less risk. A reframing of brand research within the framework of risk management is recommended, toward a goal of greater organizational interdependence and accountability for the marketing function as a whole.

According to the SSRN, as of September 29, 2009, “Brands Matter” was downloaded 1,668 times.