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Abstract

This study examines how brand values of different carbonated soft drink (CSD) products change over time and how advertising and social media exposure contribute to brand building. The model consists of two stages. In the first stage, we adopt a structural approach to estimate the brand equities of 12 CSD products and measure the brand values in a Bertrand-Nash equilibrium. In the second stage, we study the impacts of marketing-mix variables on brand values. The empirical results show that both advertising expenditure and the quality of social media activity are important to brand value while the increase in the total social media activity has little effect.

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