Combining Brand Equity Questionnaire with Weighted Average Cost of Capital

Combining Brand Equity Questionnaire with Weighted Average Cost of Capital

Brand is a multi-dimensional type of intangible asset, that has a significant effect on success of a corporation in market. So, measuring the amount of its strength, would help managers and marketers to find out the potential value of their brand. Also, a more valuable brand can generate more cash. In the leading research, a new approach for evaluating value of a brand according to its strength is presented. The new approach is structured based on Brand Equity Strength concept and Weighted Average Cost of Capital (WACC). In order to making this method, 5 phases were taken. First structured literature of brand equity was reviewed. 136 main parameters with effect on brand equity strength were gained in this part. Second 426 business experts were interviewed. Third, a Brand Equity Strength (BES) questionnaire was introduced (according to literature review and interview result). fourth, WACC formula was changed and improved (according to experts' opinion). At last, the BES questionnaire and improved WACC were integrated so that a new quantitative-qualitative method for brand evaluation was generated. 40 public companies' brands were evaluated by the new approach and 2 other existing approaches. By comparing the results of them, accuracy of the new approach was approved.