The impact of brand health on customer equity |
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| Affiliation: | 1. Macquarie University, Sydney, Australia;2. Swinburne University, Melbourne, Australia;3. Seoul National University, Republic of Korea;1. Florida Atlantic University, Davie, FL 33314, United States;2. Nova Southeastern University, Davie, FL 33314, United States;1. Eastern Washington University, United States;2. University of Texas Rio Grande Valley, United States;3. University of North Texas, United States;1. Department of Finance and Marketing, Eastern Washington University, Bellevue Campus, 3000 Lander Holm Circle Se, Bellevue, WA 98007, USA;2. Department of Information Systems and Business Analytics, 668 N. Riverpoint Blvd Suite A, Spokane, WA 99202, USA;1. Aix-Marseille University, CERGAM, Faculté d''Economie et de Gestion, Rue Puvis de Chavanne, 13001 Marseille, France;2. INSEEC Business School, 27, Avenue Claude Vellefaux, 75010 Paris, France;3. Aix-Marseille University, CRET-LOG, 413 Avenue Gaston Berger, 13625 Aix-en-Provence Cedex, France |
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| Abstract: | This paper aims at studying the interactions between brand and customer assets over the long-term. Through the application of a new behavioural measure called the brand health index (BHI) we examine the impact of brand health on customer equity, and its mediating impact on the advertising-customer equity relationship. Three services industries, department stores, airlines, and banking, were studied from 2001 to 2012. The results show that brand health has a positive impact on customer equity, although the magnitude of the BHI impact varies across different industries. Moreover it was demonstrated that brand health mediates the impact of advertising on customer equity. |
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| Keywords: | Customer Equity Advertising Spending Brand Equity Brand Health Customer Lifetime Value |
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