Trigeorgis, L, Baldi, F and Katsikeas, CS orcid.org/0000-0002-8748-6829 (2021) Valuation of Brand Equity and Retailer Growth Strategies Using Real Options. Journal of Retailing, 97 (4). pp. 523-544. ISSN 0022-4359
Abstract
In marketing, significant attention has been devoted to the study of drivers and outcomes of strategic flexibility drawing on real options theory. However, research that quantifies the specific value of flexibility reflected in a bundle of strategic real options is lacking. To remedy this gap, we develop a real options-based framework that takes account of brand expansion and extension options to value brand equity and retailer growth strategies. We show how to value the bundle of strategic real options associated with a flexible marketing strategic vision and how to assess the growth strategies related to the corporate brand of an international retailer. We apply our method to estimating the brand equity of Starbucks both under growth and adversity conditions. The results reveal that our method can more reliably incorporate the growth potential of the brand under uncertainty conditions. Comparisons with other brand valuation approaches are discussed. Our study helps clarify the links among management’s strategic plans, brand-based marketing strategies and share price, and allows to better monitor the impact of retailer strategic choices on long-term brand equity value.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 New York University. Published by Elsevier Inc. All rights reserved. This is an author produced version of an article published in Journal of Retailing Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Retailer growth strategy; Brand equity; Real options |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Marketing Division (LUBS) |
Depositing User: | Symplectic Publications |
Date Deposited: | 15 Jan 2021 16:24 |
Last Modified: | 19 Feb 2023 01:13 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.jretai.2021.01.002 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:170013 |
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