In every product or service category, some brands are more preferred than others. Brand preference is a crucial marketing metric because it anticipates the success of marketing activities and can be used to assess the financial performance of brands.
“Measuring Brand Preference” is tackled in Chapter 4 of Accountable Marketing: Linking Marketing Actions to Financial Performance (Routledge; 2016). According to Michael Hess and Allan R. Kuse, Ph.D., “brand preference is important because it relates to the cost of doing business and the short- and long-term success of the brand.”
Hess is executive vice president of Data Fusion and Integration at The Nielsen Company. Dr. Kuse is a director of MASB, the Marketing Accountability Standards Board.
The authors contend that because they are more likely to win the battle for market share, preferred brands can charge higher prices than less-preferred brands while still retaining a desirable level of share. Brand preference leads us to no longer view advertising as just an “expense of doing business.” It can be considered a “wise investment.”
The chapter describes three sets of brand preference measures, including attitudinal surveys, conjoint analyses and behavior-based measures. Examples linking these measures to financial performance are also presented.
Accountable Marketing: Linking marketing actions to financial performance; Edited by David W Stewart & Craig Gugel, © 2016 – Routledge
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