Unraveling corporate brand equity: a measurement model based on consumer perception of corporate brands

Abstract

Purpose Consumer perception of corporate brand equity has primarily focused on product brand dimensions, neglecting considerations at the firm analysis level. Assessing corporate brands requires different criteria relevant to the competitiveness of companies, such as their prominence, management and meeting society’s demands. In this sense, this study aims to develop and validate a scale of corporate brand equity founded on consumer perceptions, transcending industry boundaries and comparing its relationship with companies' market share. Design/methodology/approach The authors used an integrative approach to clarify the construct’s domain, building on previous measures. They took several steps to select appropriate items, refine the measure, validate it through reliability tests and convergent and discriminant analyses, test the validity of the second-order formative structure of corporate brand equity and assess associations between first-order factors, the second-order factor and market share. Findings The model identifies three first-order dimensions of corporate brands (presence, outstanding management and responsible) that shape the second-order factor (corporate brand equity). They are directly related, but not proportionally, to market share, contributing to the general and joint assessment of the company’s competitive performance considering the consumer. Originality/value To the best of the authors’ knowledge, this study is the first attempt to develop a comprehensive measurement model of corporate brand equity that considers the firm level of analysis, combines metrics from previous research on corporate brand evaluation criteria and includes consumer perceptions of the company’s competitiveness, unifying branding theory with the theory of the marketing firm.