Measuring Brand Awareness in a Random Utility Model
Pierfrancesco Dotta, Marco Tolotti and Jorge Yepez
Abstract:
Brand Awareness is recognized to be an important determinant in
shaping the success of durables, yet it is very difficult to be quantified. This
is exactly the main goal of this paper: propose a suitable model where brand
awareness of two competing firms is modeled and, eventually, estimated. To this
aim, we build a random utility model for a duopoly where each competitor is
characterized by different pricing strategies and brand awareness. As a result,
different levels of market shares will emerge at the equilibrium. As a case study,
we calibrate the model with real data from the smartphone industry obtaining an
estimate of the value of the brand awareness of two leading brands.